National Programme F. Croatia - 2009

NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009
Publisher Republic of Croatia Ministry of Foreign Affairs and European Integration
Print run 100 copies
Press Denona d.o.o.
Zagreb, April 2009
A CIP catalogue record for this book is available from the National and University Library in Zagreb under 668021 ISBN 978-953-7010-88-1
NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009
NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009
INTRODUCTORY NOTE INTRODUCTION
INTRODUCTORY NOTE
The Government of the Republic of Croatia enters 2009 with the aim of finalising accession negotiations with the European Union, meaning that we are determined to fulfil the remaining criteria related to the acquis communautaire. We are thus entering the final phase of a process which officially began in 2005, but which had been set as a foreign policy priority two decades ago, at the time the sovereign and independent Republic of Croatia was formed. Croatias great progress achieved in the past few years enabled the European Commission to include a road map for completing the accession negotiations with Croatia in 2009 in its Enlargement Strategy of November 2008. The European Commission also proposed the formation of an ad-hoc working group for the drawing up of a Accession Treaty with Croatia and announced the presentation of a financial package for Croatias accession to the European Union. The said measures, welcomed by the European Council in its conclusions of December 2008, are a clear indication of Croatias progress in transposing the acquis communautaire. They are also an incentive to continue the reforms needed for full membership. From the opening of negotiations on membership of the European Union, Croatia has achieved significant results. In the course of 2008, extensive progress was made in all segments of the negotiations, especially in terms of meeting the benchmarks for opening and closing negotiating chapters. Key decisions were taken in the demanding reforms, which are necessary for joining the European Union, but also primarily in order to strengthen the Croatian economy and society as a whole. The Government of the Republic of Croatia foresees that the new National Programme will provide the basis for continued activities within the framework of all criteria for membership of the European Union. This year, it is planned to adopt 57 laws and a quantity of subordinate legislation and implementation measures to ensure effective implementation of the acquis communautaire. In addition, the National Programme foresees a number of strategic documents for the development of individual sectors, such as agriculture, public procurement, and competition. By adopting this National Programme for 2009, the Republic of Croatia confirms its credibility in the negotiating process, its full commitment to meeting European standards and accepting European values, and in particular its respect for the principles of the rule of law, solidarity and co-operation, on which the European Union rests. Croatia has developed its preparations for membership precisely along the lines of the said values, and it is in line with the said values that Croatia intends to become the 28th member of the European Union.
Ivo Sanader, PhD Prime Minister of the Republic of Croatia
TABLE OF CONTENTS
TABLE OF CONTENTS
TABLE OF CONTENTS
INTRODUCTORY NOTE TABLE OF CONTENTS LIST OF ABBREVIATIONS INTRODUCTION I. POLITICAL CRITERIA

1.1. INTRODUCTION 1.2. DEMOCRACY AND THE RULE OF LAW 1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1.4. OMBUDSMAN 1.5. RETURN OF REFUGEES 1.6. CO-OPERATION WITH THE INTERNATIONAL CRIMINAL TRIBUNAL FOR FORMER YUGOSLAVIA 1.7. REGIONAL CO-OPERATION
19
24
31 31 32 49 64 65 71 74
II. ECONOMIC CRITERIA

2.1. INTRODUCTION 2.2. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA 2.3. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 2.4 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU 2.5. MAASTRICHT CRITERIA
91 91 92 93 104 113
III. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP

3.1. FREE MOVEMENT OF GOODS 3.1.1. Horizontal issues 3.1.2. Old Approach Directives 3.1.3. New Approach Directives 3.1.4. Procedural matters 3.2. FREEDOM OF MOVEMENT FOR WORKERS 3.2.2. Co-ordination of social security systems 3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 3.3.1. The Right of Establishment 3.3.2. Freedom to Provide Cross-Border Services 3.3.3. Postal services 3.3.4. Mutual Recognition of Qualifications
116 116 116 137 144 160 166 168 171 171 173 176 178
3.4.
FREE MOVEMENT OF CAPITAL 3.4.1. Movement of capital and current payments 3.4.2. Payments and collections 3.4.3. Prevention of money laundering
181 181 182 182 187 187 190 192 194 194 196 197 199 199 200 203 209 209 210 215 215 221 225 227 227 231 233 236 236 239 240 241 243 244 244 246 246 248 252
3.5.
PUBLIC PROCUREMENT 3.5.1. Public Procurement 3.5.2. Concessions 3.5.3. Public Private Partnerships
3.6.
COMPANY LAW 3.6.1 Company Law 3.6.2 Accounting 3.6.3 Audit
3.7.
INTELLECTUAL PROPERTY RIGHTS 3.7.1. Copyright and Related Rights 3.7.2. Industrial Property 3.7.3. Enforcement of Intellectual Property Rights
3.8.
COMPETITION POLICY 3.8.1. Anti-trust and merger control 3.8.2. State Aid
3.9.
FINANCIAL SERVICES 3.9.1. Banking 3.9.2. Insurance 3.9.3. Capital market
3.10. INFORMATION SOCIETY AND MEDIA 3.10.1. Electronic communications 3.10.2. Information society services 3.10.3. Audiovisual policy 3.11. AGRICULTURE AND RURAL DEVELOPMENT 3.11.1. Agricultural policy and horizontal measures 3.11.2. Rural development policy 3.11.3. Livestock breeding 3.11.4. Plant production 3.11.5. Quality policy 3.11.6. Organic production 3.11.7. Vertical legislation 3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 3.12.1. Food safety 3.12.2. Veterinary policy 3.12.3. Zootechnics
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TABLE OF CONTENTS
3.12.4. Phytosanitary policy 3.12.5. Plant production 3.13. FISHERIES 3.14. TRANSPORT POLICY 3.14.1. Road transport 3.14.2. Railway transport 3.14.3. Combined transport 3.14.4. Inland navigation 3.14.5. Air transport 3.14.6. Maritime transport 3.14.7. State aid 3.15. ENERGY 3.15.1. Energy product market and security of supply 3.15.2. Energy efficiency and renewable energy sources 3.15.3. Nuclear safety and radiation protection 3.16. TAXATION 3.17. ECONOMIC AND MONETARY POLICY 3.17.1. Priorities in legislative alignment 3.17.2. Co-ordination of economic and fiscal policies 3.17.3. Monetary and exchange rate policy 3.18. STATISTICS 3.18.1. Support to statistical data, technical infrastructure 3.18.2. Demographics and social statistics 3.18.4. Agriculture, forestry and fisheries 3.18.5. Multi-sector statistics 3.18.6. Sources and management 3.19. SOCIAL POLICY AND EMPLOYMENT 3.19.1. Labour legislation 3.19.2. Health and safety at work 3.19.3. Social dialogue 3.19.4. Employment and the European Social Fund 3.19.5. Social inclusion 3.19.6. Social security 3.19.7. Anti-discrimination and equal opportunities 3.20. ENTERPRISE AND INDUSTRIAL POLICY 3.20.1. Enterprise 3.20.2. Industrial policy 3.20.3. Industrial sectors 3.20.4. Tourism
252 259 261 264 264 267 269 269 270 272 276 278 278 280 282 285 294 294 294 295 296 296 297 305 306 307 308 308 311 313 315 329 331 333 335 335 340 340 343
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3.21. TRANS-EUROPEAN NETWORKS 3.21.1. Transport networks 3.21.2 Energy networks 3.22. REGIONAL POLICY AND CO-ORDINATION OF STRUCTURAL INSTRUMENTS 3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 3.23.1. Judicial reform 3.23.2. Anti-corruption Measures 3.23.3. Fundamental rights 3.24. JUSTICE, FREEDOM AND SECURITY 3.24.1. Asylum 3.24.2. Migration 3.24.3. Visas 3.24.4. Border Management and Schengen 3.24.5 Police Co-operation and the Fight against Organised Crime 3.24.6. Terrorism 3.24.7 Co-operation in the Area of Drugs 3.24.8 Judicial Co-operation in Criminal and Civil Matters 3.24.9. Customs Co-operation 3.25. SCIENCE AND RESEARCH 3.26. EDUCATION AND CULTURE 3.26.1. Education and training 3.26.2. Culture 3.27. ENVIRONMENT 3.27.1. Horizontal legislation 3.27.2. Air quality 3.27.3. Waste management 3.27.4. Water quality 3.27.5. Quality of the sea and marine environment 3.27.6. Nature protection 3.27.7. Industrial pollution control and risk management 3.27.8. Chemicals and GMOs 3.27.9. Noise protection 3.27.10. Forestry 3.28. CONSUMER AND HEALTH PROTECTION 3.28.1. Consumer protection 3.28.2. Health Protection 3.29. CUSTOMS UNION 3.30. EXTERNAL RELATIONS 3.31. FOREIGN, SECURITY AND DEFENCE POLICY
346 346 347 348 354 354 365 370 374 374 376 379 383 387 399 400 402 405 407 414 414 425 427 427 435 438 440 443 444 449 452 455 455 456 456 461 465 468 473
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TABLE OF CONTENTS
3.31.1. Introduction 3.31.2. Co-operation with international organisations 3.31.3. Arms control 3.31.4. Implementation of restrictive measures and economic sanctions 3.31.5. Croatias contribution to anti-terrorism efforts 3.31.6. European Security and Defence Policy 3.31.7. Peace missions and operations 3.31.8. Visa regime 3.32. FINANCIAL CONTROL 3.32.1 Public Internal Financial Control System 3.32.2 External Audits State Audit Office 3.32.3. Protection of EU financial interests 3.33. FINANCIAL AND BUDGETARY PROVISIONS
473 474 483 491 492 493 493 496 498 498 501 502 506
ANNEX A
I. 1.1. 1.3. POLITICAL CRITERIA DEMOCRACY AND THE RULE OF LAW HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1.3.1. Civil, political, economic and social rights 1.6. 3.1. CO-OPERATION WITH THE ICTY FREE MOVEMENT OF GOODS 3.1.1. Horizontal issues 3.1.2. Old Approach Directives 3.1.3. New Approach Directives 3.1.4. Procedural matters 3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 3.3.2. Freedom to provide cross-border services 3.3.3. Postal services 3.4. FREE MOVEMENT OF CAPITAL 3.4.2. Payments and collections 3.5. 3.6. 3.7. 3.8. PUBLIC PROCUREMENT COMPANY LAW INTELLECTUAL PROPERTY RIGHTS COMPETITION POLICY 3.8.1. Competition law 3.8.2. State aid 3.9. FINANCIAL SERVICES 3.9.3. Securities market and investment services 511 511 514 514 515 516 516 521 528 536 538 538 540 541 541 542 543 544 546 546 548 549 549
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3.10. INFORMATION SOCIETY AND MEDIA 3.10.1. Electronic communications 3.10.2. Information society 3.10.3. Audiovisual policy 3.11. AGRICULTURE AND RURAL DEVELOPMENT 3.11.1. Agricultural policy and horizontal measures 3.11.2. Rural development policy 3.11.3. Livestock breeding 3.11.4. Plant production 3.11.5. Quality policy 3.11.6. Organic production 3.11.7. Vertical legislation 3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 3.12.1. Food safety 3.12.2. Veterinary medicine 3.12.3. Zootechnics 3.12.4. Phytosanitary policy 3.12.5. Plant production 3.13. FISHERIES 3.14. TRANSPORT POLICY 3.14.1. Road transport 3.14.2. Railway transport 3.14.3. Combined transport 3.14.4. Inland navigation 3.14.5. Air transport 3.14.6. Maritime transport 3.15. ENERGY 3.16. TAXATION 3.18. STATISTICS 3.19. SOCIAL POLICY AND EMPLOYMENT 3.19.1. Labour legislation 3.19.2. Health and safety at work 3.19.3. Social dialogue 3.20. ENTERPRISE AND INDUSTRIAL POLICY 3.20.2. Industrial policy 3.21. TRANS-EUROPEAN NETWORKS 3.21.1. Transport networks 3.22. REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS
552 552 554 555 556 556 557 558 559 561 563 564 566 566 567 575 576 583 585 588 588 589 590 591 592 594 596 598 600 602 602 604 604 605 605 606 606 607
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TABLE OF CONTENTS
3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 3.23.1. Judicial reform 3.23.2. Anti-corruption measures 3.24. JUSTICE, FREEDOM AND SECURITY 3.24.2. Migration 3.24.3. Visas 3.24.4. Border management and Schengen 3.24.5. Police co-operation and the fight against organised crime 3.24.7. Co-operation in the area of drugs 3.24.8. Judicial co-operation in criminal and civil matters 3.25. SCIENCE AND RESEARCH 3.26. EDUCATION AND CULTURE 3.26.1. Education and training 3.27. ENVIRONMENT 3.27.1. Horizontal legislation 3.27.2. Air quality 3.27.3. Waste management 3.27.4. Water management 3.27.6. Nature protection 3.27.7. Industrial pollution control and risk management 3.27.8. Chemicals and GMO 3.27.9. Noise protection 3.27.10. Forestry 3.28. CONSUMER AND HEALTH PROTECTION 3.28.1. Consumer protection 3.28.2. Health protection 3.29. CUSTOMS UNION 3.30. EXTERNAL RELATIONS 3.31. FOREIGN, SECURITY AND DEFENCE POLICY 3.31.3. Arms control 3.32. FINANCIAL SUPERVISION 3.33. FINANCIAL AND BUDGETARY PROVISIONS
609 609 611 612 612 613 614 617 620 621 623 624 624 625 625 626 627 628 630 631 632 634 635 636 636 638 640 641 642 642 643 644
ANNEX B
TABLE OF PLANNED BUDGET FUNDS PLANNED FOREIGN ASSISTANCE FUNDS 647 673
15
16
LIST OF ABBREVIATIONS
18
MINISTRIES
MF MF TA MF CA MF FEI MF FP MELE MC MSTI MT MFVAIS MD MJ MRDFWM MAFRD MI MFAEI MEPPPC MSES MHSW Ministry of Finance Ministry of Finance Tax Administration Ministry of Finance Customs Administration Ministry of Finance Foreign Exchange Inspectorate Ministry of Finance Financial Police Ministry of the Economy, Labour and Entrepreneurship Ministry of Culture Ministry of the Sea, Transport and Infrastructure Ministry of Tourism Ministry of the Family, Veterans Affairs and Intergenerational Solidarity Ministry of Defence Ministry of Justice Ministry of Regional Development, Forestry and Water Management Ministry of Agriculture, Fisheries and Rural Development Ministry of the Interior Ministry of Foreign Affairs and European Integration Ministry of Environmental Protection, Physical Planning and Construction Ministry of Science, Education and Sports Ministry of Health and Social Welfare
STATE ADMINISTRATION ORGANISATIONS
SGD NPRD MHSC SI
State Geodetic Directorate National Protection and Rescue Directorate Meteorological and Hydrographic Service of Croatia State Inspectorate
19
SIPO DZM SONS CBS SIRP
State Intellectual Property Office State Office for Metrology State Office for Nuclear Safety Central Bureau of Statistics State Institute for Radiation Protection
CENTRAL STATE OFFICES
CSOPA CSAOeC CSAOSPM CODEF
Central State Office for Public Administration Central State Office for e-Croatia Central State Office for State Property Management Central Office for Development Strategy and Co-ordination of EU Funds
AGENCIES
CGREA CCA PDPA AEIP HAGENA HAMAG HANFA HZMO SAO CARNet HAA HZN CEA CDA CERA
Croatian Government Real Estate Agency Croatian Competition Agency Personal Data Protection Agency Agency for Export and Investment Promotion Croatian Agency for the Supervision of Pension Funds Croatian Agency for Small Business Croatian Financial Services Supervisory Agency Croatian Pension Insurance Institute State Audit Office Croatian Academic and Research Network Croatian Accreditation Agency Croatian Standards Institute Croatian Environment Agency Central Depository Agency Croatian Energy Regulatory Agency
20
SOA FINA HAKOM APPP
Central Intelligence Agency Financial Agency Croatian Post and Electronic Communications Agency Agency for Public Private Partnerships
GENERAL
CBA CCE CEA CPF HROK TAIEX ICTY CP GRC SAO USKOK SCSPPP HBOR CRS CSA OHR OCNDA EC EMU EP EU EC EC CNB SSC
Croatian Bar Association Croatian Chamber of Economy Croatian Employers Association Croatian Privatisation Fund Croatian Registry of Credit Obligations Technical Assistance Information Exchange Office International Criminal Tribunal for the Former Yugoslavia Croatian Parliament Government of the Republic of Croatia State Attorneys Office Office for the Suppression of Corruption and Organised Crime State Commission for the Supervision of Public Procurement Procedures Croatian Bank for Reconstruction and Development Croatian Register of Shipping Croatian State Archives Office for Human Rights Office for Combating Narcotic Drugs Abuse European Commission Economic and Monetary Union European Parliament European Union European Council European Community Croatian National Bank Stabilisation and Association Committee
21
SAP SAA UN COE SAC CFSP ESDP WTO CB
Stabilisation and Association Process Stabilisation and Association Agreement United Nations Council of Europe Stabilisation and Association Council Common Foreign and Security Policy of the EU European Security and Defence Policy World Trade Organisation Closing benchmark
22
INTRODUCTION
INTRODUCTION
RELATIONS BETWEEN THE REPUBLIC OF CROATIA AND THE EU

During the Slovenian Presidency of the Council of the European Union (EU), in the period between 1 January and 30 June 2008, further progress was made in the accession negotiations which led to an intensification of the entire accession process, including significant steps towards further alignment with EU standards in all areas. During the first half of 2008, negotiations were opened on four chapters. The Republic of Croatia submitted to EU bodies the relevant documents to enable all the remaining benchmarks to be met for the opening of negotiating chapters. In addition, the Republic of Croatia submitted to EU bodies the documents relevant to meeting the benchmarks for closing negotiations on two chapters. The achievements of the Republic of Croatia in meeting the benchmarks were also confirmed through an intensive verification procedure by EU bodies. The Republic of Croatia officially submitted seven negotiating positions to the EU. The main feature of Frances Presidency, from 1 July to 31 December 2008, as far as Croatia was concerned, was the announcement by the EC of an indicative and conditional timetable for the technical conclusion of the negotiations between the Republic of Croatia and the EU in 2009. During the reporting period, negotiations were opened on one chapter, and provisionally closed on two. Relevant documents were officially submitted to the EU in order to meet the benchmarks required for closing negotiations on an additional six chapters. In the case of all other chapters for which benchmarks had been set, results were achieved and progress made in meeting these benchmarks, with the goal of closing the negotiating chapters as soon as possible. In the second half of 2008, the Republic of Croatia officially submitted to the EU five negotiating positions. In all, in 2008 the Republic of Croatia drew up and submitted 12 negotiating positions. Negotiations were opened on five chapters, while two chapters were provisionally closed. From the beginning of negotiations in October 2005, of a total of 33 chapters on which negotiations are conducted with EU representatives, the Republic of Croatia has submitted negotiating positions for 31 chapters, opened negotiations on 21, of which four have been provisionally closed. The Government of the Republic of Croatia, in close co-operation with expert bodies of the EU, is working intensively to swiftly and efficiently meet all the additional benchmarks that have been set. A high degree of political consensus still exists in the Republic of Croatia on achieving the common strategic goal of the Republic of Croatia full membership of the EU. Diplomatic activities directed towards EU institutions and Member States have been intensified to more thoroughly and promptly communicate the expectations of Croatia concerning negotiations and the progress achieved during this process. Activities related to meeting the obligations laid down by the Stabilisation and Association Agreement continued in 2008, as did the political dialogue conducted through the institutional framework established by the SAA. The second meeting of the Stabilisation and Association Council was held in Luxembourg on 28 April, while the Stabilisation and Association Committee met in Zagreb on 10 December. Meetings were also held by all seven Subcommittees of the SAA.
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INTRODUCTION
SETTING KEY PRIORITIES FOR 2009

The key priorities set out in the National Programme are defined on the basis of a number of sources, including the Croatian Government Programme for the Term of Office 2008-2011, the results of negotiations with the EU so far, the SAA, the Accession Partnership of November 2007, the assessment of Croatias achievements contained in the European Commissions Progress Report, assessments of its co-operation with the EC Delegation to the Republic of Croatia, etc. Thus, the National Programme reflects Croatias readiness to reach its priority goals in the process of approaching the EU by implementing concrete measures, with an emphasis on the year 2009. In November 2008, the European Commission published the Croatia 2008 Progress Report. This is the fourth such report on Croatia, following the decision of the European Council of 17 and 18 June 2004 by which the Republic of Croatia was granted the status of candidate country for EU accession. The Report includes the progress achieved by the Republic of Croatia in meeting political and economic membership criteria, as well as its capacity to assume the obligations arising from membership. The European Commission assessed that the Republic of Croatia in 2008 continued to progress in terms of political and economic criteria, concerning the criteria of adopting the acquis, and regarding the implementation of the SAA, whereas it identified as the main challenges in 2009 the upgrading of the progress achieved and the speeding up of reforms in specific areas. Along with its regular Progress Report, the European Commission also adopted a strategic document entitled Enlargement Strategy and Main Challenges 2008-2009, which includes an indicative timetable (the so-called road map) for the technical conclusion of accession negotiations with the Republic of Croatia in 2009. Croatia welcomes this statement included in the strategic enlargement document that Croatias accession negotiations have entered their decisive phase, thus demonstrating to the region of SE Europe as a whole that the perspective of EU membership is a reality. As far as political criteria are concerned, the EC has noted Croatias progress in all areas, although continued and further efforts are needed in areas such as the reform of the justice system and public administration, the fight against corruption, the protection of minorities, and refugee return. In terms of economic criteria, the EC noted that Croatia is a functioning market economy. It should be able to cope with market pressures within the EU in the medium term, provided that it continues with determination to implement its comprehensive reform programme. Concerning the ability to assume other obligations arising from membership, the European Commission judged that, in general, the Republic of Croatia had made improvements, and noted that the dynamics and continuity had been maintained throughout the year. The Commission concluded that the Republic of Croatia would be in a position to assume the remaining obligations of membership in the medium term, provided that significant efforts are made to align its legislation with the acquis, and to ensure its application and implementation. Concerning the ability to assume obligations arising from membership, this years Progress Report recognises the efforts made by the Republic of Croatia and emphasises how the preparations for the fulfilment of the obligations arising from membership are decidedly entering their final phase. The EC also points out the need to invest further efforts in the areas of the justice system and fundamental human rights, the environment, competition, agriculture and rural development, while, in general, efforts are needed to further align legislation and to strengthen administrative capacity. Considering that success in meeting the obligations arising from the SAA is extremely important for Croatias progress in negotiations with the EU and that all obligations must be fully met before the negotiations on individual chapters are provisionally closed, measures for the implementation of the SAA are a component part of this document and are one of the key priorities in implementing the National Programme for the Accession of the Republic of Croatia to the European Union in the coming year. Finally, it should be emphasised that the National Programme reflects all the results of the negotiation process and encompasses all activities which must be undertaken in order to meet the benchmarks set for closing the chapters.
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STRUCTURE OF THE NATIONAL PROGRAMME

The NPAEU 2009 consists of the following chapters: Political criteria The Political Criteria chapter defines the priorities based on the conclusions of the Copenhagen European Council and encompasses, among other things, democracy and the rule of law, the protection of human rights and minority rights, the reform of the justice system and the fight against corruption, and regional co-operation. At the same time, it gives an overview of the progress achieved in the relations between the Republic of Croatia and the European Union. Economic criteria Once again this year, the implementation of the Copenhagen and Maastricht Criteria with reference to the Lisbon Strategy is again dealt with in Chapter II. All the stated activities aimed at implementing the economic criteria for EU accession have been aligned with the priorities contained in the Pre-Accession Economic Programme 2008-2010, and in the Strategic Development Framework 2006-2013, adopted on 3 August 2006. Ability to assume the obligations of EU membership This chapter, to which Annex A directly refers, describes, in accordance with the acquis, the legal and institutional framework of individual chapters of the acquis, the key priorities in aligning the legislation, and budget allocations for its efficient implementation. Special attention has been given to analysing the implementation of priorities arising from the Accession Partnership. The description of activities includes legislative and implementing measures related to the process of the accession of the Republic of Croatia to the EU in specific chapters. Legislative measures include all primary and subordinate legislation whose adoption is planned for 2009, and which are directed towards alignment with the acquis. Implementing measures include all non-legislative measures related to the process of adjustment to the EU system. They concern the drafting and adoption of strategies, plans and programmes and their implementation, and a review of planned institutional measures (establishment of new institutions and working bodies). They also include measures aimed at strengthening administrative capacities (recruitment of new employees, procurement of technical equipment, training...) related to the accession process.
26
INTRODUCTION
ANNEXES TO THE 2009 NATIONAL PROGRAMME

Annex A Plan of alignment of Croatian legislation with the acquis communautaire and an overview of implementation measures for 2009 Annex A presents the measures foreseen for 2009, which are described in more detail in Chapter 3 - Ability to assume the obligations of EU membership. Annex A consists of two main parts: Legislative measures The tables show the legislative measures foreseen for 2009. Table a) Laws and related subordinate legislation lists the laws and subordinate regulations whose adoption is planned for 2009 to achieve alignment with the acquis. If the adoption of certain subordinate legislation, to achieve alignment with the acquis, is planned in 2009 on the basis of previously adopted laws, these will be listed in Table b) Subordinate legislation adopted pursuant to previously adopted laws. Implementation measures As last year, Annex A contains a summary overview in the form of a table of all the implementation measures for 2009 (related to the process of Croatias accession to the EU), which are elaborated in detail in Chapter 3 Ability to assume the obligations of EU membership. The table of implementation measures defines their basic categories, such as strategies, plans, programmes, the establishment of new institutions, strengthening administrative capacities, etc. Concerning the overview of activities which the Republic of Croatia must perform in the course of the negotiating process, Annex A includes all obligations arising from the closing benchmarks. Each individual obligation, regardless of whether it is a law, subordinate legislation or implementation measure, is marked as BCC (Benchmark for Closing the Chapter). Annex B Planned budget funds NPAEU 2009 again places major emphasis on determining the budget funds necessary for the implementation of all the planned activities needed to meet the criteria for Croatias membership of the EU. Annex B gives the financial perspective of all activities, projects, programmes, the establishment of new institutions, the strengthening of existing institutions, training, recruitment of new staff, etc., needed to meet the criteria for Croatias membership of the EU. Annex B consists of two tables: the Table of planned budget funds and the Table of planned foreign assistance funds. The Table of planned budget funds shows funds allocated in line with the 33 subchapters within Chapter 3 of the National Programme: Ability to assume the obligations of membership. Only budget items designating activities and projects that concern the process of EU rapprochement are listed, in other words those related to the meeting of accession criteria. The Table of planned foreign assistance funds provides a systematic overview of current and planned foreign technical assistance, investment projects and programmes in the Republic of Croatia which support the implementation of the National Programme for the Accession of the Republic of Croatia to the European Union. This includes programmes of assistance and co-operation with the European Union, other multilateral sources of assistance, bilateral assistance programmes received by the Republic of Croatia, and loans granted by international financial institutions (assistance, grants and loans).
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MONITORING AND IMPLEMENTATION OF THE NATIONAL PROGRAMME

The implementation of the National Programme is based on day-to-day co-ordination in the ministries and other state administration bodies involved in this process. The Ministry of Foreign Affairs and European Integration co-ordinates the process of Croatias accession to the EU not only in terms of foreign policy, but also in terms of home affairs, where it has the task of monitoring the implementation of the National Programme for the Accession of the Republic of Croatia to the European Union with a view to intensifying the activities of all institutions involved in the process of Croatias rapprochement to the EU, while the status of the implementation of laws and subordinate legislation encompassed by the National Programme is discussed on a weekly basis as the first item on the agenda of all the working bodies of the Government of the Republic of Croatia. In 2008, human resources in the sector of the ministry in charge of activities connected with the process of Croatias rapprochement to the EU were strengthened, as the scope of work on the alignment of the legislation and fulfilment of the obligations arising from the negotiating process intensified significantly. A system is now in place to monitor implementation through day-to-day contacts with the line ministries in order to avoid administrative obstacles which might jeopardise the pace of the process of the Republic of Croatias accession to the EU.
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I. POLITICAL CRITERIA
30
1.1. INTRODUCTION
Alongside the negotiation process, the Government of the Republic of Croatia has continued to work intensively towards fulfilling the political criteria. The progress achieved was recognised in the Progress Report for 2008, published by the European Commission (EC) at the beginning of November. In line with the recommendations made by the EC, additional efforts will be invested in the course of 2009 in improving all areas covered by the political criteria, taking into particular account the speed and quality of the processes involved in reforming the state administration, the judiciary, and the effective fight against corruption. In addition, 2009 will be devoted to the completion of the Programme of providing housing care to former tenancy right holders. The given areas, along with continued work on the fulfilment of all other political criteria, will represent a priority for the Republic of Croatia in 2009.
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1.2. DEMOCRACY AND THE RULE OF LAW

Electoral legislation reform Activities pertaining to the electoral legislation were completed in the course of 2007.
1.2.1. Judicial Reform

A) ACHIEVEMENTS IN 2008
Legislative activities With a view to further improvements in the implementation of the judicial reform, on 25 June 2008 the revised Action Plan of the Judicial Reform Strategy was adopted. The Action Plan is seen as a living document which is revised once a year, thus ensuring high quality supervision of the implementation of and adjustments to the measures needed for the judicial reform. The Action Plan includes specific measures, competent authorities, deadlines, and the funds required for their implementation. The measures focus on strengthening impartiality, independence, efficiency and professionalism in the judiciary. The Act on Amendments to the Civil Procedure Act (OG 84/08) was passed on 2 July 2008, introducing numerous procedural innovations and thus contributing to the prevention of the stalling of civil proceedings and to the further unburdening of the workload of the courts. The most significant amendments relate to the practice of summons delivery, and raising the limit of the value of the claim in small claims procedures. In addition, the amendments to the Act provide for a wider range of actions of the second-instance court in appeal proceedings and introduce measures to avoid the unnecessary annulment of court judgments. The amendments also expand the grounds for review and regulate the possibility of pronouncing an extraordinary review. The Act on Amendments to the Execution Act (OG 67/08) further accelerates the execution procedure and facilitates the operation of execution courts in such proceedings. A working group for drawing up a Strategic Study for More Effective Execution on Movables and the Introduction of Bailiffs in Execution Proceedings has been formed. It will work on improvements to the institute of execution in the Republic of Croatia in co-operation with legal experts in the field of enforcement law from the Republic of France. The Act on Amendments to the Courts Act was passed on 19 September 2008 (OG 113/08) with a view to further improving the procedure of appointing judges and to ensuring the uniform work of judicial councils. The Act prescribes the obligation of adopting rules of procedure for judicial councils in the procedure for appointing judges, which are to be drawn up on the basis of the Guidelines for the Appointment and Advancement of Judges (Guidelines to be completed by the end of 2008). As part of the project of modernising and strengthening the efficiency of the work of the Administrative Court of the Republic of Croatia, conducted in co-operation with German, Austrian and Croatian experts, it was decided in September 2008 to set up a working group for the preparation of a Proposal of the new Administrative Disputes Act. The Free Legal Aid Act (OG 62/08), which was passed on 16 May 2008, upgrades the current system of legal aid by aligning it with the acquis communautaire. The Act prescribes the forms of legal aid and the conditions that the beneficiary must meet to have it approved; it defines the providers of such legal aid and the methods of its operation and financing. In accordance with the Act, on 17 July 2008 the Ordinance on the method of maintaining the register of associations authorised to provide free legal aid was adopted. On 26 September 2008, the Act on Amendments to the Act on the Legal Profession (OG 117/08) was passed. In accordance with the amended Act, attorneys from EU Member States will be able to practise in the Republic of Croatia. The provisions of the Act relating to the status of foreign attorneys in the Republic of Croatia will apply only after the Republic of Croatia becomes a full
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member of the European Union. The amendments to the Act prescribe that remuneration for the work of attorneys and the related tariff is adopted by the Croatian Bar Association, subject to the approval of the Minister of Justice. Court Network Rationalisation The Act on the Jurisdictions and Seats of Courts (OG 85/08) was passed on 9 July 2008. With this Act, the number of municipal courts is reduced from 108 to 67. The rationalisation of the court network will proceed in several phases, with 31 December 2019 as the final deadline for its full implementation. The Ordinance on setting the deadlines for providing working conditions, premises, technical and other conditions in the seats of the courts created as a result of mergers entered into force on 9 October 2008. Within the Sector for Judicial Administration (operating within the Directorate for the Organisation and Human Resources of the Ministry of Justice), the Department for the Rationalisation of the Network of Courts and State Attorney Offices has been set up to co-ordinate the process of the rationalisation of the court network. As the new network of municipal courts is linked to the network of state attorney offices, a Proposal of the Act on the Jurisdictions and Seats of State Attorney Offices was submitted for parliamentary procedure in September 2008, and should be passed by the end of 2008. By the end of 2008, the Act on the Jurisdictions and Seats of Misdemeanour Courts will also be submitted for parliamentary procedure. Progress in reducing the total number of unresolved cases at courts On 30 September 2008, the total number of unresolved cases was 941,827, where 129,163 were cases older than three years (123,528 civil and 5,635 criminal cases). Measures of the Supreme Court to reduce the backlog of cases The Supreme Court systematically monitors the resolving of claims for the protection of the right to a trial within a reasonable time at all county courts and regularly draws up statistical reports. In 2008, a total of 5,031 new lawsuits were filed following claims for the protection of the right to a trial within a reasonable time (of that number, 3,566 were civil cases). From the beginning of the year until 30 September 2008, a total of 3,787 such cases were resolved (910 were dismissed, 399 were rejected, and 2,487 were found to be well-founded). Compensation awarded for these well-founded claims for the protection of the right to a trial within a reasonable time amounted to EUR 3,673,012. Until 30 September 2008, the Supreme Court delegated 7,794 cases to courts with a lighter workload (of that number, 6,182 civil cases and 674 criminal cases). From the beginning of the year until 30 September 2008, 40% of civil and 23% of criminal cases assigned to such courts with a lighter workload were resolved. By 30 June 2008, 53.9% of civil and 34.9% of the assigned criminal cases had been resolved. Courts from which the largest number of cases were delegated to other courts are the Municipal Civil Court in Zagreb (3,023 cases delegated to other courts), the County Court in Split (1,550 cases delegated), the Commercial Court in Zagreb (847 cases delegated), and the Municipal Criminal Court in Zagreb (550 cases delegated). Efficiency of the High Misdemeanour Court In the period from January to July 2008, there was an 18% decline in the number of cases received (35,277) in comparison to the period from January to July 2007, when 41,736 cases were received. In the same period of 2008, a total of 32,616 cases were resolved, while the same period in 2007 saw the resolution of 24,498 cases. The reason for this decrease is the passing of the new Misdemeanours Act, which entered into force on 1 January 2008.
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On 1 September 2008, the High Misdemeanour Court began to implement further measures in the Action Plan for Resolving Old Misdemeanour Cases. It is expected that through the consistent implementation of the said measures, by the end of 2011 there will be a satisfactory level of promptness in the work of the High Misdemeanour Court of the Republic of Croatia. Development of a system of alternative dispute resolution The Act on Amendments to the Civil Procedure Act, which was passed in July 2008, allows for disputes to be resolved by mediation for the entire duration of a civil procedure. The PHARE 2005 project entitled Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement began in February 2008. The Agreement on Co-operation between the Ministry of Justice of the Republic of Croatia and the Croatian Conciliation Association was signed in July 2008. A great stride forward in the development of alternative dispute resolution methods was taken through the establishment of regional mediation centres with the Commercial Courts in Osijek, Varadin, Bjelovar, Rijeka and Pazin and through the implementation of pilot projects at the said courts during May and June 2008. In May 2008, a pilot project of mediation began at the Municipal Court in Karlovac. Strengthening institutional and administrative capacities Following the adoption of the Regulation on the internal organisation of the Ministry of Justice (OG 77/08) on 30 June 2008, the Directorate for Strategic Development was formed. Its task is to monitor and further direct the process of judicial reform and the fight against corruption. In the said Directorate, the Sector for the Development of the Judiciary was also formed with the task of strengthening the capacity necessary to supervise and implement the judicial reform. In addition, the new Directorate for the European Union and Human Rights was formed with the task of ensuring the best and most professional co-ordination possible with respect to all activities connected to negotiations with the EU in the area of the judiciary and home affairs. Currently, the process of strengthening the human resources of other organisational units of the Ministry of Justice is underway. Within the Sector for Judicial Administration (which is active within the Directorate for Organisation and Human Resources of the Ministry of Justice), there is the Department for the Rationalisation of the Network of Courts and State Attorney Offices, whose task will be to perform the job of rationalising the court network. Currently, the Judicial Inspection Service is in the process of recruiting further staff, which should be completed in the course of 2009. Introduction of modern information technologies in the judiciary system development and introduction of the Integrated Case Management System ICMS (e-FILE)
Changing the organisational conditions for the functioning of the IT system On the basis of the Regulation on the internal organisation of the Ministry of Justice of 30 June 2008, with a view to improving efficiency, the Sector for IT was transformed into the Directorate for IT. Along with its unit in the Ministry itself, the Directorate has regional units in Osijek, Varadin, Rijeka, Split, Slavonski Brod and Zadar. This will ensure better utilisation of IT staff, since they will deal only with IT affairs and, regardless of the court to which they are assigned, act as support for all courts within the area of responsibility of the regional unit concerned. Pilot online registration of companies through notaries public and hitro.hr offices The development of the pilot project for the online registration of companies through public notaries and hitro.hr offices in the jurisdiction of the Commercial Court in Varadin has now been completed, and by the end of 2008 online registration should include the
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areas of Osijek, Split and Zadar. In the course of 2009, online registration of companies through public notaries and hitro.hr offices will also spread to other commercial courts in the Republic of Croatia. e-FILE The Commercial Court in Split and the Municipal Court in Pula have been producing e-Files since May 2007. The Commercial Court in Zagreb has been producing them from July 2008, and the Municipal Criminal Court in Zagreb as of November 2008. The Municipal Civil Court in Zagreb is still being tested and will begin producing eFiles by the end of 2008. Functional adjustments to ICMS (through the e-FILE system) in the County Court in Pula, the County Court in Zagreb, the High Commercial Court in Zagreb and the Supreme Court of the Republic of Croatia were concluded in 2008. Donations made by the Kingdom of Norway and the USA were used to develop a module entitled ICMS for State Attorney Offices case tracking system for the criminal and civil department. At the end of 2008, testing in the selected two pilot municipal and two pilot county state attorney offices will begin. The application for the monitoring of court statistics in the Ministry of Justice (e-Statistics) was upgraded through the central record of judicial staff (personal data) for all courts and state attorney offices. This tool will ensure IT support in the implementation of the rationalisation of the court network in the Republic of Croatia and will enable access to case data for courts which are to be merged. All data and experience are used to develop the statistical component of ICMS. The CARDS 2004 project entitled Improving Court and Case Management at the High Misdemeanour Court and Selected Misdemeanour Courts is underway with a view to modernising the operation of misdemeanour courts. One of the project activities is the proposed adoption of appropriate legislation to facilitate such modernisation. In November 2008, the Project produced functional specifications for the ICMS module for misdemeanour courts. The project promoting mediation in dispute resolution is underway, financed through the PHARE 2005 programme in places where mediation centres the municipal courts in Zagreb, Osijek and Zadar, the Chamber of Economy, the Chamber of Trades and Crafts, the Croatian Conciliation Association, and the Croatian Employers Association are equipped with the necessary IT equipment. Requests for funding from the PHARE 2006 programme have been filed for two projects: expansion/implementation of the ICMS system at 60 selected courts (Support for Court Administration and Case Management Improvement), and extending the case law system into the national document and record management system, for the purpose of publishing judicial decisions from all levels of the court system and linking them to the ICMS system (Harmonisation and Publication of Case Law). Contracts are expected to be signed by the end of November 2008. Computerisation of land registers 98.95% of land registry files were digitised at all municipal courts in the Republic of Croatia; 48.10% of digital land registry files in the area of all courts in the Republic of Croatia were verified; land registry data are transparent, that is, accessible to all users over the Internet, as is the e-registry of land registry departments; the time needed for entry in the land register dropped from an average of 800 days to 73 days (in the period from 2004 to 2008); the time needed for mortgage registration dropped from an average of 23 days to 7 days in the Republic of Croatia; land registry certificates are issued on the same day as requested.
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Judicial Academy
Institutional development of the Judicial Academy
The Advisory Council and the Programme Council At the meeting of the Judicial Academy Advisory Council of 11 September 2008, which was the third to be held in 2008, the Council adopted the Multi-annual Strategy of Professional Training of the Judicial Academy (JA). Measures foreseen in the Strategy are mostly already being implemented. The JA has prepared proposals of the rules of procedure for the Advisory and Programme Council, and has proposed members of the working group responsible for the further development of the curriculum for professional development in the field of human rights and EU law. By the end of 2009, the JA will also prepare a Proposal of the Ordinance on access to professional training programmes. The Judicial Academy Programme Council meets at least four times a year. During the two working meetings held in June and September 2008, preparations were made for the drawing-up of the curriculum of the Academy for 2009. Regional centres The work of regional centres and their independent participation in the process of professional development has been strengthened. The framework rules of the Academy pertaining to the position of co-ordinators and their competence in the regional centres will soon be adopted. Human resources and the budget In 2008, a director of the Judicial Academy was appointed and the administrative capacities of the JA were further strengthened. With a view to further strengthening the Judicial Academy, the 2008 JA budget was increased to EUR 721,126, while the proposed 2009 JA budget is EUR 1,136,197. Reform of the system of traineeship and initial training On 9 July 2008, the new Act on Trainees in Judicial Bodies and the Judicial Exam (OG 84/08) was passed, and will enter into force on 1 January 2009. The new act introduces uniform, transparent and objective criteria for the selection of trainees. The main role in the new system of initial training will be played by the Judicial Academy, which will conduct two-month theoretical training. Implementation of the PHARE 2005 project entitled Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys, which provides for expert and organisational support to the reform of the system of traineeship and initial training, began in February 2008. Co-operation with the faculties of law, the Croatian Bar Association and the Academy of Public Notaries The Judicial Academy has made arrangements to sign agreements on co-operation with all the faculties of law in the Republic of Croatia, although informal co-operation is already in place and is being developed through the participation of university research staff in the design of educational materials, as well as in conferences organised by the Judicial Academy. In October, the Academy received proposals for framework agreements of co-operation with the Croatian Bar Association and the Academy of Public Notaries.
International co-operation European Judicial Training Network (EJTN)
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In 2008, for the second year in a row, the JA participated in the Exchange Programme for Judicial Officials organised by this Network. The JAs Director takes an active part in the meetings of the General Assembly of the EJTN. Academy of European Law (ERA) The JA regularly informs members of its target groups about ERA activities and provides financial support so that they may attend ERA seminars and conferences. The Judicial Academy is interested in signing the Official Agreement of Accession to the Academy of European Law, and has included the respective expenses (EUR 50,000 in three annual instalments) in its budget proposal for the next three years. Budget of the Ministry of Justice The budget of the Ministry of Justice in 2008 amounted to EUR 370,579,525. For 2009, the proposed budget of the Ministry is EUR 377,934,983.
B) KEY PRIORITIES
Legislative activities In 2009, the Proposal of the Act on Administrative Disputes will be submitted for parliamentary procedure. By the end of the second quarter of 2009, amendments to the following will have been passed: the Courts Act; the Act on the State Judiciary Council; the Act on the State Attorneys Office; the Act on Trainees in Judicial Bodies and the Judicial Exam; the Public Notaries Act; the Act on the Legal Profession.
Rationalisation of the network of courts and state attorney offices With a view to implementing the Act on the Jurisdictions and Seats of Misdemeanour Courts, the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of misdemeanour courts. Pursuant to the Proposal of the Act on the Jurisdictions and Seats of State Attorney Offices, in 2009 the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of municipal state attorney offices and establish conditions for their work. Drawing up a strategic study for more effective execution on movables and the introduction of bailiffs In 2009, based on the strategic study for more effective execution on movables and the introduction of bailiffs, which will be adopted by the Ministry of Justice by the end of 2008 (in co-operation with legal experts in the field of enforcement law from the Republic of France), work will be conducted on thoroughly improving the institute of execution proceedings in the Republic of Croatia.
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Development of a system of alternative dispute resolution The Action Plan of the Judicial Reform Strategy foresees measures to further develop mediation as an important segment in the modernisation and improvement of the efficiency of the Croatian judicial system. The measures to be conducted through the PHARE 2005 project entitled Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement are the following: to draw up draft amendments to the Mediation Act, to draft a Proposal of the Code of Ethics for Mediators, to establish standard provisions on mediation for commercial and civil contracts, and the like, to be used by mediation centres and the Croatian Conciliation Association contracting parties and professional organisations; to set up a structure and system for mediation both inside and outside the court, and to put into operation pilot mediation centres in courts, achieving the full operability of the regional centres for mediation outside the court with a register of mediators; to develop and implement a plan and programme of training for mediators and trainers, to conduct basic, advanced and informative seminars, to compile folders with all materials for training and with other relevant materials and to make them available to all participants; to prepare and share information and publications on mediation with the public.
The eFILE Project It is planned that by the end of December 2008, all courts mentioned in relation to eFILE will be running in this regard. Thus, on 1 January 2009, 9 courts from all levels will function in the eFILE system. In 2009 and 2010, as part of the PHARE 2006 project entitled Support to Court Administration and Case Management Improvement ICMS, the e-FILE system will be introduced at 60 additional courts (all commercial, all county, and larger municipal courts). The project, amongst other things, covers the training of all users, the drawing up of a matrix for each court and the installation of the application. The schedule of connecting courts in 2009 will depend on the contractual obligations of the consultant with whom the project is agreed, but it can be presumed that 15 courts on the list will be connected to the system. In the course of 2009, the Ministry of Justice plans to use its own funds and efforts to connect an additional 5 municipal courts which are not on the list of the PHARE project. In 2009, 20 courts will be in the e-FILE system. Regarding the plan for 2010, according to the PHARE 2006 project, it is foreseen that e-FILE will be introduced at 45 more courts, and the Ministry of Justice will ensure the introduction of e-FILE at 5 more municipal courts, so that the total number of courts to join the e-FILE system in 2010 will be 50. Thus, at the end of 2010, there will be 79 courts connected to e-FILE: the Supreme Court, the High Commercial Court, all county courts (22), all 13 commercial courts, and 42 municipal courts. Plan of work of the Judicial Academy for 2009 To provide for the urgent recruitment of new staff for the Academy according to the systematisation of planned work posts. To make all regional centres of the Judicial Academy fully functional: to acquire IT equipment and literature for the Varadin Regional Centre; to buy new books for the library fund in the Judicial Academy and for the regional centres; to intensify the work of libraries in the centres and the development of infrastructure to enable access to the Internet in the centres; and to ensure the availability of data concerning the library fund and publications in electronic format. To determine the duties and tasks of the co-ordinator for professional training in the regional centres, and for judges and state attorneys, and the manner of providing remuneration. To create conditions by the end of 2009 for the drawing up of a framework three-year programme of work of the Judicial Academy.
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To set up a system of initial training for trainee judges and state attorneys, and advisors: training of mentors for trainee judges and state attorneys, implementation of a pilot project within PHARE 2005 Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys and completion of this project.
To improve the plan of professional training by setting out modules targeted specifically at judges and state attorneys with up to 5 years of service (standard programmes).
To intensify the activities of professional training in the field of EU law and international human rights law. To develop and implement training programmes for court administration and for the management of state attorney offices. To intensify co-operation with the faculties of law, the Croatian Bar Association and the Academy of Public Notaries under the agreements on co-operation signed in 2008.
To proceed with foreign language courses for judges and state attorneys. To continue to train workshop leaders in the field of teaching and communication through workshops and individual expert counselling, with special emphasis on the more intensive involvement of state attorneys and judges of the Supreme Court of the Republic of Croatia.
To continue to participate in the work of the Lisbon Network and the European Judicial Training Network. To develop bilateral co-operation with partner institutions in the European Union and the region To further improve the website of the Judicial Academy and the visual concept of the training materials of the Judicial Academy by introducing a standard form for training packages for workshop leaders and participants.
To develop the information-documentation activity. To introduce electronic case management in the Judicial Academy.
School for judges and state attorneys Pursuant to the Strategy setting out its structure, the School for Judges and State Attorneys will be established so that the best and the most appropriate candidates for judicial and state attorney duty may be selected based on objective and transparent criteria for admission to the profession.
1.2.2. Anti-corruption measures

With a view to achieving further progress in the suppression of corruption, in June 2008 the Republic of Croatia established a new strategic framework for anti-corruption activities. On 19 June 2008, the Croatian Parliament adopted the Anti-corruption Strategy, after which the Government of the Republic of Croatia, on 25 June 2008, adopted the Action Plan of the Strategy. Within each of the areas of action, the Action Plan defines in detail anti-corruption measures, competent authorities, deadlines, and funds required for implementation. The goals of the anti-corruption policy, pursuant to the Strategy, will be implemented through active measures aimed at: 1) strengthening the legal and institutional framework; 2) preventing corruption; 3) criminal prosecution and sanctioning of corruption; 4) international co-operation; 5) raising public awareness of the harmfulness of corruption. Through concerted action in all areas, the intention is to fully affirm the principle of a zero-tolerance approach to corruption. Representatives of civil society were actively involved in drawing up proposals for strategic documents by participating in a round table conference on the topic Co-operating towards an Efficient Action Plan of the Anti-Corruption Strategy held on 13 May
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2008, organised by the Government Office for Co-operation with NGOs, the Ministry of Justice and the Council for Civil Society Development. A) ACHIEVEMENTS IN 2008
Legal framework Amendments have been initiated with the goal of strengthening the legal framework of the so-called anti-mafia action. The Final Proposal of the Criminal Procedure Act was submitted for parliamentary procedure in November 2008. In relation to anticorruption, reform of the preliminary procedure, the introduction of new forms of swifter procedure and the improvement of procedural rules governing measures for efficient action should be highlighted. In addition, the system of special investigation activities which are of particular significance in detecting and prosecuting crimes of corruption will be improved. The successive application of particular sections of the new Criminal Procedure Act is envisaged, and provisions relating to criminal offences within the jurisdiction of USKOK will enter into force six months after the passing of the Act. Amendments to the Criminal Code are underway, through which the existing system of seizure of proceeds of crime will be extended to cover, along with the criminal offences of organised crime, the criminal offences of corruption. At the same time, amendments to the Criminal Code will strengthen the protection of injured parties and those who in good faith report corruption (whistleblowers). To this end, it has been proposed that the protection of witnesses in criminal proceedings be extended to include potential witnesses. In addition, plans are being made to further strengthen, in terms of criminal law, the position of persons with the status of protected or vulnerable witness, and the criminal-law protection would be extended to include all proceedings which are declared confidential. Institutional framework In order to strengthen the co-ordination of all bodies responsible for the implementation of anti-corruption measures, the Government of the Republic of Croatia adopted a Decision on 10 April 2008 establishing a Co-ordinating Committee for the Monitoring of the Implementation of Anti-Corruption Measures. The Co-ordinating Committees work is chaired by the Minister of Justice, as the national co-ordinator, with other high-ranking representatives of the implementing bodies among its members. The Co-ordinating Committee meets on a monthly basis, thus keeping abreast of the actual status of implementation, and taking the appropriate steps to ensure its effectiveness. Pursuant to the decision of the Government of the Republic of Croatia establishing the Committee, state bodies involved in the work of the Committee have designated an internal organisational unit to work on the activities of suppressing corruption, and have nominated a contact person for reporting on their implementation. Administrative and expert support for the work of the Co-ordinating Committee has been assured (June 2008) by organising and staffing the Anti-Corruption Sector within the Ministry of Justice. Supervision of the implementation process is ensured through the operation of the National Council for Monitoring the Implementation of the National Programme for the Suppression of Corruption, which was constituted at the Croatian Parliament in May 2008. With the aim of affirming pro-active approaches, the National Council has prepared draft amendments to the Decision on the National Council and the Ordinance on the work of the National Council, which should be adopted in the fourth quarter of 2008. With the aim of strengthening expert and technical support for the work of the Council, office space has been found and funds assured, while four new employees have been recruited in the expert service of the Council. Following the parliamentary elections, in July 2008 new members of the Commission for Conflict of Interest in the Exercise of Public Office at the Croatian Parliament were appointed. Following the resignation of the chairperson of the Commission, a new chairper-
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son was appointed in October 2008 from the ranks of distinguished public figures in order to ensure the uninterrupted continuation of the Commissions work. The prevention of corruption In May 2008, the Act on Amendments to the Act on the Prevention of Conflict of Interest in Performing Public Functions was passed with a view to strengthening the supervisory role of the Commission for Conflict of Interest in the Exercise of Public Office, defining more precisely the obligations of public officials, increasing and improving the implementation of sanctions, and restricting the membership of public officials in supervisory boards. The Commission for Conflict of Interest in the Exercise of Public Office has collected from public officials new declarations of assets and the duties they carry out, and published the details on the website www.sukobinteresa.hr. In order to increase the Commissions effectiveness, it has been strengthened in terms of expertise and administrative capacity by ensuring the necessary funds, office space and the recruitment of four new employees in its expert service. The regulatory rules concerning conflicts of interest were completed in July 2008 with the passing of the Act on Local and Regional Self-Government Officers and Employees which defines the duties of employees at local and regional levels for the purpose of preventing conflicts of interest. Pursuant to the Act on Financing Political Parties, Independent Lists and Candidates, all parliamentary parties and independent candidates submitted final accounts and financial reports for 2007 to the State Audit Office and the Ministry of Finances Tax Administration. Following auditing, the State Audit Office presented its Report on Supervising the Finances of Parties for 2007 to the Croatian Parliament. Following a parliamentary debate, the Report was made public. In September 2008, a Multidisciplinary Working Group was formed, with the aim of preparing a full analysis of the Act on Financing Political Parties, Independent Lists and Candidates, which will include recommendations for improving the system of financing political parties. In terms of realising the right of access to information, in April 2008 the Croatian Parliament accepted the Report on the Implementation of the Access to Information Act, which contains statistical data on requests for access to information, an analysis of requests submitted to institutions, an analysis of the supervision of the implementation of the Act, and of the activities of the Central State Office for Public Administration (CSOPA) in implementing the Act, as well as an assessment of the current status. In the area of integrity and the Civil Service Code of Conduct, amendments to the Civil Service Act (February 2008) strengthened the system of sanctions applicable for violations of official duty exhibiting characteristics of corruption. Compulsory dismissal was introduced for serious violations of official duty exhibiting characteristics of corruption. The institutional framework has been upgraded with the introduction of ethics commissioners in state administration bodies and with the appointment of co-ordinators responsible for anti-corruption policy issues in county state administration offices. Seven of the envisaged 10 civil servants in the Ethics Department have been recruited in line with the Regulation on the internal organisation of the Central State Office for Public Administration, and the recruitment procedure for a further expert assistant is currently underway. The Ethics Department of the CSOPA and various individual bodies of state administration have introduced open telephone lines and email addresses for reporting unethical or potentially corrupt conduct by civil servants, and the bodies which are to act on such reports have been designated. During 2008, the Ethics Department received 84 reports of unethical conduct by officials, of which 41 were received over the open telephone. Investigations were launched in 70 cases. In addition, continual training of civil servants has been conducted, especially in terms of modules significant for the suppression of corruption (ethical conduct, right of access to information, public procurement). During 2008, training seminars on ethics also continued as part of a basic course entitled Suppressing Corruption, and as part of a seminar entitled Public Procurement in the Centre for Professional Development and Training of Civil Servants. During 2007 and 2008, 13 seminars on ethical training were held for 233 civil servants. The legal framework for public finances has been improved with the passing of the Act on the Personal Identification Number in May 2008. This Act will enable changes in the assets of citizens and legal persons to be monitored more easily and efficiently, allowing
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comparisons to be made with the declared receipts and income, and the amount of tax paid. In this context, the introduction of the personal identification number will facilitate the verification of data in implementing the system of declaration of assets. The Act on the Prevention of Money Laundering and Financing of Terrorism, passed in July 2008, contains a series of measures aimed at suppressing corruption. The system for monitoring the use of budget funds has been improved with the adoption of the Ordinance on budget supervision in July 2008. The Budget Act imposed on the Republic of Croatia the obligation to guarantee the protection of the financial interests of the European Union and established the implementing institutional framework. In the area of public procurement, amendments to the Public Procurement Act were passed in October 2008, which, amongst other things, significantly increases the transparency of public procurement for defence purposes and strengthens anti-corruption protection in the process of entering into contracts on public procurement. The Concessions Act was also passed in October 2008, which increases transparency in the system of concessions, guarantees effective legal protection, and improves the supervision and collection of revenues from concessions. The legal framework for public-private partnerships was laid with the passing of the Act on Public-Private Partnerships in October 2008. Within the institutional framework for public procurement, the Directorate for the Public Procurement System has been set up, which has taken over the tasks of the Office for Public Procurement of the Croatian Government. The staffing of the Directorate has been completed. Within the system of legal protection in public procurement, the promptness and efficiency of proceedings have been additionally enhanced by reducing the average length of proceedings before the State Commission for Supervision of Public Procurement Procedures. The transparency of the work of the State Commission has been increased by facilitating web access to decisions passed by the State Commission, and by publishing brochures on legal protection in the public procurement system. The system for protecting injured parties and those who in good faith report corruption (whistleblowers) was extended through amendments to the Act on Civil Servants (February 2008) by a number of measures for protecting civil servants who in good faith report corruption guaranteeing them anonymity, protecting them from unfair dismissal, and sanctioning the withdrawal or restriction of the rights of civil servants who report acts of corruption. At the same time, amendments to the Criminal Code will improve the protection of witnesses and people who in good faith report corruption (whistleblowers). In the area of the judiciary, a series of measures has been implemented, as envisaged in the Action Plan of the Judicial Reform Strategy for 2008. In order to improve the present training system for judicial trainees, at the same time preventing corruption and nepotism when they are selected for courts or state attorney offices, and in taking the judicial exam, the Act on Trainees in Judicial Bodies and the Judicial Exam was passed. Transparency in the appointment of judges was also achieved through the Act on Amendments to the Act on Courts. Amendments to the Civil Procedure Act were also passed with the aim of speeding up civil proceedings. The new Administrative Inspection Act, which lays down new powers and the manner of work of administrative inspection, was passed in May 2008. This Act ensures a higher degree of independence and responsibility of the administrative inspector in the implementation of supervision, and the mechanisms for performing measures ordered by the administrative inspector. With a view to strengthening the staff of administrative inspection, the Action Plan of the Anti-Corruption Strategy plans the recruitment of 4 new administrative inspectors in the Central State Office for Public Administration (within the current organisation), and, depending on the needs for further recruitment, there will be further recruitment of staff for administrative inspection. Criminal prosecution and the sanctioning of corruption Measures have been taken to establish a vertical institutional line of so-called anti-mafia action, including the National Police Office for the Suppression of Corruption and Organised Crime, USKOK and court departments specialising exclusively in organised crime and corruption. The task of the Police Office is to monitor and study occurrences of corruption and organised crime, so that the Offices police teams can act preventively in particularly sensitive areas, on the basis on the results of analysis. At the same time, the Office will also enable more complex criminal investigations to be conducted in a multidisciplinary manner in co-operation with USKOK when dealing with
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high-level corruption cases. The Office is structured so as to have four branches for suppressing corruption and organised crime, located in Zagreb, Split, Rijeka and Osijek. In order to achieve the desired speed of action at all levels, changes to the Court Rulebook adopted in October 2008 provide for the formation of special court departments at county and municipal courts in Zagreb, Split, Osijek and Rijeka to deal exclusively with cases falling within the competence of USKOK. In addition, further conditions are envisaged to guarantee the promptness and impartiality of court procedure obligatory security checks on judges in USKOK departments, precisely defined deadlines for carrying out certain actions within proceedings, confidentiality of files, statistical monitoring of corruption cases, etc. With the aim of giving priority to criminal cases involving corruption offences, the Court Rulebook was amended in September 2008 and a database on the status of corruption cases before the courts was set up within the Supreme Court of the Republic of Croatia. USKOKs activities focus on acting in a series of medium or high-level criminal corruption cases (INDEKS, DOZVOLA, ZAGREBAKE CESTE, MAESTRO, DIJAGNOZA I and II, GRUNTOVEC, and others). USKOKs pro-active approach has been strengthened, leading to the detection and processing of new cases of corruption, or to the extension of investigations in existing cases (MAESTRO, PET ZVJEDICA, GRUNTOVEC, etc.). The amendments to the Court Rulebook have ensured accelerated action in corruption cases, that is, in the commencement of main hearings. Between 1 November 2007 and 1 November 2008, USKOK received reports on 855 persons in relation to corruption offences. Requests for investigation were filed against 226 persons. Altogether, 75 persons were indicted. Sixty-three judgments were delivered, of which 53 were convictions. Appeals were filed in cases which were rejected or that ended with an acquittal. Interdepartmental co-operation has been strengthened with the signing of an agreement between the General Police Directorate and USKOK on mutual exchange of information. In addition, similar agreements are being implemented between the Ministry of the Interior and USKOK, and between the Tax Administration and USKOK. The co-operation of state bodies will also be ensured through the provisions of the new Criminal Procedure Act, which assigns the main role in carrying out investigations to the prosecutor, i.e. USKOK, on whose orders other state bodies will act. International co-operation The Republic of Croatia has ratified the Agreement with Eurojust (OG IT 07/08), which will help advance judicial co-operation between the Republic of Croatia and EU Member States in the fight against serious forms of international crime. With the aim of strengthening judicial co-operation with other countries in the region, the Agreement between the Republic of Croatia and the Republic of Austria on Supplements to the European Convention on Mutual Assistance in Criminal Matters was ratified, and the Convention has been supplemented with an Additional Protocol. With their participation in regional activities (Regional Anti-Corruption Initiative) and conferences, representatives of the Republic of Croatia have been involved in international exchanges of experiences, in the creation of methods of supervision, and in the implementation of anti-corruption measures. Raising public awareness of the harmfulness of corruption In order to involve civil society organisations in the drafting of strategic documents, a round table conference was held in May 2008 on the topic Co-operating Towards an Efficient Action Plan for the Anti-Corruption Strategy, organised by the Government Office for Co-operation with NGOs, the Ministry of Justice and the Council for Civil Society Development. A Department for General Programming and Strategies was formed within the Government Office for Co-operation with NGOs, which, among other things, is responsible for the implementation of the measures from the Action Plan which fall within its competence.
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In the area of financing civil society organisation projects and programmes, extra attention has been paid to projects topically linked with corruption, so that the following projects were funded: 1) An unholy alliance of political power, public administration and private enterprise an anti-corruption campaign (Centre for the Development of Democracy, Split); 2) We want information the public has the right to know (Transparency International Croatia); and 3) Against corruption (Association for Democratic Society, Zagreb).
B) KEY PRIORITIES In the course of 2009, it is planned to proceed with the implementation of measures set out in the Action Plan of the Anti-corruption Strategy, in line with the set deadlines. With a view to raising public awareness and encouraging potential whistleblowers to co-operate and report corruption, promotional leaflets will be made. Training programmes will also be conducted to inform police officers about measures for the protection of whistleblowers. On the basis of an implementation analysis of the Act on Financing Political Parties that will be made by a multidisciplinary working group, the application of the Act to date will be assessed and potential amendments suggested with a view to achieving greater efficiency in its implementation. The Ministry of Justice will continue to establish an effective institutional mechanism of inter-agency co-operation in the fight against corruption. In 2009, it is planned to advance the said co-operation within IPA 2007. It is also planned to complete the process of verifying land registry data, to establish electronic registries in land registry courts, and to put into operation the Land Database and the EOP Land Book. The process of introducing the e-FILE system in courts and the training of judges and state attorneys will continue. The following steps will be taken to improve the right of access to information: further amendments to the Access to Information Act will regulate more precisely the procedure (and, in particular, the competence) concerning appeals against a decision rejecting a request for access to information; an interdepartmental working group will be formed to analyse the justifiability or non-justifiability of the legal options to withhold information; public campaigns will be organised to raise awareness of the right of access to information. Passing the new Administrative Procedure Act and the Administrative Disputes Act with a view to modernising the entire system and improving both its efficiency and transparency will enable citizens to exercise their rights more easily and thus reduce the risk of corruptive conduct in the state administration In the area of public procurement, and in order to strengthen the integrity of all those involved in public procurement, a number of training programmes and projects will be conducted. With a view to strengthening transparency, the website of the State Commission for Supervision of Public Procurement Procedures will be improved. In order to facilitate implementation of the system for resolving conflicts of interest, guidelines on prohibitions for public officials and the relation between the prohibitions and the criminal offences of corruption will be drafted and published. A brochure will also be prepared to inform the public about unacceptable forms of conduct in the performance of public office. With a view to creating conditions for the prevention of corruption at all levels of science, education and sports, it is planned: to adopt the Act on Primary Education and the Act on Secondary Education; to introduce objective criteria for testing and evaluating students achievements through national examinations and the national matura examination;
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to prevent corruption in the procedure of approving, selecting and distributing free primary and secondary school textbooks through amendments to the Act on Primary and Secondary School Textbooks and other relevant legislation;
to ensure the opening of examinations at higher education institutions to the public and to improve the system of evaluating universities and their study programmes through the adoption of relevant legislation in the higher education system;
to establish and prescribe the competence of the Sports Inspectorate through the adoption of the Sports Inspection Act, whereby the Inspectorate will be expected to work on the prevention of abuse and corruption in sports and to ensure transparent financing of sports.
In the area of suppressing corruption in the healthcare system, the legal and institutional framework will be improved with the adoption of new regulations. In addition, an analysis will be made of the public procurement system of hospitals with a view to strengthening transparency. International co-operation will be improved through the further conclusion of co-operation agreements between the Republic of Croatia and other countries. In accordance with the ratified agreement with Eurojust, Croatia will send its liaison officer and state attorney to the headquarters of Eurojust. In 2009, there will be continued implementation of training in ethics for civil, regional and local officials and employees. Regular annual research will focus on the way the public perceives corruption and on its actual contact with corruption. In order to ensure the continued involvement of civil society in monitoring the implementation of anti-corruption measures, in the last quarter of 2009 the Government Office for Co-operation with NGOs will organised round tables with all competent authorities for anti-corruption measures on monitoring the implementation of the Anti-corruption Strategy and the accompanying Action Plan. The training of journalists on corruption-related issues will also continue.
1.2.3. State Administration Reform

The Strategic framework of the State Administration Reform The State Administration Reform Strategy for the Period 2008-2011 was adopted in March 2008. Implementation of the measures foreseen in the Strategy is underway and in September 2008 the Government established the National Council for the Evaluation of the Modernisation of State Administration, with a view to supervising the implementation of the Strategy, ensuring political and professional support for the reform, evaluating the results of the reform, issuing a review and recommendations to the Government, and drawing up a new Strategy (two years from the date of adoption). Depolitisation of state administration The Regulation on amendments to the Regulation on job classification in the civil service, adopted in February 2008, prescribes conditions for the appointment of senior civil servants (secretaries in the ministries, directors in the ministries, deputy secretaries of the Government, heads of Government offices, deputy state secretaries in central state offices, and deputies and assistant directors in state administrative organisations). Implementation of the legal provisions on depolitisation and professionalisation of the civil service will soon be completed. A competitive recruitment process for senior civil servants began in February 2008. By November 2008, the procedure for the appointment of senior civil servants based on competitive recruitment (that is, the procedure of removing the former politically appointed civil
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servants) was fully completed in 19 central bodies of state administration, in the Secretariat of the Government and in all offices of the Government of the Republic of Croatia. The procedure still has to be conducted for 28 work posts. At the same time, with a view to strengthening administrative capacity in the bodies of state administration, in certain bodies the total number of work posts for senior civil servants was increased. In order to ensure that the procedure of competitive recruitment is objective, a representative of the Central State Office for Public Administration must be one of the members of the recruitment commission. In November 2008, the Government of the Republic of Croatia adopted Amendments to the Code of Ethics, which foresee the formation of an Ethics Committee and lay down the duties of ethics commissioners in the procedure of receiving and acting further to reported unethical conduct, with a view to advancing ethical standards in the state administration. Human resources management In March 2008, the Plan of Admission to State Administration Bodies, Professional Services and Offices of the Government of the Republic of Croatia for 2008 was adopted, and in June 2008 amendments were adopted to the Plan of Admission. After the conducted analysis of job descriptions in all bodies of state administration, forms for the description of work posts are currently being drawn up in accordance with the Regulation on job classification in the civil service. As part of the project of Danish bilateral assistance, the Programme of Training for Leading Civil Servants was developed. The programme is held regularly in the Centre for Professional Education and Training of Civil Servants and so far has been attended by 60 leading civil servants. In June 2008, an assessment of training needs in all state bodies for 2009 was completed. In November 2008, Zagreb hosted the 3rd Regional Workshop on Civil Service Reform in the Western Balkans in the Field of Human Resources Management entitled How to Attract and Retain the Best People in the Civil Service. This workshop was organised by the Central State Office for Public Administration, the UNDP offices in Croatia and Bosnia and Herzegovina, in partnership with the UNDP Regional Office from Bratislava, the Community of Practitioners in State Administration Human Resources Management in the Western Balkans, and with the Zagreb Institute of Public Administratiton. At the two-day workshop, which drew together representatives of state administration human resources management from the countries in the region, international experts and representatives of NGOs, the topic covered problems and challenges in attracting and retaining the best people in the civil service. Modernising the general administrative procedure and office transactions On 24 October 2008, the Proposal of the General Administrative Procedure Act passed its first reading in the Croatian Parliament. Comments, proposals and opinions are currently being sent to the sponsor of the proposal with a view to drawing up the Final Proposal of the Act. The Draft Proposal of the General Administrative Procedure Act was drawn up as part of the CARDS 2003 Project Support for the Public Administration and Civil Service Reform, and was later improved in co-operation with experts from the Administrative Court, faculties of law and central state administration bodies. As part of the process of nominating projects for the IPA 2008 programme, in July 2008 Terms of Reference were drawn up for a project entitled Support to the Implementation of the General Administrative Procedure Act. With a view to modernising the ways of running office transactions in the bodies of state administration, the drawing up of a new Regulation on office transactions is currently underway. The Proposal of the Regulation was forwarded to central state administration bodies and the City Office for General Administration of the City of Zagreb for their opinion in December 2008. Act on the Election of Members to the European Parliament In July 2008, the Croatian Parliament adopted a Conclusion accepting the Proposal of the Act on the Election of Members to the European Parliament. Comments, proposals and opinions are currently being forwarded to the sponsor of the proposal, so that the Final Proposal of the Act may be drawn up. SIGMAs comments will be taken into account in drawing up the Final Proposal.
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Amendments to the Institutions Act In March 2008, the Act on Amendments to the Institutions Act was passed. It places foreign natural and legal persons on an equal footing with domestic natural and legal persons in terms of the right to establish institutions (in accordance with the Negotiating Position of the Republic of Croatia for the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union for Chapter 3 - The Right of Establishment and Freedom to Provide Services, which the Government of the Republic of Croatia adopted in October 2006). The procedure for establishing institutions was also simplified, in line with the recommendations of the special unit of HITROREZ. Act on the Salaries of Civil Servants The analysis of the Draft Act drawn up by SIGMA was forwarded to the Commission in September with a view to drawing up the Act on Salaries of Civil Servants. The plan should be submitted for adoption procedure by the end of 2008. Functional review of state administration bodies The project entitled Functional Reviews and Assistance in the Restructuring of State Administration Bodies and their Subordinate Agencies in Croatia, which was conducted by the International Relations Institute, has now been fully implemented. The final report was sent to the Central State Office for Public Administration in December 2008, and the final report is currently being reviewed by members of the Project Management Committee. The project is being conducted under the Deed of Donation by the Swedish International Development Co-operation Agency concluded between the Republic of Croatia and the International Bank for Reconstruction and Development. The project includes ten central state administration bodies and five offices of state administration in the counties. Restructuring of the bodies of state administration based on the results of the functional review is planned in 2009. Public agencies As part of the bilateral assistance programme by the Kingdom of Norway to the Republic of Croatia in the area of the alignment of public agencies and European integration processes entitled Support to Croatia in the Field of European Integration and Public Administration Reform, implemented as a co-ordinated effort of the MFAEI and CSOPA, the Norwegian consultant, the Agency for Public Management and eGovernment (DIFI), drew up a comparative study entitled Independent Public Agencies Legal Framework and Institutional Challenges, based on the experiences of public agencies in six European countries (Austria, Germany, Hungary, Norway, Slovenia and Sweden). The results of the project were presented at the CSOPA in May 2008 and will be used to draft a Proposal of the Act on Agencies. To continue this co-operation, within the same project, DIFI will provide assistance in drawing up the Proposal of the Act on Agencies, the organisation of a round table, and the implementation of further training. Local self-government In October 2008, the Croatian Parliament passed the Act on Amendments to the Act on Local and Regional Self-government, by which the number of deputy heads of municipalities, deputy mayors and deputy county prefects is determined depending on the number of inhabitants in a particular unit (in municipalities and towns with up to 10,000 inhabitants, one deputy, and in municipalities and towns with more than 10,000 inhabitants, in towns which are the seats of counties, and in counties, instead of the current one, two deputy heads of municipalities, two deputy mayors and two deputy county prefects are elected). The Act also regulates the issue of electing representatives of national minorities concerning the direct election of the head of a municipality, a mayor and a county prefect. In relation to the manner of performing the duties of a head of a municipality, a mayor and a county prefect (either on a professional basis or without contracting employment), it is established that their duties are performed on a profession basis in all local self-government units with more than 10,000 inhabitants, in large towns, towns which are the seats of counties, and in counties, while their deputies, and the heads of municipalities and mayors in municipalities and towns with up to 10,000 inhabitants, may decide on their own whether to perform the duty on a professional basis or not.
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In October 2008, the Act on the Election of Heads of Municipalities, Mayors, County Prefects and the Mayor of the City of Zagreb was also passed. It elaborates on the issue of the number of voters signatures necessary for party and independent candidacies for heads of municipalities, mayors, county prefects and their deputies to be valid. Also in October 2008, the Croatian Parliament passed the Act on the City of Zagreb. In respect of the issues of the direct election of the competent holder of the executive branch, this Act is aligned with the Act on the Election of Heads of Municipalities, Mayors, County Prefects and the Mayor of the City of Zagreb and the Act on Local and Regional Self-government. Decentralisation Strategy and Local Self-government Training Strategy In September 2008, the National Strategy of Training for Civil Servants in Local and Regional Self-government 2009-2013 was adopted. The said National Strategy, like the Decentralisation Strategy, was drawn up as part of the CARDS 2003 project entitled Capacity Strengthening for Administrative Decentralisation. Labour relations in local and regional self-government In April 2008, the project entitled Assessment of the System of Salaries and Remuneration in Local and Regional Self-government and Recommendations for the Reform of the System was completed. The project was conducted by the International Relations Institute under the Deed of Donation of the Swedish International Development Co-operation Agency concluded between the Republic of Croatia and the International Bank for Reconstruction and Development. The results of the project will be used to determine the basic elements to regulate the system of salaries of local government officers and employees. In July 2008, the Act on Local and Regional Self-government Officers and Employees was passed. The Act regulates the rights, obligations and responsibilities of officers and employees in the administrative bodies of local and regional self-government. Training of civil servants In April 2008, the Government of the Republic of Croatia adopted the Training Plan for Civil Servants for 2008 whose implementation is being conducted by the Centre for Professional Education and Training of Civil Servants. Based on the said Training Plan for Civil Servants for 2008, the General Annual Training Implementation Plan was drawn up, and in May the 2008 Curriculum Catalogue was also prepared. In 2008, in the Centre there were 576 activities and training programmes for a total of 5,245 civil servants. The programmes included: Introduction to the Civil Service; Assessment of Work and Efficiency; Public Procurement; Programme of Management Skills for the State Administration, etc. In 2008, the Central State Office for Public Administration continued to grant scholarships for civil servants attending the Postgraduate Specialist Study of Public Administration. So far, a total of 53 civil servants have enrolled for postgraduate specialist study. In 2008, the Central State Office for Public Administration continued to actively participate in the development of activities of the Regional School of Public Administration (ReSPA). The representative of the Republic of Croatia in the Management Board of the Regional School of Public Administration is the head of the Centre for Professional Development and Training of Civil Servants with the Central State Office for Public Administration. In June 2008, the Government of the Republic of Croatia adopted the Letter of Intent, undertaking to conclude an International Agreement on ReSPA, with a view to institutionalising ReSPA. B) KEY PRIORITIES To pass the Act on the Right of Nationals of EU Member States who Reside in the Republic of Croatia to Vote and Run for Office in Elections for Local and Regional Self-government;
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To implement the Administrative Inspection Act and conduct thorough inspection supervision in all bodies of state administration;
To adopt the Strategy for the Development of Human Resources in the State Administration; To organise training on the new General Administrative Procedure Act; To implement the new electoral model for local self-government; To organise training related to the application of regulations on employee relations in the state administration; To adopt the Regulation on job classification and the salaries of employees; To establish a record of employment of national minorities in local and regional self-government; To establish a register of civil servants.
1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 1.3.1. Civil, Political, Economic and Social Rights
A) ACHIEVEMENTS IN 2008 In the field of suppressing discrimination, the Anti-Discrimination Act was passed on 9 July 2009. The Act is in line with Council Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin, and Council Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation. The Act foresees further strengthening of the Office of the Ombudsman as the central body in charge of anti-discrimination. With a view to achieving the best possible implementation of the Anti-Discrimination Act, the Office for Human Rights of the Government of the Republic of Croatia, in co-operation with the Office of the Ombudsman and the Centre for Peace Studies, submitted a project under the Community Programme for Employment and Social Solidarity PROGRESS, entitled Supporting the implementation of the Anti-Discrimination Act. The project was approved by the European Commission, which also approved its co-financing by the European Commission to the amount of 80% of the overall cost of the project. The project should commence at the end of 2008, and its implementation should be concluded at the end of 2009. The main goal of the project is to train bodies competent for the suppression of discrimination with a view to achieving effective implementation of the Anti-Discrimination Act, which will enter into force on 1 January 2009. One of the activities foreseen in the project is to train representatives of the bodies in charge of suppressing discrimination (such as the employees of the Office of the Ombudsman as the central body in charge of antidiscrimination, judges, state attorneys, lawyers, police officers and local and regional self-government officers and employees, and representatives of the media, civil society organisations and employers). One of the goals of the project is to raise public awareness of the problem of discrimination. Consequently, there will be an awareness raising campaign in the project to inform citizens about their rights arising from the Anti-Discrimination Act. On 17 September 2008, the Government of the Republic of Croatia adopted the National Anti-Discrimination Plan and the Action Plan for the Implementation of the National Plan (2008-2009). The Action Plan includes a list of competent authorities for specific measures, the deadlines for their implementation and the amount and sources of funds, as well as a schedule and the deadlines for the performance of each of the proposed measures. The Plan is in line with the Anti-Discrimination Act. The plan includes the following areas: family and social welfare; education; labour and employment; elderly persons; health and social welfare; national minorities; the status of aliens; the suppression of and sanctions against discrimination; statistical monitoring of discriminatory acts; and the suppression of discrimination in the media and civil society.
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The Act on Free Legal Aid (OG 62/08) was passed in May 2008, and it completes the system of free legal aid in the Republic of Croatia. The Act regulates the criteria to be met by citizens of lower economic status in order to qualify for free legal aid and the approval procedure for free legal aid. Free legal aid may be approved for exercising rights and meeting obligations in proceedings before administrative, judicial and international bodies in relation to issues of fundamental significance to the citizen, such as statutory rights, rights relating to the social welfare system, rights under pension or disability insurance and other forms of assistance, issues related to labour law, the protection of children and young adults, the protection of victims of criminal acts, victims of trafficking, and victims of domestic violence. The Act establishes the basic forms of free legal aid and the system of monitoring both the approval of legal assistance and the quality and professionalism of the free legal aid provided. By the end of 2008, a publicity campaign will be conducted to inform citizens about the opportunity to obtain free legal aid, and about the methods of, and conditions for, its approval. Of the subordinate legislation envisaged for adoption, the Ordinance on the method of maintaining the register of associations authorised to provide free legal aid (OG 93/08) and the Ordinance on the form of application for the approval of free legal aid, the form of referral and the record of issued referrals (OG 128/08) have already been adopted. The Department for Free Legal Aid has been established within the Ministry of Justice (OG 77/08) to perform second instance activities and monitoring. In addition, the Regulation on amendments to the Regulation on the internal organisation of state administration offices in counties has been adopted (OG 70/08), thus creating the conditions for hiring civil servants to work on the first instance procedure of approving free legal aid. The Act will apply to the citizens of the Republic of Croatia as of 1 February 2009, and to EU citizens from the day of the accession of the Republic of Croatia to the EU. In 2008, hardware and software to support the implementation of the Act on Free Legal Aid were procured. The setting-up of a computer system for free legal aid is expected by the end of December 2008. Preparations are underway for the training of civil servants who will work on the approval of applications for free legal aid. Recruitment procedures are also underway to recruit employees to work on the activities of approving free legal aid. Pursuant to the National Programme for the Roma, the Ministry of Justice is implementing a programme of free legal aid for the Roma in matters of statutory rights, and will continue implementing the programme until 1 February 2009, that is, until the commencement of the application of the Act on Free Legal Aid. In the course of 2008, the measures and goals for improving the position of vulnerable groups were implemented, as envisaged in the National Programme for the Protection and Promotion of Human Rights (2008-2011), adopted in November 2007. The National Programme focuses on the protection, promotion and improvement of human rights in the Republic of Croatia, on raising awareness of the importance of being acquainted with and exercising human rights, on improving co-operation between the bodies of the Republic of Croatia responsible for the protection and promotion of human rights, on the establishment of a human rights education system, and on the creation of the conditions necessary for co-operation with civil society organisations in the area of human rights. In 2008, the Office for Human Rights invited applications for the award of funds for projects undertaken by civil society organisations working on the protection and promotion of human rights. For that purpose, HRK 1,600,000 was disbursed from the State Budget in 2008. B) KEY PRIORITIES To implement the measures and activities contained in the National Programme for the Protection and Promotion of Human Rights (2008-2011); To strengthen the administrative capacity and human resources of the Office for Human Rights of the Government of the Republic of Croatia.
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1.3.1.1. Improvement of the prison system
Accommodation capacities and special treatment programmes Four projects related to the construction of new accommodation capacities of the prison system have started, involving: the new facility of the Prison Hospital in Zagreb, equipped for the treatment and accommodation of 106 patients (the existing buildings will also be reconstructed and adapted); the new facility of the Glina Penitentiary, with a capacity of 400 inmates together with auxiliary facilities; the new facility at Zagreb Prison with a capacity of 376 persons temporarily deprived of liberty, together with auxiliary facilities; a new penitentiary and prison complex with a capacity of 400 inmates and 200 persons temporarily deprived of liberty, together with auxiliary facilities, in the area of the city of ibenik (Dalmatia). The conversion and adaptation of the existing premises of Varadin Prison continues, whereby the accommodation capacity will be increased by 37, for persons temporarily deprived of liberty, and the basement will be converted to inmates workshops. Special treatment programmes have been prepared for certain inmates with problems in the abuse of narcotic drugs, inmates suffering from post-traumatic stress disorder (PTSD), sex offenders, etc. Special programmes are a constituent part of individual programmes in the enforcement of prison sentences in accordance with inmates individual needs. Special programmes are regularly implemented by official staff who receive additional professional training in targeted courses, and, if necessary, with the support and supervision of experts outside the prison system who are employed in centres for the prevention and suppression of addiction, in psychiatric hospitals and/or in addiction treatment clinics. Certain types of individual treatment programmes are being developed through projects of bilateral aid, and thus January 2008 saw the start of the implementation of the project of bilateral aid and co-operation with the Kingdom of the Netherlands, MATRA Treatment of Violent Offenders in Croatian Prisons and Penitentiaries. In addition, the implementation of the UNDP project Violence Prevention and Treatment in Turopolje Juvenile Correction Institution is currently underway. From April 2008 to March 2009, the bilateral programme, Strategic Programme Fund Support to the Development of the Probation System in the Republic of Croatia, has also been running, funded by the Government of Great Britain and Northern Ireland. In 2009, it is planned to admit to the civil service 200 security officers (judicial police); for 2010, the recruitment of 50 security officers (judicial police), 23 healthcare staff, 19 prison care officers and 8 employees for the Register of Prisoners; for 2011, 33 security officers (judicial police), 23 vocational teachers, 14 officers for the deposit of inmates possessions, 36 other officers and 6 employees. With the objective of increasing the level of professional qualifications for work in the prison system, in 2008 a seminar entitled Collective Work with Inmates and Juveniles in the Prison System was organised and held at the Training Centre. Activities for the establishment of the probation system are to continue, including: work on the SPF project Development of the Probation System, funded by the Government of Great Britain and Northern Ireland; drawing-up a Draft Proposal of the Probation Act; participation in the training of judges and state attorneys related to probation; the recruitment of 6 employees at the Central Office and their training for activities concerning probation. Work continues on the project The Emotional Well-being and Professional Burnout of Prison Staff in co-operation with the Faculty of Education and Rehabilitation Sciences in Zagreb. In February 2008, work began on a bilateral project with the Kingdom of the Netherlands, MATRA PRE-ACCESSION, entitled Management of the Organisational Climate and Development of Human Resources of the Directorate for the Prison System of the Ministry of Justice. The planned duration of the project is 30 months. The Act on the Enforcement of Sanctions Imposed on Juveniles in Criminal or Misdemeanour Proceedings has been submitted to the competent authorities for preliminary opinion, in accordance with the stipulated legislative procedure.
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An analysis of the implementation of the Ordinance on benefits for prisoners shows that it is necessary to adopt a new Ordinance to improve the application of the principle of individualised enforcement of prison terms in the sense of raising the level of public safety and the principle of the gradual acquisition of benefits for prisoners. The said amendments to the Ordinance on benefits for prisoners introduce the obligation to perform a security check when deciding on special conditions for the acquisition of benefits in the case of prisoners punished for criminal offences under the competence of USKOK and Article 181 of the Criminal Procedure Act. Important amendments to the provisions of the Ordinance relate to the elimination of the possibility of communication between persons from a criminal environment and prisoners serving prison terms, and to restricted visits by third parties. In order to limit the possibility of using benefits outside prisons and penitentiaries, the principle of gradual acquisition applies. With a view to strengthening prisoner rehabilitation and taking into account the victim and circumstances that exist in the community, it is necessary to evaluate the type and circumstances of the criminal offence committed, the prisoners view of the committed criminal offence, the reaction of the victim and the victims family, the reaction of the wider community, the current situation in the prisoners family and the current situation in the community. The Action Plan for Judicial Reform foresees amendments to the Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order, for the purpose of establishing a Directorate for Probation and in order to recruit 76 employees. The said amendments to the Regulation and the Ordinance and the recruitment are planned in two phases. The 1st phase is due in 2008. In this phase, it is planned to set up five new work posts in the Department for the Enforcement of Protective Supervision and Community Work at Liberty within the Treatment Service at the Central Office, and the recruitment of 6 probation officers in the pilot phase. The Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order were amended and the number of employees in the Department for the Enforcement of Protective Supervision and Community Work at Liberty was increased. Steps were taken to recruit staff for the work posts, and the procedure for the admission of two employees further to the recruitment procedure is underway, while four prison system employees have been assigned to the Department for the Enforcement of Protective Supervision and Community Work at Liberty at the Central Office. All six employees will perform activities related to probation in the pilot phase. The 2nd phase should begin after the passing of the Probation Act, probably in the last quarter of 2009. The said Act will lay down the establishment of probation and the activities of probation, while amendments to the Regulation on the internal organisation of the Ministry of Justice and the Ordinance on the internal order in respect of the establishment of the Probation Directorate and the admission of 70 new probation officers will follow only after the passing of the Probation Act. With a view to improving the system of healthcare for persons temporarily deprived of liberty, an agreement has been reached with the Croatian Health Insurance Institute and is being applied. According to the agreement, all persons temporarily deprived of liberty in the prison system who enjoy the right to health insurance are to be treated by a general practitioner who has a contract with the Croatian Health Insurance Institute. B) KEY PRIORITIES To pass the Act on the Enforcement of Criminal Sanctions and Measures Issued against Minor Perpetrators of Criminal Offences; To pass the Probation Act.
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1.3.1.2. Freedom of association On 10 October 2008, there were 35,900 associations registered in the NGO register of the Republic of Croatia. In 2008, significant progress was made in strengthening the legal, institutional and financial framework for co-operation between the Government of the Republic of Croatia and civil society organisations In April 2008, the Office for Co-operation with NGOs, as the body in charge of co-ordinating the work of state administration bodies in the development of co-operation with the non-governmental non-profit sector, submitted an Annual Report to the Government of the Republic of Croatia on the Implementation of Measures Included in the Operational Plan of the National Strategy for the Development of an Enabling Framework for Civil Society Development, for the reporting period from 1 February 2007 to 1 February 2008. The implementation of 34 measures (out of 53 measures in total) began in the course of the reporting period, and in some cases even ended, showing that the implementation process included 64% of all measures foreseen for 2007 and January 2008. The measures are being implemented by various state administration bodies in the areas of citizens participation in the creation of public policy, education for democratic citizenship and human rights, a legal framework for the activities and development of civil society organisations, financing the support and development of civil society, regional development, the development of volunteering, philanthropy and foundations, and civil society development in an international context. In the context of decentralising the system of funding civil society organisations from the State Budget, where the granting of funds was assigned to competent ministries and Government offices, and further to the adoption of the Code of Positive Practice, Standards and Criteria for Financial Support to Programmes and Projects of Associations, in the course of 2008 the Government Office for Co-operation with NGOs acted with the aim of introducing greater transparency in the system of awarding financial support to the projects and programmes of civil society organisations. In late April 2008, the Office for Co-operation with NGOs drew up and submitted to the Government of the Republic of Croatia a Report on the Allocation of Financial Support for Projects and Programmes of Civil Society Organisations in 2007. The Report shows that HRK 470,192,095.08 was granted from the State Budget, HRK 337,911,036.03 from county budgets, and HRK 439,330,869.58 from city/town budgets (HRK 1,247,434,000.69 in total) for projects and programmes of civil society organisations. The Draft Code of Positive Practice on Consultations with Civil Society Organisations in the Procedure of Adopting Laws and other Regulations was accepted at the session of the Council for Civil Society Development at the end of June 2008. At the beginning of July, the text of the Code was aligned in expert working groups and in all co-ordinations of the Government of the Republic of Croatia and it is expected that it should be put on the agenda of the Government of the Republic of Croatia. The Public Benefit Organisations Act, which will serve to introduce a new model for classifying civil society organisations in a way that will enable a clear distinction to be made between public benefit organisations, that is, those acting for the greater (public) good, and those organisations formed with a view to satisfying the needs of their members. By defining privileges for public benefit operations, it is expected that philanthropy and the culture of giving will be stimulated. The working group of the Council for Civil Society Development for establishing the criteria to confer the status of public benefit organisations drew up a proposal for resolving basic issues regarding the status of public benefit organisations active in the Republic of Croatia. The Draft Public Benefit Organisations Act should be submitted for legislative procedure in early 2009. The Office for Co-operation with NGOs was actively involved in the drafting of the Anti-Corruption Strategy and its Action Plan, which assign a significant role to civil society in the overall activity of suppressing corruption. The Head of the Office for Co-operation with NGOs was appointed a member of the National Commission for Monitoring the Implementation of Anti-corruption Measures, while the Office for Co-operation with NGOs is the competent authority for the implementation of several anti-corruption measures. Further to the changes in the structure of the Office for Co-operation with NGOs, there is now a Department for General Programmes and Strategies, which, amongst other things, is also in charge of the systematic implementation of measures included in the Action Plan of the Anti-corruption Strategy within the competence of the Office. With the aim of strengthening the involvement of civil society organisations in the process of European integration, the EU-Croatia Civil Society Follow-up Committee, established as a joint consultative body of the European Economic and Social Committee and
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Croatia as a candidate country for membership of the EU, continues to have regular meetings, drawing together representatives of the Employers Association, trade unions and other civil society organisations. In 2008, support from pre-accession funds for the civil society sector was significant. In the PHARE 2006 Project entitled Enabling the Civil Society Sector for Active Contribution in the Pre-Accession Process 36 projects were approved for financing. In 2008, the Government Office for Co-operation with NGOs worked on drawing up project documents for the first component of the IPA pre-accession programme - Transition Assistance and Institution Building for 2008. The project will be aimed at strengthening civil dialogue in the process of making, monitoring and evaluating public policy at the national and European level in the areas of transparency of public administration, suppression of corruption, the anti-discrimination strategy, and sustainable development. Considering that the Republic of Croatia has become a participant in Europe for the Citizens Community programme, the Government Office for Co-operation with NGOs was appointed as the Contact Point for the Programme. In this context, the Working Programme of Information and Communication Activities for 2008 was drawn up. For its implementation, the Government Office for Cooperation with NGOs received financial support from the Education Audiovisual and Culture Executive Agency, which lies within the competence of the Directorate-General for Education and Culture. B) KEY PRIORITIES To adopt the Code of Positive Practice on Consultations with Civil Society Organisations in the Procedure of Adopting Laws and other Regulations; To adopt the Public Benefit Organisations Act; To implement other measures included in the Operational Plan of the National Strategy for the Development of an Enabling Framework for Civil Society Development; To implement the National Strategy for the Development of an Enabling Framework for Civil Society Development in accordance with its Operational Plan.
1.3.1.3. Right to information
A) ACHIEVEMENTS IN 2008 Pursuant to the Access to Information Act, the Central State Office for Public Administration, in co-operation with the central bodies of state administration, drew up and submitted to the Government of the Republic of Croatia the List of Public Administration Bodies for 2008. The Office drew up a Report on the Implementation of the Act for 2007, which the Croatian Parliament accepted in March. According to the data contained in the reports delivered to the Office in the course of 2007, public administration bodies received 3,670 requests to grant access to information. The Office resolved 3,385 requests, 54 remain unresolved, and 124 were rejected, while 107 requests were assigned to the competent authorities. With a view to drawing up the most complete and the best possible report for 2008, the Office requested public administration bodies to deliver a detailed report on the implementation of the Act, so that it could draw up a uniform report and, within the prescribed deadlines, submit it to the Government of the Republic of Croatia. The Government has the duty to submit the report on the implementation of the Report to the Croatian Parliament for adoption at the latest by 31 March for the previous year. The Office takes action on the basis of petitions from natural and legal persons with regard to the implementation of the Act, provides instructions to public administration bodies on their obligations arising from the Act, and requests information on how to deal with requests to exercise the right to access information.
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The Office requested state administration bodies to submit data on information officers and information catalogues, and drew up a list of information officers and information catalogues. The Action Plan of the Anti-corruption Strategy includes a measure which lays down the obligation of information officers in state bodies to submit quarterly reports on the implementation of the Act to the Central State Office for Public Administration. Therefore, the Office proposed to the Government of the Republic of Croatia the adoption of a Conclusion which would obligate state administration bodies to submit the mentioned quarterly reports. The Office organises seminars for information officers who perform their job in central state administration bodies and in the bodies of local and regional self-government. In 2008, two seminars were held and by the end of the year it is planned to hold a further seminar. The Office also took an active part in the symposium Right to information, organised by the Faculty of Civil Engineering in Zagreb, and in a symposium organised by the Lifelong Learning Centre of the Faculty of Law in Split. In co-operation with GONG and Transparency International Hrvatska, the Office organised a conference on the occasion of the International Right to Know Day.
B) KEY PRIORITIES To prepare, in co-operation with central state administration bodies, the List of Public Administration Bodies for 2009 and submit it to the Government of the Republic of Croatia for publication in the Official Gazette; To prepare a Report on the Implementation of the Access to Information Act for 2008, submit it to the Government of the Republic of Croatia, and to the Croatian Parliament for adoption; In the course of 2009, the Office will organise seminars, round tables and workshops for information officers for the purpose of ensuring the public nature of the work of public administration bodies; The Office will organise a celebration of the International Right to Know Day on 28 September; The Office will take action on the basis of petitions from persons authorised to access information with regard to the implementation of the Act; To prepare amendments to the Access to Information Act; To set up a working group to conduct an analysis of the justifiability or non-justifiability of rejected petitions for access to information; To make analyses and recommendations, produced by the working group, with special emphasis on the Act on the Protection of Data Secrecy; To organise public awareness campaigns on the right of access to information.
1.3.1.4. Gender equality
A) ACHIEVEMENTS IN 2008 On 15 July 2008, the new Gender Equality Act (OG 82/08) was passed. The Act is in line with the acquis communautaire, that is, with the EU directives relating to gender equality (Directive 2002/73/EC, Directive 2006/54/EC and Directive 2004/113/EC), resulting in the meeting of the obligation included in the Action Plan for the Alignment of the Legislation and the Creation of Necessary Capacities for the Application and Implementation of the acquis communautaire in Chapter 19: Social Policy and Employment in the Area of Equal Opportunities. The Act establishes an independent body for suppressing discrimination
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in the area of gender equality, thus achieving alignment with the regulations on the scope of work of the Ombudsman for Gender Equality in a way that the activities of her office include all the functions of an independent body for gender equality laid down in the said directives. The Act also foresees the strengthening of human resources in the Office of the Ombudsman for Gender Equality and the Office for Gender Equality of the Government of the Republic of Croatia and prescribes the obligation of establishing and financing county commissions for gender equality as institutional mechanisms for the implementation of the Act and the National Policy to Promote Gender Equality at the Local Level. The Act introduces wider prohibition of discrimination in the area of receiving and offering services and in the area of employment and labour, and it also introduces new institutes such as class actions, the shifting of the burden of proof, and the principle of expediency in judicial proceedings. In the course of 2008, the Office for Gender Equality implemented and supervised the implementation of measures included in the National Policy to Promote Gender Equality 2006-2010: In line with the provisions of the National Policy, and on the basis of Recommendation (2002)5 of the Council of Europe on the protection of women against violence, the Working Group, set up within the Office for Gender Equality for the task of making an analysis and action plan for the suppression of all forms of violence against women, drew up a proposal of the Protocol on conduct in the event of sexual violence; The Office for Gender Equality issued a public invitation for NGOs to submit projects, and funds were approved to serve as financial support to NGO projects within the funds available within the budget item of the Office for Gender Equality to the amount of HRK 665,000. A priority area of this tender was local elections in 2009; In February 2008, in a final conference held in Malta, the international project Taking Gender Equality to Local Communities was concluded. The goal of the project was to conduct analytical research in 2007 on effective methods of implementing the policy of gender equality in local communities and on the efficiency of institutional mechanisms in overcoming gender-based discrimination which exists in the countries of the Mediterranean circle Malta, Portugal, Italy, Greece and Croatia; With a view to strengthening the institutional mechanisms for implementing the policy of gender equality, the Office drew up a project proposal entitled Support to the Office for Gender Equality in Strengthening the National Gender Equality Mechanisms through Training of Gender Equality Co-ordinators in State Administration Bodies. The Swedish Institutional Support Fund in the Republic of Croatia (SISF) co-finances the project, and a contract on technical assistance was signed in June with the Institute for Public Management in Stockholm. With a view to continued strengthening, networking and training of gender equality committees in local and regional self-government, in October 2008 there was a 3rd Co-ordination of County Gender Equality Commissions; The Office provided for the translation of two recent recommendations of the Council of Europe: Recommendation CM/Rec(2007)13 of the Committee of Ministers to member states on gender mainstreaming in education, and Recommendation CM/Rec(2007)17 of the Committee of Ministers to member states on gender equality standards and mechanisms; The Office printed 2,000 copies of the bilingual Collection of Works from the Awareness Raising Conference about EU Policies and Legislation on Gender Equality, which was organised by the Office in Zagreb on 31 May 2007 (as part of the project financially supported by the European Commission, on the basis of the participation of the Republic of Croatia in the Community Programme Gender Equality); The Glossary of Gender Terminology based on EU standards was published in 2,000 copies which were distributed and publicly presented. The Glossary was compiled by associates from the Centre for Womens Studies; By signing the Memorandum of Understanding with the European Commission, in early 2008 Croatia became entitled to participate in the Community programme for Programme for Employment and Social Solidarity PROGRESS 2007-2013. The competent authority is the Ministry of the Economy, Labour and Entrepreneurship. The Office is in charge of the 5th component, Gender Equality, whose aim is to implement the EU strategy Roadmap for Equality between Women and Men 2006-2010 and the European Pact for Gender Equality;
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Further to the accession of the Republic of Croatia to the Barcelona Process: Union for the Mediterranean (EuroMed), in July 2008 the Office for Gender Equality participated in a meeting of EuroMeds ad-hoc working group dedicated to Strengthening the Role of Women in Society which was organised by the European Commission in Brussels. B) KEY PRIORITIES To further implement the measures included in the National Policy to Promote Gender Equality 2006-2010; To promote equal representation of men and women in elections for representative bodies of local and regional units of selfgovernment; To implement the Recommendations of the United Nations Committee on the Elimination of Discrimination against Women (CEDAW) in relation to the 2nd and 3rd periodical report of the Republic of Croatia on the implementation of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and its Optional Protocol; To participate in the implementation of the PROGRESS Community Programme in the field of equal opportunities in the fifth Gender Equality programme; To further strengthen the administrative capacity of the Office for Gender Equality of the Government of the Republic of Croatia; To continue the strengthening, networking and training of gender equality committees in local and regional self-government units.
1.3.1.5. Protection of the rights of the child
A) ACHIEVEMENTS IN 2008 The Ministry of the Family, Veterans Affairs and Intergenerational Solidarity, in co-operation with the Council of Europe, organised an International Launch of the Council of Europe Initiative against Corporal Punishment of Children, held in Zagreb on 15 June 2008 in the Zagreb Puppet Theatre. The event was attended by representatives of Member States of the Council of Europe, high-ranking officials, members of parliament, ombudsmen, representatives of expert networks, representatives of NGOs, distinguished public figures, families with children, and journalists. The Croatian translation of the publication of the Council of Europe Raise your Hand against Smacking Questions and Answers was published. On the recommendation of the Council of Europe, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity implements the National Campaign against Corporal Punishment of Children which should last until November 2009. On 14 July 2008, the Government of the Republic of Croatia and UNICEF signed the Programme Action Plan 2007-2011. The document relies on national documents in the area of protecting the rights and interests of children, such as the 2006 National Plan of Activities for the Rights and Interests of Children and the National Population Policy. It foresees the adoption of annual implementation plans at the level of co-operation between the competent ministries and UNICEF. The Ministry of the Family, Veterans Affairs and Intergenerational Solidarity had drawn up the Draft Proposal of the Act on the Croatia for Children Foundation, which was passed by the Croatian Parliament on 24 October 2008. The aim of the Foundation, in accordance with the National Population Policy, is to sensitise the public concerning specific needs and to raise the quality of family life in multi-member families, which should be achieved by co-financing programmes such as summer holidays for families with many children, scholarships for talented children, procurement of IT equipment, and the like.
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Based on the invitation for project proposals, the State Budget for 2009 contributed HRK 1,365,900 within the budget item of the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity for 38 projects aimed at children. The first Report on the implementation of the National Plan of Activities for the Rights and Interests of Children 2006-2012 was drawn up and adopted by the Government on 7 February 2008. The Government of the Republic of Croatia adopted the Programme for Psychosocial Assistance at Childrens Oncology Departments on 12 October 2007 on the proposal of the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity. The activities proposed through the Programme primarily target children suffering from malignant diseases and their families, with an emphasis on the programmes implementation in the Clinical Hospital Centres in Zagreb, Split, Osijek and Rijeka. Implementation will achieve the basic goals included in the National Plan of Activities for the Rights and Interests of Children 2006-2012, relating to the adoption of modern principles and methods for making the hospital treatment of children more humane and for the development of preventive programmes. As part of the continuing efforts of the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity, activities are underway pertaining to the action Child-Friendly Towns and Municipalities, the Fantasy Forest Bus project, a literary and art competition for children entitled I love my family, and a competition for the Award for the promotion of the rights of the child. In addition, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity published a twin edition of the magazine Child and Society. An important area of the National Population Policy is the System of Family Support whose aim is to strengthen the family in raising children. Some measures included in the National Population Policy have been applied from 2007 (such as maternity leave assistance and one-off financial assistance for supplies for newborn babies, increased child allowance, a pronatality bonus for the third and fourth child of a child allowance beneficiary), while most will be applied by 2009. One of the successes of the policy in 2008 is the repeal of the limit on the payment of assistance for obligatory maternity leave. In the State Budget for 2008, HRK 1,900,000,000 is allocated for child allowance and HRK 910,000,000 for the use of supplementary maternity leave and one-off financial assistance for supplies for newborn babies. With the further aim of implementing as many measures as possible from the National Population Policy, the Maternity and Parental Benefits Act was passed on 9 July 2008 (entering into force on 1 January 2009), whereby gender equality is promoted, the opportunity is given for fathers to participate more in childcare, benefits are paid to parents in employment during periods of supplementary maternity leave or parental leave linked to a budgetary base, and the legal preconditions are created for the flexible use of parental leave until the child turns eight years of age. It also foresees the possibility of using part-time maternity and parental leave and the possibility of using parental leave for both parents at the same time, interchangeably and in part. The Programme for Distributing Free Schoolbooks to Children of Families with Eight or More Children included 189 children from 168 families. Up to 6 November 2008, HRK 214,763.58 was spent on schoolbooks. The Ministry of the Family, Veterans Affairs and Intergenerational Solidarity carried out a procedure linked to a public invitation for applications for financial support for NGO projects aimed at the family and protection from domestic violence 2008. A total of HRK 3,780,000 was secured for this procedure for the implementation of 69 projects. The procedure included projects of support to pregnant women, mothers, young parents and their families and projects aimed at promoting successful parenthood, support to families with four or more children, and improving protection against domestic violence. In the State Budget for 2008, HRK 25,427,400 was provided for family centres. A total of 17 family centres have so far been founded in the Republic of Croatia, three of which in 2008. Through its counselling and preventive work, family centres pay special attention to responsible parenthood and care for family members, raising the quality of life of children, young people and the family, encouraging and developing a programme of community work, and in general encouraging and implementing programme activities aimed at promoting family values. On 27 June 2008, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity organised an expert meeting of all directors of family centres with a view to encouraging an expert discussion on improving the quality of work of family centres, upgrad-
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ing the offered counselling services aimed at families, improving the operation of the bodies responsible for the family, and making an impact on the promotion of the values of family life. The expert meeting was organised on the basis of the provisions of national documents, the National Family Policy and the National Plan of Activities for the Rights and Interests of Children 2006-2012. With the aim of improving the protection of victims of domestic violence, enhancing the quality of their life and promoting the prescribed rights, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity continues to undertake a number of activities laid down in the National Strategy for Protection from Domestic Violence 2008-2010. B) KEY PRIORITIES To implement the National Campaign against Corporal Punishment of Children; To implement measures in 2009 in accordance with the obligations laid down in the National Plan of Activities for the Rights and Interests of Children 2006-2012; To implement measures under the Programme of Activities to Prevent Violence among Children and Young People; To achieve co-operation with civil society organisations on the implementation of programmes intended for children; To implement measures of the National Population Policy.
1.3.1.6. Protection of the elderly The year 2008 saw the implementation of the Programme of Developing Services for the Elderly in the System of Intergenerational Solidarity for the Period 2008-2011 (OG 90/07). The Government of the Republic of Croatia adopted the Programme on 23 August 2007. Issues concerning the elderly within the scope of work of the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity are also included in the national documents in the broader field of human rights: the National Programme for the Protection and Promotion of Human Rights 2008-2011 and the National Action Plan for the Fight against Discrimination 2008-2013. To implement the measures, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity co-operates with other bodies of state administration, local and regional self-government, and civil society organisations. Interdepartmental co-operation focuses on the overall review of issues concerning the elderly, while the Ministry co-operates with local and regional self-government on the implementation of the programme of intergenerational solidarity. Projects by civil society organisations aimed at improving the quality of life of the elderly or at encouraging volunteering are co-financed through tender procedures. KEY PRIORITIES To implement the measures of the Programme of Developing Services for the Elderly in the System of Intergenerational Solidarity (2008-2011) of the Government of the Republic of Croatia; To implement measures included in the National Programme for the Protection and Promotion of Human Rights 2008-2011, Chapter: The Elderly, 75. Goal: To improve the quality of life of the elderly, Measures 75.1 to 75.4; To implement measures included in the National Action Plan for the Fight against Discrimination 2008-2013, Chapter II: The Current Situation by Region and Measures, 1) The Family and Social Welfare, 1. 4. The Elderly, 1. 4. Intergenerational Solidarity, Measures 1-4; To strengthen international co-operation on issues affecting the elderly within the scope of work of the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity.
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1.3.1.7. Persons with disabilities
A) ACHIEVEMENTS IN 2008 The Act on the Ombudsman for Persons with Disabilities (OG 107/07) entered into force on 1 January 2008, and the Ombudsman for Persons with Disabilities was appointed on 30 May 2008. In the State Budget for 2008, there are funds to the amount of HRK 2,500,000 for the Office of the Ombudsman for Persons with Disabilities, which plans to recruit 9 employees in 2008. With the aim of improving the quality of life of persons with disabilities, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity has carried out for the third year in succession a project to introduce the institution of personal assistants for persons with the most severe forms or degrees of disability. The project is being carried out in co-operation with 64 associations for people with disabilities in 19 counties in the territory of the Republic of Croatia. In 2008, 338 persons with the most severe forms or degrees of disability were included in the project and funds to the amount of HRK 14,999,984.78 were secured from the State Budget. Co-operation with the Office of the Permanent Representative of the United Nations Development Programme to Croatia (UNDP) was established in the area of evaluating the projects of personal assistants and the application of the mechanisms for monitoring and evaluating the implementation of measures included in the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015. On 9 May, the UNDP and the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity signed an agreement on co-operation. The amount of HRK 12,859,396.44 was set aside from income from games of chance in 2008 for projects run by associations dealing with the problems and addressing the needs of persons with disabilities in the Republic of Croatia, with the aim of the social empowerment of disabled persons and their inclusion in the life of the community. Pursuant to the Final Guidelines of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015 (OG 63/07), the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity drew up the Report for 2007 on implementing measures of the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015, which the Government of the Republic of Croatia approved at its session of 30 June 2008. B) KEY PRIORITIES - To implement measures during 2009 in accordance with the obligations included in the National Strategy to Create Equal Opportunities for Persons with Disabilities 2007-2015; - To co-operate with civil society organisations in the implementation of programmes aimed at associations dealing with the problems and addressing the needs of persons with disabilities; - To pass a regulation laying down the right to a personal assistant for persons with the most severe type and grade of disability.
1.3.1.8. Hate crimes
KEY PRIORITIES All police administrations will systematically monitor, gather and analyse all incidents relating to the problem of hate crimes, which includes hate expressed on religious, national and other grounds. All such incidents must be promptly reported to the competent organisational units of the Ministry of the Interior in charge of monitoring hate crimes, which, if necessary, will then become involved in the processing of such acts. At the General Police Directorate, all data will continue to be merged, and analyses and evaluations
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of the situation throughout the Republic of Croatia will continue to be conducted. Standardised data on hate crimes will continue to be entered in police records. Following a criminal or misdemeanour investigation, the following data must be recorded concerning events established as or suspected of being a hate crime towards a person or group on the grounds referred to in Article 89, paragraph 36 of the Criminal Code (hate crimes): 1. the affiliation of the injured person with a particular group (if the motive for the attack is ethnic or national hostility or hatred, it is necessary to record the ethnic or national affiliation of the injured person; if the motive is the injured persons sexual orientation, the data concerning the group must be recorded). The same method is used to record data for members of other attacked groups, depending on the motive for the attack which can be hatred under any of the grounds laid down by law (race, origin, membership of a subcultural movement, religious community, religious affiliation, etc.). This also includes events which glorify Ustasha, Chetnik, Fascist, or Nazi movements, etc; 2. the affiliation of the perpetrator to a group is recorded in the same way as for the injured person; 3. the results (material damage, grievous bodily harm, physical injury, no harm, etc.); 4. the manner in which it was determined that the event was an incident motivated by hate, that is, the reason why it is presumed that it is a hate crime; 5. the qualification of the incident, steps taken, that is, the manner of concluding the case, and other relevant data.
1.3.2. Minority Rights and the Protection of National Minorities

Implementation of the Constitutional Act on the Rights of National Minorities In 2008, the Office for National Minorities continued to implement the Constitutional Act on the Rights of National Minorities, especially in the part relating to the appointment of the Council for National Minorities. It also encouraged activities and, in accordance with its scope of work, implemented measures included in the National Programme for the Roma. At its session of 10 April 2008, the Government of the Republic of Croatia appointed other members of the Council for National Minorities from the ranks of persons proposed by national minority councils. Six persons were appointed as members of the Council, that is, representatives of the Slovenian, Slovak, Macedonian, German, Ukrainian and Ruthenian national minorities. With a view to advancing the rights of national minorities, it is particularly important to implement the Framework Convention for the Protection of National Minorities which the Republic of Croatia was one of the first countries to ratify. For the purpose of implementing the said international document, the Office, in co-operation with the Council of Europe, organised the fifth seminar on the implementation of the Framework Convention for the Protection of National Minorities, which was held in Zagreb on 1 December 2008. Persons attending the seminar analysed the implementation of the Framework Convention for the Protection of National Minorities and the national legislation regulating the rights of national minorities. The Office is now drawing up its third report on the implementation of the Framework Convention for the Protection of National Minorities, which the Government of the Republic of Croatia will submit to the Council of Europe Advisory Committee. In the ensuing term of office, the head of the Office for National Minorities was appointed head of the Committee of Experts of the Council of Europe on Issues relating to the Protection of National Minorities. At its session of 5 March 2008, the Croatian Parliament passed a Conclusion accepting the Report on the Implementation of the Constitutional Act on the Rights of National Minorities for the year 2006. For the implementation of the Constitutional Act on the
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Rights of National Minorities for 2006, the amount of HRK 84,650,270 was allocated from the State Budget, which in comparison to the previous year was a 110% increase in the funds from the State Budget. The Report shows further progress in the realisation of all the rights of national minorities. In relation to the implementation of Article 22 of the Constitutional Act, which regulates benefits for employing national minorities, 2006 saw the creation of an overall legal framework to regulate the said rights in detail, both in the bodies of state administration and local self-government, and in the judiciary. In addition, recruitment plans were also adopted, which foresee the number of national minority members whose employment must be planned. The Office for National Minorities and the Council for National Minorities of the Republic of Croatia organised an International Conference on Cross-Border Co-operation of National Minorities on the Brijuni Islands from 19 to 21 June 2009. The goal of the Conference was to strengthen cross-border co-operation between national minorities in 8 participating countries: Austria, Bosnia and Herzegovina, Montenegro, Hungary, Macedonia, Romania, Slovenia and Croatia. At the session of 17 July 2008, the Government of the Republic of Croatia adopted the Conclusion accepting the Report on the Implementation of the Constitutional Act on the Rights of National Minorities for 2007. The Report shows further progress in the realisation of the rights of national minorities. In 2007, the amount of HRK 131,527,332 was disbursed on the implementation of the Constitutional Act on the Rights of National Minorities, which is an increase of 55% in relation to the previous year. The Office for National Minorities co-ordinated and participated in the drawing up of the Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities, which the Government of the Republic of Croatia adopted on 25 June 2008. The Action Plan was adopted as part of the accession negotiations of the Republic of Croatia to the European Union, with a view to fulfilling the benchmarks for the opening of negotiations on Chapter 23 - Judiciary and Fundamental Rights. With support from the State Budget and funds provided by the European Commission (PHARE 2005), construction work began on the infrastructure of the Roma settlement of Parag (Nedelie Municipality, County of Meimurje). The funds provided for the project will be used to build a road, water supply system and electricity network. This part of the project was funded by the EU to the amount of EUR 500,000 and co-financed by the Republic of Croatia to the amount of EUR 167,000. In the State Budget of the Republic of Croatia for 2008, within the budget item of the Council for National Minorities for programmes of national minority associations and institutions, funds are in place to the amount of HRK 41,511,500, which is an increase of 19% in relation to the previous year. For 2009, funds available amount to HRK 43,590,000, which is a 5% increase over the previous year. With a view to further improving and realising the rights of national minorities, in March 2008 the Croatian Parliament passed the Decision on the ratification of the Agreement between the Republic of Croatia and the Republic of Macedonia on the Protection of the Rights of the Croatian National Minority in the Republic of Macedonia and of the Macedonian National Minority in the Republic of Croatia. Employment of national minorities The Central State Office for Public Administration collects and processes data on the employment of national minorities in the bodies of state administration and in the administrative bodies of local self-government, analyses the situation and monitors the progress achieved. Preparation is underway to collect and process the said data for 2008. In relation to national minorities, the Civil Service Recruitment Plan for State Administration Bodies, Professional Services, and Offices of the Government of the Republic of Croatia for 2008 indicates that in the bodies covered by the Recruitment Plan there are 2,031 members of national minorities, and that in 2008 it is planned to recruit an additional 226 (224 in state administration bodies and 2 in professional services and offices of the Government of the Republic of Croatia). As at 1 November 2008, there are 2,158 members of national minorities (1,989 civil servants and 169 employees) in state administration bodies and in state administration bodies in the counties.
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Funds for the needs of national minorities Pursuant to the Decision of the Government of the Republic of Croatia dated 18 April 2008 approving funds from the budgetary reserves of the State Budget of the Republic of Croatia for 2008, further funds to the amount of HRK 500,000 were remitted to the Serbian National Council in Zagreb for its regular operation. With the Decision of the Government of the Republic of Croatia dated 24 April 2008, funds were provided from the budgetary reserves to the amount of HRK 100,000 to eka Beseda Donji Sreani for the reconstruction and adaptation of the Czech Centre, and HRK 150,000 to the Matica Slovaka Miljevci for the construction of the Croatian-Slovak Centre in Miljevci. National Programme for the Roma In 2008, the Office continued to implement measures included in the National Programme for the Roma. Two seminars were organised on training for leaders and representatives of Roma associations and organisations, held from 27 to 29 March 2008 and from 10 to 12 April 2008. The lectures were presented by representatives of the competent ministries and government offices, professors from the Faculty of Political Sciences of the University of Zagreb and lecturers from the International Centre for the Education of Journalists. Those attending the seminar were informed about the exercise of the rights of national minorities in the Republic of Croatia, the implementation of the National Programme for the Roma, the Action Plan for the Decade of Roma Inclusion (20052015) in the part relating to education, healthcare, employment and social welfare, housing and spatial planning, the National Policy for the Promotion of Gender Equality, and an analysis of reporting in the media with special focus on the Roma. At its session of 27 March 2008, the Government of the Republic of Croatia adopted a Decision appointing the president and members of the Commission for Monitoring the Implementation of the National Programme for the Roma. The Deputy Prime Minister and Minister of the Family, Veterans Affairs and Intergenerational Solidarity was appointed as the Chair of the Commission. The Commission has 27 members and, in addition to representatives of relevant ministries and offices, 9 representatives of the Roma national minority have also been appointed. On 5 June 2008, the Government appointed the head and members of the Working Group for the Monitoring of the Action Plan for the Decade of Roma Inclusion 2005-2015, among which are four representatives of the Roma minority. A European Commission donation from the PHARE 2005 and 2006 Programmes, and resources from the State Budget of the Republic of Croatia for the Roma Assistance Project will be used to build complete infrastructure (roads, water and power supply) in 4 Roma settlements in the County of Meimurje. In February 2008, work commenced in the settlement of Parag in the municipality of Nedelie. The total value of the work planned within these projects is EUR 4,071,429, of which EUR 1,238,429 is co-financed from the State Budget of the Republic of Croatia. As part of the IPA 2008 Programme, it is proposed to build infrastructure in two more Roma settlements in the County of Meimurje, for which the European Commission has approved funds to the amount of EUR 2.5 million, with co-financing from the State Budget to the amount of EUR 833,330. On 24 October 2008, the 7th World Roma Congress was held under the auspices of the Government of the Republic of Croatia. Pursuant to the Decision of the Government of the Republic of Croatia of 12 September 2008, HRK 200,000 was provided from the budgetary reserve of the State Budget of the Republic of Croatia for the said Congress. Funds from the State Budget of the Republic of Croatia for 2008: Programme for the Roma HRK 2,560,000; Programme for National Minorities HRK 380,000; Conference on the Rights of National Minorities HRK 120,000.
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B) KEY PRIORITIES To implement the Constitutional Act on the Rights of National Minorities; To implement the Action Plan for the Implementation of the Constitutional Act on the Rights of National Minorities; To draw up a Report on the Implementation of the Constitutional Act on the Rights of National Minorities; To draw up the 3rd Report on the Implementation of the Framework Convention for the Protection of National Minorities; To draw up the Action Plan for the Decade of Roma Inclusion for 2009; To draw up the Report on the Implementation of the National Programme for the Roma and the Action Plan for the Decade of Roma Inclusion (2005-2015); To organise a conference on the rights of national minorities; To strengthen the administrative capacity of the Office for National Minorities.
1.4. OMBUDSMAN
A) ACHIEVEMENTS IN 2008 Through the passing of the Anti-discrimination Act in July 2008, the Ombudsman became the central anti-discrimination body in charge of supervising all activities to be conducted in the area of suppressing discrimination. On 19 September 2008, the Croatian Parliament reviewed the Report on the Work of the Ombudsman for 2007, accepted it and submitted it to the Government of the Republic of Croatia, so that measures could be taken to ensure the efficient work of the competent state bodies and bodies vested with public power. At the same time, through a special Conclusion, the Ombudsman entrusted the Government with the preparation and submission of the Proposal of the Act on Amendments to the Ombudsman Act to the Croatian Parliament at the latest by the end of 2008, in accordance with the proposal and initiative made by the Ombudsman in the Report on the Work of the Ombudsman for 2007. At the beginning of the year, the Ombudsman forwarded a formal initiative to the Croatian Parliament, through its Committee on the Constitution, Standing Orders and Political System, to amend Article 92 of the Constitution of the Republic of Croatia, that is, the constitutional provisions on the Ombudsman. The objective of the proposed amendment is to prescribe the general duty of the Ombudsman (as the person authorised by the Croatian Parliament) to protect and promote human rights, which is one of the essential criteria for obtaining the status of a national institution for human rights included in the United Nations Paris Principles of 1993. In June 2008, the competent authority of the United Nations formally granted the Ombudsman Status A as the national institution meeting the criteria of the Paris Principles. Such status, along with recognition of independence, entails special obligations in terms of reporting to the bodies of the United Nations concerning the implementation of human rights conventions in Croatia. Through the said amendments to the Constitution, it is necessary to remove all doubts as to whether the Ombudsman may be entrusted by law with certain powers in relation to court administration and legal and natural persons. If the initiative is accepted, the 1992 Ombudsman Act, already quite obsolete in some of its provisions, will have to be amended. In 2008, increased funds from the Budget allowed for the recruitment of 8 new employees, so that the Office, along with the Ombudsman and three deputies, now has 18 advisors and 10 expert assistants and clerks. The said recruitment served to fulfil part of the plan to strengthen the institution, which had been accepted by the Croatian Parliament, on the proposal of the Ombudsman, on 3 June 2005. Concerning complaints, by 7 October 2008, the Ombudsman had received 1,171 new cases, mostly relating to the work of the judiciary (298), which lies outside the competence of the institution. The second largest group of complaints were those relating to construction, physical planning and environmental protection (147), complaints from persons deprived of their liberty
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(116), complaints connected with the realisation of the rights arising from pension insurance (115), employment and administrative relations (70), the status-related rights of citizens (44), the provision of housing, the exercise of rights arising from health insurance (40), problems concerning local, regional and community self-government (37), and complaints against the work of the police (34), etc. B) KEY PRIORITIES To further strengthen the Office in terms of human resources and material resources as the central body competent for the suppression of discrimination; To implement the project Support to the Application of the Anti-discrimination Act which was approved as part of the Community Programme for employment, social inclusion and protection, working conditions, gender equality and the fight against discrimination for the period 2007-2013 (PROGRESS), which will be used to organise the training of civil servants, and a promotional campaign for the purpose of suppressing discrimination and ensuring the effective implementation of the Act; To actively participate in the work of the European Network of Equality Bodies (Equinet); To submit the new Ombudsman Act for legislative procedure; To resolve the issue of working premises for the Office of the Ombudsman.
1.5. RETURN OF REFUGEES 1.5.1. Legal and institutional framework

A) ACHIEVEMENTS IN 2008 In 2008, all activities aimed at accelerating the pace of the return process and ensuring its sustainability continued, especially regarding the issue of housing care for former tenancy right holders. The Action Plan for the Accelerated Provision of Housing for Former Tenancy Right Holders (FTRH) by the end of 2009 was accepted by the Government of the Republic of Croatia on 25 June 2008 and sent to the European Commission. To give a new impulse in 2008 to the process of providing housing care to former tenancy right holders within and outside the areas of special state concern, the Government of the Republic of Croatia assumed the following obligations: to resolve 1,427 cases involving former tenancy right holders within and outside the areas of special state concern by the end of 2008 (427 cases outside the areas of special state concern and 1,000 cases within such areas); to resolve all pending cases (2,144) within and outside the areas of special state concern on a turn-key basis by the end of 2009. During the implementation of the plan for 2008, by the beginning of December housing care was provided for 1,300 former tenancy right holders (91%). By December 2008, outside the areas of special state concern, all 427 planned flats had been purchased, and in the areas of special state concern housing care was provided for a total of 873 former tenancy right holders (91%), and a solution for the remaining persons concerned will be reached by the end of the year. More than half of the flats are available, and for some FTRH, the reconstruction of houses and flats will be completed by the spring of 2009.
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1.5.2. Provision of housing care for former tenancy right holders (FTRH) in areas of special state concern (ASSC)
A) ACHIEVEMENTS IN 2008 Up to the beginning of December 2008, a total of 5,219 former tenancy right holders had been provided with appropriate housing care in the areas of special state concern. In 2008, it was foreseen to provide housing care for 1,000 former tenancy right holders in the areas of special state concern. With a view to accelerating the programme of housing care in the areas of special state concern, up to the beginning of December 2008, 873 FTRH had been provided with housing care. The majority of these families moved into or are moving into the allocated available houses and flats, except for those beneficiaries who are currently receiving construction materials and whose tenement houses are currently being reconstructed, which should be completed by the spring of 2009. Housing care for the remaining number of accepted requests filed by FTRH will be provided in the areas of special state concern by the end of 2008 and in 2009 according to the programme of the Ministry of Regional Development, Forestry and Water Management, mostly in the form of reconstruction of damaged and destroyed tenement houses and family homes and the eviction of some of the current users of such flats. B) KEY PRIORITIES In 2009, a total of 1,481 requests for housing care in the areas of special state concern still remain to be resolved, which should be accomplished by the end of 2009. There are currently around 1,100 flats in tenement houses under reconstruction, while the remaining number of flats needed will be ensured through the eviction of current users of such flats in the areas of special state concern and the reconstruction of family homes owned by FTRH. For the programme to be fully accomplished, around HRK 400 million is required, which is to be ensured from the State Budget for 2009.
1.5.3. Provision of housing care for former tenancy right holders returning to the territory of the Republic of Croatia outside the areas of special state concern
A) ACHIEVEMENTS IN 2008 A total of 4, 559 applications for housing care outside the areas of special state concern had been submitted by the deadline for submitting applications, which was the end of September 2005. By October 2008: (a) 1,498 families were granted approval for housing care, i.e. their right to housing care was determined; (b) 1,444 applications were found wanting and will be suspended, mostly because they relate to areas of special state concern or because beneficiaries had failed to follow the instructions to complete their applications; and (c) 1,917 applications remain unresolved, because the applicants had failed to complete their applications and many such applicants have been inaccessible for a long period. By the end of 2008, a total of 835 flats had been purchased outside the areas of special state concern (flats purchased through the Croatian Government Real Estate Agency) and allocated to beneficiaries whose applications had been approved.
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B) KEY PRIORITIES The administrative procedure of determining the right to housing care outside the areas of special state concern was concluded in October 2008 with a view to defining the final number of beneficiaries who must be provided with housing by the end of 2009. In 2009, it is planned to provide a total of 663 flats, which will mostly be secured through purchase on the market in 2009. For this purpose, it is necessary to allocate around HRK 500 million from the State Budget in 2009.
1.5.4. Repossession of occupied private property

A) ACHIEVEMENTS IN 2008 Repossession of occupied private property by owners was almost completed by the end of 2005. At the end of 2008, there were 9 remaining cases of occupied property in Kistanje; repossession is underway and should soon be completed. Court proceedings relating to repossession of property cover 37 cases of occupied property. Eviction court proceedings were launched by the Ministry of Regional Development, Forestry and Water Management through the State Attorneys Office after all administrative instruments had been exhausted. Eviction court proceedings were launched in all cases where temporary users refused to leave occupied property pursuant to administrative eviction orders and where it had been established that they possessed other property or that they had refused the alternative accommodation offered. Court proceedings have been accelerated in all cases, and several court eviction cases have been registered. As 350 cases of devastated houses sequestered by the Republic of Croatia have been reconstructed so far, the programme has almost been completed. The remaining cases include situations where owners are inaccessible or where their property has been sold. In addition, there are a small number of cases involving the reconstruction of devastated property (75) whose owners submitted reconstruction applications in 2007 and 2008. Pursuant to the Conclusion of the Government of the Republic of Croatia of 7 December 2006 on compensation for investments in occupied property, the Ministry will apply the procedure of offering an out-of-court settlement to all temporary users and owners of property, assuming the payment of compensation on behalf of the owner. So far, 16 applications for the payment of compensation for investments in occupied property have been received, of which two were concluded in 2008 by the signing of an out-of-court tripartite settlement between the owner, the beneficiary and the Ministry. The remaining cases are being processed. The issue of repossession of agricultural land in the hinterland of Zadar is being dealt with jointly by the Ministry of Justice and the Ministry of Regional Development, Forestry and Water Management (MRDFWM). Seven users of land belonging to approximately 30 owners have so far been identified. The Independent Democratic Serb Party (SDSS) is involved in resolving the cases. A Conclusion defining the urgent resolution of the issue has been submitted for Government procedure (the conclusion will be adopted by the end of December 2008). B) KEY PRIORITIES Resolution will be sought for all remaining property repossession cases, including cases of occupied agricultural land and compensation of damage for investments in occupied property. It is planned to finalise all the mentioned property repossession cases by the end of 2009 at the latest. Funds for this purpose have been earmarked in the State Budget.
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1.5.5. Reconstruction of the housing stock damaged or destroyed in the war

A) ACHIEVEMENTS IN 2008 During 2008, reconstruction was started on 1,400 houses with a higher degree of damage, of which 900 were fully reconstructed, and 500 financial incentives were paid for the reconstruction of houses with a lower degree of damage. There are fewer than 550 applications for reconstruction left to resolve, mostly subject to the resolution of other issues, such as property relations and the like, and there are several other cases which are currently under appeal proceedings and which will be resolved positively. There are 9,000 appeals against decisions on the right to reconstruction in second instance proceedings. Appeals against decisions on the right to reconstruction are being addressed in an energetic manner. In March 2008, a new procedure has been introduced to resolve some of the refused applications for reconstruction. The new procedure was defined through changes to the Act on Areas of Special State Concern in July. The foregoing should enable a large number of rejected applications for reconstruction to be resolved positively, and it should also provide for the organised reconstruction of homes through the programme of housing care (this relates to 800 negative applications for reconstruction persons who appealed against the degree of damage now have the right to housing care through the award of construction materials). B) KEY PRIORITIES It is planned to complete the reconstruction of the remaining housing stock damaged or destroyed during the war. In 2009, it is planned to reconstruct up to 1,400 houses, of which around 700 houses through the organised reconstruction of houses with a higher degree of damage, and around 700 houses with a lower degree of damage. It is planned to proceed with the process of resolving appeal proceedings, which should round off the programme of reconstruction of the housing stock damaged in the war in Croatia, except for individual cases (relocation, unresolved property rights relations, exchange of the right to reconstruction, etc.).
1.5.6. Creating sustainable return conditions infrastructure reconstruction and construction programmes, and incentives for the social and economic recovery of war-affected areas
A) ACHIEVEMENTS IN 2008 The implementation of projects related to the reconstruction and construction of utilities and social infrastructure in war-affected areas continued in 2008 through the EIB I and CEB V programmes which commenced in 2004, and through EIB II which commenced in 2006, as well as through programmes financed from State Budget funds. The EIB I programme, with a total value of approx. HRK 760 million (50% of which is a loan from the European Investment Bank, and the remaining 50% provided from the State Budget), provides for the reconstruction of 322 utilities and social infrastructure facilities in about 90 towns and municipalities in the 2004-2008 period. By October 2008, the reconstruction of 257 facilities had been completed with the construction of 38 facilities underway and works on 27 facilities under preparation. In 2009, it is planned to complete the programme, resulting in the reconstruction of 65 facilities. The CEB V programme provides for the reconstruction of 139 schools, with funds provided in the same proportion from a loan from the Development Bank of the Council of Europe and the Croatian State Budget, amounting in total to HRK 981 million. By October
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2008, a total of 111 schools had been reconstructed, 15 are currently being reconstructed and an additional 12 are being prepared for reconstruction. The end of the programme is envisaged in 2009, which should involve 27 facilities. The implementation of the EIB II programme entitled Integral Development of the Local Community was intensified in 2008. The Programme encompasses the reconstruction, upgrading and building of infrastructure facilities, as well as environmental protection projects. In addition to war-affected areas, the programme will include other parts of the Republic of Croatia. The total value of the programme is EUR 300 million, 50% provided by a loan from the European Investment Bank and the remaining 50% provided from the State Budget. Programme implementation is scheduled up to 2010. In total, local self-government submitted around 1,680 sub-projects, of which 750 were approved. To date, 523 sub-projects involving utilities and social infrastructure and nominated by municipalities and towns have been included in the programme. By October 2008, 113 facilities had been completed, 280 facilities are under construction and 130 facilities are being prepared for construction. In 2009, it is planned to commence work on 220 subprojects and to finish work on around 400 facilities. Under the CARDS 2003 Programme Sustainable Development in Returnee Areas, several specific investment projects have been financed in the Counties of Sisak-Moslavina and Vukovar-Srijem. The financed projects were selected according to the priorities set out in the Regional Operational Programmes for the said two counties and they target a wide spectrum of areas such as the promotion of entrepreneurship, the fostering of co-operation with civil society, etc. The total value of CARDS 2003 is EUR 15 million in grants from the EU. All funds have been successfully used. Along with the said specific investment projects within the project and the amount of funds available, the capacities of the Counties of Sisak-Moslavina and Vukovar-Srijem for development management in their respective territories have been strengthened, and 4 new Regional Operational Programmes have been developed in the Counties of Karlovac, Lika-Senj, Brod-Posavina and Poega-Slavonia. Just as within the CARDS 2003 project, certain investment projects in the 4 mentioned counties were funded through the CARDS 2004 project Sustainable Development of Croatias War Affected. Areas County Development Capacity. Since the financed projects were selected for funding according to the same criteria as in the CARDS 2003 project, in the relevant Regional Operational Programmes they were defined as priorities. The fields targeted through the projects are also quite diverse and include the strengthening of the sustainability of the return process through economic revitalisation, the strengthening of entrepreneurship, creating jobs, and improving the atmosphere of social acceptance, and the like. The total value of CARDS 2004 is EUR 14 million, which is intended not only for concrete investment projects (of which most have been successfully implemented, and those still being implemented should be completed by the end of January 2009), but also to strengthen the capacities of the counties for development management in their respective territories. HRK 815.2 million has been earmarked for the reconstruction and construction of utilities and social infrastructure and development programmes in the areas of special state concern, mostly for the reconstruction and construction of utilities and social infrastructure, which includes the implementation of the three utility and social infrastructure programmes, EIB I and II and CEB V. Apart from the reconstruction of infrastructure damaged and destroyed in the war, new facilities are also being built and projects focusing on the economic and social recovery of areas of special state concern are being financed, particularly from the loan programme of the World Bank Social and economic recovery of areas of special state concern (EBRD). The programme relates mostly to capital assistance and subsidies to farmers, tradespersons and craftspersons, and small and medium entrepreneurs. B) KEY PRIORITIES It is planned to continue implementing all three programmes for the reconstruction and construction of utilities and social infrastructure (EIB I, EIB II and CEB V) and other projects financed from the State Budget, and to ensure budget funds for this purpose in the coming year.
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1.5.7. Co-operation with neighbouring countries to accelerate the return of refugees

A) ACHIEVEMENTS IN 2008 A total of 2,400 family houses were reconstructed from 2002 until December 2008 as part of the return and reconstruction programme in Bosnia and Herzegovina through the award of construction materials financed by the Croatian Government. In August 2008, distribution of construction materials began for 350 houses. For 2008, it is planned to allocate HRK 51 million from the State Budget for the programme of return and reconstruction in Bosnia and Herzegovina through the award of construction materials. B) KEY PRIORITIES Further progress in bilateral co-operation with Bosnia and Herzegovina, Serbia and Montenegro is expected in connection with the return of refugees. Intense co-operation with Bosnia and Herzegovina will continue through the financing of the return and reconstruction programmes initiated in Bosnia and Herzegovina, as will co-operation in resolving issues concerning the remaining Bosnia and Herzegovina refugees in the Republic of Croatia. For the purpose of continuing the programme in 2009, it is planned to distribute construction materials for the reconstruction of at least 550 houses in Bosnia and Herzegovina, for which it is necessary to allocate around HRK 50 million from the State Budget.
1.5.8. Convalidation
For the purposes of applying the Convalidation Act, on 9 April 1998 the Government of the Republic of Croatia adopted the Regulation for the implementation of the Convalidation Act in the administrative area of labour, employment, pension and disability insurance, childs allowance, social welfare and protection of wartime disabled veterans and civilians, which, amongst other things, prescribes the preclusive deadline of one year for submitting an application. The Government of the Republic of Croatia regulated the matter of convalidation further through amendments to the Regulation implementing the Convalidation Act of 20 June 2008, in which it eliminated the restriction for the submission of an application for the convalidation of the years of service for the period from 1991 to 1995, or until 1997 for the area of the Croatian Danube region. The Ordinance on the procedure for the convalidation of decisions and individual acts in the area of pension insurance was adopted pursuant to the Conclusion of the Government of 18 December 2007, thus enabling all interested eligible parties to submit an application for convalidation with an open deadline. Given that the Ordinance in its content corresponds to the content of the said Regulation in the part relating to pension insurance, and does not prescribe a deadline for submitting an application, it was necessary to amend the Regulation. This amendment was performed at the session of the Government of the Republic of Croatia of 20 June 2008. The Croatian Pension Insurance Institute is in charge of applying the Ordinance. Its Central Service has drawn up Instructions for the application of the Ordinance, along with application forms, and has provided for IT support, instructions and professional support, and has also drawn up the standard form for decisions and has organised working meetings in its regional services to ensure the best possible and most effective organisation in applying the Ordinance. According to the data provided by the Institute, from the date of entry into force of the Ordinance until 16 September 2008, a total of 3,539 applications for the convalidation of years of pensionable service were submitted, of which 124 applications have been resolved. Most applications were submitted in the Sisak Regional Service (around 1,600), followed by the Regional Services of ibenik, Vukovar, Gospi, Karlovac, Osijek and Zadar. Furthermore, a total of 175 applications for the realisation of the right to pension, regulated by the Convalidation Act, were submitted (old age, early old age, disability and family), of which 129 applications have been resolved, and a total of 45 applications for the convalidation of the decision on the recognised right to pension insurance, of which 4 have been resolved. Most applications for the convalidation of the decision on the right to pension were submitted in the Regional Services of Karlovac, Sisak and Vukovar.
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1.6. CO-OPERATION WITH THE INTERNATIONAL CRIMINAL TRIBUNAL FOR FORMER YUGOSLAVIA
A) ACHIEVED IN 2008 In 2008, the Government of the Republic of Croatia continued to co-operate with the International Criminal Tribunal for Former Yugoslavia (ICTY). The Chief Prosecutor of the ICTY, Mr Serge Brammertz, visited the Republic of Croatia on two occasions during 2008, when he met with the highest officials responsible for the co-operation of the Republic of Croatia with the ICTY. Co-operation with the ICTY involves the continuous delivery of documents and other materials of varying degrees of confidentiality by various state administration bodies and judicial bodies of the Republic of Croatia, providing the possibility of viewing documents and evidence, providing the possibility of hearing witnesses and suspects, and providing on-site assistance to the work of investigating teams of the ICTY Office of the Prosecutor. In 2008, the Republic of Croatia received a number of new requests for assistance from the ICTY Office of the Prosecutor, and several supplements to earlier requests. All the requests have either been met or are pending. A total of 808 requests for assistance have been delivered to Croatia to date. Concerning two partially met requests, in June 2008 the Office of the Prosecutor filed an application with the ICTY to issue a court order pursuant to Rule 54 bis ordering the Government of the Republic of Croatia to produce specific documents. After the holding of a session, the ICTY issued an order deferring its decision on the Prosecutors motion, and extended the period for the Republic of Croatia to conduct investigation with a view to establishing whether the requested documents existed, since the Trial Chamber was not convinced of either the existence of the non-existence of the requested documents. In conformity with the order, on 20 October 2008 Croatia sent a report to the Trial Chamber and to the Office of the the Prosecutor concerning all the efforts made to identify the location of the missing documents, by which the order of the Trial Chamber was fulfilled. In the Prosecutor v. Gotovina, ermak and Marka case, the trial began on 11 March 2008, and the presentation of evidence by the Prosecution is currently underway. The case of Prosecutor v. Prli et al. must be highlighted in the context of other war crimes proceedings of The Hague Tribunal against Croatian citizens, in which the Republic of Croatia has also fully co-operated with the ICTY. The trial against six defendants began on 26 April 2006, and the presentation of evidence by the defence is currently underway. In September 2008, Judge Antonetti, presiding judge of the Trial Chamber in the case Pli et al., sent a letter to the competent bodies of the Republic of Croatia to thank them for the manner in which the ordered measures of supervision were conducted during the defendants provisional release. As far as the criminal prosecution of war criminals before domestic courts is concerned, the case of Ademi/Norac must be mentioned in the context of co-operation with the ICTY. This case was referred to the Croatian justice system for further processing under Rule 11 bis in September 2005. The indictment was adjusted to the Croatian criminal legislation, and in June 2007, the main trial began before the County Court in Zagreb. On 30 May 2008, Norac was convicted to 7 years imprisonment by a first-instance judgement, while Ademi was acquitted of all charges. The county state attorney office in Zagreb lodged an appeal on the judgement with a motion to the Supreme Court to reverse the acquitting part of the judgement, and to impose a stricter sentence in the convicting part. B) KEY PRIORITIES In 2009, the Directorate for International Co-operation, International Legal Assistance and Co-operation with the International Criminal Courts of the Ministry of Justice, in the segment concerning relations with the ICTY, will deal with proceedings conducted before the Trial Chamber and Appeals Chamber of the ICTY. Pursuant to the UN resolutions in force concerning the exit strategy of the Tribunal, it will also be involved in the enforcement of these decisions and in the resolution of residual matters.
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War crimes trials A number of meetings were held in 2008 concerning war crimes. The Platform of the Ministry of Justice was held on 26 September 2008, and the Platform of the Ministry of Foreign Affairs and European Integration (MFAEI) on 21 October 2008, as well as a number of meetings at a technical level. The result of difficult and intensive efforts was acknowledged at the Platform of the Ministry of Justice, where 4 topics were no longer on the agenda: the use of video-links in proceedings before Croatian courts, the issue of safety of witness testimony/maintaining the integrity of witness testimony, appropriate defence, and regional co-operation. Croatia will report at lower-level technical meetings on the progress achieved concerning the issues that were taken off the agenda. The remaining two open issues, judgements in absentia and standards of prosecution, were the topic of discussion at the MFAEI Platform, where OSCE and EC representatives expressed their positive view on these issues. Concerning the use of video links, on 23 September 2008 a workshop was held at the County Court in Zagreb in co-operation with OSCE entitled The use of video links in international legal assistance for criminal and investigation judges at county courts. Seventeen judges participated in the workshop and the Reminder for the Practical Application of Video Links for the Cross-Border Hearing of Witnesses was presented on this occasion. This exhausted the topic of video links, which will no longer be on the Platforms agenda. The next issue where progress was acknowledged concerns the safety of witness testimony/maintaining the integrity of witness testimony. The new Criminal Procedure Act provides for the secrecy of investigation, not only for the participants in the procedure, but also for all those who in any way gain knowledge in the course of the investigation procedure. Since the Criminal Procedure Act is currently undergoing parliamentary procedure, this provision will come into force on 1 January 2009. The State Attorneys Office has been active in developing regional co-operation. It has also developed a database on war crimes, descriptions of criminal offences, data on victims and witnesses, data concerning evidence, and all other relevant data. At the Regional Conference held in May 2008 on the Brijuni Islands, the countries in the region committed themselves to developing similar databases. Agreement was reached on a direct and immediate exchange of data, which will contribute to achieving better results and efficiency in processing war crimes. With this agreement, this topic was also removed from the Platforms agenda. Regarding defence by court-appointed defence counsels, a list of attorneys interested in undergoing training in providing defence in these types of cases was drawn up, as was a list of those who already have some experience in providing defence in war crimes cases. The list has been posted on the Croatian Bar Associations website. The Supreme Court dispatched a letter to all county courts enclosing this list, with which all presidents of courts must comply when appointing court-appointed defence counsels. The training of interested attorneys will be conducted by the Lawyers Academy in co-operation with the Judicial Academy in the first quarter of 2009. The further administrative strengthening of the Department for Support to Witnesses and Participants in War Crime Proceedings is underway. In 2008, the Department made contact with a total of 372 witnesses, ensured legal assistance for 122 witnesses, and provided psychological support for 127 witnesses. Accommodation was provided for 10 witnesses, and support before the court for 110 witnesses. The Ministry of Justice was involved in the project of establishing and broadening the system of support to victims of criminal offences. The project resulted in the establishment of a support service at the County Court in Vukovar, and such services have also been established at the county courts in Osijek and Koprivnica, and at the municipal courts in Vukovar, upanja, Ilok, Vinkovci, and Zadar. Pursuant to the Act on Amendments to the Courts Act, passed on 19 September 2008 (OG 113/08), the jurisdiction of county courts has been extended so that all county courts will implement and provide support to witnesses and victims before the court, through the establishment of a Department for Support to Witnesses and Victims in Court Proceedings, and will provide international legal assistance in criminal matters.
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Judgements rendered in absentia have proven to be one of the most burning issues. The provisions of the Criminal Procedure Act in force currently allow for a reopening of in absentia proceedings. A new trial is conducted in the presence of the defendant, and the evidence and judgement rendered in absentia are evaluated in the course of the new trial. The new Criminal Procedure Act extends the possibility of reopening proceedings in such a way that the convicted person does not have to be available to the Croatian justice system, provided that in the motion for the reopening of proceedings new facts and/or evidence are presented which, by themselves, or in relation to other evidence, would modify the existing judgement to the benefit of the convicted party, leading to an acquittal or to a conviction pursuant to a more lenient law. The new provisions of the Criminal Procedure Act also grant more authority to the State Attorneys Office in relation to reopening proceedings (the possibility for the state attorney to initiate the reopening of proceedings). The Criminal Procedure Act is currently undergoing parliamentary procedure and its passing is expected in the autumn or winter Parliament session, while the provisions concerning the reopening of proceedings will enter into force on 1 January 2009. Concerning the issue of standards of prosecution, the State Attorneys Office of the Republic of Croatia (SAO) issued a number of mandatory instructions for processing war crimes cases. The Instruction issued on 9 October 2008 has particular importance since it clearly defines the standards for prosecuting war crimes, and provides clear instructions with which state attorneys must comply when dealing with such cases. The Instruction specifies that state attorneys must submit a report with the SAO by 1 January 2009 on the actions that were undertaken when reviewing each case in which the procedure is pending, or in which the perpetrator has not been discovered. In addition, the Instruction also provides for the sanction of dismissal of any state attorney who does not comply with this or any of the earlier instructions. With a view to processing and punishing war crime perpetrators, an Action Plan will be developed by the end of 2008 which will define the strategic approach to resolving the existing 700 incidents related to war crimes. This Action Plan will clearly define the measures, resources, and competent authorities for implementing these measures, and the deadlines for their implementation.
B) KEY PRIORITIES In 2009, the Ministry of Justice, in co-operation with the UNDP, as part of a project concerning the expansion and institutional strengthening of the system of support to witnesses and victims of criminal offences, will facilitate the introduction of a service of support for witnesses and victims of criminal offences at four pilot courts. The legislative basis for such measures has already been prepared as part of the Act on Amendments to the Courts Act (OG 113/08). The implementation of the Action Plan, which will define a strategic approach to the resolution of the existing 700 incidents related to war crimes, will be monitored. Attorneys will be trained in providing defence in penal war crimes cases.
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1.7. REGIONAL CO-OPERATION 1.7.1. Multilateral co-operation

In terms of regional co-operation, the Republic of Croatia has continued to play an active role within the South East European Co-operation Process (SEECP) and participated in the SEECP summit held on 21 May 2008 in Pomorje, in Bulgaria. The Republic of Croatia intends to remain fully committed to the strengthening of political dialogue with a desire to contribute to stability and security and to the accession of the countries in the region to Euro-Atlantic integration. With the Stability Pact for South Eastern Europe finally ending its operations in February 2008, and with the transfer of its authority to the Regional Co-operation Council (RCC), the Republic of Croatia, as a member of the RCC, continued to participate in initiatives and working groups initiated by the Stability Pact. As chair of the Disaster Preparedness and Prevention Initiative (DPPI), it supervised the activities and projects of the Initiative, organised regular meetings, lobbied for the funding of projects, and co-operated with international partners. The Republic of Croatia has devoted special attention to regional projects within the RCC, with a stress on priority action areas: economic and social development, infrastructure, the judiciary and internal affairs, security co-operation, human capital, and parliamentary co-operation. Further strengthening of the role of RCC national co-ordinators and bringing co-operation to a new level are expected. The CEFTA 2006 Agreement has been applied in all the signatory countries since the end of 2007. This agreement foresees the establishment of a Joint Committee as a representative body of the signatory countries, which is assisted in administrative matters by the Secretariat with its headquarters in Brussels. In line with this, CEFTA signatory countries concluded an Agreement with the Kingdom of Belgium concerning certain benefits to ensure a suitable legal status for the assets and staff of the Secretariat and its undisturbed work on the state territory of the Kingdom of Belgium. The meeting of the Joint Committee of the CEFTA 2006 Agreement was held in Chisinau, in Moldova, on 8 October 2008. At the Joint Committee meeting, the Secretariat was introduced for the first time, and the Work Programme of the Secretariat from 2008 to 2011 was endorsed, as was the Decision on Financial Contributions of CEFTA Parties to the Budget of the Secretariat. As part of the Central European Initiative (CEI), the Republic of Croatia continues to actively advocate the principles of regional ownership and project-oriented co-operation. For this purpose, it will foster the organisation of work of the established network of contact persons in its own state administration and encourage co-ordinated co-operation among CEI members. By selecting crossborder co-operation projects and by proposing common regional activities, the Republic of Croatia will endeavour to exert a positive influence on the political and economic situation in the region, especially in neighbouring countries. In the coming period, the Republic of Croatia will focus its co-operation on the area of environmental protection and the development of human resources. As part of the Adriatic-Ionian Initiative (AII) in the coming period, the Republic of Croatia will intensively advocate the strengthening of regional ownership, co-ordinated co-operation and the implementation of projects of common interest. The focus of cooperation will be on the establishment of traffic connections (the building of the Adriatic-Ionian road), the promotion of regional tourism, and management of the maritime domain. The Republic of Croatia will continue co-operation in the field of fire protection, one of the main achievements of the Croatian chairmanship of the Initiative in 2007/2008. Co-operation in the field of small and medium enterprises is also one of the constant areas of co-operation within AII. Within the process of the Euro-Atlantic integration of the Republic of Croatia, the Quadrilaterale is a training ground for dialogue on a broad range of common topics concerning the EU and South East Europe. Together with its partners within the Quadrilaterale (Hungary, Slovenia, Italy, and Croatia), the Republic of Croatia will advocate joint co-ordinated action within regional initiatives (CEI, SEECP). By acting in harmony in multilateral organisations, the Republic of Croatia will advocate the implementation of common activities in the area of security and defence co-operation, and the development of infrastructure, transport and internal affairs. The Republic of Croatia also endeavours to achieve the status of full member in the military sphere of the Quadrilaterale the Multinational Land Force (MLF). Based on a policy paper on the enlargement of the MLF adopted at a meeting in Budapest in May 2005, the Republic of Croatia began activities related to its acceptance as a full member of the MLF. In 2008, at meetings of the MLF Political-Military Working Group (PMWG), and the Political-Military Steering Group (PMSG), an implementing plan was accepted
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concerning the involvement of forces that the Republic of Croatia initially offered as its contribution to an MLF brigade (a brigade equivalent to an infantry company, one medical team and 2-3 officers to work in MLF Command). Following the above, activities related to the assignment of a liaison officer to the MLF Headquarters in Udine are underway (negotiations and adjustments of the Agreement to define the status and obligations of liaison officers of the Armed Forces of the Republic of Croatia who will be assigned to this duty), and the definition of minimum requirements that the Croatian forces must meet to participate in the MLF brigade is expected. The priorities in 2009 will be to intensify co-operation with a view to gaining full membership of the MLF and to assign a liaison officer to Udine (the initial proposal was to do this during the summer of 2009, after the brigade returns from the ISAF mission in Afghanistan. In the coming period, the Republic of Croatia will continue to co-operate in the work of the Alps-Adriatic Working Community (AAWC) through its representatives in working committees, expert and project groups, and through the common projects of the AAWC. It will also advocate the joint co-operation of regions and the more active participation of local self-government. The Danube Co-operation Process (DCP) is a regional forum by which the Republic of Croatia is endeavouring to make its contribution to regional co-operation in the Danube basin. The Republic of Croatia supports the pursuit of common goals to provide the framework for regional connections, and the building of good neighbourly relations through common projects. The common European perspective and the application of European standards are the bases of the co-operation that the Republic of Croatia will full-heartedly foster within the DCP. The area of special interest for the Republic of Croatia within the DCP is environmental protection and sub-regional co-operation. Within the Danube Commission (DC), in the coming period the Republic of Croatia will also engage in activities related to the environmental protection of the Danube, traffic connections and efficient water management. The Republic of Croatia will invest efforts in the speedy signing and application of the newly revised Convention regarding the Regime of Navigation on the Danube. Following the successfully completed one-year chairmanship of the Migration, Asylum, Refugees Regional Initiative (MARRI) from April 2007 to April 2008, the Republic of Croatia will continue to advocate improvement of the co-ordination of activities aimed at the more intensive regional exchange of information and experience, with a view to more efficiently fighting illegal migrations, smuggling and trafficking in human beings, and to improving cross-border co-operation. The Republic of Croatia will also advocate the more efficient implementation of the principle of regional ownership. Within the Regional Centre of the Southeast European Cooperative Initiative (SECI) for combating trans-border crime based in Bucharest, the Republic of Croatia will continue to actively participate, through a liaison officer and employees of the line ministries, in the work of the Task Force on Trafficking in Human Beings, Task Force for the Suppression of Commercial Fraud, the Anti-Drug Task Force and the Anti-Terrorism Task Force. Within the Forum of Southeast European Defence Ministers (SEDM), representatives of the Republic of Croatia regularly attend the meetings of all working bodies: the Co-ordination Committee (SEDM-CC), with observer status at the Political Military Steering Committee (PMSC), as well as all high-level meetings. The Republic of Macedonia chaired the process for a period of two years (2008-2009), and stressed the following as its main goals: assigning SEEBRIG to a peace-support operation, acquiring full membership for states with current observer status in the MPFSEE and SEDM process, strengthening the co-ordination of projects within SEDM, intensifying support to members of SEDM in joining NATO, and developing the capacities of SEEBRIG to act in crisis situations (Disaster Relief Operations DRO). In 2009, the Republic of Croatia will continue to actively participate in SEDM working bodies, and the focus will remain on participation in projects which have proven to be successful, especially in the work of the CBSC Task Force (Counter-proliferation, Border Control and Counterterrorism), SEESIM (Southeast European Simulation Network, and SEMEC (SEE Military Education Co-operation). The Republic of Croatia will continue to maintain observer status in the military component SEEBRIG. The aim of the Southeast Europe Clearinghouse (SEEC) initiative is to exchange information and co-ordinate the efforts of allies and friendly countries in providing support to NATO candidates (Albania, the Republic of Croatia and Macedonia) and states that have joined NATOs Partnership for Peace Programme (Bosnia and Herzegovina, Montenegro and Serbia), on their progress towards integration into Euro-Atlantic structures, in order to avoid overlaps, and to ensure the optimum use of available resources. Within this
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initiative, the Republic of Croatia advocates co-operation related to the implementation of specific projects, and gives as its interest and priority the development of the Regional Centre for the Breeding and Training of Official Dogs and the Diver Training Centre, as well as the promotion of co-operation within the Training Centre for International Military Operations. Representatives of the Ministry of Defence regularly attend SEEC conferences which have until now been held every 6 months, but will from now on be held once a year. The active participation in and encouragement of the continuous work of this forum is foreseen, with a view to preserving the character of regional ownership, mutual co-ordination by member states, and the realisation of common projects of interest for the region. The Republic of Croatia will continue to provide support to other partnership states in the field of exchanging experience in processes that the Republic of Croatia has already undergone, and in the field of knowledge, skills and capacities that the Republic of Croatia has developed through its accession to Euro-Atlantic integration. The Ministry of Defence and the Armed Forces of the Republic of Croatia have been involved in two projects that connect the countries of the Adriatic-Ionian basin and the Mediterranean: the Adrion project and the V-RMTC (Virtual Regional Maritime Traffic Centre) project. The Adrion project is focused on encouraging co-operation among the navies of the countries of the Adriatic-Ionian basin (Albania, Bosnia and Herzegovina, Greece, Italy, Slovenia, Serbia, and Montenegro) through the organisation of joint exercises, task force working meetings, seminars and workshops. In the first half of 2008, the ADRION 08 CAX simulation was held within the framework of the project, as well as one working meeting, two exercise planning conferences, and, at the end of May 2008, the Republic of Croatia was the host of the ADRION 08 LIVEX military exercise where, besides Croatian ships and crews, ships and crews from Albania, Greece, Italy and Slovenia also took part, as well as navy officers from Montenegro. Co-operation within Adrion will continue in 2009 according to the planned activities, which include working meetings, training and exercises (computer and livex) with a view to improving international maritime co-operation, practising standard operational procedures at sea, and achieving NATO/ PfP standards. As part of the V-RMTC project initiated for the purpose of establishing a Virtual Regional Centre for the supervision of maritime traffic in order to contribute to improving the safety of maritime traffic and the safety of countries that border the Mediterranean and Black Sea, most of the co-operation is conducted through the Internet communication network (data exchange). Therefore, in 2008 only one meeting of the V-RMTC working group was held. In 2009, co-operation will continue in line with the Operational Agreement for the Establishment of V-RMTC (signed at the end of 2006) in the form of working meetings, joint training, and exchange of information and data on maritime traffic through a central server. If necessary and according to the available resources, the conditions will be created to initiate the second stage of the project (data exchange among local centres and maritime picture exchange (RMP - Recognised Maritime Picture). Pursuant to the Decision of the Council of EU Transport Ministers of June 2008 authorising the European Commission to open negotiations on a Transport Community Treaty with the Western Balkans, the first round of negotiations on the Treaty on the Future Traffic Community was held on 24 June 2008 in Brussels under the auspices of the Slovenian EU Presidency. On that occasion, a mission of EC experts was announced to the countries in the region covered by the Treaty (Albania, Bosnia and Herzegovina, Montenegro, Republic of Croatia, Kosovo, Macedonia, and Serbia). This mission will gather information on the condition and size of the transport markets, and on expected problems and difficulties, for the purpose of drawing up the first draft of the Treaty. The mission of experts visited the Republic of Croatia from 6 to 7 October 2008. The second round of negotiations, where the EC plans to introduce the first draft of the Treaty, is planned for 18 November 2008.
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1.7.2. Bilateral co-operation

Italian Republic Bilateral co-operation. Besides ongoing dialogue on outstanding open issues, the good neighbourly relations between the Republic of Croatia and Italy have been marked by a continuous improvement of co-operation at all levels. The Republic of Croatia and Italy also closely co-operate within the Central European Initiative, the Alps-Adriatic Working Community, the Adriatic-Ionian Initiative, and the Quadrilaterale. Intensive regional co-operation exists between Croatian counties and Italian regions within the Adriatic Euroregion. Economic affairs. Italy is the Republic of Croatias main foreign trade partner. The figures for foreign trade in 2007 amounted to USD 6.4 billion, and show a further trend of growth in commodity exchange. Bilateral agreements. To date, Croatia has signed 33 bilateral agreements and other legal acts with Italy, out of which 21 have entered into force. The Agreement on Co-operation in the field of Culture and Education was signed on 16 October. Negotiations on the Agreement between the Government of the Republic of Croatia and the Government of the Italian Republic on Cross-border Police Co-operation were completed in November 2007, and the signing of the agreement is expected in 2008. A Memorandum of Co-operation between the Government of the Republic of Croatia and the Italian Republic has been agreed and is ready for signing. This agreement will facilitate institutional co-operation in the broadest possible sense. The initiative of singing the Agreement on Judicial Co-operation in Criminal Matters has been launched. It is expected that Italy will ratify the Agreement on the Avoidance of Double Taxation, and sign the already initialled Agreement on Road Transport of Goods and Passengers. Minorities. The Italian minority in the Republic of Croatia is guaranteed a high standard of minority rights. In line with the practice so far, the Republic of Croatia increased the allocations from the State Budget for the needs of the Italian minority, and in 2007 ensured HRK 7,170,100 - approx EUR 980,000 (an increase of approx 20%). Croatia expects equal support by the Italian authorities for the Croatian minority and for the Alliance of Croatian Communities in Italy in preserving Croatian cultural identity on Italian territory, which is still lacking. Outstanding issues. By resolving reciprocity issues in the field of free access to the real estate market, the opportunity arises for the resolution of other outstanding issues. The question of compensation for nationalised Italian and Optant property has been resolved through the Osimo Agreement and the Rome Agreement, and the Republic of Croatia is prepared to settle the remaining part of the debt as soon as the Italian side communicates the relevant bank account number. The issue of property restitution to foreign nationals, including Italian nationals, will be resolved as part of the amendments to the Denationalisation Act (the Act is currently undergoing procedure in the Government of the Republic of Croatia), which will not require the prior conclusion of individual bilateral agreements with other states. In March 2008, the Croatian Parliament adopted the Decision to amend the Decision on the extension of jurisdiction of the Republic of Croatia in the Adriatic Sea, which specifies that the Ecological Fisheries Protection Zone (ZERP) will temporarily not be applied to EU Member States until a joint agreement in the European spirit is found. Within the trilateral co-operation of the Republic of Croatia, Slovenia and Italy regarding the protection of the Adriatic, the priorities will still be the total strengthening of economic, safety, ecological and other co-operation in the Adriatic Sea, particularly in the North Adriatic. Priorities. further consultations regarding NATO and EU enlargement processes, and the stabilisation of the entire region; co-operation in protecting and managing the Adriatic Sea; strengthening cross-border and inter-regional co-operation; intensifying co-operation among line ministries with a view to resolving outstanding issues;
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efforts aimed at concluding agreements still under negotiation (the Memorandum of Co-operation between the Government of the Republic of Croatia and the Italian Republic, the Agreement on Cross-Border Police Co-operation, the Agreement on Judicial Co-operation in Criminal Matters), agreements already ratified (the Agreement on Road Transport of Goods and Passengers), or advocating the ratification of already signed agreements (the Agreement on the Avoidance of Double Taxation).
Republic of Slovenia Bilateral relations. The relations of the two neighbouring countries are extremely well-developed, very intensive, mutually promoted, but also quite complex. Relations are particularly well developed in the areas of culture, science, education and the economy. Diversified co-operation with Slovenia as part of a number of regional and international organisations, and especially with regard to EU and NATO, is of special importance for the Republic of Croatia. Intensive contacts in 2007 led to the successful rapprochement of positions regarding the manner of resolving open issues, the most significant being the general agreement reached at a meeting of prime ministers held in Bled in August 2007 to jointly submit the issue of the sea border demarcation and specific potentially disputable land border issues for an international judicial body to resolve. The decision rendered by this body would be binding on both sides. For the purpose of implementing this agreement, two inter-state Croatian-Slovenian commissions were formed. The Interstate Commission for Preparing the Legal Framework for the Submission of the Dispute on Demarcation of the Border before an International Judicial Body held three meetings (in April, June and September 2008), while the Interstate Commission for Establishing Points of Dispute on Land held a meeting in May 2008. The remaining open issues will be solved bilaterally. In 2008, in implementing the external border of the EU regime at the Croatian-Slovenian border, agreements were reached in relation to the obstruction of communication and the further facilitation of border crossing for the local population, as envisaged by the Bilateral Agreement on Border Traffic and Co-operation (ATBC) In March 2008, the Croatian Parliament adopted the Decision on amendments to the Decision on the extension of the Republic of Croatias jurisdiction in the Adriatic Sea, specifying that the Ecological Fisheries Protection Zone (ZERP) will not be applied for a temporary period to EU Member States until a common agreement in the European spirit is found. Concerning trilateral co-operation among the Republic of Croatia, Slovenia and Italy regarding the protection of the Adriatic Sea, priorities will remain to be the overall strengthening of economic, security, ecological and other forms of co-operation in the Adriatic Sea, especially in the North Adriatic. This co-operation takes place within the trilateral Mixed Commission for the Protection of the Adriatic Sea and Coastal Area against Pollution, whose 9th session was held in June 2008 in Portoro, and where the Joint Statement on the Protection of the Adriatic Sea was signed. Co-operation will also take place through the implementation of the trilateral Agreement on the sub-regional intervention plan for the prevention, readiness for, and reacting to sudden large-scale pollution of the Adriatic Sea. In October 2007, the Croatian Parliament passed the Act on the Fund for Financing the Decommissioning of the Krko Nuclear Power Plant and the Disposal of KNPP Radioactive Waste and Spent Nuclear Fuel. The meeting of the Interstate Commission for Monitoring the Agreement on the Krko Nuclear Power Plant was held in September 2008. Bilateral agreements. In the last seventeen years, the two states, while developing their relations and resolving particular issues, have concluded over 70 bilateral agreements and other legal acts, out of which 51 are in force, and 16 in temporary application. The Agreement on the Maintenance of Military Cemeteries was signed in May 2008. On the occasion of the implementation of the provisions of the Agreement on Border Traffic and Co-operation (ABTC) concerning Commercial Sea Fishing, consultations were held in Brussels in the presence of EC representatives. The last meeting was held on 14 March 2008 where experts in fishery issues presented their Recommendations for the resolution of this problem. The Government of the Republic of Croatia on 19 March 2008 accepted the experts recommendations by way of a Conclusion and informed the European Commission of this, while the Slovenian Government did not accept the recommendations in full.
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The issue of the debt of Ljubljanska Bank towards Croatian depositors must be resolved in line with European standards and criteria that regulate the private-legal relation of the bank and its clients. Priorities. boosting co-operation and dialogue in resolving outstanding issues, especially the implementation of the arrangement on the joint submission of the dispute related to the sea border and potentially disputable land border issues to the International Court of Justice (ICJ) in the Hague for resolution, and concluding a Special Agreement; overall strengthening of the economic, security, ecological and other forms of co-operation in the North Adriatic, including the resolution of the issue of commercial fishing according to ABTC; intensifying consultations on EU and NATO issues, receiving Slovenian experience from the negotiations and alignment process, and conducting consultations on the stabilisation of the conditions in the region. Republic of Hungary Bilateral relations. The Republic of Croatia and the Republic of Hungary have well-developed good neighbourly relations, without open issues. The strategic partnership of the two states is reflected in the very good political, economic, border and cultural cooperation, and a high degree of mutual protection of minorities. The traditionally good relations of the two countries are reflected in the annual joint sessions of the two governments which bear remarkable economic and political significance and testify to the concordance of views concerning a common European future. The third joint session of the governments of the Republic of Croatia and Hungary is planned in 2008 in Hungary. The successful work of the Joint Committee for Intergovernmental Co-operation which meets once a year and contributes to strengthening institutional and interdepartmental co-operation, and overall co-operation between the two countries. Through an exchange of experience in a number of areas, Hungary has been providing continuous and unreserved support to the Republic of Croatia on its way towards Euro-Atlantic integration. Hungary was the first Member State to ratify the Protocol on NATO Enlargement to the Republic of Croatia, which once more confirmed unreserved support to the Republic of Croatia and the friendly relations of the two neighbouring countries. The function of the Embassy of the Republic of Hungary in Zagreb as the NATO liaison embassy in the Republic of Croatia, and co-operation concerning the ISAF peacekeeping operation in Afghanistan, where Hungary is in command of the Provincial Reconstruction Team (Pol-e-Khomri), and where the Republic of Croatia also participates, contribute to boosting this co-operation. Bilateral agreements. One hundred agreements and other legal acts have been signed. In the foregoing period, the two countries worked together in the following areas: cross-border co-operation: good co-operation of competent institutions was recorded in the development of the Cross-border Co-operation Programme between Hungary and Croatia as a programme base for using EU funds intended for the cross-border co-operation of the two countries in the financial period from 2007 to 2013. The Programme is currently at the stage of establishing common management structures; transport infrastructure: continuous co-operation in infrastructure projects on routes V/b and V/c of the Pan-European transport corridors there has been significant development of road infrastructure of common interest; the full-profile Budapest Zagreb Rijeka motorway has been completed, as has the construction of the joint bridge on the River Mura; co-operation has been initiated in the area of railway traffic; science and culture: work has continued on the production of a Hungarian-Croatian/Croatian-Hungarian dictionary; co-operation within the Pcs European Capital of Culture 2010 project has intensified; co-operation between the Croatian and Hungarian police in the 2008 tourist season proved to be successful (Hungarian police officers were active in the Republic of Croatia, which proved to be very useful);
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co-operation concerning the protection of the natural resources of border areas and the ecologically significant area of the rivers Mura, Drava and Danube has also intensified through the establishment of a cross-border biosphere reserve in line with UNESCOs Man and the Biosphere Programme;
a Memorandum of Understanding was signed in 2008 between the General Police Directorate of the Ministry of the Interior of the Republic of Croatia and the National Police headquarters of the Republic of Hungary on the occasion of the Hungarian Formula 1 Grand Prix;
a number of bilateral activities have also been conducted in other areas: tourism, defence co-operation, local self-government cooperation, environmental protection, water management, consular co-operation, internal affairs, protection and rescue, justice and healthcare.
Priorities: co-operation of the two governments through the organisation of a joint session in 2009 and through the Joint Committee for Intergovernmental Co-operation; intensifying consultations regarding the EU and NATO; continued cross-border co-operation: a proposal is expected concerning the potential development of local border areas through joint projects; co-operation in the area of transport and the construction of joint transport infrastructure transport corridor V/c; co-operation in the field of railway transport; co-operation in the field of culture and science work will continue on the production of a Hungarian-Croatian/CroatianHungarian dictionary; co-operation will intensify within the Pcs - Cultural Capital of Europe 2010 project; finding solutions to the most pressing issues concerning the Croatian minority in Hungary and the Hungarian minority in Croatia; the issue of the parliamentary representation of the Croatian minority in Hungary will continue to be raised; protection of the natural resources of cross-border areas and ecologically important areas around the rivers Mura, Drava and Danube by establishing a cross-border biosphere reserve according to UNESCOs categorisation; devoting special attention to co-operation in the field of energy supply; promoting further co-operation in the field of consular affairs, demining, local self-government, justice, healthcare, tourism, water management, defence, protection and rescue, e-Government and agriculture. Republic of Serbia Bilateral relations. The quality of the political relations between the Republic of Croatia and Serbia deteriorated after the Republic of Croatias recognition of Kosovos independence, and following the decline in diplomatic communication due to the withdrawal of the Serbian Ambassador from Zagreb. In the light of these events, the Republic of Croatia is satisfied with the development of economic relations with Serbia and will continue to invest efforts in strengthening good neighbourly relations based on the principles of mutual respect and equality with the aim of strengthening stability in South East Europe. The Republic of Croatia welcomed the results of the parliamentary elections in Serbia and considers them significant indicators of the European and democratic commitment of Serbia. This commitment opens up additional opportunities for the successful development of bilateral relations between the two countries. The Republic of Croatia supports the process of integration of Serbia into the EU, in line with the principle of an individual approach and provided that all criteria are met. The Republic of Croatia is also ready to share its experience in the accession process and soon expects the completion of negotiations regarding the signing of the Protocol on Co-operation in the Process of European Integration.
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The Republic of Croatia welcomes the announcement that the Standing Joint Committee of Senior Representatives of Succession States will continue its work related to the supervision of the implementation of the Succession Agreement signed with the successor states of former SFRY with the participation of all interested states. It also welcomes the organisation of the coming meeting of the Committee in Belgrade. The Republic of Croatia expects that the active involvement of Serbia at the announced meeting of the Committee in Belgrade will contribute to the resolution of succession issues of the former SFRY, and thus to the resolution of legal relations between the Republic of Croatia and Serbia. The Republic of Croatia is interested in convening an Interstate Diplomatic Commission for Identifying and Establishing the Border and Preparing an Agreement on the State Border between the Republic of Croatia and the Republic of Serbia. After all the preparations are made, the Croatian side will convene the respective meeting in Zagreb. The Republic of Croatia encourages the effective and continuous work of the Intergovernmental Mixed Committee in Monitoring the Implementation of the Agreement on the Protection of the Right of the Croatian National Minority in the Republic of Serbia, and the Serbian National Minority in the Republic of Croatia. Bilateral agreements. To date, 44 bilateral agreements and other legal acts have been signed, 27 of which are in force, and 8 are being provisionally applied. Currently, procedures for concluding the following bilateral instruments are underway: the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Serbia on the Readmission of Persons whose Entry or Residence is Illegal the final round of negotiations was held on 9 September 2008 in Belgrade when an agreement was reached concerning the text of the Agreement; the Air Traffic Agreement following a number of previous attempts to initiate negotiations by the Republic of Croatia, at the beginning of May 2008 the Government of the Republic of Croatia adopted the Decision on the Opening of Negotiations concerning the Air Traffic Agreement. The first round of negotiations was held in Zagreb on 29 and 30 May. Although a bilateral air traffic agreement has not yet been concluded, the Ministry of the Sea, Transport and Infrastructure of the Republic of Croatia issued a temporary permit to the Serbian airline company JAT Airways to conduct commercial flights on its regular Belgrade Pula route, twice a week from 19 June to 14 September 2008. The Republic of Croatia wishes to regulate air traffic in conformity with international legal frameworks, by signing the Agreement, and has not met the request of the Serbian side to extend the temporary permit beyond September; the Republic of Croatia submitted the Draft Agreement on Inland Waters Navigation, Designation and Maintenance to the Serbian side in December 2007; the Serbian side delivered the Draft Memorandum of Understanding on Co-operation in the Field of Environmental Protection in October 2007; the Protocol on Co-operation in the Process of European Integration between the MFAEI of the Republic of Croatia and the Ministry of Foreign Affairs of the Republic of Serbia agreement was practically reached on the text of the Protocol in July 2007, but has not yet been signed; the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Serbia on Mutual Relations concerning Water Management the Government of the Republic of Croatia adopted a Decision on initiating the procedure on the basis of a new draft which was submitted to the Serbian side on 23 January 2008; the Memorandum of Understanding between the Ministry of Science, Education and Sports of the Republic of Croatia (MSES) and the Ministry of Education of Serbia on Co-operation in the Area of Language and Literature in January 2008, MSES submitted a draft to the Serbian side for their opinion; the Agreement on Co-operation concerning Protection against Natural and Civilisation Disasters a general agreement has been reached to initiate the procedure of signing the agreement, but the Serbian side has requested some time to resolve questions of competence in this area;
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the Agreement between the Republic of Croatia and the Republic of Serbia on Cross-border Police Co-operation the formal procedure has begun, and contacts have been established at a professional level.
The suspension of the visa regime for Serbian nationals is still in force, and further treatment of this issue depends on the success in resolving readmission issues. Economic affairs. Trade in the first eight months of 2008, the commodity exchange between the Republic of Croatia and the Republic of Serbia amounted to USD 821 million, which represents an increase of 38% compared with the same period of the previous year. Exports from the Republic of Croatia increased by 36%, amounting to USD 531 million, while imports from the Republic of Serbia rose by 44%, amounting to USD 290 million. 5.4% of total exports of the Republic of Croatia are related to Serbia, while 1.3% of total imports to the Republic of Croatia come from Serbia. Investments from 1993 to the end of the first quarter of 2008, direct investments in Serbia by the Republic of Croatia amounted to EUR 374 million. The first substantial investments were made in 1999, and the highest amount of EUR 131 million was invested in 2006. Out of the total amount of foreign investments made by the Republic of Croatia, Serbia takes second place (Bosnia and Herzegovina is first, with EUR 380 million). Out of the total foreign investments of the Republic of Croatia, 19% relate to the Republic of Serbia. The Croatian National Bank has not yet recorded any significant investments coming to Croatia from the Republic of Serbia. Tourism in the first eight months of 2008, 66,000 tourists visited Croatia, making up 321,000 overnight stays. Compared with the same period in 2007, the number of tourists has increased by 15% and the number of overnight stays by 22%. The Republic of Croatia seeks to identify areas for the long-term economic co-operation of the two states, especially concerning joint projects which would also be useful in the context of European integration. Priorities. permanent improvement and development of mutual relations and the resolution of outstanding issues; completion of bilateral agreement regulations; constructive regional co-operation.
Republic of Kosovo Bilateral relations. The Government of the Republic of Croatia accepted the decision of the Kosovo Assembly on declaring the independence of Kosovo, which is in conformity with international community endeavours and, on 19 March 2008, recognised Kosovo as an independent and sovereign state. Diplomatic relations between the Republic of Croatia and Kosovo were established on 30 June 2008. The establishment of an Embassy of the Republic of Croatia in Pritina is expected very soon. Until then, communication between the two governments will take place through the Liaison Office of the Republic of Croatia in Pritina. The Government of the Republic of Croatia expresses its readiness to develop multifaceted co-operation with Kosovo based on the principles of equality and reciprocity, thus contributing to the permanent strengthening of co-operation between the two counties in the interest of peace, stability and development. The Republic of Croatia is taking part in the work of UNMIK with fourteen police officers. The Republic of Croatia is very active in offering assistance and training to Kosovo staff in different areas, ranging from the judiciary, through the service sector, and especially the financial sector, to the building of institutions and in the transfer of experience in the process of EU accession. In this sense, in 2008 several expert missions from Kosovo visited Croatia (in the area of environmental protection, protection of minorities and emigrants, European integration, etc.). Preparations are underway to launch an EU mission for the establishment of the rule of law in Kosovo, EULEX Kosovo. In February 2008, the Republic of Croatia received an official invitation to confirm its participation in the Kosovo EULEX mission. Thirteen Croatian police officers who are currently taking part in UNMIK have been provisionally selected. The Government of the Republic
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of Croatia, at a session held on 20 June 2008, adopted the decision on the participation of the Republic of Croatia in the Kosovo EULEX mission. Consequently, two police officers are ready to be transferred from UNMIK to EULEX, although one of them must go through a provisional selection procedure before his participation in the mission is approved by the EU. At a session held on 12 September 2008, the Government of the Republic of Croatia adopted a Conclusion on the signing of the Agreement between the Republic of Croatia and the European Union on the participation of the Republic of Croatia in the EULEX Kosovo mission, and it was signed on 24 November 2008. On 15 July 2008, the Croatian Parliament adopted a Decision on deploying 20 members of the Armed Forces of the Republic of Croatia and two transport helicopters to the KFOR operation in Kosovo. The deployment is expected in the first half of 2009. Bilateral agreements. In 2008, the Republic of Croatia and Kosovo signed a Memorandum of Co-operation between their ministries of agriculture. In addition, the signing of a Memorandum of Co-operation in the field of science and education is in its final stages, which will intensify co-operation in this area. Economic affairs. The Office of the Croatian Chamber of Economy has been open in Pritina for a number of years, and has been systematically promoting economic co-operation between the Republic of Croatia and Kosovo. The co-operation of the two states in the economic arena is gaining new momentum thanks to several new projects, of which we can stress the engagement of the Split company Konstruktor in the construction of the tallest office-residential complex in the Balkans (in Pritina, at a value of EUR 250 million), as well as the selection of the Croatian company IGH for the project of building the future Pritina Uroevac motorway. Priorities. improvement of economic co-operation; the Government of the Republic of Croatia will continue to devote special attention to the status and protection of Croatians who live in Kosovo. Montenegro Bilateral relations. The Republic of Croatia and Montenegro have good relations which are tending to improve. The Republic of Croatia wishes to continue to develop good neighbourly relations and co-operation based on the principles of equality and reciprocity, and is interested in strengthening and increasing the pace of economic co-operation with Montenegro. Common strategic goals in the region are peace, stability and progress in democratic and institutional reforms, and joint activities in these areas will follow in the same direction. Official bilateral visits of the two countries highest officials were exchanged in 2008 (Presidents, Prime Ministers, Presidents of Parliament of the two countries). Special value is attached to the agreement between the highest officials of the two countries that the issue of regulating the state border on land and at sea must be resolved through bilateral negotiations in conformity with international law and the opinion of the Badinter Commission. In this sense, the Prime Ministers of Croatia and Montenegro agreed that the outstanding issue of the sea border is to be resolved before an international court, whose decision would be accepted in advance by the two countries parliaments. The establishment of a joint commission, to be chaired by the ministers of foreign affairs of the two countries, is planned. The aim of the joint committee is to create a legal framework to be presented before the International Court of Justice in the Hague. The Government of the Republic of Croatia has appointed its members of the commission, and the same is expected from Montenegro. Bilateral agreements. The following agreements were signed in 2008: the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on co-operation in the protection against natural and civilisation disasters; the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on the ceding of property without compensation; the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on co-operation in the field of culture; and the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on the extradition and admission of persons whose entry or residence is illegal.
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Procedures are underway to conclude the following agreements: the Agreement on road transport between the Republic of Croatia and Montenegro; the Agreement between the Republic of Croatia and Montenegro on the protection of the rights of Croatian minority in Montenegro and Montenegrin minority in the Republic of Croatia; the Agreement between the Government of the Republic of Croatia and the Government of Montenegro on scientific and technological co-operation; the Agreement on dual citizenship between the Government of the Republic of Croatia and the Government of Montenegro; and the Additional Protocol between the Government of the Republic of Croatia and the Government of Montenegro on Amendments to the Agreement between the Government of the Republic of Croatia and the Federal Government of the Federal Republic of Yugoslavia concerning the promotion and reciprocal protection of investments. Priorities. to achieve a final agreement on the border and on outstanding issues; to continue the improvement of economic co-operation; to amend existing and conclude new bilateral agreements of interest for both states.
Bosnia and Herzegovina Bilateral relations. The relations of the Republic of Croatia and Bosnia and Herzegovina are at the level of friendly and good neighbourly relations; they are intensive and versatile. Readiness has been expressed at all levels for continued co-operation and for the speedy resolution of outstanding issues. The Republic of Croatia supports continued discussion on constitutional reforms which, through joint efforts of the political forces within Bosnia and Herzegovina and the international community, will lead to the optimal structuring of the country for all three constitutive peoples. The Republic of Croatia supports the endeavours of the High Representative/Special EU Representative in Bosnia and Herzegovina, Miroslav Lajak, with a view to leading the country towards European integration, as well as his efforts to draw the attention of the international community to Bosnia and Herzegovina to help achieve the long-term goals of preserving the territorial integrity and stability of the country and the security of its citizens. Croatia continues to provide assistance to Bosnia and Herzegovina in achieving its main foreign-policy goals, to become part of European and Euro-Atlantic integration, by transferring its own knowledge and experience from these processes. Outstanding issues. In the coming period, the Government of the Republic of Croatia foresees continued activities in the demarcation of the border between the two countries. In this sense, the Republic of Croatia delivered to Bosnia and Herzegovina an invitation for a meeting of the Interstate Diplomatic Commission for Borders to consider new facts related to the demarcation of the sea border. The manner of using the port of Ploe by companies from Bosnia and Herzegovina is also a priority that the Republic of Croatia wishes to resolve through a new agreement based on European standards. In 2007, the Republic of Croatia communicated to Bosnia and Herzegovina the Proposal of Principles for the Usage of the Port of Ploe, which offers the most-favoured nation status as a special benefit. The position of Bosnia and Herzegovina is expected in relation to the mentioned proposals. The Republic of Croatia will also continue to resolve the issue of property rights acquired by natural and legal persons from the Republic of Croatia and Bosnia and Herzegovina in their respective territories. The text of the Agreement on property rights relations has not been fully agreed on. The Republic of Croatia looks forward to eliminating misunderstandings as soon as possible and to signing the Agreement in question. Assistance to Croatians in Bosnia and Herzegovina. In 2008, the Croatian Government continued to offer assistance donor programmes to Croatians in Bosnia and Herzegovina pursuant to constitutional provisions and based on the Interstate Agreement on the reconstruction and construction of damaged and destroyed family houses. Multilateral co-operation. Croatia and Bosnia and Herzegovina co-operate within international organisations and regional initiatives. Intensive co-operation within the Regional Co-operation Council (RCC) is expected to continue. Bilateral agreements. To date, Croatia and Bosnia and Herzegovina have signed about 110 international agreements and other legal acts. In July 2008, the Republic of Croatia and Bosnia and Herzegovina created the conditions to allow Croatian state aeroplanes to
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fly over and land on the territory of Bosnia and Herzegovina in border areas in the event of fires, and this will be done pursuant to the Agreement on co-operation in the protection against natural and civilisation disasters signed in 2001. In July 2008, the Protocol on Co-operation between the Ministry of Justice of the Republic of Croatia and the Ministry of Justice of Bosnia and Herzegovina was signed. With a view to improving co-operation in the field of security, in June 2008 the General Police Directorate of the Republic of Croatia and the Border Police of Bosnia and Herzegovina signed 4 protocols: the Protocol on the Assignment of a Liaison Officer, the Protocol on Establishing Joint Groups for Suppressing Crime, the Protocol on Conducting Mixed Patrols along the Common State Border, and the Protocol on Official Transit over the State Territory of the Other Signatory with the Aim of Acting on Ones Own State Territory. The drafting of the Agreement on the delegation of responsibility for the provision of air traffic services in part of the airspace of Bosnia and Herzegovina is underway, and so are negotiations concerning the Protocol on Co-operation in the Process of Searching for Missing Persons and in the Exhumation and Identification of Mortal Remains. Due to Croatias obligation to harmonise its legislation with the acquis, negotiations were initiated with Bosnia and Herzegovina for the signing of the Additional Protocol on Amendments to the Agreement on the promotion and reciprocal protection of investments. The signing of a new Readmission Agreement is also expected. Economic affairs. In the first eight months of 2008, Croatian exports to Bosnia and Herzegovina grew by a larger rate than imports from Bosnia and Herzegovina, so that a surplus of over USD one billion was created in Croatia. Due to the poor competitiveness of Bosnia and Herzegovinas economy, and in order to protect the interests of some individuals and groups, there have been attempts to hinder the operations of foreign companies in exporting goods to Bosnia and Herzegovina, so that Croatian companies often face various obstacles. Bosnia and Herzegovina still holds fifth place as the largest trade partner of the Republic of Croatia, and the second largest consumer of Croatian goods, while at the same time the Republic of Croatia is the largest exporter to and importer from Bosnia and Herzegovina. With a view to boosting bilateral economic relations and regional co-operation, the Republic of Croatia is making efforts to become involved in the privatisation processes that are taking place in the market of Bosnia and Herzegovina. Prominent economic projects include co-operation on the reconstruction and modernisation of the Port of Ploe and co-operation on the construction and connection of corridor Vc and the Adriatic-Ionian motorway. Priorities. continued co-operation and development of good neighbourly relations and partnership in the European context; to complete the process of return; to support Croatians in Bosnia and Herzegovina in maintaining their constituent belonging and national equality; to finalise the Agreement on property rights relations; continued negotiations on the state border and to find a solution for the use of the Port of Ploe; co-operation on infrastructural projects; co-operation on regional initiatives and projects.
Republic of Macedonia Bilateral relations. The relations between the Republic of Croatia and the Republic of Macedonia are friendly and are developing very well at all levels. This is confirmed by the continuous political dialogue at the level of Presidents, Prime Ministers, Presidents of Parliament, and Ministers of the two states. There are no outstanding political issues between the two states. The Republic of Croatia and Macedonia co-operate particularly in the area of defence, justice, science, education and culture. There is a high level of mutual co-operation and support in priority foreign-policy issues EU and NATO accession. The two states have developed dynamic co-operation within the framework of the US-Adriatic Charter.
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Bilateral agreements. To date, the Republic of Croatia and Macedonia have signed 35 bilateral agreements and other legal acts. The Protocol on Co-operation of the Diplomatic Academy of the Ministry of Foreign Affairs and European Integration of the Republic of Croatia and the Sector for Diplomatic Training at the Ministry of Foreign Affairs of the Republic of Macedonia was signed on 1 October 2008 in Skopje. Underway are the Additional Protocol on Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on the Promotion and Reciprocal Protection of Investments, the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia in the area of exchange and protection of classified data, and the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on Amendments to the Agreement on trade and economic co-operation. Economic affairs. The Republic of Croatia and Macedonia have compatible markets which provide the opportunity for intensifying the exchange of goods. They also share the common purpose of attracting and channelling Croatian investments to Macedonia, which gained momentum in 2008. Within the period from January to August 2008, the total commodity exchange between Croatia and Macedonia amounted to USD 278 million, which is 33% more than in the same period in 2007. Croatian exports to Macedonia amounted to USD 96 million, which is 28% more compared to the same period in the previous year. At the same time, imports from Macedonia amounted to USD 183 million, or 36% more than in the same period of the previous year. According to the most current data of the Croatian National Bank, total Croatian investments in Macedonia to date amount to EUR 26.5 million for the period from 1993 to the first quarter of 2008. Priorities. to continue the already established successful dialogue on all important bilateral and multilateral issues, especially those related to the situation in the region, and to continue co-operation as part of the implementation of the US-Adriatic Charter; to intensify overall economic co-operation; to establish the Mixed Commission for the Implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Macedonia on the protection of the rights of the Macedonian minority in the Republic of Croatia and the Croatian minority in the Republic of Macedonia. Republic of Albania Bilateral relations. Relations between the Republic of Croatia and Albania have been successfully developing in all areas and on multilateral and bilateral levels. There are no open political issues between the two countries. The intensive exchange of visits at the level of Presidents, Prime Ministers, Parliaments and Ministers confirms this. The Republic of Croatia continues to support Albania in its process of approaching the EU following the signing of the Stabilisation and Association Agreement. The two countries are cooperating in the process of accession to NATO, they are active within the US-Atlantic Charter, and within the framework of regional and sub-regional initiatives and forums. They have also confirmed their interest in strengthening economic co-operation. Bilateral agreements. Up to 2007, 34 bilateral agreements and other legal acts have been signed. Negotiations are underway to conclude bilateral agreements and legal acts at the level of the exchange and protection of classified data, the visa regime, co-operation in education and science, and the possibility of performing paid activities for family members of staff of diplomatic missions and consular offices. This involves negotiations regarding legal acts on the implementation of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Albania on the extradition and admission of persons whose residence is illegal (2003), Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Albania on the promotion and reciprocal protection of investments (1993), and the Agreement on economic bilateral relations between the Government of the Republic of Croatia and the Government of the Republic of Albania (1993). Economic affairs. All basic economic agreements are in force. The Republic of Croatia enjoys a continuous surplus in total trade exchange. In 2007, the trade exchange amounted to USD 38.3 million, which was 13% more than in 2006. The growing trend of commodity exchange has continued, so that in the first eight months of 2008, it grew by 21% compared to the same period in 2007. Investments from the Republic of Croatia to Albania from 1993 to the end of the first quarter of 2008 amounted to EUR 7.9
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million. The construction of the Ionian-Adriatic gas pipeline (Croatia Montenegro Albania) is underway following the Ministerial Declaration signed in September 2007. Priorities. - to improve economic co-operation, in particular in resolving the issues of infrastructure and traffic links between the two countries (connecting sea ports and establishing an airline link between the two capitals) as a prerequisite for developing co-operation in trade and tourism.
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2.1. INTRODUCTION
The chapter pertaining to economic criteria within the National Programme for the Accession of the Republic of Croatia into the European Union for 2009 provides an overview of the economic policy and an assessment of achievements and progress of the Republic of Croatia in implementing economic reforms in terms of meeting the Copenhagen economic criteria as a precondition for full EU membership. This section of the National Programme also stresses the economic policy priorities for 2009 aimed at achieving a more effective alignment and accession process and favourable pace of implementing reforms. The planned economic policy activities are aligned with the priorities contained within the European Partnership with Croatia. The proper breakdown of operating plans and successful implementation of the set measures in the economic, social, institutional and other areas of the development strategy can accelerate the process of Croatias accession to the EU. In that respect, it is necessary to consider the objectives established under the Lisbon Strategy, as one of the fundamental strategic documents of the EU in the forthcoming period. Successful implementation of the envisaged measures and adoption of the Lisbon Strategy objectives can improve the level of Croatias competitiveness, by achieving a more dynamic knowledge-based economy that is integrated into international flows, and achievement of sustainable growth in terms of quality of living, environmental protection and social cohesion.
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2.2. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA

In the years of continuous economic growth above 4.5%, when revenues of the government budget rose in significant amounts and at high rates, the Government of the Republic of Croatia opted for a strategy of systematic implementation of responsible fiscal policy, characterised by the process of fiscal consolidation and the accompanying reduction of the general government debt. In this manner, a firm basis of the public finance system resistance has been created, which has allowed the Government of the Republic of Croatia, in times of economic growth deceleration due to unfavourable macroeconomic conditions, to influence adverse movements and fulfil the set objectives. The objective of the Government of the Republic of Croatia is the continued development of the Croatian economy and the creation of preconditions which will support Croatias accession to the EU, and its equal participation in the common European market. This implies stimulating a sustainable long-term economic growth rate, whilst maintaining macroeconomic stability, increasing competitiveness of all segments of the economy, improving the efficiency of institutions, persistent implementation of developmental projects, stimulating knowledge and education, reducing unemployment and improving the standard of living for all Croatian citizens. In that context, formulation of the economic and fiscal policy in the forthcoming period is based on achievement of the following objectives: stimulating high sustainable economic growth rates; creating new jobs and reducing unemployment; reducing total general government deficit, aiming at budget balancing; further public debt reduction and external debt stabilisation.
Fulfilment of these objectives requires close monetary and fiscal policy co-ordination. Monetary policy will continue to focus on maintaining price and exchange rate stability, while fiscal policy will be directed at continued fiscal consolidation in the mid-term. Implementation of complementary measures is also extremely important, and will complete the economic policy framework in the mid-term period. These measures include structural reforms and strengthening of institutions and their alignment with the practices of the European Union.
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2.3. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 2.3.1. Current economic developments

Gross domestic product Real GDP growth amounted to 3.8% in the first half of 2008, which is the result of a real growth of 4.3% in the first quarter and 3.4% in the second quarter. Growth of the GDP deflator stood at 6.3% in the first half of the year and nominal GDP, which recorded a year-on-year nominal growth of 10.3%, and reached HRK 144.5bn in the first half of 2008. In analysing individual expenditure components of the gross domestic product, gross fixed capital formation recorded the highest growth in real terms in the first half of 2008. Compared with the same period in 2007, this marked an increase of 11.3% in real terms. This is particularly important, as investment goods serve to spur production, rather than consumption, thereby representing the most important factors in future growth generation. The strong real investment growth of 9.8%, recorded in the first quarter, further accelerated to 12.6% in the second quarter of 2008. Imports of goods and services also recorded a high growth rate in the first half of the year, increasing by 7.6% in real terms. Growth of imports of goods and services accelerated from 7.0% in the first quarter to 8.1% in the second quarter of 2008. Exports of goods and services rose by 4.3% in real terms in the first half of the year, by 3.8% in the first quarter and by 4.6% in the second quarter of 2008. Coverage of imports of goods and services by exports of goods and services was 68.1% in the first half of the year. Personal consumption rose by 3.2% in real terms in the first half of the year. A somewhat stronger real growth of 4.3% in personal consumption was recorded in the first quarter, while its growth stood at 2.2% in the second quarter of 2008. Government consumption grew at a rate of 0.5% in the first quarter and 3.2% in the second quarter, representing a real year-on-year growth of 1.8% in the first half of 2008. At the level of entire 2008, a real growth of GDP of 3.3% is expected. As a result of unfavourable external effects, the growth will slow down to 2.0% in 2009. By the end of the mid-term period, a gradual acceleration of GDP growth is expected, in the conditions of global macroeconomic and financial conditions recovery, positive effects of the Republic of Croatias EU accession process and the effects of further implementation of structural reforms and reduction in general government deficit. Such movements will contribute to a further improvement of the business climate and strengthening of private sector and economic activity. In that regard, a recovery of the real growth of GDP to the level of approximately 4% is expected by the end of the mid-term period. Gross value added Real growth of gross value added amounted to 4.4% in the first half of 2008. This growth slowed from 4.6% in the first quarter to 4.2% in the second quarter of 2008. The highest growth of gross value added in the first half of the year was recorded in construction (9.1%), transport, storage and communication (6.6%), financial intermediation1 (6.2%) and industry2 (4.1%). The real growth of gross value added stood at 3.4% for hotels and restaurants, 2.9% for trade3, 2.6% for public administration4 and 2.0% for agriculture5. Analysing the shares of individual activities in the total value added at constant prices from 1997, the following activities recorded the largest shares in the first half of 2008: industry (29.1%), financial intermediation (15.6%), public administration (15.5%) and trade (15.1%). The share of transport, storage and communication in total value added stood at 10.1%, followed by construction at 8.1%, agriculture at 7.4% and hotels and restaurants at 3.1%.
1 2 3 4 5
Category includes financial intermediation, real estate, renting and business activities. Includes mining and quarrying, manufacturing and the supply of electricity, gas and water. Includes wholesale and retail trade, repair of motor vehicles and motorcycles, and personal and household goods. Includes public administration and defence, social security, education, health and social work, other community, social and household activities. Includes agriculture, hunting, forestry and fishing.
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Balance of payments Following considerable deterioration in 2007, unfavourable trends in the balance of payments of the current account continued into the first half of 2008. In the first semester of 2008, the current account deficit increased by 27.7% against the same period of 2007. This increase can mainly be accounted for by the deterioration in foreign trade deficit, caused primarily by external shocks and by a sharp rise in crude oil prices on the world market. In addition, a deterioration in the factor income account deficit, which increased by one quarter relative to the first half of 2007, also had a negative influence on the balance of payment deficit growth, along with a mild reduction in the positive balance in the current transfers account. In contrast, net revenues in the services account increased by as much as 17.4% in the observed period. The capital and financial transactions account recorded net inflow of EUR 3.9bn in the first half of 2008, which is a 40.4% increase relative to the same period of the previous year. In comparison with the first half of 2007, inflow from foreign direct investments to Croatia was reduced from EUR 2.4bn to EUR 1.8bn, which is mainly the result of smaller recapitalisations of domestic banks under foreign ownership. Furthermore, in the first quarter, a significant outflow based on direct investments was recorded due to a withdrawal of retained earnings of Pliva from 2002; however, this investment reduction was offset in the second quarter by a recapitalisation of Pliva by its foreign owner. In the portfolio investments account, a net inflow of only EUR 0.1bn was recorded in the first half of 2008, primarily as a result of the repayment of government Samurai bonds. Net inflow based on other investments (rise in net debt based on loans, trade credits, cash and deposits) doubled relative to the first half of 2007, primarily due to a drop in banks foreign assets as a result of the reduction in the minimum required foreign exchange claims from 32% to 28.5%. In addition, somewhat more intensive growth of foreign liabilities of other domestic sectors was also recorded. International reserves increased by EUR 0.8bn in the first half of 2008, owing to an increase in the allocated foreign exchange reserve requirements of banks, a foreign exchange intervention by the central bank in January and purchase of foreign exchange received by the central government under the Second Programmatic Adjustment Loan (PAL 2). International reserves and external debt In the first eight months of 2008, the gross external debt of the Republic of Croatia increased by EUR 2.1bn to EUR 35.4bn, an increase of 6.4% compared to end-2007. Continued heavy borrowing of the enterprise sector had the greatest influence on the debt increase in the observed period, although the growth of the total external debt of enterprises slowed relative to the first eight months of 2007. Government indebtedness was slightly reduced in the said period, and significant repayments include regular repayment of liabilities to the London and Paris Club and repayment of the Samurai bond (approximately EUR 160m), whereas larger disbursements include a syndicated loan granted to the Croatian Bank for Reconstruction and Development (CBRD), worth EUR 230m, and a withdrawal of the first tranche of the Second Programmatic Adjustment Loan of the World Bank, in the amount of EUR 100m. As a result of monetary policy measures, banks reduced their foreign liabilities by EUR 0.9bn relative to end-2007. A further decrease in bank debt is expected by the end of the year, as well as a deceleration of debt growth of enterprises, while the government sector debt could rise, primarily due to CBRD borrowing. Gross international reserves of Croatian National Bank (CNB) reached EUR 9.8bn at end-August 2008, an increase of EUR 0.5bn against the end of 2007. Reserve growth was stimulated by an increase in the foreign exchange reserve requirement, a CNB intervention at end-January and by a purchase of foreign exchange received by the central government through a withdrawal of an adjustment loan granted by the World Bank. A greater purchase of foreign exchange from commercial banks is expected in the fourth quarter, in order to mitigate the effect of inflow of foreign exchange for the purchase of INA shares on the exchange rate of the kuna against the euro, which will also impact the growth of the gross international reserves. On the other hand, a part of the allocated foreign exchange reserves was returned to commercial banks in October by abolishing the marginal reserve requirement, which resulted in a one-off reduction in gross international reserves of approximately EUR 450m. Accordingly, international reserves should stand at EUR 9.4bn at end-2008, up 3.0% compared to end-2007.
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Employment and unemployment According to the labour force survey data, the working age population in the first half of 2008 included 3 657 500 persons, of whom 48.5% are people either working or actively seeking employment, i.e. who can be classified as the labour force. In comparison with the results of the survey from the first half of 2007, the working age population increased by 13 000 and the category of the labour force increased by 7 000. Total employment in the first half of 2008 amounted to 1 614 500, which is 28 500 more than in the first half of 2007. Unemployment was reduced by 21 500, amounting to 158 000. Accordingly, in the first half of 2008, the labour force survey unemployment rate stood at 9.0%, which is a year-on-year decline of 1.2 percentage points. The administrative unemployment rate in the first half of 2008 was 14.0%. Labour market data obtained from administrative sources suggest a continuation of positive trends in 2008. In all the months thus far in 2008, lower unemployment was recorded relative to the previous year. Unemployment fell from 261 129 in January 2008 to 228 501 in October of the same year, i.e. by 32 628 or 12,5%, thus hitting a record low level. Unemployment was reduced by 21 586, or by 8.6%, compared to October 2007. In January 2008, employment amounted to 1 506 097 and increased to 1 538 271 in October, up 0.5% compared to October 2007. The administrative unemployment rate was reduced from 14.8% in January to 12.9% in October 2008. In 2008, a continuation of positive labour market trends was recorded, among other things, as a direct consequence of a long-term policy of employment promotion and preserving jobs. This years-long policy will have a positive impact on the labour market movements in the forthcoming period as well. Prices At the end of the second and at the beginning of the third quarter of 2008, the annual rate of consumer price inflation accelerated from 5.7% in March to 7.6% in June, reaching 8.4% in July 2008. An increase in prices of raw materials on the world market, together with a significant acceleration of real annual growth of personal consumption in 2007, contributed to a rise in inflation in the first seven months of 2008, such that the delayed effect of domestic demand strengthening on inflation was felt during 2008. In mid-July, the imported inflationary pressures began to decrease, as reflected in the reversal of the upward trend of price increases of agricultural products and crude petroleum on the world market. This, together with a favourable base period effect, had an impact on a deceleration of the annual inflation rate to 7.4% in August. The annual rate of inflation recorded in August 2008 was 1.6 percentage points higher than in December 2007, when it stood at 5.8%. Core inflation remained lower than the overall consumer price inflation, but its annual rate of change increased from 5.0% in December 2007 to 6.6% in August 2008. Price increases in certain food products (meat, bread and grain products) gave the largest contribution to the acceleration of core inflation in the observed period. The increase in the annual rate of consumer price inflation, recorded in the first eight months of 2008, is predominantly accounted for by the considerable rise in the annual rate of change of energy prices, from 5.2% in December 2007 to 12.3% in August 2008. The largest contribution to that increase was made by the rise in prices of refined petroleum products and electricity. After rather strong growth in the second half of 2007, food prices continued to increase in the first eight months of 2008, though at a somewhat slower pace. The annual rate of change of food products thus increased from 11.4% in December 2007 to 13.1% in August 2008. In the third quarter of 2008, the imported inflationary pressures subsided, which is reflected in a drop of prices of food raw materials and crude petroleum on the world market. Along with a favourable base period effect, this should contribute to a slowdown of the annual growth rate of domestic prices of food and energy in the last four months of 2008. Accordingly, the annual rate of consumer prise inflation is expected to drop from 7.4% in August to about 4.2% in December 2008. The expected average annual rate of consumer price inflation for 2008 is 6.2%. A continuation of inflation deceleration is expected in 2009.
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2.3.2 Monetary and fiscal policy

Monetary policy The primary objective of the Croatian National Bank is to maintain price stability. In achieving its primary objective, the CNB pursues monetary policy based on the stability of the nominal exchange rate of the kuna against the euro. The choice of such a policy derives from the conditions in which the central bank acts, i.e. from the main characteristics of the Croatian economy. In the conditions of free movement of capital, an assumption of a stable exchange rate restricts the range of monetary policy and, as a result, the monetary policy interest rate transmission mechanism in not sufficiently developed. In 2008, monetary policy faced additional challenges. Demand shocks (rise in prices of refined petroleum products and food products on the world market) spurred inflation acceleration in almost all European countries, including Croatia. Inflation accelerated to 5.8% at the annual level at end-2007, and remained at that level until the second half of 2008. Under such conditions, the Croatian National Bank restricted its monetary policy, which was reflected in a reduced scope of open market operations, increase in interest rates at reverse repo auctions and a considerably smaller purchase of foreign exchange from banks on the domestic market. Such a monetary policy resulted in a slowdown of growth of all monetary aggregates and a mild appreciation of the nominal exchange rate of the kuna against the euro. By the end of the third quarter 2008, inflation in Croatia began to decelerate and its drop to 4.2% is expected at the end of the year. In order to have a stronger impact on unfavourable macroeconomic developments, the Croatian National Bank has also applied various administrative measures in recent years, the most important of which are the marginal reserve requirement and compulsory purchase of CNB bills. As a result of the marginal reserve requirement, introduced in 2005, the use of foreign capital became more expensive for commercial banks, leading to a strong decrease of their external debt. Accordingly, in the first eight months of 2008, a drop of foreign exchange liabilities of commercial banks of more than EUR 1.0bn was recorded. As a result of such movements, the stock of banks total foreign exchange liabilities fell to approximately a similar level as at the time of introduction of this measure, due to which the amount of allocated marginal reserve requirement with the central bank was considerably reduced. Finally, the central bank abolished the marginal reserve requirement in early October 2008. By abolishing this measure, the allocated foreign exchange funds were returned to the commercial banks (approximately EUR 0.45bn), thus improving their foreign exchange liquidity in the conditions of unfavourable movements on the domestic and world financial markets. In addition, certain modifications were made in the field of the general reserve requirement. Another measure, the Decision on the purchase of compulsory CNB bills, was aimed at slowing the commercial banks lending activity. It was successfully applied in 2003 and 2007 and was in force in 2008. The recorded placement growth in the first eight months of 2008 is within the limits prescribed by that decision. Similar trends are expected until the end of the year. Over more than a decade, monetary policy based on the exchange rate as the nominal anchor, complemented with other administrative measures, has proved adequate for achieving the primary objective of the central bank. In addition, decisions relating to prudential regulation have prevented the development of securitisation and financial derivatives, and increased resistance of the domestic banking system to potential shocks was achieved through recapitalisations. The crisis on the world financial markets and unfavourable developments in the domestic capital market in 2008 thus did not have an adverse impact on the Croatian banking sector. Exchange rate policy The Croatian National Bank pursues a managed float exchange rate policy, implying that the exchange rate of the kuna against the euro is determined by supply and demand forces on the foreign exchange market. The CNB occasionally participates in its operation, aiming to prevent excessive exchange rate fluctuations, by buying and selling foreign exchange from commercial banks at foreign exchange auctions, without a designated ceiling and floor for intervention points. In the first nine months of 2008, the nominal exchange rate of the kuna against the euro appreciated by 3.0%, from 7.33 HRK / EUR on 31 December 2007 to 7.11 HRK /EUR on 30 September 2008. In the second half of January, strengthening of the kuna
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exchange rate was recorded, as a result of decreased kuna liquidity of the financial system, so that the CNB intervened by purchasing EUR 189.1m from commercial banks on 31 January 2008, in an attempt to mitigate the intensity of the nominal appreciation of the kuna, releasing thus a total of HRK 1.4bn. The nominal exchange rate of the kuna against the euro was relatively stable for the remainder of the year. Accordingly, the central bank held no foreign exchange auctions in the said period. In the third quarter of 2008, a moderate trend of the kuna exchange rate appreciation was recorded and the kuna strengthened by a total of 1.9%. Appreciation of the exchange rate of the kuna against the euro was mainly a consequence of a stronger inflow of foreign exchange during the peak tourist season. In addition, a considerable inflow of foreign exchange was recorded in July as a result of borrowing of enterprises abroad (EUR 500.1m). Under conditions of increased inflationary pressures and a growth of a rate of annual consumer price inflation, reaching 8.4% in July, the CNB did not purchase foreign exchange from banks at foreign exchange auctions, for the purpose of avoiding the additional creation of kuna liquidity. Appreciation pressures on the exchange rate of the domestic currency continued even after the peak tourist season, and the exchange rate of the kuna against the euro fell to slightly below 7.11 HRK/EUR in mid-September, as a result of expectations concerning the inflow of foreign capital intended for the purchase of INA shares. In addition to the 3.0%-nominal appreciation of the exchange rate of the kuna against the euro, in the first nine months of 2008, a 0.5% appreciation of the exchange rate of the kuna against the US dollar and a 10.4% appreciation of the kuna against the pound sterling was also recorded, whereas the kuna depreciated against the Swiss frank by 1.5% in the observed period. These kuna exchange rate movements resulted in the appreciation of the kuna daily nominal effective exchange rate index of 2.3%. The price competitiveness indicators for domestic exports deteriorated in the first eight months of 20086 the index of the real effective exchange rate of the kuna appreciated by 3.1% deflated by consumer prices, i.e. by 3.4% deflated by producer prices. In the case of both indicators, a stronger appreciation was recorded than in the same period of 2007. Fiscal policy Starting from 2004, the process of fiscal adjustment and the accompanying general government deficit reduction are the main determinants of fiscal policy of the Republic of Croatia. In recent years, the pursuit of fiscal policy in the Republic of Croatia has been very successful. Specifically, in analysing the process of fiscal adjustment since the start of its implementation in 2004, i.e. comparing net lending/borrowing in 2007 relative to 2003 (deficit/surplus according to the European ESA 95 public finance presentation methodology), a reduction of 3.9 percentage points is recorded. In 2003, net borrowing/lending stood at -5.5% of GDP, reaching -1.6% of GDP in 2007. The deficit reduction in the observed period is primarily a result of improvement and regulation of the public finance system by strengthening budget management, introduction and expansion of the single State Treasury account, introduction of budget analyses and fiscal impact measurement and strengthening the tax administration. Rationality in executing expenditures and improvement of the budget process components in the forthcoming period will also be achieved by implementing the measures defined by the 2007-2011 Strategy for Improvement and Modernisation of Processes in the State Treasury, aimed at the further development of an efficient and sustainable financial management system, based on the highest up-to-date standards. Accordingly, a further reduction in net lending/borrowing will be achieved in the forthcoming period, from -1.6% of GDP in 2007 to -1.3% of GDP in 2008. By deficit reduction, the need for its financing also decreased, which reflected positively on movements of public debt, amounting to 44.2% of GDP at end-2007, a 4.5 percentage point fall relative to end 2003 (48.7%). By smaller financing needs and focusing new borrowing on domestic sources, the government has made a positive contribution to external debt movements. Specifically, the share of external component of the general government debt was reduced by 18.1 percentage points in the period 2003-2007. Apart from positive effects on public debt, such orientation of borrowing has also had a positive impact on a further development and deepening of the domestic financial market.
August 2008 in comparison with December 2007.
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As a result of extremely unfavourable external macroeconomic conditions in which the Croatian economy functioned in 2008, and which reflected, among other things, in a decrease in global demand and economic activity, in 2009, a deficit of -0.9% of GDP is expected. Furthermore, deficit reduction to -0,6% of GDP is planned in 2011. General Government Debt At end-2007, the general government debt stood at HRK 104.1bn or 37.8% of GDP, down 0.3 percentage points relative to 2006. The largest contribution to this reduction was made by the central government, whose debt dropped by 3.4 percentage points of GDP at the annual level. The external component of the central government debt was reduced by 2.3 percentage points and the internal component by 1.1 percentage points. The government primarily met its financing needs on the domestic market, which reflected positively on its further development. The reduction in the share of general government debt is a direct consequence of the fiscal consolidation process and fiscal deficit reduction. In the first half of 2008, general government debt totalled HRK 104.2bn and, in view of budget deficit reduction, a continuation of its share in GDP is expected.
2.3.3. Product Market Functioning

Price Liberalisation The fundamental starting point of the economic policy of the Republic of Croatia with regard to prices is the free formation of prices of goods and services. Accordingly, the prices of goods and services are formed freely on the basis of market conditions. However, there are certain exceptions for specific economic activities, where price formation is still regulated by state bodies at the national and local level for the purpose of preventing a monopoly and protecting low income consumers. Administratively regulated prices are regulated by the Act on Exceptional Price Control Measures (Official Gazette 73/97). Exceptional price control measures are implemented by: prescribing measures for direct price control (determining the highest price level, price reduction to a certain level and registration of price lists, i.e. tariffs prior to their implementation), monitoring price movements and determining guaranteed prices of agricultural products. Pursuant to the provisions of the aforementioned Act, the Regulation on direct price control measures (Official Gazette 02/01, 156/02, 110/04, 112/07) was adopted. The Regulation stipulates that legal and natural persons engaged in production, carrying on of trade activity and provision of services, as provided for therein, are obliged to register their price lists, i.e. tariffs, upon each change of prices of their products and services, with the Ministry of the Economy, Labour and Entrepreneurship, 15 days prior to the application of the prices. Pursuant to the aforementioned Regulation, one of the direct price control measures is currently being implemented, which administratively regulates prices of the following products and services: 1. liquefied petroleum gas, 2. passenger transport in domestic rail transport, and 3. official forms. The obligation to notify the prices of products, referred to in items 2 and 3, applies only to legal persons in the ownership of the Republic of Croatia (Croatian Railways - H Putniki prijevoz d.o.o., Official Gazette - Narodne novine d.d.).
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In 2007, the Regulation on amendments to the Regulation on direct price control measures (Official Gazette 112/07) entered into force, which reduced the scope of goods and services that are subject to administrative control. Accordingly, the following products and services are excluded from control: prices of public transport of passengers in regular coastal maritime transport on state lines, and prices of standard letters and postal cards.
In 2007, the share of administrative prices in the consumer price index stood at 24.13% and the share of 23.74% is expected in 2008.
Weights in the RPI/CP index

Core inflation Agricultural products Administratively regulated prices
2002
0.7696 0.0224 0.2080
2003
0.7486 0.0218 0.2296
2004*
0.7023 0.0719 0.2258
2005*
0.6993 0.0693 0.2314
2006*
0.6953 0.0670 0.2370
2007*
0.6997 0.0591 0.2413
2008*
0.6946 0.0680 0.2374
* Consumer price index was introduced, replacing the retail price index
Privatisation Completion of privatisation of the largest portion of the Croatian Privatisation Fund (CPF) portfolio, as one of the preconditions for creating an efficient market economy, has remained the primary objective of the economic policy in the field of privatisation. In mid-September 2008, the CPF portfolio encompassed 890 companies (690 companies available for sale) with total equity capital of HRK 66.7bn, of which HRK 17.3bn is in state ownership. Although 46 companies were privatised last year (6 companies by a sale through a public tender, whereas 40 companies were deleted from the court register following a completion of bankruptcy or winding-up proceedings)7, the portfolio structure of the number of companies and ownership shares has remained virtually unchanged compared to the previous year. As such, the CPF is a minority owner with up to 25% share in equity capital in 80% of these companies (712 companies), while the share ranges from 25-50% in 87 companies, whereas the state is still a majority owner with more than 50% share in capital in 96 companies. As noted on several occasions, the relatively unsatisfactory sale dynamics of companies in majority ownership of the CPF is a result of the demanding structure of the remaining portfolio, especially as regards finding a strategic partner (24 tenders were invited for the sale of 15 companies 9 for companies from the CPF portfolio and 6 for the sale of H subsidiaries) and the Maestro corruption affair, which has temporarily blocked the CPF operations. As a result of the aforementioned affair, the sale of minority interests on the stock exchange was completely terminated and the issue of the course of effective transformation of the CPF was reopened, as was the issue of the associated introduction of a new model based on the possibility of professionalising the management of part of the portfolio until the privatisation process is complete. In view of the complexity of the shipbuilding issue, especially as regards restructuring and privatisation, one of the most important activities taken in 2008 was the initiation of the preparation of shipyards for privatisation, pursuant to the Decision on the privatisation intention and privatisation principles for five shipyards in majority state ownership, adopted by the Government of the Republic of Croatia in May 2008. In this manner, following completion of privatization of the black metallurgy sector with the sale of eljezara Split, Valjaonica cijevi Sisak and TLM ibenik aluminium company, work began on resolving the issue of the long-term sustainability of the shipbuilding sector. In terms of the privatisation, the most complex and demanding sector which has remained in the CPF portfolio.
Of the total 5 privatised companies, one company is a subsidiary of Croatian Railways (H - RVR Uslune djelatnosti d.o.o. Zagreb).
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In addition to the principles upon which the privatisation models for shipyards should be based, the aforementioned Decision provides the deadline for completion of privatisation (2009) for three shipyards (Uljanik d.d. Pula, Brodogradilite Kraljevica d.d. and Brodotrogir d.d. Trogir). Shipyard restructuring should be performed in accordance with the model used for privatisation of black metallurgy sector, implying that, after the completed privatisation, the new owner(s) should prepare individual restructuring plans in co-operation with the Government, and deliver them to the European Commission and to the Croatian Competition Agency for approval. In order to create the conditions for completion of the privatisation process, the analysis of the various models of the announced CPF transformation is underway, and preparation of the legal framework for the establishment of closed-end investment funds is ongoing. The concept of completing the privatisation of a considerable portion of the remaining CPF portfolio, consisting primarily of minority interest (the state holds up to 25% of total shares in 712 companies or 80% of the portfolio,), is based on the selection of high-quality shares, in most cases with a market value, which would be transferred to closed-end investment funds. Fund management would be entrusted to professional management companies, selected at public tenders. An IPO of shares of closed-end investment funds is envisaged as the states exit strategy. A detailed specification of privatisation through closed-end investment funds (number of funds, individual value, duration) will be made after the adoption of the legal framework that will allow for the operation of the aforementioned funds. In the realisation of the described concept, the role of the state would predominantly be to decide on the privatisation of companies in which it holds the majority block of shares and for which it has been assessed that finding a strategic partner is the most appropriate form of privatisation (at present, a total of 87 companies in the CPF portfolio are available for sale). The companies which could not be sold at public tenders, i.e. those for which no interested investor could be found (such as companies without future), will be forced to exit the market through bankruptcy or winding-up proceedings. Business Environment, Business Start-up and Closure The regulatory guillotine project called HITROREZ, launched with an aim of simplifying or abolishing regulations, was completed in 2007. Of the 799 acts proposed for simplification or abolishment, 549 were accepted by the line ministries. The remaining 250 are currently being processed and will be completed when the conditions for this are created, since they were not implemented on account of inadequate capacity or on other objective grounds. Savings on administrative costs for entrepreneurs are estimated at more than EUR 200m and the calculation was made by the application of the simplified standards cost model (SCM), a methodology mostly used in the EU Member States in calculating savings on administrative costs. Almost 50% of the recommendations have been implemented thus far, i.e. more than 256, and their effect is already evident. In addition, it is believed that the benefits of the HITROREZ project are most evident in creating an environment that strengthens regulatory dynamics and increases the appetite for reforms. HITROREZ is also an innovative project, in view of applying corporate principles in state administration, and this was the first time such an approach was used in Croatia. It also represents a rebranding of a traditional regulatory guillotine into a new brand adjusted to the situation in Croatia. Professional and pragmatic relations with the private sector have also contributed to the establishment of a new approach to the assessments and benchmarks in regulatory guillotine and to an increase in private sector interest in participation in the project. Nevertheless, good preparation of the communication strategy was the most important factor, both internally with shareholders and externally with the business environment. This has contributed, to a great extent, to wide public acceptance of HITROREZ. In view of the achieved results of the HITROREZ project, the Government of the Republic of Croatia has established a co-ordinating body for the implementation of the regulatory impact assessment the Office for Regulatory Impact Assessment (ORIA). The Department for Regulatory Impact Assessment and Macroeconomic Analyses was established within the Ministry of the Economy, Labour and Entrepreneurship.
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As regards cheaper and more expeditious establishment of companies, in addition to the on-line registration of crafts, which started 2 years ago, the on-line registration of companies was also made possible in 2007. More specifically, the pilot project of on-line company registration was launched on 30 October 2007 in the Varadin and Meimurje Counties, where full implementation of the pilot project is underway. The pilot project of on-line registration of limited liability companies with equity capital in cash (e-TVRTKA) allows for the registration of a limited liability company at the Commercial Court in Varadin within 24 hours. From 1 January 2008 to 1 September 2008, 292 entities were established via on-line application at the Commercial Court in Varadin, whereas 78 entities were established in the traditional manner (paper form). More specifically, 79% of companies were entered in the court register through an on-line application, compared to 21% of registrations by the application through a paper application. These data relate to all establishments. The implementation of on-line registration of companies at 3 regional commercial courts (in Zadar, Osijek and Split) in the Republic of Croatia will be possible by the end of this year, while on-line registration will be possible in the entire territory of the Republic of Croatia in the following year, which will contribute significantly to promptness and savings of costs. The project allows for the more efficient and transparent operation of courts, narrows the space for corruption, and supports the rule of law, whereas informatisation is one of the key elements enabling the state administration to become an efficient service for entrepreneurs and citizens, as demonstrated by the one-stop-shop, i.e. HITRO.HR. HITRO.HR, the service of the Government of the Republic of Croatia for more expeditious communication of entrepreneurs and citizens with state administration bodies, has marked its third anniversary. 24 061 companies and crafts have been established to date in the 61 offices, established to date in FINA branches, of which 1 247 companies are in foreign ownership. The service of establishing a limited liability company has been available to citizens for three years. In addition to cost reduction, the largest savings were accomplished in terms of time, since the overall procedure normally lasts less than five days. The situation is similar with crafts. More than 90 percent of users have expressed their satisfaction with the level of service, whereas 62 percent of users stated that the service provided exceeded their expectations. Company registration through HITRO.HR service has saved new entrepreneurs an average of HRK 1 000 and about 10 working days. Citizens may obtain all the information required for starting-up a company or craft, and register new companies and crafts in the health and pension insurance system at the HITRO.HR service offices in FINA branches. Fully electronic services are also available to all the entrepreneurs in the Republic of Croatia. The key prerequisite for all the forms of electronic business is ownership of a FINA card with a certified digital signature. In addition to submission of annual financial reports and an insight into annual financial reports of other business entities (RGFI), submission of quarterly statistical reports (TSI), submission of statistical reports on wage payments (SPL), submission of reports on payments of compensations of material rights of employees (TMP), access to information on creditworthiness (WEB-BON), and signing of electronic mail and documents with electronic signature, the FINA card also supports e-Government services. These, primarily, include submission of RMs forms (e-Regos), submission of VAT forms (e-PDV) and sending electronic registration to the pension insurance system (e-Mirovinsko). Citizens can also use the e-Katastar service of the State Geodetic Directorate and can check the status of more than 14 million registered cadastral plots from 115 cadastral offices in the Republic of Croatia. Data on establishing, deleting and alignment of registered legal persons are as follows:
2007
JanMar Establishment Companies Other Deleting Enterprises Companies Other Alignment with the Companies Act
Source: Central Bureau of Statistics
2008
JulSept 3 240 2 548 692 92 4 74 14 120 OctDec 3 500 2 718 782 119 2 106 11 113 JanMar 3 783 2 935 848 850 35 794 21 397 AprJun 3 499 2 637 862 281 6 158 117 162
AprJun 3 567 2 701 866 102 4 80 18 153
3 724 2 775 949 218 4 119 95 223
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Positive trends in the economy relate to ICT business, which is marked by a high level of ICT integration into business: 95% of enterprises use computers and 93% have internet access. Broadband internet access prevails, with 79% of enterprises using some form of fixed broadband connection. Internet use: 81% of enterprises perform financial transactions through the internet; 61% of enterprises monitor market changes through the internet; 51% of enterprises have their website. Consumption of hardware, software and IT services in Croatia increased by 19.9% in 2007, reaching USD 1.24bn (HRK 6.66bn), in accordance with the recently published annual survey by IDC Adriatics on the movements on the Croatian IT market. However, market growth was considerably smaller in terms of HRK, amounting to 10.3%, due to depreciation of the US dollar. With IT consumption of USD 276 per capita, Croatia reached 31% of the average IT consumption per capita in EU27. The value of the provided IT services, expressed in HRK, rose by a more modest 6.9%, representing a slowdown relative to the previous two years. An increase in the share of IT services and software in total IT consumption in a country indicates progress and an improved level of maturity. IDC forecasts that IT consumption will grow by 10.3% per year on average in Croatia in the forthcoming five years, and will reach USD 2.20bn by 2012. The legislation in the field of IT, presently in force in the Republic of Croatia, consists of several sets of laws and ordinances regulating this area, and includes regulations concerning electronic signatures, electronic trade, electronic documents, electronic communications, information security and computer crime. The Croatian Parliament adopted the Act on Amendments to the Legal Profession on 26 September 2008. These amendments allow foreign lawyers to practice law in the Republic of Croatia, in the same manner as they are allowed to practice law in other EU Member States. The provisions of the Act relating to the status of foreign lawyers in the Republic of Croatia will begin to apply upon Croatias accession to the EU. As regards real estate, it should be noted that the manner of registration in land registries of the municipal courts in the Republic of Croatia, i.e. land registry departments of the same courts, facilitates operations for legal persons and economic entities for several reasons: land registry files are digitalised in all municipal courts of the Republic of Croatia (98.95%); 48.10% of digital land registry data on the territory of all municipal courts in the Republic of Croatia have been verified; land registry data are transparent, i.e. available to all users on the websites, as well as e-pisarnica (eSecretariat) of the land registry department; the time required for the process of registration in the land registry has been reduced from an average of 800 days to 73 days (20042008); the time required for mortgage registration was reduced from an average of 23 days to 7 days in the Republic of Croatia; land registry certificates are issued on the same day.
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2.3.4. Financial Sector

Unfavourable developments on the domestic market, which started in end-2007 and continued into the first half of 2008, reduced total financial sector assets at the end of the second quarter of 2008 to HRK 461.3bn, which is a 1.2% drop compared to end-2007. Since other financial intermediaries reduced their assets in the observed period, the share of the banking sector increased from 75.3% to 76.9%, of which 75.5% can be accounted for by banks and 1.4% by housing savings banks. Leasing companies, with a share of 6.9% in total assets, are ranked second by the size of assets (according to data for the first quarter of 2008), and are followed by insurance companies with a 5.3% share in total assets (also according to data for the first quarter), whereas compulsory pension funds are in fourth place with a 4.8% share in total assets. Assets of open-end investment funds were reduced by 36.8%, or by slightly more than HRK 11.0bn, in the first six months of 2008, as a result of which their share dropped to 4.1% of total financial sector assets. Downward trends on the world financial markets and on regional markets, along with various domestic factors, adversely affected developments on the domestic capital market in the first half of 2008. The Croatian share index CROBEX thus fell by 31.5% in the first six months of 2008, after climbing 63.2% in 2007. A drop in prices of a large number of shares resulted in the decrease of share market capitalisation from 128.1% of GDP at end-2007 to 85.6% of GDP8 at the end of June 2008. Despite the continued borrowing of cities and corporations on the domestic capital market, it still represents a less important source of financing for the domestic economy. A drop in prices of government bonds in the first half of 2008 reduced bond market capitalisation, which stood at 13.0% of GDP at the end of June 2008. An increase in the share of the banking sector in total assets of financial intermediaries strengthened its predominance among financial intermediaries in financing the economy, although direct foreign borrowing also has an increasingly more important role in its financing due to a deceleration of bank loans growth, stimulated by the CNBs restrictive measures implemented in 2007. In 2008, the corporate loans to GDP ratio did not change, whereas the same ratio increased slightly for household loans and considerably for loans to the public sector. Accordingly, at the end of June 2008, banks household loans accounted for 40%, corporate loans for 30% and loans to the government units for 6% of GDP. The spread between the average lending and the average deposit interest rate increased slightly from 5.8% at end-2007 to 6.1% in June 2008. The importance of the banking sector is also reflected in the fact that most of the non-banking financial intermediaries are directly or indirectly related to the largest banks in the Republic of Croatia. At the end of June 2008, banks in private ownership accounted for 95.5% of total bank assets and banks in foreign ownership had a 90.5% share in total bank assets. The estimated exposure of banks to credit risk has not changed significantly since 2006. At the end of June 2008, the share of substandard placements in total placements stood at 3.2%, in comparison with the record low level of 3.1% at end-2007. Such a favourable result can be partly accounted for by an on-going improvement of bank risk management and the favourable macroeconomic environment. In order to improve foreign exchange risk management, the Croatian National Bank has introduced an obligation to monitor and control currency induced credit risk as of June 2006 and it has increased risk weights on several occasions (last time early in 2008) for customers with a mismatched foreign exchange position. As such, the banks are stimulated to have higher capitalisation and thus stronger resistance to risks.
Gross domestic product at the end of June 2008 equals the sum of outturns in the last two quarters of 2007 and in the first two quarters of 2008.
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2.4 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU 2.4.1. Human and Physical Capital
Education The total number of children included in pre-school education is 149 300 or 56.64%. 19 359 of children, or 12.97% attend private kindergartens, and 129 942 or 87.03% attend city/municipal/county kindergartens. Measures to increase the number of children enrolled in pre-school programmes are being implemented, from 43% of children, at present, to 60% of children, and to increase the coverage of children by pre-school (in the year preceding the beginning of primary school) from 96%, at present, to 98%. In October 2007, the Act on Amendments to the Pre-school Education Act was adopted, in which certain provisions are fully aligned with the EU legislation. By 1 September 2008, the Ministry of Science, Education and Sports, with the financial support of the World Bank, equipped 31 new kindergartens in municipalities and cities where no organised programmes for children of pre-school age were previously in place. In co-operation with the units of local and regional self-government, the coverage of children increased in five counties by approximately 1 600, which mainly relates to children in the year preceding the beginning of primary school. Primary school education is compulsory for all school-age children. Primary education is completed by 95.8% of pupils. In the 2007/2008 school year, education in the Republic of Croatia was organised in 871 main schools and 1 365 regional primary schools. 384 261 pupils attended primary school. The total number of pupils in primary schools was 380 942, which is 0.4% less than in the 2006/2007 school year. The average number of pupils per class remained the same, both at the county and national levels (20 pupils per class). The new Act on Primary and Secondary School Education (Official Gazette 87/08) was adopted. In the 2007/2008 school year, external evaluation was performed of 4th and 8th grade primary school pupils by the Education and Teacher Training Agency. This evaluation encompassed 2 863 4th-grade classes in 844 primary schools and 2187 8th-grade classes in 842 primary schools. As a part of the project Network of Schools without Architectural Barriers, implemented since 2005, the Ministry of Science, Education and Sports has invested more than HRK 3m in 54 primary and secondary schools and in 1 kindergarten. In addition, architectural adaptation of schools for pupils with motoric disabilities was financed by a World Bank loan, EIB II and CEB V programmes, by funds earmarked in the county and city budgets and by the public-private partnership. The Strategy for Preparing and Developing the National Curriculum was adopted, which relates to the development of the curriculum process within the education system from the pre-school to the secondary school level. The National Curriculum Directorate was established within the Ministry of Science, Education and Sports, which monitors the implementation of the national curriculum and, on the basis of evaluation of the curriculum components, plans short-term and long-term changes within the education system at the pre-school, primary and secondary school education levels. Labour Market All labour market indicators in the Republic of Croatia indicate continuous growth in employment and a drop in unemployment. According to the interim data of the Central Bureau of Statistics (CBS), total registered employment increased from 1 510 942 in July 2007 to 1 558 702 in July 2008, which is a 3.2% rise. In the same period, registered unemployment with the Croatian Employment Service was reduced from 245 768 to 219 747, i.e. by 10.6%. According to the labour force survey data, the employment rate for the population aged 15 to 64 rose from 55.2% in the first quarter of 2007 to 57.1% in the first quarter of 2008, whereas the unemployment rate for the population over 15 years of age decreased from 11.2% to 10.0% in the same period.
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Employment Promotion A new cycle of active employment measures, which started in 2006, indicates favourable results, in qualitative terms, since the largest number of newly employed are young persons without work experience and long-term unemployed persons. In addition, the fact that users of active employment measures are mostly small and medium-size employers is also assessed positively, and indicates that these are the employers creating new jobs, and are generators of economic development and growth. During 2006, of the total number of persons covered by the measures (4 869), 2 479 persons were employed and 873 persons participated in training programmes. In 2007, the measures covered 8 494 persons, of whom 4 346 (or 51.1%) were women. Of the total number of covered persons (8 494), 4 269 were employed through employment grants, 707 persons participated in the training for a known employer (training grants), 2 960 persons participated in the training for an unknown employer, while 531 persons were employed through the Public Work programme. Until 31 August 2008, 3 410 persons were covered by the measures, of whom 1 495 (or 43.8%) were women. Of the total number of covered persons (3 410), 1 810 persons were employed through employment grants, 539 persons participated in the training for a known employer (training grants), 398 persons participated in the training for an unknown employer, while 663 persons were employed through the Public Work programme. It should be noted that a total of HRK 370m was earmarked in the Government budget for the measures contained in the Annual Employment Promotion Plan in 2006, while the amount earmarked for that purpose increased to HRK 530m in 2007 and HRK 480m in 2008. In view of the fact that the Republic of Croatia strives to build its competitiveness on the global market through knowledge and investment in human resources, in accordance with the criteria of the Lisbon Strategy, progress in the educational system is also very important. The total number of pupils enrolled in secondary schools fell by 5.1% between the 1997/98 and 2007/08 school year, due to demographic movements. However, there are various sub-trends within this general trend. While the number of pupils enrolled in grammar (preparatory) schools rose by 4.3% and those enrolled in four-year technical programmes increased by 7.2%, the number of pupils enrolled in three-year vocational programmes for industry and crafts was reduced by 27.6%. Of all the pupils enrolled at the beginning of 2007/08 school year, 44.5% participated in four-year technical programmes, 25% in three-year vocational programmes, 2.5% in arts schools, 27% in grammar (preparatory) schools and 0.9% in special schools. At the beginning of 2006/2007 school year, 136 129 students were enrolled in higher education (ISCED level 5), of whom twothirds were enrolled in university studies (ISCED 5A) and one-third in professional studies (ISCED 5B). In addition to universities, two/ three-year colleges and higher education institutions also provide higher education, especially professional studies. The number of students participating in higher education increased by 51% in the period between the school year 1997/1998 and the school year 2007/2008. This is a significant increase in a relative participation in higher education, which has likely brought Croatia closer to the EU average. As regards the tax system, which is related to the employment policy, social security contributions and taxation relative to the overall labour force cost serve as an indicator of the tax wedge level. The tax wedge in the Republic of Croatia is 37.3% for a low-income employee. According to Eurostat, the tax wedge in the EU amounted to 39.4% in 2005. Accordingly, the tax wedge in the Republic of Croatia is slightly lower than in the EU. Despite this, for the purpose of promoting employment of young persons without working experience, the new Contributions Act permits employment of first-time employees or those with a voluntary work contract, according to the labour regulations, without compulsory contributions that are calculated and paid on the basis and that represent a cost to the employer (health insurance 15%, occupational health insurance 1% and for employment 1.7%) for a period of up to one year starting from the day of first employment or beginning of work under a volunteer contract. In addition, for the purpose of promoting active aging, pension insurance beneficiaries are exempt from contributions payment for part time work at home. Since the expansion of the application of the Collective agreement and the previous regulation of the minimum wage institute and of the minimum wage level threatened, to a great extent, the existence of a share of employees and their family members and contributed to tax evasion and the appearance of the black market, the Minimum Wage Act was adopted. Taking into account the fact that in the Republic of Croatia, according to the available data, 115 000 workers receive monthly wages of less than HRK 2 500, this Act has improved the social and labour position of the lowest-income workers, who account for 7.6% of total employment.
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With the adoption of this Act, as of 1 July 2008 the minimum wage is at the level of 39% of the average wage for 2007, so that the minimum gross wage increased by approximately HRK 300, from HRK 2 441 to approximately HRK 2 747. A phased share of the minimum wage in the average wage for the previous year for each subsequent accounting period will be calculated after the Central Bureau of Statistics has published data on real GDP growth for the previous year, by increasing the share of the minimum wage in the average wage for the previous year by real GDP growth coefficient in the previous year (the formula for the share calculation is 39% + 39 x real GDP growth/100 x average wage in the previous year). In May 2008, the highest representatives of the Government of the Republic of Croatia and the European Commission signed the document entitled Joint Assessment of Employment Policy Priorities JAP. Pursuant to this, a new cycle of active employment measures will begin with the preparation and implementation of the National Implementation Plan for Employment 20092010. As the co-ordinating body competent for the implementation of the JAP, the Ministry of the Economy, Labour and Entrepreneurship has proposed the appointment of a working group consisting of the representatives of social partners for the development of the Plan for implementing measures and for co-ordination of JAP activities. The working group will also draft a proposal of the National Implementation Plan for Employment 20092010 by the end of 2008. The National Implementation Plan for Employment 20092010 will mark the start of the new cycle of implementation of the active employment measures in the Republic of Croatia. In accordance with the obligation to monitor JAP implementation, the first JAP follow-up seminar was held in December 2008 and the first report on JAP implementation and recommendations for the improvement of the existing measures and preparation of new measures were presented to the work groups for the preparation of the National Implementation Plan. The recommendations arose as part of the 2-PHARE 2005 component, which included the participation of representatives from state administration bodies and social partners at the national level and in four counties (City of Zagreb, ibenikKnin County, Meimurje County, OsijekBaranja County). Furthermore, the European terminology and qualification of employment policy measures according to the EUROSTAT database methodology was also presented. Approximately HRK 500m will be earmarked in the 2009 State Budget for implementation of the National Programme. Physical Capital (Information Society and Media Electronic Communications) Services in fixed electronic communications networks: At the end of the third quarter of 2008, the total number of subscribers to public voice services in the fixed network amounted to 1 844 380 (penetration rate of about 41.6%). The total number of subscribers to 9 new operators in the fixed network reached 400 900, which is a share of approximately 21.3% in the market of public voice services in the fixed network, according to the number of users, and a 16.6% share in the total income on that market. By 1 November 2008, ported numbers in the fixed network totalled 255 366. By 1 November 2008, 408 collocations and 86 497 unbundled local loops were realised in the Republic of Croatia The number of subscribers to cable distribution services reached 133 450 at the end of the third quarter of 2008. Services in mobile electronic communications networks: Three carriers operate on the mobile communications market: T-Mobile Hrvatska d.o.o. (GSM900 + UMTS) II. ECONOMIC CRITERIA Vipnet d.o.o. (GSM900 + UMTS) TELE2 d.o.o. (GSM/DCS-1800 + UMTS)
The number of mobile electronic communications network users reached 5 618 200 at the end of the third quarter of 2008 (penetration rate of 126.7%). By 1 November 2008, ported numbers in the mobile networks totalled 58 931.
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Internet services and broadband access services: At present, there are 44 Internet Service Providers (ISPs) on the market licensed to provide Internet access services and 39 service providers licensed to provide Voice over the Internet Protocol services (VoIP). Internet users presently total 2 148 500, representing a penetration of 48.4%. At the end of the third quarter of 2008, the number of broadband Internet users reached 488 200, which is a penetration rate of 11% relative to the population in the Republic of Croatia. The share of new broadband access service providers stood at 15.4%. Following a reduction in the prices of broadband Internet access, further growth in the number of broadband Internet users is expected. The wholesale service of a broadband access operator with significant market power (HT d.d.) and more intense continuation of the local loop unbundling process contributed most to the development of competition in the field of broadband access in 2008.
2.4.2. Reforms and Liberalisation of Network Industries

Information society and media electronic communications: In the process of legislative alignment with the EU acquis and fulfilment of benchmarks for completing the negotiations under Chapter 10Information Society and Media, the new Electronic Communications Act was adopted (Official Gazette 73/08), and entered into force and began to be applied as of 1 July 2008. This new Act has completely replaced the Telecommunications Act (Official Gazette 122/03, 158/03, 60/04 and 70/05), with the exception of the provisions of Articles 97, 98, 99, 100 and 102, relating to radio equipment and telecommunications terminal equipment and electromagnetic compatibility (EMC), which will remain in force until 1 January 2009, i.e. until the entry into force of subordinate legislation pursuant to the Act on Technical Requirements for Products and Conformity Assessment, which will regulate these fields in compliance with the applicable EU Directives. In the new Electronic Communications Act, special attention is attached to: the further strengthening of independence and development of the required capacity of the national regulatory body in the field of electronic communications and postal services; further improvement of efficient operation and organisational structure and supervisory authority of the regulator; a more expedient, efficient and higher quality mechanism of protection of rights of end users of electronic communications services (consumers); issues of competition and SMP regulation of the operator of electronic communications networks and services; the authorisation regime for operators of electronic communications networks and services (implying the swap of all existing concession contracts and licences to provide telecommunications services and other approvals with the new general authorisations regime); the required conditions for complete introduction and development of digital television and radio broadcasting and the accompanying advanced, interactive services in the Republic of Croatia; and further development, construction and use of electronic communications infrastructure and the related equipment, by ensuring equal and non-discriminating access to infrastructure for all market operators, by introducing and applying the institute of the right of way and by ensuring transparent conditions for the access and joint use of the constructed electronic communications infrastructure and the related equipment. Postal services The expert study entitled Development Strategy for the Postal Services Market in the Republic of Croatia until 2013 and the Action Plan for the implementation of the Strategy for the Postal Services Market in the Republic of Croatia until 2013 were prepared by the consultant company Roland Berger Strategy Consultants d.o.o. pursuant to a contract concluded with the Ministry of the Sea, Transport and Infrastructure. The Government of the Republic of Croatia accepted the aforementioned Strategy and the Action Plan at its session held on 19 March 2008.
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The aforementioned Strategy represents the fundamental document determining the principles of and guidelines for the development of the postal services market and national priorities in preserving and developing postal services, especially universal postal services, as well as dynamics of further liberalisation of the postal services market in the Republic of Croatia. The Strategy also determines the time frame of further liberalisation of the postal services market in the Republic of Croatia, under the scenario of gradual market liberalisation. This allows for a significant amount of time to prepare the domestic market of postal services and public operator, and to ensure accessibility of the universal postal services (opening of the postal market and ensuring full liberalisation of the postal services market are proposed for 2013). The most important precondition for transposing the Third Postal Directive (adopted on 20 February 2008) into the Croatian legislation and practice, as determined by the Strategy, is restructuring of the public operator, adoption of the new business plan and its consistent application until 2010. The Act on Amendments to the Postal Act (Official Gazette 63/08) expands the authority of the national regulatory body for postal services (through strengthening of supervisory authorities and authorities concerning market regulation), which merged with the national regulatory body competent for electronic communications (telecommunications) into a new, uniform national regulatory body the Croatian Post and Electronic Communications Agency (CPECA). In accordance with Article 7 of Directive 2002/39/EC amending Directive 97/67/EC, the aforementioned Act reduced the weight limit for the reserved sector for an item of correspondence from 100 grams to 50 grams and the price limit was reduced from three times the public tariff for an item of correspondence in the first weight step of the fastest category to two-and-a-half times the said weight and category. The Act on Amendments to the Postal Act entered into force on 1 July 2008, with the exception of the provision concerning the reduction of the reserved sector, which will enter into force on 1 January 2010. Through adoption of the Act, alignment is achieved with the requirements of the regulatory framework, as established by Directive 97/67/EC on common rules for the development of the internal market of Community postal services and the improvement of quality of service and Directive 2002/39/EC amending Directive 97/67/EC (the Postal Directive). These requirements relate to the scope of reserved services which, in accordance with Directive 2002/39/EC, may be up to 50 grams for items of correspondence as of 1 January 2006, and also to the expert supervision of the regulatory body, which is treated equally as the inspection supervision and authority.
2.4.3 Structural Progress in the Economy

Employment by Sector According to the labour force survey data, there were 1 615 thousand employed persons in the first half of 2008. Of the total employed, 12.8% worked in agriculture, hunting and forestry, which is a 3.0% increase compared to the number of those employed in this activity in the first half of 2007. The fishing sector employed 0.2% of the total employed, whereas mining and quarrying employed 0.5% of total employed persons. The largest number of total employed persons continued to work in the processing industry, which employed 20.0% of the total employed in the first half of 2008, up 2.5% compared to 2007. The share of employed in electricity, gas and water supply was 1.8%. Construction employed 9.0% of total employed persons, a 2.8% rise compared to 2007. Wholesale and retail trade, repair of motor vehicles and motorcycles and objects for general consumption and household use is the activity employing the second largest number of workers, after the processing industry. In the first half of 2008, 14.8% of all employed persons worked in this activity, up 11.2% in comparison with the first half of 2007.. The hotel and restaurant industry employed 5.4% of all employed persons, while transport, storing and communication employed 6.8%. The share of those employed in financial intermediation amounted to 2.2%. Employment in real estate business was 4.8% of total employed persons. Public administration and defence and compulsory social security employed 6.0% of the total employed, education 5.3%, health and social work 5.7% and other community, social and personal activities 4.3% of the total number of employed persons in the first half of 2008..
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Small and Medium-Size Enterprises Transformation of existing entrepreneurs in state ownership into entrepreneurs in private ownership and a simultaneous establishment of a large number of new entrepreneurs in private ownership marked the economic developments that are also monitored and reflected in the achieved financial results of the entrepreneurs by ownership structure the dominant role of the private sector and declining role of the state. According to the data for the January-June 2008 period, the situation is as follows:
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
0,9 12,7 8,4 12,9 Source: Financial Agency state private joint and mixed ownership 9,0 7,9 8,4 97,6 73,0 78,7 77,7 81,1 79,7 78,2 1,5 14,3 12,9 13,3 11,0 11,9 8,9
The achieved financial results in the first half of 2008 confirm the predominant share of the private sector in total business results of entrepreneurs in the Republic of Croatia. The business results of entrepreneurs in the Republic of Croatia again confirmed the main characteristic of the Croatian economy, where the dominant role is held by entrepreneurs in private ownership, entrepreneurs engaged in the four most important activities (processing industry, construction, trade, transport, storing and communication) and entrepreneurs from the City of Zagreb. The role of small enterprises (small and medium-size enterprises), according to the size criterion set out in the 2007 Accounting Act, is also predominant. Number of entrepreneurs by type of ownership in the Republic of Croatia, Jan-Jun 2008
Description
Number of entrepreneurs Number of employed
State ownership TOTAL Number

83 104 917 319 765 116 723
en tre pr en eu
Share (%)
0.9 12.7
em pl oy ed rs
in co m e
Private ownership Number

81 121 669 905
ex pe ns es
Share (%)
97.6 73.0
bu ye rs
Number
500 2 852
su pp lie rs
Joint ownership Share (%)

0.6 0.3
in ve st m en ts
Mixed ownership Number

718 127 839
Share (%)
0.9 13.9
Source: Financial Agency Small and medium-size enterprises have retained or increased their share in the total economy: 99.4% of the number of business entities, 64.7% of total employment, 44% of total GDP and 40.5% of exports.
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Despite the record-high inflation of 6.2% in the last five years, Croatian entrepreneurs operated relatively successfully in the first six months of this year. Compared to the same period of the previous year, total income grew at a rate 12.9% slower than total expenses, which rose by 14.3%. By spending HRK 100 of total expenditures generated a revenue of HRK 105.61 in the first six months of this year, as compared to HRK 106.92 in the same period of the previous year. The main reason for the deteriorated profitability of operations is a faster growth of expenses than income growth due to a large increase in prices. In addition, other relatively favourable results were also recorded in the same period: increase in the number of employed by 6.1%, increase in gross fixed capital formation by 5.7% and increase in sales abroad by 13.4% (comparison with the data for the first six months of the previous year). Those employed with entrepreneurs subject to profit tax earned an average net wage of HRK 4 338, an increase of 5.0% in nominal terms and a drop of 1.1% in real terms (due to a 6.2% rise in consumer prices).
2.4.4 State Interventions in the Economy

Large state-owned enterprises Since the efforts aimed at shipbuilding restructuring did not result in the expected progress in the previous period, and in accordance with the strategic determination of the Government concerning privatisation of the state portfolio to improve its efficiency and competitiveness for functioning in the conditions which will occur after Croatias accession to the EU, the Government adopted a decision on shipyard privatisation on 21 May 2008. The Decision relates to the large shipyards: 3. Maj, Brodosplit, Brodotrogir, Kraljevica and Uljanik. Privatisation of the shipyards is intended to ensure an inflow of fresh capital, market access, improvement of managerial know-how and operating efficiency and to promote introduction of new technologies. Accordingly, the procedure of approval of individual shipyard restructuring programmes by the Croatian Competition Agency (CAA) was suspended on 29 July 2008. According to the set plan, the programme approval procedure by the CAA will continue in 2009, after the shipyards have submitted the new restructuring programmes following their privatisation. Two privatisation models will be used. The first will be applied to the Uljanik shipyard, whose losses do not exceed the value of equity capital, while the second will be applied to the remaining shipyards which have reported losses above the value of equity capital. The announcement of the privatisation tender results is planned for the fourth quarter of 2008. In addition to the bid price for shares, bidders will be obliged to prepare a restructuring programme, where the proposals for state aid, contained in these programmes, will be subject to assessment by the Croatian Competition Agency. In the event the privatisation on the basis of a public tender, to be invited in 2008, fails for any of the shipyards planned for privatisation, the invitation of a second public tender is planned for the third quarter of 2009. For shipyards that will not be privatised, bankruptcy proceedings will be initiated in accordance with the Bankruptcy Proceedings Act. State Aid In the period 20062007, the Croatian Competition Agency received a total of 111 cases concerning state aid, and 76 of these were resolved. The total number of received administrative cases also included 42 proposals for granting state aid for shipbuilding. Shipbuilding restructuring and privatisation In July 2008, the Agency issued conclusions on suspending the approval procedure for state aid proposals contained in the restructuring programmes for 5 Croatian shipyards (Brodograevna industrija 3. Maj, Brodosplit, Brodotrogir, Brodogradilite Kraljevica and Uljanik). This decision was based on the fact that, in accordance with the Decision of the Government of the Republic of Croatia of 21 May 2008, privatisation of the aforementioned shipyards will begin pursuant to the Privatisation Act, i.e. a special regulation. Accordingly, from the legal point of view, the shipyard privatisation procedure is a prior issue in the procedure of granting state aid,
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which is conducted by the Agency pursuant to the provisions of the State Aid Act, since, without the resolution of that issue, the Agency cannot complete the procedure of granting state aid to shipyards on the basis of individual restructuring plans, prepared by the management boards of these shipyards. More specifically, in accordance with the Decision of the Government of the Republic of Croatia, the obligation of the new investors to be selected in the privatisation process is, among other things, to prepare an investment plan and business plan, upon which the shipyard restructuring should be performed and their long-term sustainability (costeffectiveness) established based on market principles, in accordance with state aid rules and regulations relating to granting of state aid to entrepreneurs in difficulties. The procedure of granting state aid will continue after the Ministry of the Economy, Labour and Entrepreneurship and the Croatian Privatisation Fund have notified the Agency of the completion of privatisation process and have delivered the investors investment plan and business plan to the Agency, along with other documentation and documents required in line with the state aid regulations. Privatisation of black metallurgy Apart from shipbuilding, the Agency has focused in particular on issues related to the steel industry sector. As in the case of shipbuilding, serious rehabilitation and restructuring of the steel industry sector began at end-2005. Restructuring of the steel industry sector (Valjaonica cijevi Sisak d.o.o. and eljezera Split d.d., as entrepreneurs in difficulties) started in 2007, when the Government of the Republic of Croatia adopted the National Steel Industry Restructuring Programme. Later, the Agency, together with the Croatian Privatisation Fund and the Ministry of the Economy, Labour and Entrepreneurship, participated in the definition of the public tender for privatisation of the two aforementioned entrepreneurs, on the basis of which the investors were selected. Following a completion of the public tender, the contract on sale and transfer of stakes in Valjaonica Cijevi Sisak d.o.o. was concluded with the entrepreneur Commercial Metals International AG (Baar, Switzerland) and the contract on sale and transfer of shares in eljezara Split d.d. was concluded with the entrepreneur ZLOMREX S.A. (Poraj, Poland) on 3 August 2007. In early 2008, the Agency, in co-operation with the European Commission, adopted the method of accounting for state aid contained in the state guarantees for the steel industry sector. Consequently, the final account was prepared of the state aid granted to the entrepreneurs eljezara Split d.d. and CMC Sisak d.o.o. (previously Valjaonica cijevi Sisak d.o.o.) in the 2002-2007 period, and this was also submitted to the European Commission. Data on the amount of state aid In September 2008, the Agency adopted the Annual Report on State Aid for 2007, which was submitted to the Croatian Parliament. According to the compiled data, state aid granted in the previous year amounted to HRK 8 947.4m, an increase of 13% compared to 2006. The share of state aid in GDP totalled 3.2% in 2006 and 3.3% in 2007, which is a 2.8% increase. This increase can primarily be accounted for by larger amounts of state aid for rehabilitation, granted to shipyards, aid to the transport sector (Croatian Railways), steel industry (privatisation of two steel mills), state aid for rehabilitation and restructuring, regional aid and aid for agriculture and fisheries. Meanwhile, the increase in the total amount of state aid had an impact on an increase in state aid per employee, from HRK 5 388.6 in 2006 to 5 898.5 in 2007, which is a 9% growth. The amount of state aid per capita rose by 13%, from HRK 1 797.7 in 2006 to HRK 2 033.5 in 2007. One of the characteristics of the year 2007 was a reduction of the share of state aid in government expenditures, from 8.08% in 2006 to 7.99% in 2007. In terms of aid instruments, the above stated amounts mostly relate to subsidies, accounting for 58% of total state aid in 2007. These are followed by state guarantees (24.8%) and tax reliefs (10%). Equity participation fell from 5.1% in 2006 to 4.9% in 2007. The share of favourable loans in the total amount of state aid stood at 2.5% in 2007, which is a decrease relative to 2.6% recorded in 2006. State Aid Supervision In 2007, the Agency initiated an ex officio supervisory procedure over the implementation of state aid, relating to the procedure of supervision over aid granted for restructuring of the entrepreneur Slavonija IMK d.d. Osijek.
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Furthermore, in 2006, the Agency also initiated two ex officio supervisory procedures that are still underway. These are supervisory procedures over approved programmes in the textile and leather industries and in the sector of automobile parts manufacturing, which are characterised by a large number of state aid beneficiaries and a large quantity of data to be collected in order to make a valid assessment. These procedures are still underway and are planned to be completed by end-2008.
2.4.5 Trade Integration

According to national accounts data, the share of exports of goods and services in GDP expressed in current prices was 39.4% in the first semester of 2008, while the share of imports of goods and services amounted to 57.8%. The share of goods exports was 23.2% of GDP in the first semester of 2008, while the share of goods imports was 52.9% of GDP. In the first ten months of 2008, total goods exports expressed in kuna increased by 5.7% year-on-year, whereas goods imports recorded a 11.7% growth. If the category of other means of transport is excluded from goods exports and imports, exports rose by 4.8% in the first ten months of 2008, whereas imports rose by 9.8%. Coverage of goods imports by goods exports was 45.2% in the first ten months of 2008, down 2.6 percentage points over the same period in the previous year. Analysing merchandise trade by activity, the largest contribution to exports growth in the first ten months of 2008 was made by manufacture of chemicals and chemical products (16.5%) followed by the manufacture of other transport equipment (11.8), manufacture of coke, refined petroleum products and nuclear fuel (11.7%) and manufacture of electrical machinery and apparatuses (18.0%). Categories which contributed most to goods imports in the first ten months of 2008 are: manufacture of other transport equipment (a year-on-year import growth 58.1), manufacture of coke, refined petroleum products and nuclear fuel (66.6%) extraction of crude petroleum and natural gas (22.2%%), and manufacture of chemicals and chemical products (6.7%). In terms of the structure of goods exports by country, exports to Italy (18.8%) accounted for the largest share in the first ten months of 2008, followed by exports to Bosnia and Herzegovina (16.0%), Germany (10.9%), Slovenia (7.9%) and Austria (5.8%). In comparison with the same period of 2007, goods exports to Bosnia and Herzegovina rose by 17.3%, exports to Germany by 14.8%, to Slovenia by 2.1%, Italy 0.9%, while exports to Austria were reduced by 0.6%. Exports to EU countries accounted for 61.1% of the total Croatian goods exports in the first ten months of 2008, up 5.8% over the same period of 2007. Imports from EU countries accounted for 64.0% of the total Croatian goods imports in the first ten months of 2008, which is an increase of 9.8% compared to the same period of the previous year.
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2.5. MAASTRICHT CRITERIA

A considerable reduction in general government deficit and in the share of public debt in GDP is a direct result of the previously described fiscal consolidation process, which started in 2004. More specifically, net lending/borrowing (deficit/surplus in accordance with the ESA 95 methodology) stood at -1.6% of GDP in 2007, which is down 3.9 percentage points relative to 2003. In addition, the share of public debt in GDP, which amounted to 44.2% at end-2007, dropped by 4.5 percentage points compared to end2003. Favourable developments arising from fiscal consolidation will lead to a further reduction in general government deficit and in the share of public debt in GDP in the mid-term period. Accordingly, net lending/borrowing is expected to stand at -1.3% of GDP in 2008 and at -0.6% of GDP in 2011. The described developments will have a positive impact on the public debt movements, in terms of its further reduction in the forthcoming period. Consequently, in terms of public finances, the Maastricht criteria have been met, and the described fiscal policy developments in the mid-term period also indicate the fulfilment of the Maastricht criteria in that period. Inflation Following fourteen consecutive years of low and relatively stable inflation rate recorded in the Croatian economy, increased inflationary pressures represent one of the main characteristics of the macroeconomic environment in 2007. The annual rate of change of the consumer price index rose from 2.0% at end-2006 to 5.8% in December 2007, with a significant inflation acceleration recorded after July. Negative shocks on the supply side had the greatest influence on the annual growth of consumer prices in 2007, leading to a pronounced increase in the prices of food products on the domestic market, as a consequence of drought and increase in the prices of food raw materials on the world market (primarily grains, oilseeds and milk) and a growth of domestic prices of refined petroleum products due to an increase in the prices of crude petroleum on the world market. In addition to other factors, a large growth of household disposable income and considerable acceleration of real annual growth of personal consumption also point to the presence of inflationary pressures coming from the demand side. In the first seven months of 2008, an acceleration of the annual rate of change of consumer prices was recorded, from 5.8% in December 2007 to 8.4% in July 2008. The increase in the annual inflation rate can primarily be accounted for by the acceleration of the annual growth rate of energy prices (prices of refined petroleum products and electricity) and food prices (prices of bread and grain products, meat, milk, oil and fat products). In August 2008, the 12-month average consumer price inflation rate was 6.0%, up 3.1 percentage points over December 2007. A significant carry-over effect from 2007 on the average inflation in 2008 had a considerable impact on that increase. In the period from September 2007 to August 2008, as already stressed, Croatia recorded an average inflation rate of 6.0% measured by the consumer price index (CPI). However, in terms of the harmonised index of consumer prices (HICP), the inflation rate was slightly lower, amounting to 5.6%, which is also above the estimated reference value of 4.1% for the fulfilment of the Maastricht criterion of price stability in the observed period. Exchange Rate Stability In 2007, the central bank continued to pursue monetary policy aimed at ensuring stable movements of the nominal exchange rate of kuna against the euro, which stabilises domestic inflationary expectations and movements of import prices from the Eurozone. In general, a moderate nominal appreciation of the kuna exchange rate against the euro of 0.3% was recorded in 2007, with the value of the euro dropping from 7.35 HRK/EUR at end-2006 to 7.33 HRK/EUR at end-2007. Appreciation pressures were mostly the result of the seasonal inflow of foreign exchange from tourism, supply of foreign exchange received on the basis of corporate borrowing abroad and inflow of foreign exchange intended for bank recapitalisation. In addition, an increased demand for kuna intended for
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investments in securities on the domestic market (primarily in the second half of September and in early October, at the time of subscription of T-HT shares) also had an impact on the appreciation of the kuna exchange rate against the euro. In the first eight months of 2008, an appreciation of the nominal exchange rate of the kuna against the euro of 2.2% was recorded, from 7.33 HRK/EUR on 31 August 2007 to 7.16 HRK/EUR on 31 August 2008. Apart from slightly increased appreciation pressures at end-January 2008, movements of the nominal exchange rate of the kuna against the euro were relatively stable in the period from February to August. In August, the appreciation pressures were slightly more pronounced, mainly as a result of inflow of foreign exchange from tourism and as a consequence of the expected foreign exchange inflow intended for the purchase of INA shares. Long-Term Interest Rates In February 2007, the Ministry of Finance issued a new 10-year kuna bond, with a nominal value of HRK 2.5bn at a nominal interest rate of 4.750%. In July 2007, its second tranche was issued, thus increasing the total value of that issue to HRK 5.5bn. Regardless of the fact that maturity of that new bond was also shorter than the required 9.5 years in August 2007, and since it meets almost all other Maastricht criteria (it is a kuna bond, central government is the issuer, the original maturity is 10 years and transactions in that bond are significant relative to all other instruments) and in view of a lack of a better instrument, yield to maturity of that bond can still be used for a certain period of time for a comparison with the highest permitted level of long-term interest rates under the Maastricht criterion. Gross yield to maturity on the aforementioned bond (ISMA 6.3 EUR) ranged between 4.65% and 6.08% in the period from the date of issue to 31 August 2008. Meanwhile, the estimated reference value for the Maastricht criterion of long-term interest rates was 6.54% for the period from September 2007 to August 2008. Accordingly, in the aforementioned period, with the average 12-month long-term interest rate of 5.68%, 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 EU Member States.
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3.1. FREE MOVEMENT OF GOODS 3.1.1. Horizontal issues

Legislative measures Article 73 of the Stabilisation and Association Agreement between Croatia and the EU, which relates to technical regulations, standardisation, metrology, accreditation and conformity assessment, obliges Croatia to adopt measures for gradual alignment with the technical requirements of the European Union. In this regard, during 2008 the Republic of Croatia continued to make efforts to improve the legal and institutional framework in the area of technical legislation, in line with EU requirements and practice. Having met three benchmarks, the Republic of Croatia opened negotiations for Chapter 1: Free Movement of Goods in the internal market. These benchmarks were as follows. In the course of 2008, pursuant to the Act on Technical Requirements for Products and on Conformity Assessment (OG 15/03 and 79/07), the two following acts of subordinate legislation were adopted: - the Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations concerning information society services (OG 73/08); - the Ordinance on the form, content and graphic symbol of the conformity marking for products confirming compliance with the prescribed technical requirements (OG 46/08). The Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and of regulations concerning information society services The Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and of regulations concerning information society services, prescribes the procedure for formal notification in the field of standards, technical regulations and conformity assessment procedures, in accordance with the Agreement on Technical Barriers to Trade and the Agreement on the Application of Sanitary and Phytosanitary Measures (WTO/TBT and WTO/SPS), i.e. the procedure for formal notification in the field of standards, technical regulations and information society services to the European Union. This Regulation aligns Croatian legislation with 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, as amended by Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998. Ordinance on the form, content and graphic symbol of the conformity marking for products confirming compliance with prescribed technical requirements
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This Ordinance prescribes the form, content and graphic symbol of the conformity marking for products which have been declared fit to be placed on the market and/or put into service in the Republic of Croatia. Such products comply with prescribed technical regulations, after the prescribed technical assessment procedures have been applied for confirming compliance with the relevant requirements of all technical regulations pertaining to those products, if so prescribed, in terms of their safety, protecting the life and health of people, domestic animals and plants, environmental protection and any other pertinent matters regulating the area to which the technical regulation pertains. The Ordinance also lays down the rules for affixing and using the conformity marking, in order to avoid potential non-conformity and unnecessary repetition in various regulations, in accordance with Council Decision 93/465/EEC of 22 July 1993. Until the accession of the Republic of Croatia to the European Union, or the conclusion of the international Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (PECA/ACAA), the national conformity marking C will be used. After the accession of the Republic of Croatia to the European Union, or the entry into force of the international Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (PECA/ACAA), the conformity marking CE will be used in the marking of products. The Internal Market Co-ordination Department, operating within the Directorate for Trade and the Internal Market of MELE, provides ongoing information on technical legislation in the Republic of Croatia, the current situation, alignment with EU legislation and planned activities. This information is passed on to state administration bodies and the general public via the MELE website, through articles and Q&A columns published in technical manuals and journals, and through presentations, etc. Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods The Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods, along with a plan of measures to align fully the legislation of the Republic of Croatia with EC legislation, was adopted at the session of the Government of the Republic of Croatia on 29 November 2007. The Strategy represents the fundamental programme document covering the field of technical legislation and consolidates the current situation within all competent bodies in the Republic of Croatia. Implementation of the envisaged strategic measures will ensure the alignment of technical regulations with the acquis and the administrative capacities for implementation. The Strategy covers only those production sectors (technical products) harmonised at the level of the European Union (New and Global Approach Directives, Old Approach Directives). The Conclusion of the Government of 29 November 2007 obliges the Ministry of the Economy, Labour and Entrepreneurship to submit a progress report to the Government of the Republic of Croatia twice a year on the implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods. All central state administration bodies, institutions responsible for quality infrastructure and the State Inspectorate, which are included in the implementation of the Strategy, must also submit reports on the completion of measures within their scope, in line with implementation dynamics, twice a year. The 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 to June 2008 was adopted at the session of the Government of the Republic of Croatia of 17 July 2008. Horizontal and procedural measures are keeping pace with the dynamics envisaged in the Strategy, contribute to the good co-ordination of all activities pertaining to the free movement of goods, and help secure the transposition and implementation of EU directives in the Croatian legal system. According to reports received, the measures envisaged in the Strategy, which are to be carried out by institutions in charge of quality infrastructure (HZN, HAA, DZM), are being carried out at the envisaged pace and represent significant support for the implementation of the technical legislation of the Republic of Croatia, in the process of aligning it with EU legislation. The dynamics of legislative amendments and preparations for legislative amendments are in line with the measures planned in the Strategy.
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Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC The Republic of Croatia has an obligation to ensure alignment of its legislation in the area of free movement of goods with Articles 28-30 of the Treaty establishing the EC. In this respect, the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC was drawn up and adopted on 29 November 2007. The Action Plan defines clearly and precisely specific tasks, objectives, realistic deadlines and the competent state administration bodies in order to facilitate the efficient repeal of measures having equivalent effects to quantitative restrictions on export and import. The Conclusion of the Government of the Republic of Croatia of 29 November 2007 obliges the Ministry of the Economy, Labour and Entrepreneurship to submit a progress report to the Government of the Republic of Croatia on the implementation of the Action Plan, twice a year, within the deadlines given. The Report on the Implementation of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC for the period January to June 2008 was adopted at the session of the Government of the Republic of Croatia of 17 July 2008. The implementation of the Action Plan creates the premise for the free movement of goods and full inclusion of the Republic of Croatia in the internal EU market, which will have a positive effect on the competitiveness of the Croatian economy, since barriers to the free movement of goods will be removed, as envisaged in Articles 28 and 29 of the Treaty establishing the EC. Negotiations on Chapter 1: Free Movement of Goods were opened at the Intergovernmental Conference on the Accession of the Republic of Croatia to the European Union, held in Brussels on 25 July 2008. The Common Position of the EU notes that, given the current situation regarding preparations, if the Republic of Croatia continues to make progress in aligning and implementing the acquis pertaining to Chapter 1: Free Movement of Goods, this Chapter may be closed only provisionally, until the EU assesses that the following benchmarks, necessary for the final closure of the Chapter, have been met: The Republic of Croatia should adopt a regulation to align its legislation with Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use, as amended by Directive 2004/27/EC, and adopt and implement Directive 89/105/EC relating to the pricing and reimbursement of pharmaceutical products, in line with the principles of the jurisprudence of the European Court of Justice; The Republic of Croatia should continue to make progress towards the alignment of horizontal legislation with the acquis and show good progress towards alignment with New and Old Approach Directives, especially in those sectors in which alignment is currently insufficient or limited; The Republic of Croatia should make significant progress towards completing the internal analysis of the alignment of domestic legislation and administrative practice with Articles 28-30 of the Treaty establishing the EC, by introducing mutual recognition clauses and other necessary amendments; By the day of its accession to full membership of the EU, the Republic of Croatia should demonstrate adequate administrative capacity to implement and enforce properly legislation in all horizontal areas affecting the free movement of goods (regulatory functions, standardisation, accreditation, metrology, conformity assessment and market surveillance), including horizontal procedural measures such as Directive 98/34/EC. Measures to be undertaken in order to conclude the ACAA An Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) is a bilateral agreement concluded between a candidate country and the European Union, as a result of extensive dialogue and assistance, in the area of technical regulations and standards.
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ACAAs are based on full acceptance of the European system of technical legislation, standardisation and conformity assessment. The effect of entering into such an agreement is that a candidate country becomes part of the EU internal market, in regard to the industrial products to which the ACAA applies, even before its accession to the EU. An ACAA is a trade agreement and represents an instrument ensuring strengthening of overall political and economic relations between the EU and the candidate country concerned. The EU concluded such agreements, containing specific particularities, with most of the new Member States during the pre-accession period, when they still had candidate status. From the political point of view, an ACAA represents an affirmation of the success and efficiency of the European technical legislation system for the EU, while for the candidate country it is an indicator that the country has already achieved European standards in certain areas. From an economic standpoint, concluding an ACAA results in broadening the EU internal market, providing economic advantages for EU products, by giving them free access to yet another market. At the same time, it provides economic benefits for the candidate country, by ensuring free access to the EU market in products covered by the agreement. ACAA negotiations help all interested parties to prepare successfully for participation in the EU internal market. Products covered by an ACAA will have free access to the EU internal market, without further testing and certification, and this is an important step forward in enhancing competitiveness, facilitating international trade and removing technical obstacles to trade. After all the necessary conditions are met and ACAA negotiations completed, products or groups of products for which an ACAA is concluded will be admitted to the EU internal market, without further testing or certification. Achievements to date relating to the conclusion of the ACAA 1) Areas of special interest for the conclusion of the ACAA On the basis of information compiled, and in relation to the Agreement on Conformity Assessment and Acceptance of Industrial Products, in terms of business conducted by economic operators of the Republic of Croatia on the internal EU market, it has been established that Croatian economic operators have an interest in gaining as free as possible access to the internal EU market, i.e. in concluding the Agreement on Conformity Assessment and Acceptance of Industrial Products in the following areas: Personal protective equipment (protective gloves); Recreational crafts; Construction products (cement); Low voltage equipment; Electromagnetic compatibility.
2) Letter of intent regarding the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products Pursuant to a series of meetings held between the Ministry of the Economy, Labour and Entrepreneurship and representatives of state administration bodies, bodies for conformity assessment, institutions for quality infrastructure (HZN, DZM, HAA), the State Inspectorate, representatives of producers and other economic operators, on the topic of the ACAA, the Republic of Croatia has defined key sectors, in which it is in the interest of producers to conclude the ACAA. As a result, the Republic of Croatia expressed interest in opening ACAA negotiations and on 16 April 2008 sent a Letter of Intent on beginning ACAA negotiations to the European Commission, in which it proposed holding a professional meeting, at which EU experts would assess the readiness of the Republic of Croatia to conclude the Agreement on Conformity Assessment and Acceptance of Industrial Products. 3) Visit by EC representatives for the purpose of opening ACAA negotiations
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Pursuant to a positive response by the EC to the Letter of Intent, on 16 and 17 October 2008 meetings with representatives of the EC regarding opening ACAA negotiations were held at the Ministry of the Economy, Labour and Entrepreneurship. Topics discussed at the meetings concerned implementation of parts of the acquis pertaining to legal acts, and subordinate legislation prescribing technical requirements for products. A series of meetings were held between EC representatives and representatives of competent state administration bodies of the Republic of Croatia (MELE, MEPPPC, MSTI, MFAEI), representatives of quality infrastructure (standardisation, accreditation, metrology) and market surveillance (SI). Strengthening administrative capacities The Directorate for Trade and the Internal Market of the Ministry of the Economy, Labour and Entrepreneurship is responsible for co-ordinating all activities pertaining to the free movement of goods. The Internal Market Co-ordination Department was formed within the Directorate for Trade and the Internal Market of MELE in July 2005 and became operational on 21 November 2005. The role of the Internal Market Co-ordination Department is to ensure comprehensive co-ordination policy and co-operation between ministries and state administration bodies the State Office for Metrology (DZM) and the State Inspectorate (SI), as well as the public sector the Croatian Standards Institute (HZN) and the Croatian Accreditation Agency (HAA); to ensure full transposition and implementation of both the New and Old Approach Directives in the Croatian legal system and the provision of legal assistance in the adoption of technical requirements; participation in the establishment and work of organisations for quality infrastructure, and co-ordination in the alignment of technical legislation. In order to carry out the activities relating to this demanding area, and in accordance with the recommendations of the European Commission, the resolution of administrative capacity problems was addressed. The Act on Amendments to the Act on the Organisation and Scope of Central State Administration Bodies (OG 27/08), which entered into force in March 2008, extended the scope of the Ministry of the Economy, Labour and Entrepreneurships administrative and other tasks pertaining to quality infrastructure, including the co-ordination and development of a national policy in the area of standardisation, accreditation, conformity assessment and metrology. In addition, MELE was given a co-ordinating function in terms of freedom to provide services, so that its role is to ensure a comprehensive policy of co-ordination, co-operation with ministries and the public sector, and thus ensure full transposition and implementation of directives relevant to this field in the Croatian legal system. Pursuant to the Regulation on the internal organisation of the Ministry of the Economy, Labour and Entrepreneurship (OG 41/08), the following Sections were set up, in order to carry out tasks within the scope of the Internal Market Co-ordination Department: 1. Section for Information and Co-operation with International Organisations; 2. Section for Alignment of Technical Legislation and the Non-aligned Area; 3. Section for Technical Legislation Implementation; 4. Section for the Development of Services. In addition to the head of Department, there are currently two employees in the Section for Information and Co-operation with International Organisations (the head of section and an expert assistant), two employees in the Section for Alignment of Technical Legislation and the Non-aligned Area (the head of section and a senior adviser), one employee in the Section for Technical Legislation Implementation (the head of section), and one in the Section for the Development of Services (the head of section). Organisation of seminars, meetings and brochure reviews relating to this area in 2008 and 2009: At the 12th National Conference on the Economy and Entrepreneurship, held in ibenik from 29 to 31 May 2008, a workshop was held, entitled Free Movement of Goods on the Internal Market and Consumer Protection, with a View to Developing a
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Competitive Economy, and, as part of the workshop, a presentation was given on the topic Alignment of Technical Legislation in the Republic of Croatia with EU Legislation and ACAAs. The goal of the Conference was to inform business operator representatives about amendments to technical legislation and the benefits of concluding the Protocol/Agreement on Conformity Assessment and Acceptance of Industrial Products (PECA/ACAA), and about the need to meet certain preconditions for the conclusion of the ACAA; Regarding the area of conformity assessment, the Ministry of the Economy, Labour and Entrepreneurship, in co-operation with the Institute for Reference Materials and Measurements (IRMM) and the State Office for Metrology, organised a two-day seminar in Zagreb on 16 and 17 June, entitled Importance of Conformity Assessment Bodies in the Implementation of New Approach Directives, within the CARDS 2004 Project. The seminar was attended by more than 130 participants (representatives of producers, conformity assessment bodies, institutions for quality infrastructures, social partners and state administration bodies); In co-operation with the regional CARDS 2006 Project for quality infrastructure, a one-day seminar was held on 16 September 2008 on the topic A New Revision of the New Approach, attended by representatives of state administration bodies involved in this area, and representatives of business operators; A review of the BIZ impact brochure, MINI-GUIDE TO INDUSTRIAL STANDARDS; Regarding the area of construction products, the Ministry of the Economy, Labour and Entrepreneurship, in co-operation with the Czech Office for Standards, Metrology and Testing (COSMT), organised a two-day seminar on 16 and 17 June, entitled Technical Assistance of the Czech Republic to the State Administration of the Western Balkan Countries in the Fields of Testing and Metrology, attended by representatives of state administration bodies, institutions for quality infrastructure (HZN, HAA and DZM), representatives of economic operators, and representatives of counterpart institutions from Albania, Macedonia, Bosnia and Herzegovina, and the Czech Republic. The Internal Market Co-ordination Department enjoys excellent co-operation in projects with institutions such as the Institute for Reference Materials and Measurements (IRMM) and the Czech Office for Standards, Metrology and Testing (COSMT), with which it is planning a series of training seminars. Participation in seminars and meetings relating to this area in 2008: 27 February 2008: participation in the seminar, Free Movement of Goods in Maastricht, organised by the European Institute of Public Administration (EIPA); 27 March 2008: participation in the BIZ impact seminar, Improving Information to the Croatian Business Community, EU CARDS Project, at the EU Information Centre in Zagreb; 14-16 April 2008: within the CARDS 2006 Regional Quality Infrastructure Project, HOT 10 (Hands-on training) was held, aimed at employees of state administration bodies in charge of co-ordinating activities pertaining to the alignment and implementation of technical legislation in the area of free movement of goods, and notification procedures pertaining to technical regulations and conformity assessment bodies (Prague, Czech Republic); 21-23 April 2008: participation in the 9th Croatian Conference on Quality in Zadar, organised by the Croatian Society for Quality; 5-9 May 2008: within the CARDS 2006 Regional Quality Infrastructure Project, HOT 9 (Hands-on training) was held, aimed at employees of state administration bodies in charge of co-ordinating activities pertaining to the alignment and implementation of technical legislation in the area of free movement of goods, and employees of bodies for quality infrastructure (Valletta, Malta); 5-6 June 2008: participation in the Subcommittee for Technical and Non-customs Barriers to Trade between signatory countries to the amended Central and Eastern Europe Free Trade Agreement (Belgrade, Serbia); 12-13 June 2008: participation in the ISO Regional Workshop on Conformity Assessment Supporting Development and Trade in Kiev, organised by the International Organisation for Standardisation (ISO);
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24-26 June 2008: participation in the closing seminar on the results of the assessment of knowledge and skills of conformity assessment bodies and laboratories in the region (Ljubljana, Slovenia);
9-12 September 2008: participation in the SQM Conference and the International Conference on Quality ICQME 2008 (Budva, Montenegro);
9 October 2008: participation in the Subcommittee for Trade, Industry, Customs and Taxes for Chapter 1: Free Movement of Goods (Brussels, Belgium);
22-25 October 2008: participation in the CROLAB Conference Competence of Laboratories in Osijek; 29-31 October 2008; participation in the ISO/CASCO Workshop, Geneva, Switzerland; 11 November 2008: participation in the Croatian Quality Day at the Ministry of the Economy, Labour and Entrepreneurship in Zagreb;
11 November 2008: technical consultations pertaining to the transposition of the Directive on the recognition of professional qualifications, Brussels, Belgium;
12 November 2008: participation in a seminar to mark the 25th anniversary 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 regulations concerning information society services, Brussels, Belgium;
19 November 2008: technical consultations for Chapter 3: Freedom to Provide Services, Brussels, Belgium.
All staff participate on a regular basis in seminars on European integration organised by the Ministry of Foreign Affairs and European Integration, and in training programmes organised by the Central State Office for Administration. Within its competence, the Internal Market Co-ordination Department co-operates closely with all state administration bodies and state administrative organisations: the State Office for Metrology, the State Inspectorate, the public sector, the Croatian Standards Institute, and the Croatian Accreditation Agency. It also co-operates with the Croatian Chamber of Economy, the Croatian Employers Association, the Croatian Chamber of Trades and Crafts, Croatian exporters, business operators, universities, etc. concerning the area of the technical alignment and accession of the Republic of Croatia to the European Union. One of the activities of the Department is participation in the work and organisation of all activities related to the training of businessmen and craftsmen, in co-operation with the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts, as well as bodies responsible for promoting and representing their interests. B) KEY PRIORITIES The following are planned for 2009: Adoption of the new Act on Technical Requirements for Products and on Conformity Assessment, in line with the recommendation of EC experts of 16 and 17 October 2008; Adoption of the Report on the Implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods (January/July 2009); Adoption of the Report on the Implementation of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC (January/July 2009); Adoption of the Regulation on formal notification procedures in the field of standards, technical regulations and regulations concerning information society services;
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On the basis of the Regulation on formal notification procedures in the field of standards, technical regulations and regulations concerning information society services, Rules of Procedure will be prepared prescribing procedures and co-operation between the Central Contact Point, competent bodies and contact points, and the manner of co-operation with business operators;
SOGS the Internal Market Co-ordination Department of MELE has sent a Letter of Intent to the European Commission to apply for observer status for the Republic of Croatia with SOGS (Senior Officials Group for Standardisation and Conformity Assessment Policy);
ACAA in the course of 2009, further measures are planned aimed at signing the ACAA and sending a Letter of Intent for initiating negotiations in other sectors for which requirements for negotiations regarding the conclusion of the ACAA have been met;
Projects in the course of 2009, the Internal Market Co-ordination Department plans to continue participating in EU support projects and twinning programmes.
Administrative capacities
In 2009, administrative capacities will continue to be strengthened, and adequate training will be provided in the field of notification and work on the SOLVIT system (online resolution of problems arising from the application of regulations governing the internal market, without initiating judicial proceedings (mediation)).
3.1.1.1. Standardisation
A) ACHIEVEMENTS IN 2008 The membership of the Croatian Standards Institute (HZN), the national standardisation body of the Republic of Croatia and an independent public institution, is constantly growing. As of 30 June 2008, there were 520 members (502 regular members and 18 observers, profit-making legal persons, public institutions, schools, institutions of higher education, trade associations, chambers, individuals and craftsmen, etc.). In addition, 46 state administration bodies have applied for co-operation with the HZN and appointed representatives. The process of reorganising the infrastructure of national technical committees is underway and should be completed by the end of 2008. By 31 August 2008, reorganisation had been completed for 154 HZN/TOs. At the proposal of the Technical Administration, the HZN Management Council issued a decision, according to which 135 HZN/TOs would continue to operate and ten (10) new HZN/ TOs would be set up. It was proposed that a decision be passed abolishing 11 HZN/TOs, due to a lack of interest in their work and putting three HZN/TOs on hold. HZN technical committees monitor the work of a large number of international and European technical committees: 127 ISO/TCs (65% of the total number of ISO/TCs), 38 IEC/TCs (40%), 214 CEN/TCs (77%), 25 CENELEC/TCs (44%) and all existing ETSI/TCs (100%). The result of the reorganisation of technical committees was presented in the HZN Memento 2008, published at the end of August 2008. This publication presents an overview of and basic information of the technical committees of the Croatian Standards Institute (HZN/TOs) (as of 31 August 2008). A special note was made of technical committees whose reorganisation had not been completed, technical committees whose withdrawal was proposed, and technical committees proclaimed dormant. The publication also presents the relationship between HZN/TOs and the corresponding technical committees of international (ISO, IEC) and European (CEN, CENELEC and ETSI) standards bodies, and the relationship between the technical committees of international and European standardisation organisations and the corresponding technical committees of the HZN. Fields of standardisation
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are separately indicated for which there is a lack of interest in the Republic of Croatia and for which HZN technical committees have not yet been established. By 31 August 2008, more than 2,500 applications for work in technical committees had been received and registered. All HZN/ TO members have access to the restricted password-protected area for technical committees on the Internet (HZNorm), containing working documents which are received continuously from international and European technical committees (approximately 35,000 documents at present) and national working documents. In this way, members of technical committees are preparing for paper-free work and future active participation in European standardisation, once the HZN becomes a member of CEN and CENELEC. A new section of HZN internal rules, IRS 3, Internal standardisation rules Part 3: Drafting and adopting Croatian standards and other documents, was drawn up on the basis of the HZN Articles of Association and the rules of international (ISO, IEC) and European (CEN and CENELEC) standards bodies, and the Code of Good Practice for Standardisation of the World Trade Organisation. The HZN Management Council adopted IRS 3 at its session of 6 October 2008. The last remaining section of the internal rules, IRS 4, Setting up and work of programme committees, is currently being drafted. A series of documents setting out procedures to be applied in the implementation of Internal Standardisation Rules, relevant work instructions and accompanying forms have already been drafted and are in use (most of these are available on the Internet or within the HZNorm system), while others are still being prepared. Pursuant to a decision of the HZN Director on appointing members of internal teams, the process of introducing a quality management system according to ISO 9001 and an IT security management system according to ISO 27000 started at the HZN in June 2008. Adopting European standards was established as a priority in the work of all reorganised HZN/TOs, and the number of European standards adopted has increased substantially. The Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods, adopted by the Government of the Republic of Croatia in November 2007, for the purpose of meeting one of the benchmarks set for opening negotiations on Chapter 1 of the acquis, Free Movement of Goods, set out the obligation to adopt all European standards in Croatian standardisation by the end of 2008, and this is one of the conditions for the membership of the HZN in CEN and CENELEC. In the course of 2008, the following steps were defined and undertaken to fulfil the obligations set out in the Strategy: Adopting European standards through the work of HZN/TOs: Reorganisation of all technical committees was completed by 30 April 2008; A meeting was held between the presidents of HZN/TOs on 2 June 2008 and an agreement was reached to accelerate the assessment of European standards in all reorganised HZN/TOs; A public enquiry on the proposal to adopt all European standards within the scope of HZN/TOs in HZN Glasilo 5/2008 at the latest (31 October 2008); The adoption of all European standards in HZN Glasilo 6/2008 (30 December 2008).
Adoption of European standards in other areas in which, due to a lack of interest, technical committees have not been set up: Decision of the HZN Expert Council concerning the accelerated adoption of European standards (April 2008); Drafting rules for the accelerated adoption of European standards (built into IRS 3); Agreement of the Technical Administration on the implementation of the procedure (June 2008); Drafting the proposal to adopt aligned European standards (heads of the standardisation area); decision of the Technical Administration on submitting the proposal to a public debate for adoption (June 2008); Announcement of a public enquiry (approximately 500 harmonised European standards in HZN Glasilo 3/2008, 30 June 2008);
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Drafting the proposal for adopting the remaining European standards (heads of the standardisation area); decision of the Technical Administration on submitting the proposal to a public enquiry for adoption (August 2008);
Announcement of a public enquiry (approximately 3,600 European standards in HZN Glasilo 4/2008, 31 August 2008); Drafting the proposal for adopting all remaining European standards (heads of the standardisation area); decision of the Technical Administration on accepting the proposal into a public enquiry for adoption (September 2008);
Announcement of a public enquiry (approximately 6,000 European standards in HZN Glasilo 5/2008, 31 October 2008).
It is expected that, in accordance with the above plan, more than 80% of European standards will be adopted by the end of 2008, i.e. almost all European standards available at that moment, and that this condition for the membership of the HZN in CEN and CENELEC will be met. In 2008, the HZN undertook additional measures to present the role of standards in the application of technical legislation, particularly in the field of the New Approach Directives: lists of Croatian standards were prepared (adopted harmonised European standards) for all areas covered by the New Approach Directives and submitted to all ministries responsible for the implementation of the relevant Croatian regulations, for the purpose of publication in the Official Gazette; the number of European standards harmonised with the relevant directives and the respective number of Croatian standards are being monitored and the information published (ministries; HZN Glasilo); the HZN has offered co-operation to ministries responsible for the implementation of the new regulations in the field of New Approach Directives. The following are possible forms of co-operation: Setting up and maintaining the infrastructure for technical committees responsible for the implementation of the procedure of adopting European standards; Regular notification on the work of the relevant technical committees; considering problems arising during operations and joint agreements on solutions; Implementation of the procedure for adopting European standards (announcement of proposals for adoption in the HZN Glasilo); Agreement on the manner of adopting European standards (interest in translating standards into Croatian, translation options, deadlines, funding); Making a list of Croatian standards which provide for the assumption of conformity in particular areas, to be published in the Official Gazette; Continuous updating of the list of Croatian standards (new Croatian standards, new versions of standards, revocation of standards, etc.); Ensuring the availability of standards to any interested party; Providing information on standards relating to a particular Croatian technical regulation; Informing the relevant ministry about amendments to standards from the List of Standards published in the Official Gazette; Preparing amended lists of standards for the purpose of publication in the Official Gazette.
In the course of 2008, lists of Croatian standards (adopted harmonised European standards) in the areas of construction products, explosive atmospheres, measuring instruments, explosives for civil use and general product safety were prepared and published by the HZN. In September 2007, the Agreement of Co-operation in the Procedure of Adopting Eurocodes (European standards in construction) as Croatian Standards (translation into Croatian, defining nationally definable parameters and drafting appropriate national appendices) in the period 2008-2010 was signed between the Ministry of Enviornmental Protection, Physical Planning and Construction and the Croatian Chamber of Architects and Civil Engineers Department of Civil Engineers. In 2008, implementation of the Agreement
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began by the signing of pertinent bilateral agreements between the signatories of the Agreement for 2008 and by the adoption of the annual implementation plan for the Agreement for 2008. Activities are proceeding according to plan. To date, approximately 2,000 (of a total of 5,000) pages of Eurocodes have been translated into Croatian and work has begun on defining nationally definable parameters (a total of 1,346 parameters need to be defined) and their integration in the relevant national appendices to the standards (a total of 58 national appendices). The Croatian Standards Institute has been participating in the European CEN iPROJEX system National Implementation since June 2007, by submitting regular data entries to the CEN IT system, concerning Croatian standards which are adopted European standards, in line with the rules of the system. Data on adopted Croatian standards are available on the CEN website, along with data from all regular CEN members. Since April 2008, the HZN has been participating in the CEN INFOPRO system for the notification of original Croatian standards, in accordance with Directive 98/34/EC. Data on original Croatian standards are included in the CEN Monthly Notification Register, along with data from all regular CEN and CENELEC members. Notifications concerning Croatian standards, which are adopted European CENELEC and ETSI standards, are submitted to these organisations in line with their rules. As of 31 October 2008, there were 17,558 Croatian standards. This number includes 14,459 European standards adopted so far.
The increase by year in the total number of adopted European standards is shown in Table 2.
Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 31.10.2008
Total number of European standards adopted as Croatian standards

6 115 390 801 1,187 2,300 3,258 4,877 6,648 8,003 8,383 9,420 14,459
In 2008, the HZN continued to conduct seminars for its members, members of technical committees, HZN employees and the public. The following seminars were organised: HZN seminar on standards for management systems for veterinary inspectors; A series of seminars organised by Croatian Chamber of Architects and Civil Engineers /Croatian Metrology Society/HZN/Croatian Society for Communication, Computing, Electronics, Measurement and Control: Intelligent Construction (10 seminars on 10 different topics between February and June 2008);
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HZN/ON seminar: Standardisation and Certification in the Field of Diving Tourism (February 2008); HZN seminar: Terminological Principles and Structure and the Creation of New Terminology (February 2008); HZN seminar: Office Work and Document Management (March 2008).
All the seminars were very well received and highly rated. The seminars on terminological principles and office work will be repeated, and are planned to be held several times a year. The HZN co-organises or sponsors a number of conferences in the field of technical alignment, participates in a number of events and contributes to their success through presentations given by its representatives. The HZN pays special attention to training its employees. In 2008, HZN representatives continued to participate in seminars on European integration, organised by the Ministry of Foreign Affairs and European Integration. IT training was also provided (ECDL), several persons participated in ISO e-learning modules, two persons completed all three modules and obtained the ISO Experts in international standardisation management certificate, and one person completed the training for managers entitled Standardisation Community Management Course, organised by three international standardisation organisations, ISO, IEC, and ITU, within the World Standards Co-operation. ISO e-learning training will continue to be provided for HZN employees. The HZN continues to publish brochures, publications and translations of international and European documents in the areas of standardisation and consumer protection, i.e. the link between consumers and standardisation. Promotional brochures, translations of ISO brochures: ISO and Social Responsibility; ISO and Consumers; ISO and Conformity Assessment; Consumers and Standards Instructions and principles for the participation of consumers in the development of standards (translation of an ISO publication); Copyright, standards and the Internet (translation of an ISO publication); ISO POCOSA 2005 ISO Policies and procedures for copyright, copyright exploitation rights and sales of ISO publications (translation of an ISO publication); ISO/IEC Guide 21-1:2005 (hr), Regional or national adoption of International Standards and other International Deliverables Part 1: Adoption of International Standards (translation of an ISO publication); ISO/IEC Guide 21-2:2005 (hr), Regional or national adoption of International Standards and other International Deliverables Part 2: Adoption of International Deliverables other than International Standards (translation of an ISO publication); CEN/CENELEC Guide 2:2001, Consumer interests and the preparation of European standards (translation of a CEN/CENELEC publication); CEN/CENELEC Guide 10:2001, Guidelines for the distribution and sales of CEN/CENELEC publications (translation of a CEN/ CENELEC publication); CEN/CENELEC Guide 11:2006, Product information relevant to consumers; Guidelines for standard developers (translation of a CEN/CENELEC publication); CEN/CENELEC Guide 12:2008, The concept of affiliation with CEN and CENELEC SI Instructions, 2008 Edition (translation of an ISO publication).
Translations of CEN/CENELEC documents are publicly available on the HZN website (with the permission of CEN/CENELEC), while copyright protected documents are only accessible to HZN members on secure pages, as a special service. Several copies of publications relating to consumers were delivered to all consumer associations in the Republic of Croatia, as a special contribution by the HZN to the education of consumers in the Year of Consumer Education (2007).
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The translation of the new ISO publication ISO 22000 Food management systems: An easy-to-use checklist for small business. Are you ready? into Croatian was published in June 2008, with financial assistance from the CARDS 2004 Project Further Capacity Building in the Area of Live Animals and Food Products, for which the Ministry of Agriculture, Fisheries and Rural Development is the competent authority. The HZN CATALOGUE 2008 was published on CD-ROM. The HZN Annual Report for 2007 was published on the HZN website, along with a promotional brochure. At its session of 4 September 2008, the Government of the Republic of Croatia passed a decision on securing HRK 2,500,000 State Budget resources for the development of the HZN IT system in the period 2009-2011. As of September 2008, the HZN employs 61 staff. In the course of 2009, the recruitment of 2 more employees is planned. All new employees undergo special internal training in standardisation, due to the specific characteristics of their work. B) KEY PRIORITIES Further implementation of new HZN internal rules (IRS); Further drawing up of procedures for the processes of national standardisation in accordance with the Internal Rules; Further designing of forms for the implementation of procedures; Setting up programme committees; Continuing work on adopting new European standards in Croatian standardisation (through the work of technical committees or external experts, if there is no interest in setting up a technical committee); Further development of the IT system, in order to handle the vast amounts of data and exchange of documents in the European standardisation system, as part of HZN preparations for full membership of CEN and CENELEC; Recruiting new staff, training employees; Implementing the CARDS 2004 technical assistance project, Development of National Metrology, Standardisation, Conformity Assessment and Accreditation System; Undergoing pre-audit for membership in CEN and CENELEC, within the CARDS 2004 project; Further preparation for membership in CEN and CENELEC, in line with the recommendations obtained in the course of the pre-audit; Preparing the application for HZN membership in CEN and CENELEC and related documentation; Submitting the application for membership in CEN and CENELEC; Preparing for audit and the implementation of audit; Participating in the negotiations for the accession of the Republic of Croatia to the European Union; Preparing and holding seminars and workshops (HZN independently or in co-operation with other bodies); Preparing and holding meetings of European technical committees/subcommittees and working groups (at the request of and in agreement with HZN/TOs which participate in their work).
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3.1.1.2. Accreditation
A) ACHIEVEMENTS IN 2008 In 2008, the activities of the HAA were based on the Programme of Work of the Croatian Accreditation Agency, which was approved by the Government of the Republic of Croatia. In the coming three-year period, HAA activities will also be based on the HAA Development Strategy for the period 2008-2010, approved by the HAA Management Council. The Strategy was drawn up in co-operation with EC JRC IRMM, within the CARDS 2004 project. The total number of accreditations allocated is 123 (as of 10 November 2008). Since the beginning of its work as an independent institution, the HAA has made annual efforts to strengthen its professional capacity. In 2005, the HAA began work with 8 employees, while today there are 23. One new employee was recruited in 2008. In addition to the permanent staff, the HAA has 59 leading assessors, 88 technical assessors and 122 experts (as of 5 November 2008) entered in the HAA Assessors Register. In 2008, the HAA held another intensive training programme for its employees and assessors, based on the Training Plan for 2008. The following training events were organised by the HAA or attended by HAA employees: 6 internal seminars for HAA employees; 3 specialised professional seminars for HAA assessors and candidate assessors; 14 seminars and workshops organised within EU and bilateral projects, of which the HAA is a beneficiary, on topics in the area of accreditation (the requirements of the ISO 15189 standard, organisation of inter-laboratory testing, evaluation of conformity assessment bodies (CABs) for the purpose of authorisation and notification, New Approach Directives for machinery, personal protective equipment, construction products, etc.); 2 workshops organised by the European Co-operation for Accreditation (EA); 5 specialised professional seminars and workshops on the following topics: microbiological standards for food, standardisation and certification in the field of diving tourism, terminological principles and creating new terminology, environmental hygiene, accreditation in sanitary engineering; 9 conferences and symposia, as both participants and speakers, promoting the role of accreditation among the members of professional associations, representatives of accredited bodies and ministries, and business operators; A study visit to SWEDAC (Sweden) and accredited medical laboratories in Sweden; A study visit to NA (Norway) and observation of the evaluation of laboratories for the testing of construction products; Specialised IT, legal and accountancy seminars and foreign language courses.
The most important international activities of the HAA were related to preparation for and evaluation by the European Cooperation for Accreditation (EA) with a view to concluding multilateral agreements on the recognition of accreditation (EA-MLA). The peer evaluation of the HAA by the EA was published at the end of June 2008. The conclusion of the EA evaluation team was that the HAA has professional and experienced staff (employees and assessors), an organisational structure which is in accordance with the requirements of the international standard for accreditation bodies ISO/IEC 17011, and that it conducts professional on the spot assessments. Finally, the recommendation of the EA evaluation team to continue with the evaluation procedure of the HAA, in line with EA 2/02 rules, was confirmed at the session of the Multilateral Agreements Committee (EA-MAC) on 1 October 2008. This year, the HAA continued active participation in the work of the EA General Assembly, Multilateral Agreements Committee (EA-MAC), the work of EA technical committees for laboratories (EA-LC), for certification (EA-CC) and inspection (EA-IC), the
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Communication and Publications Committee (EA-CPC), working groups for medical laboratories (WG MedLab), and the WG 3 EA development project: Strengthening European Accreditation. Agreements on co-operation were concluded with the national accreditation bodies of Montenegro and Macedonia. Joint training activities in the field of accreditation were conducted with the accreditation bodies of Slovenia (SA) and Bosnia and Herzegovina (BATA). In 2008, the HAA conducted activities relating to setting up an accreditation system in Kosovo, as part of an international project, as a member of the British Standards Institute (BSI) consortium from the United Kingdom. In 2008, the HAA maintained very good co-operation with state administration bodies. The HAA provided technical support for state administration bodies in the implementation of regulations in the areas of safety and the health of citizens, environmental protection, consumer protection and other areas of public interest. The role of the HAA was to evaluate the professional and technical qualifications of these conformity assessment bodies, in accordance with international criteria, since the state administration authorises them to implement technical regulations. The HAA also met its obligations set out in the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods and proposed that all state administration bodies competent for the implementation of technical regulations aligned with the New Approach Directives sign the Agreement on the implementation of the procedures for the evaluation of conformity assessment bodies, for the purpose of authorisation (in areas in which this has not been regulated by law). In 2008, upgrades were launched for the Centrix solution in the HAA computerisation system, in accordance with the specific needs of accreditation bodies. A database of bodies accredited by the HAA is being compiled, which will be directly implemented in the EA database. In 2008, the HAA launched an electronic monthly Gazette. The main objective and role of the HAA Gazette is to promote the role of accreditation and HAA activities, particularly those relating to supporting the implementation of technical regulations aligned with EU legislation, in the business community and among state administration bodies, and providing information for potential and existing clients on the criteria and rules for accreditation. The Gazette is available on the HAA website, but is also sent directly to approximately 600 email addresses, which include all accredited bodies, members of advisory and professional committees of the HAA, representatives of state administration bodies, and many other interested parties (CCE, CEA, CCTC, etc.). B) KEY PRIORITIES In 2009, the HAA will prepare materials for amendments to the Accreditation Act (OG 158/2003) and to the HAA Articles of Association of 2005. These amendments will achieve alignment with new Regulation (EC) no. 765/2008, published in August 2008, which will apply in Member States from 1 January 2010. These amendments will be drafted, taking into account the comments of the European Commission on the Accreditation Act and the HAA Articles of Association in the process of ACAA negotiations between the Republic of Croatia and the European Union. The HAA will draw up the Programme of Work for 2009, in line with the HAA Development Strategy for 2008-2010. Training of HAA employees and assessors will be conducted according to the Training Plan for 2009. The HAA plans to continue strengthening its capacity by recruiting 3 new employees. In 2009, the evaluation procedure of the HAA by the EA is expected to continue after the first phase is completed, for the purpose of concluding multilateral agreements on the recognition of accreditation (EA-MLA). The HAA will continue to participate actively in the work of the EA General Assembly and professional committees (EA-MAC, EA-LC, EA-CC, EA-IB, EA-CPC) and develop co-operation with the national accreditation bodies of other countries.
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New accreditation schemes will be developed, in line with the needs of state administration bodies competent for the implementation of new Croatian technical regulations aligned with EU directives. A mid-term HAA priority is to conclude EA MLA agreements. Once this is achieved, conditions will be met for concluding multilateral agreements with international accreditation organisations (ILAC, IAF).
3.1.1.3. Conformity assessment
A) ACHIEVEMENTS IN 2008 In accordance with the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03, 79/07), technical requirements for products and conformity assessment procedures for products are regulated by technical regulations adopted by heads of the central state administration body, in line with their competence and scope. Conformity assessment procedures are conducted by conformity assessment bodies, on the basis of authorisation issued by the head of the competent central state administration body issuing the pertinent technical regulation. Upon Croatias accession to the European Union, or upon the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union, conformity assessment of products with technical requirements will only be conducted by conformity assessment bodies notified with the European Commission (notified bodies). The technical regulations lay down the conditions to be met by conformity assessment bodies and conditions relating to the process of supervising their operation. The heads of state administration bodies adopting technical regulations must determine whether the conformity assessment bodies meet the requirements. Conformity assessment bodies must meet the following requirements: Professional competence of staff in the relevant area of production for which the conformity assessment body is authorised; Possession of the necessary equipment; Independence and impartiality in conformity assessment procedures; Compliance with confidentiality rules; Liability insurance contracts must be concluded, except in cases in which liability is prescribed by another law; Other conditions to be met by conformity assessment bodies in line with technical and/or other regulations in force.
Until the publication of the list of conformity assessment bodies authorised under the new technical regulations, and at the latest by the date of Croatias accession to the European Union, or the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products with the European Union (ACAA), conformity assessment procedures will be conducted by conformity assessment bodies, within their competence, and pursuant to authorisation granted in accordance with current regulations. On 26 July 2007, the HAA and the Ministry of the Economy, Labour and Entrepreneurship (MELE) signed the Agreement on the implementation of procedures for the assessment of technical competence of conformity assessment bodies for the purpose of authorisation, based on which the CCA will assess the technical competence of conformity assessment bodies for the purpose of authorisation, in line with legislation and subordinate legislation within the competence of MELE. In addition, work has begun on drafting the Rules for the evaluation of conformity assessment bodies and instructions for the implementation of particular technical regulations.
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The HAA has sent a letter of intent to sign the same type of agreement as signed with MELE to other ministries in charge of the implementation of technical regulations (MI, MSTI). Some ministries have stated their positions and requested that the contract be delivered for signature. In 2008, the Section for the Implementation of Technical Legislation was set up within the Internal Market Co-ordination Department, with a view to continuing co-operation with conformity assessment bodies, institutions for quality infrastructure (HZN, DZM, HAA), the State Inspectorate, business operators and central state administration bodies, pertaining to the implementation of technical legislation in the Republic of Croatia. In 2008, a number of professional training seminars on conformity assessment and the revision of the new approach were held, organised by the Internal Market Co-ordination Department of the Ministry of the Economy, Labour and Entrepreneurship (Importance of conformity assessment bodies in the implementation of the New Approach Directives, A new revision of the New Approach). The seminars drew a large attendance from representatives of producers, conformity assessment bodies, institutions for quality infrastructure, social partners and representatives of state administration bodies. Such training events will continue to be organised in 2009. The chart below presents an overview of accredited conformity assessment bodies (CABs) in the areas covered by ACAA negotiations in 2008. This overview includes accredited conformity assessment bodies and conformity assessment bodies in the process of accreditation.
Accredited CABs Regulatory area Type of accreditation Area of accreditation
In accreditation process Type of accreditation Area of accreditation

Extending accreditation to testing of textiles, leather, personal protective clothing and footwear, protective gloves Certification of personal protective clothing and footwear Approving quality management systems in the production of personal protective clothing and footwear
Name of CAB
No. of CABs in procedure
HRN EN ISO/IEC 17025 Testing laboratory Testing of textiles and protective clothing Euroinspekt Eurotekstil HRN EN 45011 Product certification HRN EN IS0/IEC 17021 Testing of textiles Mirta-Kontrol Quality management systems certification
Personal protective equipment
HRN EN ISO/IEC 17025 Testing laboratory
Recreational craft
HRN EN ISO/IEC 17020 Inspection body
Statutory certification of recreational craft and components during construction in accordance with Directive 94/25 EC, modules Aa, B, D, F, G, H, E
Croatian Register of Shipping
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HRN EN ISO/IEC 17025 Testing laboratory Construction products
Cement testing
Civil Engineering Institute of Croatia (IGH d.d.), Business Centre Split, Materials and Technology Department laboratory Civil Engineering Institute of Croatia (IGH d.d.), IGH CERT
Cement testing
HRN EN 45011 Product certification
Cement certification
Low voltage devices
Testing low voltage devices (switches, circuit breakers, switch blocks, fuses, contactors and line-up terminals)
Konar IE High-power laboratory
HRN EN ISO/IEC 17025 Testing laboratory HRN EN 45011 Product certification HRN EN 45011 Product certification
Testing IT and electronic equipment
Certification of home appliances, switch devices, cables and electric machinery Certification of electric equipment and devices with regard to EMC requirements
Electromagnetic compatibility
Testing electromagnetic compatibility of electric equipment and devices
Konar IE EMC laboratory
3.1.1.4. Metrology
National Strategy for Metrology 2008-2013 On 15 May 2008, the National Strategy for Metrology 2008-2013 was adopted by a Decision of the Government of the Republic of Croatia. The National Investment Strategy for Metrology 2008-2013 was completed and adopted by the Government of the Republic of Croatia on 20 June 2008. This Strategy is the basis for investments in the metrology infrastructure and financing its development from the State Budget and EU funds. Legislative measures All New and Old Approach directives regarding metrology were transposed into national legislation by the beginning of 2007. The list of Croatian standards adopting harmonised European standards, whose application provides for the assumption of compliance with the essential requirements of the Ordinance on technical and measurement requirements pertaining to measuring instruments (OG 2/07) (transposing the Directive on measuring instruments MID Directive), was published in the Official Gazette. This list is being continuously updated, as new harmonised standards are adopted.
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Croatian Metrology Institute (CMI) The Regulation of the Government of the Republic of Croatia of 30 June 2008 established the Croatian Metrology Institute, in accordance with the Act on Amendments to the Metrology Act (OG 111/07). The Institute should begin operating as an independent institution at the beginning of 2009. National laboratories of the State Office for Metrology Two laboratories in the field of chemical metrology have been set up and authorised. These laboratories will organise proficiency testing of laboratories testing wine and water, and the dissemination of reference values. Equipment for these laboratories was acquired within the CARDS 2004 assistance programme. Within the Laboratory for Process Measurement, the Laboratory for Humidity of the Faculty of Mechanical Engineering and Naval Architecture of the University of Zagreb has received authorisation. The Laboratory for Process Measurement of the Faculty of Mechanical Engineering and Naval Architecture has published the first Calibration and Measurement Capabilities (CMC) for the area of pressure in the BIPM KCDB database. The Laboratory for Primary Electromagnetic Measurement of the Faculty of Electrical Engineering and Computing of the University of Zagreb has presented a quality system to the relevant EURAMET (European Collaboration for Measurement Standards) committee. The necessary additional equipment has been acquired for the National Laboratory for Testing Mechanical Properties of the Faculty of Mechanical Engineering and Naval Architecture. This equipment will facilitate measurement comparisons within EURAMET. The National Laboratory for the Field of Ionising Radiation (secondary standard dosimetry laboratory) has received authorisation and has been accredited by the German DKD (Deutscher Kalibrierdienst). At the National Laboratory for Density, new equipment for measuring the density of fluids has been acquired and put into service. At the National Laboratory for Mass, new equipment (comparators and standard weights) has been acquired and put into service, replacing old equipment. Laboratories for legal metrology Equipment for testing taximeters has been acquired and put into service, for the purposes of legal metrology in authorisation units in Split and Rijeka. Equipment for testing objects made of precious metals has been acquired by the DZM unit in Split. A pipe prover for fluids other than water has been put into service. It was donated through the CARDS programme. Promotion of metrology The State Office for Metrology, in co-operation with the Croatian Metrology Society, organised a seminar on measurement of mass and a seminar on pipe provers for fluids other than water. Translations of a large number of OIML recommendations and documents have been published, such as the EURAMET manual for expressing measurement uncertainty, and the International System of Units (SI), National and International Needs in Metrology and Development of Needs in Metrology, and short promotional brochures pertaining to measurement units, international metrology and the function of the OIML. In addition, on 20 May 2008 an event was organised to celebrate World Metrology Day.
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Participation in the work of European and international metrology organisations The annual meeting of the European Co-operation in Legal Metrology (WELMEC) took place on 8 and 9 May 2008 in the Republic of Croatia. The State Office for Metrology hosted the meeting of the WELMEC 6 Working Group, which took place on 22 and 23 May on the Islands of Brijuni. The State Office for Metrology participates regularly in the work of all EURAMET technical committees and key intercomparisons, as well as certain WELMEC committees. The procedure has been initiated for signing the Metre Convention. The relevant act was prepared in order to ratify the Metre Convention and sent by the Government of the Republic of Croatia on 16 October 2008 to the Croatian Parliament for adoption. B) KEY PRIORITIES It is planned to amend the Ordinance on measurement requirements for pre-packaged products and bottles as measurement containers (OG 90/05), in order to align it with EU Directive 2007/45/EEC. Depending on resources allocated from the State Budget, priorities will focus on improving measuring capacities and developing new methods for certain measurements not yet included, in line with the National Strategy for Metrology 2008-2013 and the relevant Investment Strategy.
3.1.1.5. Market surveillance
A) ACHIEVEMENTS IN 2008 In 2008, the State Inspectorate began drafting the new State Inspectorate Act, pursuant to obligations arising from Article 73 of the Stabilisation and Association Agreement, and with a view to creating conditions for full membership of the EU and becoming part of the EU internal market. The new State Inspectorate Act is being drafted for the purpose of consolidation, since the original 1999 text of the Act has undergone 11 amendments. The new State Inspectorate Act (Official Gazette 116/08) was adopted by the Croatian Parliament on 26 September 2008 and entered into force on 19 October 2008. The provisions of Articles 1418 of the State Inspectorate Act (Official Gazette 76/99, 96/03, 151/03, 160/04,174/04, 33/05, 48/05, 129/05, 140/05, 138/06, 68/07 and 79/07) which govern the monitoring of the quality of products requiring a quality certificate, and the subordinate acts implementing the said provisions, will cease to have effect upon the entry into force of the new State Inspectorate Act. In addition, the said provisions of the Act and the Regulation determining products requiring a quality certificate, are identified in items 40 and 41 of the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC, adopted by the Government of the Republic of Croatia on 29 November 2007, as measures having equivalent effect to quantitative restrictions, and thus contrary to Articles 28 and 29 of the Treaty establishing the EC. With the entry into force of the new State Inspectorate Act, administrative barriers to placing products on the market have been removed, so that monitoring of safety and product conformity will be conducted on products placed on the market. However, authorised inspectors have full powers to undertake any necessary measures, including withdrawing a product from the market. Furthermore, the new State Inspectorate Act lays down more favourable conditions regarding duration of service for economic inspectors and senior economic inspectors, and the possibility of creating a new post of senior economic inspector-specialist for the purpose of conducting the most complex inspection activities. The aim of this measure is to make the profession of inspector more attractive and to contribute to the strengthening of administrative capacities in all inspection areas, including market surveillance.
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As regards administrative capacities and plans set out in the Strategy for the Implementation of the acquis communautaire in the Field of Free movement of Goods and the NPAEU 2008, during the year the State Inspectorate recruited 10 new trainees with the required technical education, who will be trained in the surveillance of technical products. In the course of 2008, the State Inspectorate continued intensive strengthening of its administrative capacity. Of 458 economic inspectors conducting surveillance in the area of trade of goods and services, 64 economic inspectors are competent for the surveillance of conformity and safety of technical products in the entire territory of the Republic of Croatia. Through the implementation of the PHARE 2005 Project Market Surveillance System in the Field of Technical Products, 16 economic inspectors completed training in the application of 8 New Approach directives, and have begun training other economic inspectors conducting surveillance of technical products. Between March and October 2008, 15 seminars were held, relating to the application of 8 New Approach directives. Four study visits to Germany and Slovenia were organised for State Inspectorate trainers, while representatives of the State Inspectorate participated in many other professional seminars and conferences. Within the activities of the CARDS 2004 Project Further Capacity Strengthening in the Field of Consumer Protection the State Inspectorate, as one of the beneficiaries, participates in the implementation of measures in the field of product safety. In addition, the Technical Legislation Department has provided professional support for economic inspectors by preparing instructions for the surveillance of product conformity, and has co-ordinated the work of inspectors with a view to harmonising inspection procedures, collected statistical data on surveillance, co-ordinated the drafting of the annual surveillance plan, and is continuing to develop and monitor the application of all other necessary procedures, so that market surveillance activities may be conducted in a professional and effective manner. The State Inspectorate has plans for the systematic acquisition of IT equipment. Some equipment was acquired through the PHARE 2005 Project Market Surveillance System in the Field of Technical Products in February 2008, through the Acquisition of Equipment Project component. In addition, in March 2008 the State Inspectorate applied, through a letter of intent to the chairman of ICSMS, to test ICSMS in order to become familiar with the system and make a decision about using it in the future. It is also planned, through one of the components of the PHARE 2005 Project Market Surveillance System in the Field of Technical Products, to introduce a quality management system in the field of surveillance of technical products. Activities relating to the introduction of the quality management system focus on the description of the main processes in the surveillance of technical products, such as the process of proactive and reactive surveillance, reporting, database building, inspection, and a description of support processes, such as strategy, human resources, continuous training, sampling, subcontracting, information and communications, etc. In 2008, representatives of the State Inspectorate participated in the implementation of the Strategy for the Implementation of the acquis communautaire in the Field of Free Movement of Goods and the Action Plan for the Compliance with Articles 28-30 of the Treaty establishing the EC, for Chapter 1: Free Movement of Goods and in preparing the Negotiation Position for negotiations on Chapter 1: Free Movement of Goods. The Report on the Implementation of the Strategy and Action Plan pertaining to market surveillance from January to June 2008 was submitted to the Internal Market Co-ordination Department of the Ministry of the Economy, Labour and Entrepreneurship, the body in charge of reporting to the Government of the Republic of Croatia on progress in the implementation of the said Strategy and Action Plan. B) KEY PRIORITIES Activities planned for 2009 In 2009, the State Inspectorate, as far as the surveillance of product conformity and safety is concerned, will switch to a surveillance system compliant with EU practices, so that the surveillance of product conformity and safety will be conducted not only by inspecting the stipulated documentation, but also by assessing product conformity and safety and, in certain cases, sampling, for testing the conformity and safety of products on the market by authorised conformity assessment bodies. Consequently, budget resources reserved for activities relating to EU accession will be allocated to the following activities;
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Further strengthening of co-operation with the Customs Directorate in order to implement Council Regulation 339/93, and with other bodies for the purpose of market surveillance;
Continued improvement of the knowledge and skills of economic inspectors, by providing training by trainers and setting up departmental working groups for particular directives, with a view to organising and co-ordinating surveillance according to particular directives;
Continued activities to introduce a quality management system in the field of technical products, by developing processes, i.e. procedures, and applying them in the work of regional units and local offices of the DI;
For the purpose of checking product safety and conformity, it is necessary to set up procedures for contracting the use of services (testing and conformity assessment) by testing and conformity assessment bodies;
Improved technical support for inspectors, by acquiring the necessary technical equipment for conducting surveillance and by acquiring standards;
At the international level, it is important to include SI experts in the work of ADCO groups and the PROSAFE organisation, in order to obtain the best possible information and follow-up on the implementation of directives at the EU level.
Further measures To continue to secure resources necessary for conducting assessment of product conformity and safety; To participate in joint surveillance projects with EU Member States; To continue co-operation with other surveillance bodies and the Customs Directorate, and establish co-operation with all RAPEX contact points; To invest in human resources, by providing continual professional development for inspectors and developing the training system within the SI; To inform the public about activities in the area of surveillance and, in line with European procedures, about dangerous products; To monitor and evaluate results achieved according to the annual surveillance plan and draft future surveillance plans accordingly.
3.1.2. Old Approach Directives

3.1.2.1. Motor vehicles
A) ACHIEVEMENTS IN 2008 Type-approval of motor vehicles In 2008, a total of 27 directives were transposed. B) KEY PRIORITIES The three remaining directives will be transposed in the course of 2009, and published ordinances will be updated in accordance with amendments to directives not included at the time of transposition.
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In addition, prior to the accession of the Republic of Croatia to the EU, a regulation will be prepared (Ordinance on conformity assessment of vehicles), which will regulate the manner and procedures of conformity assessment and the corresponding records of all types of motor vehicles on the market in the Republic of Croatia. This regulation will also require a new IT system, linked interactively to authorised vehicle importers and the systems of other state administration bodies competent for vehicles.
3.1.2.2. Chemical products
A) ACHIEVEMENTS IN 2008 The following legal acts were adopted in 2008: 1. Act on Amendments to the Act on Biocidal Products (OG 35/08); 2. Act on the Implementation of Regulation (EC) No 1907/2006 of the European Parliament and of the Council concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (OG 53/08); 3. Act on Amendments to the Chemicals Act (OG 53/08). The following subordinate legislation was adopted in 2008: 1. Ordinance on the classification, marking, labelling and packaging of dangerous chemicals (OG 23/08); 2. Ordinance on existing substances (OG 61/08); 3. Ordinance on good laboratory practice (OG 38/08); 4. Ordinance on the list of active substances in biocidal products (OG 90/08); 5. Ordinance on the list of existing active substances not permitted in biocidal products (OG 90/08); 6. Ordinance on the list of existing active substances permitted in biocidal products (OG 90/08); 7. Ordinance on the documentation for the evaluation of the active substance in biocidal products, and on the documentation for the evaluation of biocidal products, procedures for the evaluation of biocidal products and their use, and on the types of biocidal products with their descriptions and common principles for the evaluation of biocidal products (OG 90/08). The National Strategy for Chemical Safety, the drafting of which was financed from the SIDA Fund (Kingdom of Sweden), and which was approved by the National Approval Commission at its session of 13 March 2008, was sent by the Government of the Republic of Croatia on 20 June 2008 to the Croatian Parliament, which adopted it at its session of 28 November 2008. B) KEY PRIORITIES The following regulations are planned for adoption in 2009: 1. Ordinance on amendments to the Ordinance on the classification, marking, labelling and packaging of dangerous chemicals (aligned with Commission Regulation (EC) No. 440/2008 of 30 May 2008 laying down test methods pursuant to Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and Directive 2008/58/EC of 21 August 2008 amending, for the purpose of its adaptation to technical progress, for the 30th time, Council Directive 67/548/EEC on the approximation of the laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances; 2. Ordinance on the Safety Data Sheet (aligned with Annex II to Regulation (EC) No. 1907/2006 (REACH Regulation);
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3. Ordinance on the export and import of dangerous chemicals (aligned with regulation (EC) No. 689/2008 of the European Parliament and of the Council of 17 June 2008 concerning the export and import of dangerous chemicals); 4. Amendments to the List of dangerous chemicals whose placing on the market is prohibited or restricted (aligned with amendments to Directive 76/769/EEC); 5. Ordinance on the conditions to be met by legal and natural persons providing services or conducting activities of intermediaries, in which they come into direct contact with dangerous chemicals (aligned with Directive 74/556/EEC and 74/557/EEC); 6. List of biocidal products (implementation of Article 18 of Directive 98/8/EC concerning the placing of biocidal products on the market); 7. Ordinance on amendments to the Ordinance on the list of existing active substances permitted in biocidal products (aligned with Directive 2008/80/EC, Directive 2008/79/EC, Directive 2008/78/EC, Directive 2008/77/EC and Directive 2008/75/EC); 8. Ordinance on amendments to the Ordinance on the list of existing active substances not permitted in biocidal products (aligned with Commission Decision 2008/681/EC). The following implementation measures are planned for 2009: 1. National Programme of Good Laboratory Practice (implementation of Article 2 item 32 of the Ordinance on good laboratory practice (OG 38/08).
3.1.2.3. Drug precursors
A) ACHIEVEMENTS IN 2008 The field of narcotic drugs, psychotropic substances and substances from which narcotic drugs can be derived, i.e. drug precursors, is regulated by the Act on the Suppression of Narcotic Drugs Abuse (OG 107/01, 87/02, 163/03, 141/04 and 40/07). The Ministry of Health and Social Welfare is responsible for issuing and updating the List of narcotic drugs, psychotropic substances and drug precursors. Trade in narcotic drugs, psychotropic substances and drug precursors falls within the competence of the Medicinal Products Department of the Ministry of Health and Social Welfare. Trade in other precursors lies partly within the competence of the Sanitary Inspection and the Border Sanitary Inspection Department of the Ministry of Health and Social Welfare, and partly within the competence of the Ministry of the Economy, Labour and Entrepreneurship and the Ministry of the Interior. In 2008, the List of narcotic drugs, psychotropic substances and plants from which narcotic drugs can be derived, and substances which may be used to synthesise narcotic drugs (OG 43/08) was adopted.
3.1.2.4. Detergents
A) ACHIEVEMENTS IN 2008 The Act on General Use Items and the Ordinance on sanitary safety of detergents have been aligned with the acquis in the field of detergent safety, so that no legislative measures are planned for 2009.
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B) KEY PRIORITIES The organisation of market surveillance will commence, which will involve bringing together the work of the competent inspection services the Sanitary Inspectorate and the Environmental Inspectorate of the Ministry of Environmental Protection, Physical Planning and Construction. Existing administrative capacities will be sufficient for achieving this objective.
3.1.2.5. Pharmaceuticals A) ACHIEVEMENTS IN 2008 In the course of 2008, on the basis of the Medicinal Products Act, the following subordinate legislation was adopted: 1. Ordinance on the procedure and manner of granting marketing authorisation for a finished medicinal product (OG 113/08); 2. Ordinance establishing the criteria for wholesale pricing of medicinal products and the manner of reporting wholesale prices (OG 60/08); 3. Ordinance establishing the criteria for inclusion of medicinal products in the basic and supplementary reimbursement lists of the Croatian Institute for Health Insurance (OG 60/08). B) KEY PRIORITIES The Act on Medicinal Products needs additional alignment with Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use, in the part pertaining to data exclusivity. The following subordinate legislation is planned for adoption in 2009: 1. Ordinance on the manner of advertising and publishing information on medicinal products; 2. Ordinance on good laboratory practice and the procedure of establishing requirements of good laboratory practice; 3. Ordinance on pharmacovigilance.
3.1.2.6. Veterinary pharmaceuticals
A) ACHIEVEMENTS IN 2008 Regarding veterinary pharmaceuticals, the Act on Veterinary Medicinal Products (OG 84/2008) was published on 18 July 2008. The Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development was published in Official Gazette (35/08) of 28 March 2008. According to this Ordinance, the Veterinary Inspection Directorate was separated from the Veterinary Directorate and established as an independent directorate competent for inspection activities pertaining to veterinary medicinal products and laboratory practice. B) KEY PRIORITIES The following European legislation is planned for transposition into Croatian legislation in 2009:
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Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to veterinary medicinal products, as amended by Directive 2004/28/EC of 31 March 2004. The Directive will be transposed into Croatian legislation through the Ordinance on veterinary medicinal products;
Commission Regulation 2006/130/EC of 11 December 2006 implementing Directive 2001/82/EC of the European Parliament and of the Council as regards the establishment of criteria for exempting certain veterinary medicinal products for food-producing animals from the requirement of a veterinary prescription;
Commission Regulation 1950/2006/EC of 13 December 2006 establishing, in accordance with Directive 2001/82/EC of the European Parliament and of the
Council on the Community code relating to veterinary medicinal products, a list of substances essential for the treatment of equidae;
Commission Regulation 540/95/EC of 10 March 1995 laying down the arrangements for reporting suspected unexpected adverse reactions which are not serious, whether arising in the Community or in a third country, to medicinal products for human or veterinary use authorised in accordance with the provisions of Council Regulation (EEC) No 2309/93.
With the adoption of legislation, activities relating to the organisation of pharmacovigilance of veterinary medicinal products will commence, including the recruitment of an employee to conduct these activities. The Veterinary Inspection Directorate also plans to recruit one employee for the position of senior state inspector for veterinary medicinal products. As mid-term priorities, further subordinate legislative acts based on the Act on Veterinary Medicinal Products are planned for adoption, and alignment with the acquis will continue.
3.1.2.7. Cosmetic products
A) ACHIEVEMENTS IN 2008 The Ordinance on the sanitary safety of general use items and the sanitary safety of toys (OG 47/08) was adopted in 2008, transposing Directive 76/768/EEC concerning cosmetic products. B) KEY PRIORITIES In line with EC recommendations, it is necessary to adopt the Act on Amendments to the Act on General Use Items and amend the Ordinance on the sanitary safety of general use items and the sanitary safety of toys, with a view to full alignment with Directive 76/768/EEC. The organisation of market surveillance will begin in the coming period, which will involve bringing together the work of the competent inspection services the Sanitary Inspection and the economic inspectors of the State Inspectorate. Existing administrative capacities will be sufficient for achieving this objective.
3.1.2.8. Glass A) ACHIEVEMENTS IN 2008 Legislative measures
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In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on crystal glass products (OG 135/05), transposing Directive 69/493/EEC on crystal glass into Croatian legislation. Implementation measures The application of the Ordinance on crystal glass products (OG 135/05) began in 2006, and the competent institution for the implementation of this Ordinance is the Industry and Privatisation Directorate of the Ministry of the Economy, Labour and Entrepreneurship. B) KEY PRIORITIES Legislative measures Amendments will be made to the Ordinance on crystal glass products (OG 135/05), in line with EC observations. The envisaged deadline for amending the Ordinance is the first quarter of 2009. Further monitoring and alignment of legislation with EU legislation in the field of crystal glass will be carried out. Implementation measures Measures planned for 2009 involve implementing existing legislation in the field of crystal glass. No institutional measures have been envisaged for this activity, nor will it be necessary to strengthen administrative capacities.
3.1.2.9. Textiles
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the following legislative acts: 1. Ordinance on textile composition and names (OG 135/05); 2. Ordinance on methods of quantitative analysis of binary textile fibre mixtures (OG 135/05); 3. Ordinance on methods of quantitative analysis of trinary textile fibre mixtures (OG 135/05). The Ordinances fully transpose Directives 97/74/EC, 97/37/EC, 96/73/EC and 73/44/EEC into Croatian legislation. The Ministry of the Economy, Labour and Entrepreneurship adopted the following new subordinate legislative acts in April 2008: 1 Ordinance on certain methods of quantitative analysis of binary textile fibre mixtures (OG 40/08)
Commission Directive 2006/2/EC of 6 January 2006 amending, for the purposes of its adaptation to technical progress, Annex II to Directive 96/73/EC of the European Parliament and of the Council on certain methods for quantitative analysis of binary textile fibre mixtures, has been transposed into Croatian legislation. 2. Ordinance on the raw material composition, names and labelling of textile products (OG 40/08) Commission Directive 2006/3/EC of 9 January 2006 amending, for the purposes of their adaptation to technical progress, Annexes I and II to Directive 96/74/EC of the European Parliament and of the Council on textile names, has been transposed into Croatian legislation. Implementation measures The application of technical regulations pertaining to textiles began in 2006. The implementation of these regulations lies within the competence of the Ministry of the Economy, Labour and Entrepreneurship Industry and Privatisation Directorate.
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B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation in the area of textiles. Implementation measures Implementation of existing legislation in the area of textiles. No institutional measures have been envisaged for the implementation of technical regulations, nor will it be necessary to strengthen administrative capacities.
3.1.2.10. Footwear
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 135/05), which transposes into Croatian legislation Directive 94/11/EC of the European Parliament and Council of 23 March 1994 on the approximation of the laws, regulations and administrative provisions of the Member States relating to labelling the materials used in the main components of footwear for sale to the consumer. With a view to aligning the above Ordinance with observations made by the European Commission, the new Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 40/08) was adopted in April 2008. Implementation measures The application of the Ordinance on labelling the materials used in the main components of footwear for sale to the consumer (OG 135/05) began in 2006, and the institution competent for its implementation is the Industry and Privatisation Directorate of the Ministry of the Economy, Labour and Entrepreneurship. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation in the area of footwear. Implementation measures Further implementation of existing legislation. No institutional measures have been envisaged for the implementation of technical regulations, nor will it be necessary to strengthen administrative capacities.
3.1.2.11. Mineral fertilisers
A) ACHIEVEMENTS IN 2008 The Ordinance on good agricultural practice in the use of fertilisers (OG 56/08) was adopted, pursuant to the Act on Fertilisers and Soil Improvers (OG 163/03, 40/07), which is partly aligned with Regulation (EC) No 2003/2003 of the European Parliament and of the Council of 13 October 2003, relating to fertilisers. The Ordinance lays down the general principles of good agricultural practice in the
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use of fertilisers, the period of the year during which it is not permitted to use fertilisers on agricultural soils, the use of fertilisers in escarpments, wetlands, flooded, frozen or snow-covered soils, conditions for the use of fertilisers in the proximity of watercourses, soil treatment techniques for the use of organic fertilisers and mineral fertilisers, and the capacity and features of manure storage facilities. B) KEY PRIORITIES In 2009, the Ministry of Agriculture, Fisheries and Rural Development will have no new obligations arising from the negotiating strategy for Chapter 1: Free Movement of Goods in connection with mineral fertilisers. Therefore, no legislation or subordinate legislation is planned for 2009.
3.1.3. New Approach Directives

3.1.3.1. Low-voltage equipment
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on electrical equipment designed for use within certain voltage limits (OG 135/05), transposing into Croatian legislation Directive 73/23/EEC on low voltage equipment, which, after new codification within the EU, carries the number 2006/95/EC. Amendments to the Ordinance are being drawn up in line with observations made by the EC. The envisaged deadline for amending the Ordinance is the fourth quarter of 2008. Implementation measures The Ordinance has been in effect since 1 January 2007 and its implementation lies within the scope of MELEs Industry and Privatisation Directorate. Currently, work is underway to draw up instructions (in the form of a guide) for the application of the Ordinance, which should facilitate its application for producers, conformity assessment bodies and consumers. It is planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of low-voltage equipment, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. Strengthening the administrative capacities of this Section, which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative. It is also necessary to intensify co-operation with the Croatian Accreditation Agency in the procedures of verification of conformity assessment bodies, and with the Croatian Standards Institute in the participation of Ministry representatives in the work of technical
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committees and adopting standards. Co-operation with the State Inspectorate in conducting market surveillance is also especially important in this area.
3.1.3.2. Simple pressure vessels
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, MELE passed the Ordinance on simple pressure vessels (OG 135/05), which transposes into Croatian legislation Directive 87/404/EEC on simple pressure vessels. The amendments to the Ordinance on simple pressure vessels (OG 6/06) served to postpone the application of the Ordinance until the granting of authorisation by the conformity assessment body. The adoption of the new State Inspectorate Act created preconditions for the application of subordinate acts adopted under the Act on Technical Requirements for Products and on Conformity Assessment. In October 2008, the Ordinance on amendments to the Ordinance on simple pressure vessels (OG 126/08) was adopted, and so was the Ordinance on conformity assessment procedures for pressure equipment based on conformity documents issued abroad (OG 126/08), which lays down the conditions and procedure for recognising foreign conformity assessment documents. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship, which is competent for the implementation of the Ordinance, authorised a body for conformity assessment (the notified body) and published the List of Standards for the application of the Ordinance on simple pressure vessels. The application and im plementation of the ordinances adopted, and the drawing up of the instructions (in the form of a guide) for the application of the Ordinance, should facilitate their application for producers, conformity assessment bodies and consumers. It is planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Further monitoring and alignment of legislation with EU legislation in the field of simple pressure vessels. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of simple pressure vessels, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. Strengthening the administrative capacities of this Section, competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative.
3.1.3.3. Ecodesign requirements for energy-using products (EUP)
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Legislative measures Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products, and Directive 2000/55/EC on energy efficiency requirements for ballasts for fluorescent lighting, have not been transposed into Croatian legislation. The adoption of a special regulation establishing a framework for the setting of ecodesign requirements for energy-using products should serve to transpose into Croatian legislation Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products. The deadline for adopting the regulation is the fourth quarter of 2008. The adoption of the Ordinance on energy efficiency requirements for ballasts for fluorescent lighting, should serve to transpose into Croatian legislation Directive 2000/55/EC on energy efficiency requirements for ballasts for fluorescent lighting. The deadline for adopting the regulation is the fourth quarter of 2008. Implementation measures To date, the project entitled Energy Efficiency in Small and Medium Enterprises in Croatia (the Regional Centre for Environmental Protection for Central and Eastern Europe and the Ministry of Environment and Protection of the Territory and Sea of the Italian Republic, with the Faculty of Electrical Engineering and Computing) has been completed, as has market research on the application of energy efficiency programmes in small and medium enterprises in Croatia (consultants: EUtech and Energiestiftung SchleswigHolstein, in co-operation with FEEC experts). B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship and the Ministry of Environmental Protection, Physical Planning and Construction are competent for transposing the Directive and implementing the regulations. Promotional activities should be arranged in order to explain the concept of eco-design to small and medium enterprises and other producers in the country, to become acquainted with interest groups, and point out the importance and mechanisms of effective implementation of the eco-design concept. It is especially important to ensure the correct implementation of the Directive. In 2010, it is planned to intensify activities on the implementation of eco-design regulations.
3.1.3.4. Noise emission by equipment for use outdoors
A) ACHIEVEMENTS IN 2008 With a view to achieving alignment with Directive 2000/14/EC of the European Parliament and of the Council of 8 May 2000, as amended by Directive 2005/88/EC, the Ministry of Health and Social Welfare has adopted the Ordinance on noise emission by equipment for use outdoors (OG 156/08).
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3.1.3.5. Emissions of pollutants into the air from internal combustion engines installed in non-road mobile machinery
A) ACHIEVEMENTS IN 2008 Work is underway on drawing up the Ordinance on measures against the emission of gaseous and particulate pollutants from internal combustion engines installed in non-road mobile machinery, transposing Directive 97/68/EC into Croatian legislation. The Ordinance will be completed and published by the end of 2008.
3.1.3.6. Toys
A) ACHIEVEMENTS IN 2008 The Ordinance on the sanitary safety of toys (OG 113/08) was adopted as planned. B) KEY PRIORITIES During 2008, and especially in the coming mid-term period, measures will be undertaken to organise market surveillance. No additional strengthening of administrative capacities will be necessary to achieve this goal. Once the new EU directive concerning toys is adopted, work will start on achieving alignment with technical requirements pertaining to toys.
3.1.3.7. Machinery
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on machinery safety (OG 135/05), transposing Directive 98/37/EEC relating to machinery into Croatian legislation. The amendment of the Ordinance on machinery safety will align current legislation with the new EC Directive relating to machinery. The envisaged deadline is the fourth quarter of 2008. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship is responsible for the implementation of technical regulations concerning machinery. Ministry representatives attended the EC Working Group for machinery, at which the new Machinery Directive 2006/42/EC was presented. The Ministry has begun preparations for alignment with the new Directive.
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B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation relating to machinery with EU legislation. Implementation measures Measures pertaining to the implementation of technical regulations in the field of safety of machinery are aimed primarily at encouraging proficiency and setting up national conformity assessment bodies. In order to ensure the best possible implementation of technical regulations in the field of safety of machinery, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. Strengthening the administrative capacities of this Section, which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative. It is also necessary to intensify co-operation with the Croatian Accreditation Agency in the procedures of verification of conformity assessment bodies, and with the Croatian Standards Institute in the participation of Ministry representatives in the work of technical committees and adopting standards. Measures in 2010 will be aimed at the implementation of current legislation in the field of safety of machinery.
3.1.3.8. Personal protective equipment
B) KEY PRIORITIES In 2009, the amended Ordinance on the placing of personal protective equipment on the market (OG 106/07 and 121/07) is planned for adoption, based on observations received from the EC.
3.1.3.9.. Explosives for civil use
A) ACHIEVEMENTS IN 2008 The implementation of the Act on Explosive Substances (OG 178/04, 109/07, 67/08), aligned with Directive 93/15/EEC, is currently underway, as is the implementation of subordinate legislation adopted on the basis of the Act and in line with the Directive. The Transport of Hazardous Substances Act (OG 79/07) entered into force on 1 January 2008. Among other things, the provisions concerning the issuing of authorisation for the transport of explosive substances in this Act have been aligned with the provision of Directive 93/15/EEC. Procedures for conformity assessment of explosive substances are currently conducted by two institutions: the Faculty of Mining, Geology and Petroleum Engineering (FMGPE) and the Agency for Technical and Technological Research and Development Zagreb (ATIR d.o.o.), authorised by the Minister of the Interior on the basis of the former Act on Explosive Substances for Economic Uses (OG 12/94) and the Ordinance on the conditions which must be met by institutions for testing explosive substances (OG 2/96). In 2008, the Ministry of the Interior conducted restructuring of the inspection service for explosive substances at its headquarters, raising the inspection level from section to department. The new systematisation includes a new post - inspector for explosive substances.
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With a view to strengthening administrative capacity, on 30 October 2008 a seminar was held for police administration inspectors in charge of protection from fire and explosives, during which they were acquainted with the implementation of the Act on Explosive Substances and subordinate legislation adopted on the basis of that Act. B) KEY PRIORITIES In the course of 2009, it is expected that legal or natural persons will file requests for authorisation to conduct activities of conformity assessment of explosive substances. This authorisation is issued by the Minister of the Interior to a legal or natural person verified by the Croatian Accreditation Agency to be professionally and technically qualified to conduct activities of conformity assessment. The process of transposing harmonised standards accompanying Directive 93/15/EEC, which have not yet been transposed, and strengthening administrative capacity, through training and recruiting new employees, will continue.
3.1.3.9. Pyrotechnic articles
A) ACHIEVEMENTS IN 2008 Pyrotechnic articles are regulated by the Act on Explosive Substances (OG 178/04, 109/07, 67/08) and the Ordinance on safety requirements for pyrotechnic articles for entertainment and technical purposes (OG 146/05). According to the Act on Explosive Substances, pyrotechnic articles are considered to be explosive substances. The latest amendments to the Act on Explosive Substances (OG 67/08) of 30 May 2008 have aligned the provisions of the Act with Directive 2007/23/EC on the placing on the market of pyrotechnic articles. The Ordinance on safety requirements for pyrotechnic articles for entertainment and technical purposes (OG 146/05) regulates the safety requirements to be met by pyrotechnic articles intended for entertainment and technical purposes, as regards mass, chemical composition, material, noise level, range, time of activation, efficiency and other characteristics and conditions for classification. In November 2008, the Minister of the Interior adopted the new Ordinance on safety requirements for pyrotechnic articles and conditions for their classification, for the purposes of alignment with Directive 2007/23/EC on the placing on the market of pyrotechnic articles. The Transport of Hazardous Substances Act (OG 79/07) also serves to achieve alignment of the provisions on issuing authorisation for the transport of explosive substances, which include pyrotechnic articles, with the provision of Directive 93/15/EEC. The Act entered into force on 1 January 2008. Procedures for conformity assessment of explosive substances are currently conducted by two institutions: the Faculty of Mining, Geology and Petroleum Engineering (FMGPE) and the Agency for Technical and Technological Research and Development Zagreb (ATIR d.o.o.), authorised by the Minister of the Interior on the basis of the former Act on Explosive Substances for Economic Uses (OG 12/94) and the Ordinance on the conditions which must be met by institutions for testing explosive substances (OG 2/96). B) KEY PRIORITIES In the course of 2009, it is expected that legal or natural persons will submit requests for authorisation to conduct activities of conformity assessment of explosive substances. This authorisation is issued by the Minister of the Interior to a legal or natural person verified by the Croatian Accreditation Agency to be professionally and technically qualified to conduct activities of conformity assessment. The strengthening of administrative capacity will continue through the training and recruitment of new employees, as will the transposition of harmonised standards accompanying Directive 2007/23/EC, which have not yet been transposed.
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3.1.3.10. Potentially explosive atmospheres
A) ACHIEVEMENTS IN 2008 The legislative framework in this sector consists of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03, 79/07), based on which the Ministry of the Interior adopted the Ordinance on equipment and protective systems intended for use in potentially explosive atmospheres (OG 123/05), transposing into Croatian legislation Directive 94/9/EC of the European Parliament and the Council of 23 March 1994 on the approximation of the laws of the Member States concerning equipment and protective systems intended for use in potentially explosive atmospheres. The authority competent for the implementation of the ATEX Directive is the Ministry of the Interior and its partners are the Agency for Spaces Endangered by Explosive Atmospheres (Ex-Agency), the Croatian Standards Institute (HZN), the Croatian Accreditation Agency (HAA) and the State Inspectorate (SI). The assessment of the professional and technical proficiency of the Ex-Agency according to the criteria of standards HRN EN 45011:1998 (EN45011:1998) and HRN EN ISO/IEC 17025:2006 (ISO/IEC 17025:2006) is now complete. An assessment was also conducted by the HAA according to standard HRN EN 45012:1998 (EN 45012:1998). Accreditation Certificates no. 3115/07 of 26 June 2007 and no. 1120/07 of 27 July 2007 were also issued. In 2008, the HAA drew up a Proposal of the Agreement on Co-operation with the MI concerning activities for the assessment of the proficiency of conformity assessment bodies, in accordance with the New and Global Approach Directives, which fall within the scope of the MI, including the ATEX Directive. The Agreement obliges the HAA to draw up assessment rules according to this Directive and provide further resources for the implementation of assessment. In the Croatian Standards Institute (HZN), the necessary infrastructure in the area of the ATEX Directive was set up through the formation of Technical Committee HZN/TO E31, Electrical apparatus for explosive atmospheres, 1993. The chairperson of Technical Committee HZN/TO E31 is a representative of Ex-Agency. The Republic of Croatia (the Croatian Standards Institute) participates actively in the work of the corresponding international Technical Committee EIC/TC 31, Electrical apparatus for explosive atmospheres, and hosts the Secretariat of the International Subcommittee IEC/SC 31J, Classification of hazardous areas and installation requirements. In the course of 2008, at the proposal of the Croatian Standards Institute, the Minister of the Interior published an amended List of Croatian standards for the application of the Ordinance on equipment and protective systems intended for use in potentially explosive atmospheres (OG 27/08), adding 13 standards to the 2006 List (OG 141/06). At the moment, of 84 European standards providing presumption of conformity in the area of the application of Directive 94/9/EC (ATEX), published in OJ C 90/2008, the Republic of Croatia has adopted and published 65 in the List. Of the 19 aligned European standards which are not on the list, 13 have been adopted as Croatian standards, and 6 have not yet been taken over. The List is amended according to the schedule of adoptions and proposals made by the HZN. Market surveillance in the area covered by the ATEX Directive is carried out by the inspection services of the fire protection inspectorate of the MI and the inspection services of other state administration bodies, in line with special regulations (occupational safety, electricity, mining). Their co-operation is satisfactory. There are currently 102 fire protection inspectors in the Republic of Croatia (out of 119 systematised posts), assigned to counties (police administrations) and in the seat of the Ministry of the Interior, whose scope of work includes supervising the application of the ATEX Directive. In 2008, the MI conducted restructuring of the fire protection inspection service in its seat, by raising the inspection level from section to department, while the new systematisation includes one more post for the position of fire protection inspector, which is currently occupied by a trainee. The number of systematised posts for fire protection inspectors in police administrations was also increased by
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two (one each in the Police Administrations of Istria and Meimurje), thus strengthening the administrative and institutional capacity of the service for monitoring the application of the ATEX Directive. There is currently a shortfall of 17 employees in fire protection activities. Strengthening of administrative capacities also takes place through the acquisition and upgrading of technical (IT) equipment for the purpose of effective surveillance, and through technical (IT) connections with other bodies for market surveillance, and these activities will continue in 2009. On 30 October 2008, a training seminar was held for police administration fire protection inspectors, in the field of supervising the application of the ATEX Directive (in conjunction with the Ex-Agency). B) KEY PRIORITIES The Agreement on Co-operation with the HAA concerning measures for assessing the proficiency of conformity assessment bodies, in accordance with the New and Global Approach Directives which fall within the scope of the MI, including the ATEX Directive, will be signed. The remaining aligned European standards will be adopted and published. The administrative and institutional capacities of the inspection services will continue to be strengthened through the training and development of existing staff and the recruitment of new staff, and the acquisition and upgrading of technical (IT) equipment.
3.1.3.11. Lifts
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on the safety of lifts (OG 135/05), transposing Directive 95/16/EC relating to lifts into Croatian legislation. The envisaged deadline for amending the Ordinance on the safety of lifts, to align it with observations made by the EC DG Enterprise and Industry, is the fourth quarter of 2008. Implementation measures The implementation of technical regulations for lifts is the responsibility of the Ministry of the Economy, Labour and Entrepreneurship. The Ordinance on the safety of lifts started to apply in 2006. The drawing up of instructions (in the form of a guide) for the application of the Ordinance is currently underway, and this should facilitate its application for producers, conformity assessment bodies and consumers. These instructions are planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures
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Measures are envisaged pertaining to the implementation of technical regulations in the field of the safety of new and existing lifts. Professional development will be encouraged and national conformity assessment bodies will be set up. In order to ensure the best possible implementation of technical regulations in the field of lifts, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. It is imperative to strengthen the administrative capacities of this Section which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. In 2010, implementation of current legislation in the field of the safety of lifts will continue.
3.1.3.12. Measuring instruments The State Office for Metrology (DZM) keeps abreast of the situation in the field of applying Directive 2004/22/EEC on measuring instruments (MID) and the Directive relating to non-automatic weighing instruments (NAWI) at the level of the European Union. Based on its findings, it will continue to update the current Ordinance on technical and metrological requirements for measuring instruments (OG 2/07). The lists of standards and normative documents, which prove conformity with the essential requirements contained in the MID, will also continue to be updated, in accordance with the list published in the Official Journal of the European Union. B) KEY PRIORITIES Greater involvement in the work of the committee of the European Co-operation in Legal Metrology (WELMEC) is planned, in the course of which instructions for the application of guidelines on measurements and non-automatic weighing instruments are to be drawn up. In 2009, translations will be made of the relevant WELMEC instructions relating to the MID for specific measurements included in the above guidelines. In addition, the DZM will continue to train its experts and improve its technical capacity in the field of applying the MID and NAWI Directive.
3.1.3.13. Pressure equipment
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, MELE passed the Ordinance on pressure equipment (OG 135/05), transposing Directive 97/23/EEC into Croatian legislation. Amendments to the Ordinance on pressure equipment (OG 6/06) postponed the application of the Ordinance until the authorisation of the conformity assessment body. The adoption of the new State Inspectorate Act serves to create the conditions for applying subordinate acts adopted under the Act on Technical Requirements for Products and on Conformity Assessment. In October 2008, the following legislation was adopted: 1. Ordinance on amendments to the Ordinance on pressure equipment (OG 126/08); 2. Ordinance on conformity assessment procedures for pressure equipment based on conformity documents issued abroad (OG 126/08), stipulating the conditions and procedure for the recognition of foreign conformity assessment documents;
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3. Ordinance on aerosol dispensers (OG 126/08), which has transposed Directive 75/324/EEC into Croatian legislation; 4. Ordinance on transportable pressure equipment, which has transposed Directive 1999/36/EEC into Croatian legislation. With a view to regulating the field of pressure equipment in use, the Government of the Republic of Croatia adopted the Regulation establishing the Agency for Pressure Equipment (OG 132/08), which is competent for the safety of pressure equipment in use, and in charge of concluding any proceedings launched on the basis of the old regulations, but relating to new pressure equipment. Such proceedings were within the competence of the Inspectorate for Pressure Vessels until the adoption of the new State Inspectorate Act. Implementation measures The Ministry of the Economy, Labour and Entrepreneurship, which is competent for the implementation of the Ordinance, has authorised a conformity assessment body (notified body) and published the List of Standards for the application of the Ordinance on pressure equipment. The application and implementation of the adopted subordinate legislation in the field of pressure equipment and the adoption of the instructions (in the form of a guide) for the application of the Ordinance, which should facilitate its application for producers, conformity assessment bodies and consumers, is underway. It is planned for adoption in the fourth quarter of 2008. B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures In order to ensure the best possible implementation of technical regulations in the field of pressure equipment, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. Strengthening the administrative capacities of this Section, competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure, is imperative. In 2010, implementation of the current technical regulations for pressure equipment will continue.
3.1.3.14. Gas appliances
A) ACHIEVEMENTS IN 2008 Legislative measures In November 2005, the Ministry of the Economy, Labour and Entrepreneurship adopted the Ordinance on gas appliances (OG 135/05), transposing Directive 90/396/EEC into Croatian legislation. Implementation measures The application of the Ordinance started in 2006 and its implementation is the responsibility of the Ministry of the Economy, Labour and Entrepreneurship - Industry and Privatisation Directorate. Instructions on applying the Ordinance are being drawn up, which should facilitate its application for producers, conformity assessment bodies and consumers.
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B) KEY PRIORITIES Legislative measures Further monitoring and alignment of legislation with EU legislation. Implementation measures Training will be encouraged and national conformity assessment bodies established. In order to ensure the best possible implementation of technical regulations, the Section for the Implementation of Technical Legislation has been set up within MELEs Industry Directorate. It is imperative to strengthen the administrative capacities of this Section which is competent for the implementation and application of technical legislation in the field of industry and for setting up and operating the technical infrastructure. Current legislation will be implemented.
3.1.3.15. Radio equipment and telecommunications terminal equipment
A) ACHIEVEMENTS IN 2008 Under the National Strategy for the Alignment of Technical Legislation, the Ministry of the Sea, Transport and Infrastructure (MSTI) is the body responsible for radio and telecommunications terminal equipment (RTT equipment). In the process of fulfilling the conditions for full membership of the European Union and for the purpose of closing negotiations on Chapter 10: Information Society and the Media, the new Act on Electronic Communications (OG 73/08) was adopted. It entered into force on 1 July 2008 and has been applied therefrom. The new Act is fully aligned with the relevant acquis in the field of electronic communication networks and services, which forms the valid 2002 regulatory framework in electronic communications. The provisions of Articles 97 to 100 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) relating to RTT equipment are not part of the scope of application of the new Act on Electronic Communications, in compliance with the principle of separation of regulations on electronic communications networks and services from regulations governing equipment, in accordance with the EU New Approach Directives. Nonetheless, these provisions will remain in force until 1 January 2009, that is, until the entry into force of the new Ordinance on RTT equipment (OG 112/08). The new Ordinance on RTT equipment (OG 112/08) was adopted on the basis of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07). This Ordinance, which is fully aligned with Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on RTT equipment and the mutual conformity recognition, prescribes conditions concerning placing RTT equipment on the market and putting it into service, the manner and procedure of conformity assessment for RTT equipment, the manner and procedure of authorising conformity assessment bodies for RTT equipment, the procedure of issuing approvals for import and placing RTT equipment on the market, markings and the manner of marking RTT equipment, and the publication of the list of harmonised standards necessary for the conformity assessment of RTT equipment. Until the accession of the Republic of Croatia to the European Union or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), the Ordinance will continue to prescribe the obligation of issuing the Croatian Declaration of Conformity by the producer, its authorised representative or other person responsible for placing the product on the market in the Republic of Croatia (if the producer has no authorised representative in the Republic of Croatia), and the obligation to obtain approval for the import and/or placing of RTT equipment on the market in the Republic of Croatia by the conformity assessment body in charge of RTT equipment.
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Furthermore, the said Ordinance transfers competence for the publication of standards necessary for the conformity assessment of RTT equipment to the ministry in charge of electronic communications (i.e. MSTI), and also competence for the authorisation of conformity assessment bodies, while the procedure of establishing the proficiency of conformity assessment bodies is conducted by the Croatian Accreditation Agency (HAA), on behalf of MSTI, in accordance with the agreement on the implementation of procedures for determining the proficiency of conformity assessment bodies, concluded with MSTI, and the instruction on determining the proficiency of conformity assessment bodies, adopted by the Minister of the Sea, Transport and Infrastructure. MSTI and the HAA have entered into negotiations with a view to concluding this agreement, by which the HAA will assume the obligation of drawing up a proposal for the instruction on determining the proficiency of conformity assessment bodies, in line with Directive 1999/5/EC, and ensure sufficient capacity for the implementation of the assessment procedure. Until the accession of the Republic of Croatia to the European Union or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) or the adoption of a decision authorising at least one conformity assessment body in accordance with the said Ordinance, all the duties of the authorised conformity assessment body for RTT equipment will be conducted by the Croatian Post and Electronic Communications Agency (HAKOM). Inspection supervision of RTT equipment on the market is conducted by MSTI inspectors for electronic communications, while professional supervision of RTT equipment on the market is conducted by HAKOM supervisors for electronic communications, in accordance with their respective powers, laid down in the Act on Technical Requirements for Products and on Conformity Assessment and the Act on Electronic Communications. In the course of 2008, MSTI inspectors for electronic communications carried out inspection visits to six legal and natural persons authorised to import and/or place RTT equipment on the market in the Republic of Croatia. B) KEY PRIORITIES For the purpose of implementing the Ordinance on RTT equipment, in the part concerning the authorisation of conformity assessment bodies, it is planned to conclude an agreement between MSTI and the HAA, relating to the implementation of procedures for establishing the proficiency of conformity assessment bodies. In co-operation with the Ministry of the Economy, Labour and Entrepreneurship, further efforts are required to take significant steps forward in negotiations concerning the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in the field of RTT equipment.
3.1.3.16. Electromagnetic compatibility (EMC)
A) ACHIEVEMENTS IN 2008 According to the National Strategy for the Alignment of Technical Legislation, the competent authority for the area of electromagnetic compatibility is the Ministry of the Sea, Transport and Infrastructure (MSTI). In the process of fulfilling the conditions for full membership of the European Union and for the purpose of closing negotiations on Chapter 10: Information Society and the Media, the new Act on Electronic Communications (OG 73/08) was adopted. It entered into force on 1 July 2008 and has been applied therefrom. The new Act is fully aligned with the relevant acquis in the field of electronic communication networks and services, which forms the valid 2002 regulatory framework in electronic communications. The provisions of Article 102 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) relating to electrical and other technical equipment in terms of electromagnetic compatibility, in particular production, conformity assessment, issuing of conformity certificates, marking, authorisation of conformity assessment bodies and placement on the market, are not part of the scope of
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application of the new Act on Electronic Communications, in compliance with the principle of separation of regulations on electronic communications networks and services from regulations governing equipment, in accordance with the EU New Approach Directives. Nonetheless, they will remain in force until 1 January 2009, that is, until the entry into force of the new Ordinance on electromagnetic compatibility (OG 112/08). The new Ordinance on electromagnetic compatibility (OG 112/08) was adopted on the basis of the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07). This Ordinance, which is fully aligned with Directive 2004/108/ EC, prescribes the electromagnetic compatibility requirements (EMC), which must be satisfied by electrical and other technical equipment produced, imported and placed on the market in the Republic of Croatia, the manner and procedure of conformity assessment of such equipment with electromagnetic compatibility requirements, the manner and procedure of authorising conformity assessment bodies, markings and the manner of marking electrical and other technical equipment, and the publication of the list of harmonised standards necessary for the conformity assessment of electrical and other technical equipment. Until the accession of the Republic of Croatia to the European Union, or until the entry into force of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), the Ordinance will continue to prescribe the obligation of issuing the Croatian Declaration of Conformity by the producer, his authorised representative or other person responsible for the placing of the product on the market in the Republic of Croatia (if the producer has no authorised representative in the Republic of Croatia), and the obligation to keep and provide for review to the competent authorities technical documentation duly showing conformity with the essential requirements of electromagnetic compatibility, and the obligation to obtain a certificate of conformity for equipment and appliances with essential electromagnetic compatibility requirements, by the body authorised for conformity assessment, before placing the equipment on the market in the Republic of Croatia. Furthermore, this Ordinance transfers competence for the publication of the lists of standards in the field of electromagnetic compatibility to the ministry in charge of electronic communications (that is, MSTI), and also for the authorisation of conformity assessment bodies, while the procedure of establishing the proficiency of conformity assessment bodies is conducted by the Croatian Accreditation Agency (HAA), on behalf of MSTI, in accordance with the agreement on the implementation of procedures for determining the proficiency of conformity assessment bodies, concluded with MSTI, and the instruction on determining the proficiency of conformity assessment bodies, adopted by the Minister of the Sea, Transport and Infrastructure. MSTI and the HAA have entered into negotiations with a view to concluding this agreement, by which the HAA will assume the obligation to draw up a proposal of the instruction on determining the proficiency of conformity assessment bodies, in line with Directive 2004/108/EC, and ensure sufficient capacity for the implementation of the assessment procedure. Under the valid Ordinance on electromagnetic compatibility (EMC) (OG 16/05), competent conformity assessment bodies are authorised by the HAKOM Council, in accordance with Article 35 of the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05) and the Ordinance on authorisation for the pursuit of business in the telecommunications sector (OG 183/04). So far, the HAKOM Council has granted authorisation to five bodies for assessing conformity with the requirements of electromagnetic compatibility, in the field of electrical and other technical equipment which may cause electromagnetic disturbances: 1. KONAR Electrotechnical Institute d.d. 2. CEI-IETA d.o.o. 3. ELKRON d.o.o. 4. POMORSKI CENTAR ZA ELEKTRONIKU d.o.o. 5. Quality Control Institute d.o.o. The Laboratory for EMC of the company KONAR Electrotechnical Institute d.d. is accredited by the Croatian Accreditation Agency (Certificate No: 1129/07) according to the requirements of standard HRN EN ISO/IEC 17025:2007 for testing electromagnetic compatibility.
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Pursuant to Article 13, paragraph 4 of the new Ordinance on electromagnetic compatibility (EMC) (OG 112/08), powers granted to conformity assessment bodies, under regulations valid until the date of entry into force of the new Ordinance, will apply until the expiration of the validity period, provided the bodies comply with the requirements laid down in the Ordinance by 31 December 2009. All data on bodies authorised to perform conformity assessment with electromagnetic compatibility requirements are published on the HAKOM website, www.telekom.hr. Inspection supervision of the market in electrical and other technical equipment under the current 2005 Ordinance is conducted by MSTI inspectors for electronic communications, the Transport Inspection Directorate, the Service for the Inspection of the Post and Electronic Communications, and competent inspectors with the State Inspectorate. The new Ordinance on electromagnetic compatibility (EMC) (OG 112/08) prescribes the exclusive competence of the State Inspectorate. Its inspectors conduct inspection supervision of electrical and other technical equipment on the market, in accordance with the Act on Technical Requirements for Products and on Conformity Assessment, and the above Ordinance. In the course of 2008, MSTI inspectors for electronic communications carried out inspection visits to six legal and natural persons authorised to import and/or place electrical and other technical equipment and appliances on the market in the Republic of Croatia. B) KEY PRIORITIES For the purpose of implementing the Ordinance on electromagnetic compatibility, in the part concerning the authorisation of conformity assessment bodies, it is planned to conclude an agreement between MSTI and the HAA relating to the implementation of procedures for establishing the proficiency of conformity assessment bodies. In co-operation with the Ministry of the Economy, Labour and Entrepreneurship, further efforts are required to take significant steps forward in negotiations concerning the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in the field of electromagnetic compatibility.
3.1.3.17. Recreational craft
A) ACHIEVEMENTS IN 2008 The recreational craft sector in the Republic of Croatia is fully in line with Directive 94/25/EC and is ready to accede to the ACAA. The Croatian Register of Shipping, which is a conformity assessment body accredited by the Croatian Accreditation Agency, issued 36 conformity assessment certificates up to 1 October 2009 (35 Module Aa and 1 Module G). Data on certificates issued by notified bodies in the EU in the same period are not available. Since type-approvals issued under former rules ceased to apply on 1 January 2008, all newly-produced craft placed on the market in the Republic of Croatia after this date must be in line with the provisions of Directive 94/25/EC. Croatian producers must duly complete the Declaration of Conformity, as displayed at the time of registration in harbourmasters offices and branch offices. The Association of Small Shipbuilders, which brings together the producers of recreational craft within the Croatian Chamber of Economy, organises an annual lecture on the application of the Directive, with a view to providing further training for producers. A representative of the Republic of Croatia regularly attends sessions of the ADCO Group as an observer (Brussels, 20-21 February 2008, Paris, 16-17 October 2008).
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B) KEY PRIORITIES If conditions are met (signing the ACAA), the participation of representatives of the Republic of Croatia in the work of the Standing Committee is planned, as is the participation of representatives of the Croatian notified body in the work of the Recreational Craft Sectoral Group. After the conclusion of the ACAA, the Republic of Croatia will inform the EC that the Croatian Register of Shipping is to be the notified body for the recreational craft sector. By the end of 2008, it is expected that the Croatian Standards Institute will complete the procedure of adopting the remaining standards relevant to the recreational craft sector. The Republic of Croatia will continue to participate in the work of the ADCO Group.
3.1.3.18. Cableway installations designed to carry persons
A) ACHIEVEMENTS IN 2008 In accordance with its competence for the field of cableway installations and the Act on Cableway Installations Designed to Carry Persons (OG 79/07), which was adopted by the Croatian Parliament on 13 July 2007, the Ministry of the Sea, Transport and Infrastructure proceeded to draw up subordinate legislation, as envisaged by the above Act. The ordinances will be completely aligned with New Approach Directive 2000/9/EC, Cableway installations designed to carry persons. In the course of drawing up these ordinances and the plan of ordinances envisaged for 2008, an eminent group of experts in the field of cableway installations, i.e. members of working groups for drawing up the ordinances, concluded that it was necessary to merge several ordinances into a single one. In drawing up the ordinances, the working group concluded that, in view of the scope and complexity of the subject matter dealing with transport by cableway installations, it would be necessary to merge some ordinances, which overlap in the field of their application, into a single ordinance, in order to facilitate implementation. Consequently, the following ordinances: Ordinance on cableway infrastructure; Ordinance on cables for cableway installations; Ordinance on cableway propulsion, braking and mechanical and electrical devices; Ordinance on vehicles and towing devices; Ordinance on safety components of cableways; Ordinance on the maintenance and control of safety of cableway installations (not envisaged in the NPAEU) Was merged into the: Ordinance on the technical standards for cableway installations designed to carry persons (OG 155/08)
It should be noted that the Ordinance on the equipment of cableway stations is not envisaged in the NPAEU for 2008, but it will be included in the ordinance which will be the product of the merger. As planned in the NPAEU for 2008, Ordinance on the content, manner of conducting and form of safety analyses and safety reports for cableways was adopted in OG 155/08.
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Ordinance on the procedure of conformity assessment, the content and appearance of the declaration of conformity and the appearance of the conformity marking for safety components and subsystems of cableways is planned for the first quarter of 2009. The publication of these ordinances will result in full alignment with EU legislation. Work on accepting European standards as Croatian standards in the HZN/TO 515 is also complete. B) KEY PRIORITIES In 2009 there is still an outstanding obligation to draw up ordinances, as prescribed in the Act on Cableway Installations Designed to Carry Persons, envisaged in the plan for 2009. In 2009 and 2010, efforts will be made to strengthen further the administrative and institutional capacities of the services responsible for monitoring the implementation of Directive 2000/9/EC, and to continue participation in the work of the Standing Committee on Cableway Installations at the EC. In view of the fact that the Ministry of the Sea, Transport and Infrastructure adopted the Regulation on the internal organisation of the Ministry in May 2008, which envisages the formation of the Section for Cableway Installations Designed to Carry Persons in the Department for Rail Transport Safety with the Rail Transport Directorate, and the Department for the Inspection of Cableway Installations Designed to Carry Persons in the Service for Rail Transport and Cableway Safety Inspection with the Directorate for Transport Inspection, the systematisation includes the recruitment of 4 new employees in the Section for Cableway Installations Designed to Carry Persons, and the recruitment of 2 inspectors in the field of cableway installations designed to carry persons. In 2009, the recruitment is planned of an employee in the Section for Cableway Installations Designed to Carry Persons, and an inspector in the Department for the Inspection of Cableway Installations Designed to Carry Persons.
3.1.3.19. Construction products
A) ACHIEVEMENTS IN 2008 According to the plan for aligning key regulations with the acquis communautaire for Chapter 1: Free Movement of Goods, the Ministry of Environmental Protection, Physical Planning and Construction assumed the obligation to draw up the following by the end of the third quarter of 2008: The Proposal of the Construction Products Act, to be submitted to the Government of the Republic of Croatia for further procedure; the Proposal of the above Act was submitted for procedure within time and was published in the Official Gazette (86/08); The Ordinance on the conformity assessment, conformity documents and marking of construction products; this ordinance was adopted within time and published in the Official Gazette (103/08); The Ordinance on technical approvals for construction products; this ordinance was adopted within time and published in the Official Gazette (103/08); The Ordinance on the inspection of construction products; this ordinance was adopted within time and published in the Official Gazette (113/08); The Technical regulation for steel constructions; this ordinance was adopted within time and published in the Official Gazette (112/08). B) KEY PRIORITIES The adoption is planned of the Technical Regulation for composite steel-concrete structures, based on Article 19 of the Physical Planning and Construction Act (OG 76/07).
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The implementation of Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products is planned in the part concerning the application of construction products for composite steel-concrete structures. In 2009, the plan is to proceed with measures aimed at strengthening further administrative capacities in the field.
3.1.3.20. Medical devices
A) ACHIEVEMENTS IN 2008 In 2008, the Medical Devices Act (OG 67/08) was adopted, transposing into Croatian legislation the provisions of Directive 2000/70/ EC of the European Parliament and of the Council of 16 November 2000 and Commission Directive 2005/50/EC of 11 August 2005. B) KEY PRIORITIES In 2009, it is planned to adopt the Ordinance on classification, placing on the market, essential requirements, conformity assessment procedures and the register of medical devices, which should serve to achieve alignment with Directive 2003/32/EC of 23 April 2003 introducing detailed specifications as regards the requirements laid down in Council Directive 93/42/EEC with respect to medical devices manufactured using tissues of animal origin, Directive 84/539/EEC of 17 September 1984 relating to electro-medical equipment and Directive 2003/12/EC of 3 February 2003 on the reclassification of breast implants.. It is also planned to adopt the Ordinance on monitoring adverse events linked to medical devices. Market surveillance in the field of medical devices is conducted by the pharmaceutical inspectorate of the Ministry of Health and Social Welfare.
3.1.4. Procedural matters

3.1.4.1. Notification procedures Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services As part of the process of aligning Croatian technical legislation with EU legislation, at its session of 20 June 2008 the Government of the Republic of Croatia adopted the Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services. The Regulation was published in the Official Gazette of the Republic of Croatia (73/08) dated 26 June 2008 and entered into force on the date of its publication in the Official Gazette (other than those provisions which will enter into force upon the accession of the Republic of Croatia to the European Union). The Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services lays down the formal notification procedure with respect to the World Trade Organization (WTO) and will be applied upon the entry into force of the Regulation with respect to the EU, which will enter into force upon the entry of the Republic of Croatia to the EU.
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By regulating notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services with respect to the EU, this Regulation serves to align Croatian legislation with 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. All state administration bodies must notify the competent bodies of the WTO and the EU before submitting any regulation for procedure to the Government of the Republic of Croatia (through the Central Contact Point set up in the Ministry of the Economy, Labour and Entrepreneurship). Who is in charge of the notification procedure, within the meaning of this Regulation? The notification procedure in the field of technical regulations is conducted by the Central Contact Point (CCP) within the central state administration body in charge of the economy, viz: Notification of technical regulations and information society services with respect to the EU; Notification of technical regulations related to the WTO/TBT Agreement (Agreement on Technical Barriers to Trade).
The Central Contact Point co-operates, co-ordinates and is competent for the work of two contact points: Contact Point (CP) for the operative implementation of notification procedures related to the WTO/SPS Agreement (Agreement on the Application of Sanitary and Phytosanitary Measures), which is active within the central state administration body in charge of agriculture; Contact Point (CP) for the operative implementation of notification procedures with respect to the EU and the implementation of notification procedures related to the WTO/TBT Agreement (Agreement on Technical Barriers to Trade) in the field of standardisation, which operates within the national standardisation body of the Republic of Croatia (HZN). In accordance with the provisions of the Regulation concerned, the competent authorities of state administration drawing up technical regulations have the duty to notify the competent state administration body (MELE), by using the form prescribed by the minister of the central state administration body competent for the economy, of any regulation within their competence, before submitting it for regular procedure to the Government of the Republic of Croatia. The state administration body competent for the economy, as the Central Contact Point, has the duty to notify the competent authority in the EU of the proposed regulation being prepared (as part of the notification procedure with respect to the EU) or the competent authority of the WTO (as part of the notification procedure related to the WTO/TBT and WTO/SPS). In the notification of a regulation submitted to the Central Contact Point, the competent authorities must state the following: the legal grounds for drawing up the regulation, i.e. the conformity assessment procedure; data on the person in charge of contacts; data on products and/or services included in the regulation being prepared; the goals and reasons for drawing up the regulation; data on the international or European standards, European directives or recommendations which form the basis for the regulation, i.e. which relate to the said products or services, and an opinion on whether the proposed regulation should be subject to notification procedure, in line with EU and WTO rules. The Central Contact Point then notifies the authority competent for the regulation of the period during which it may not publish the regulation. The national standardising authority will keep the Central Contact Point notified of any standards subject to notification procedures with respect to the EU. The rules of procedure to be adopted by the minister of the central body of state administration in charge of the economy will lay down the manner of conduct and co-operation among the Central Contact Point, competent authorities, contact points, and the manner of co-operation with economic operators.
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As soon as the competent authority publishes the regulation, it must state, along with the regulation, that, in the procedure of its adoption, all provisions on the notification procedure in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services have been applied, in accordance with the Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services. The notification is published in the Official Gazette. Notification procedure under the WTO/TBT Agreement The Central Contact Point notifies the WTO Secretariat of the proposed regulation through the Permanent Mission of the Republic of Croatia to the United Nations and notifies the competent authority in the Republic of Croatia that, for a period of at least three months from the date on which the WTO Secretariat received the notification, it must not adopt the said regulation. The Central Contact Point receives requests, opinions and written observations from the WTO and its member states concerning the proposed regulation and submits them to the competent authority in the Republic of Croatia, which must issue a statement, from which it is evident whether the observations will be accepted fully or partly, and the reasons for non-acceptance, should that be the case. The Central Contact Point will forward the reply promptly to the WTO member state which submitted the request or issued a written observation concerning the proposed regulation. The WTO Secretariat forwards the notifications of WTO member states, concerning regulations being prepared, to the Permanent Mission of the Republic of Croatia to the United Nations in Geneva, which then forwards them to the Central Contact Point, and the Central Contact Point forwards them to the competent state administration body in the Republic of Croatia. If the competent body in the Republic of Croatia is of the opinion that the proposed regulation may result in unjustified barriers to international trade, it must notify the Central Contact Point and provide an explanation of its opinion, proposing amendments to the disputed proposal. The competent body in the Republic of Croatia may propose an extension of the period within which another WTO member state may not adopt the regulation concerned. Notification procedures under the WTO/SPS Agreement Notification procedures under the WTO/SPS Agreement are conducted according to the same procedure as the notification procedures under the WTO/TBT. Notification procedures with respect to the EU The competent state administration body drawing up the regulation forwards the proposed regulation to the EC through the Central Contact Point, providing an explanation of the reasons for adopting the regulation. The competent body must observe a standstill period of at least three months from the date the EC received the notification before adopting the technical regulation. If, within three months of the date on which the EC received the notification of the proposed regulation, the EC or any other EU Member State issues an reasoned opinion that the proposed regulation may pose barriers to free movement of goods on the internal market, the competent body will postpone the adoption of the regulation for a period of six months from the date on which the EC received the notification, and will then review the observations and incorporate them in the new proposal of the regulation. If, within three months of the date on which it received the notification, the EC announces that it intends to propose or publish a directive, regulation or decision in the field concerned, or if it establishes that the proposed regulation relates to a subject dealt with in a proposal of a directive, regulation or decision proposed to the Council of the European Union, the competent state administra-
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tion body must postpone the adoption of the proposal for a period of twelve months from the date on which the EC received the notification. If, within that period, the European directive, regulation or decision is not published, the national regulation may be published, and if the European directive, regulation or decision is published within that period, the publication of the national regulation must be abandoned and alignment of national legislation with the new European legislation must be conducted. The standstill period may be extended to eighteen months if the Council of the EU accepts the common standpoint that it is necessary to harmonise the field in question. The Central Contact Point notifies the competent body in the Republic of Croatia on notifications received concerning regulations proposed by EU Member States, that is, their national standardising bodies. Observations on the proposals of national regulations concerning possible barriers to trade must be delivered within three months of the date on which the Central Contact Point receives the proposed regulation. Positive effects of the implementation of the Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services As the result of implementing the Regulation on formal notification procedures in the field of standards, technical regulations and conformity assessment procedures, and regulations on information society services, the Republic of Croatia will have an opportunity to express its opinions concerning proposals for national regulations made by other EU Member States and signatories of the WTO/ TBT and WTO/SPS Agreements. Through the establishment of a network of contacts with the business community and exporters and through dissemination of information, Croatian businesspersons have the opportunity to acquaint themselves with the new national regulations of other states before they are actually published. They can benefit greatly from the procedure if they take advantage of the opportunity offered and react on time to prevent unnecessary barriers to the free movement of goods.
3.1.4.2. Checks at external borders
A) ACHIEVEMENTS IN 2008 Legislative measures As the legal framework for the work of the Customs Directorate at external borders is subject to Chapter 29: Customs Union, measures aligning legislation with the acquis have continued as planned in this Chapter. Implementation measures The Draft Manual for work procedures at the border, which is necessary for the implementation of higher standards in work at external borders, was completed as planned, thus enabling the effective implementation of Regulation 339/93. B) KEY PRIORITIES Legislative measures As the legal framework for the work of the Customs Directorate at external borders is subject to Chapter 29: Customs Union, measures aligning legislation with the acquis have continued as planned in this Chapter. Implementation measures By the end of 2009, it is planned to set up a joint system for the maintenance of statistical data gathered by all agencies working at external borders.
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In the course of 2009, in line with European practice, the State Inspectorate, in terms of the market surveillance of technical products, will continue to strengthen co-operation with the Customs Directorate, in connection with implementing efficiently in the future Council Regulation (EEC) No 339/93 of 8 February 1993 on checks for conformity with the rules on product safety, in the case of products imported from third countries. Under the Agreement on Co-operation concerning Integrated Border Management, which entered into force on 3 May 2006, and which was signed by the State Inspectorate and the MF, that is, the Customs Directorate, amongst others, co-operation will continue. At the same time, activities within the PHARE 2005 project entitled Market Surveillance System in the Field of Technical Products, which is currently being implemented, will serve to define co-operation with the Customs Directorate in the field of surveillance of technical products.
3.1.4.3 Control of the acquisition and possession of weapons
A) ACHIEVEMENTS IN 2008 The legal framework in this sector includes the Weapons Act (OG 63/2007), which is aligned with Council Directive 91/477/EEC of 18 June 1991 on controlling the acquisition and possession of weapons, and with the Protocol against Illicit Manufacturing and Trafficking in Firearms, Their Parts and Components and Ammunition, supplementing the United Nations Convention against Transnational Organised Crime. The following implementing regulations were adopted in 2008, pursuant to the Weapons Act (OG 63/07), which has applied since 1 September 2007: Ordinance on the format of documents, and the forms and methods to be used to keep weapons and ammunition records (OG 33/08 of 21 March 2008); Ordinance on the type and permitted calibres of self-defence weapons (OG 33/08 of 21 March 2008); Ordinance on the conduct of police officers during the procedure of issuing approval to a natural person for the acquisition of a weapon (OG 33/08 of 21 March 2008); Ordinance on the type and permitted calibres of sport weapons (OG 35/2008 of 28 March 2008); Ordinance on the manner of disposing of weapons and ammunition seized during administrative, misdemeanour and criminal procedures and weapons surrendered to the Ministry of the Interior (OG 49/08 of 29 April 2008); Ordinance on special conditions for the production and placement of and trade in weapons and ammunition, repair and modification of weapons and management of civilian shooting ranges (OG 69/08 of 13 June 2008); Ordinance on the procedure and means of disabling firearms (OG 86/08 of 23 July 2008).
B) KEY PRIORITIES In 2009, the strengthening of administrative capacity will continue, through the training of current staff and the recruitment of new staff.
3.1.4.4. Free movement of cultural property
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The free movement of cultural property (cultural objects) in the Republic of Croatia is regulated by the Act on the Protection and Preservation of Cultural Objects (OG 69/99, 151/03, and 157/03) and the Ordinance on the conditions for issuing licences for the export and movement of cultural objects from the Republic of Croatia (OG 141/06), which are in line with EU legislation and standards. All conditions necessary for the export of cultural objects have been created, according to the standards and practice of the EU. The appropriate administrative and organisational strengthening of the Directorate for the Protection of Cultural Heritage, which is in charge of the implementation of such regulations, has been achieved. In 2008, a new conservation department was formed, and the Directorate for the Protection of Cultural Heritage now has 279 employees. B) KEY PRIORITIES Further administrative strengthening of the conservation service; Further implementation of legislation and ordinances.
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3.2. FREEDOM OF MOVEMENT FOR WORKERS

3.2.1. Access to the labour market
A) ACHIEVEMENTS IN 2008 In order to ensure that European Union nationals have the same rights as Croatian citizens, in July 2008 the new Act on Employment Mediation and Unemployment Rights (OG 80/08) was passed, which was aligned with Directive 2004/38/EC of the European Parliament and of the Council 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 Member States. By virtue of the Act, normative prerequisites were established for the direct application of the Regulations in this area. The Act will enter into force on 1 January 2009, with the exception of the provisions prescribing the same rights for European Union nationals and Croatian citizens, which will enter into force on the date of accession of the Republic of Croatia to the European Union. EURES As regards the preparations of the Croatian Employment Service for access to the labour market within the framework of EURES, an analysis is currently being carried out of the CESs business procedures relating to services for employers and unemployed persons. The organisational scheme of the CES is also being gradually adjusted and its human resources strengthened as regards services relating to the mobility and free movement of labour, taking into account the EURES Charter, a document of the European Co-ordination Office regulating the implementation of activities within the framework of co-operation with EURES. Staff from the Croatian Employment Service participate in international seminars and study visits on EURES topics, through which they are acquainted with examples of best practice in EU Member States, regarding the methodology of work in the field of the mobility and free movement of workers. In parallel with this, official contacts are maintained with EURES managers and advisers, for the purpose of organising seminars on the subject of labour mobility in the Republic of Croatia. In this respect, the following activities have been undertaken: in November 2007, representatives of the Croatian Employment Services undertook a study visit to Bulgaria, where they were acquainted with the obligations of EU Member States in respect of EURES and the manner of adjustment of their public employment service to EURES requirements; a section for EURES and international mediation is currently being established, and its head is about to be appointed; currently, the Republic of Croatia only has employment agreements with the Federal Republic of Germany and the Republic of Slovenia, but the Croatian Employment Service is making efforts to provide job mediation services for Croatian citizens in other countries too. With the aim of improving the quality of services offered to foreign employers with whom no employment mediation contracts have been concluded in the transitional period, i.e. up to inclusion in the EURES network, the employment mediation procedure involving these employers was standardised in March 2008; the International Organisation for Migration and the Croatian Employment Service have established the Migration Information Centre at the Zagreb branch office, as part of the AENEAS Project. Since 1 January 2008, the new Aliens Act (OG 79/07) has been applied, which, among other things, governs the employment of aliens. In the Republic of Croatia, aliens may work on the basis of a work or business permit and, before beginning to work, they must obtain a temporary stay permit, unless otherwise specified by the Aliens Act. Pursuant to this Act, aliens are guaranteed the same level
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of rights in relation to the conditions of employment and work, as laid down by the Croatian labour legislation, collective agreements and arbitration awards. The Croatian Government determines an annual quota for work permits no later than 31 October of the current year for the following year, involving both the renewal of work permits already issued and the issuance of permits for new employment. A proposal for an annual quota for work permits is drawn up by the ministry responsible for labour, on the basis of opinions received from the Croatian Employment Service, the Croatian Chamber of Economy, the Croatian Chamber of Trades and Crafts, and representatives of social partners. Within the annual quota for work permits, activities and professions where employment is permitted are specified, as is the number of work permits for each of these activities and professions. A quota for seasonal employment may also be stipulated. Work permits are issued to aliens by competent police administrations or police stations of the Ministry of the Interior, pursuant to the Decision on setting the annual quota for work permits granted to aliens for the relevant calendar year. Pursuant to the Decision on setting the annual quota for work permits for the calendar year 2008 (OG 130/07) and the Decision on amendments to the Decision on setting the annual quota for work permits for the calendar year 2008 (OG 106/08), the total quota for the calendar year 2008 was 10,242 work permits. Most of these permits were approved for the following industrial activities: construction industry 5,330; shipbuilding 1,700; tourism and catering 285; transport 118; manufacturing industry 106; science and education 32; health services 25; IT services 25; culture 21. Certain categories of aliens may work in Croatia on the basis of a work permit issued outside the annual quota for work permits. These are: daily migrants; key personnel, workers and their family members whose status has been regulated by the Stabilisation and Association Agreement; aliens holding key positions in companies and their branch offices and representative offices; aliens transferred as part of internal staff transfers within companies, according to the Marrakesh Agreement; teachers teaching in the language and script of a national minority; on the basis of an international agreement. The requirements for obtaining a business permit have been changed in that now a business permit may only be issued to an alien on the basis of approval by the state administrative office responsible for economic affairs or by the state administrative office responsible for the activity pursued by the alien. The Ministry of the Economy, Labour and Entrepreneurship has issued the Ordinance on the procedure for granting approvals (OG 26/08), which lays down the requirements aliens must meet in order to obtain approval from the competent office. Thus, an alien the founder of a company or a trader or craftsman who has registered a business activity in Croatia must prove that their business operations would benefit the Croatian economy, that they would introduce new production processes, new equipment and modern technology, boost job creation and employ local labour. The Act has broadened the category of aliens who may work in Croatia without a work or business permit on the ground that they have regulated their status in Croatia (aliens who have been granted permanent stay, aliens who have been granted asylum, human trafficking victims, aliens who have been granted temporary stay for the purpose of family reunification with a Croatian national, an alien on permanent stay or an asylum seeker, aliens who have the status of a regular pupil or student in the Republic of Croatia, aliens who have been granted temporary stay for the purpose of scientific research, aliens who have been granted an autonomous approval for stay in the Republic of Croatia). The Aliens Act also specifies the categories of aliens who may work without a work or business permit up to 30 days during a year. These are: aliens providing services in tourism, procurators, management and supervisory board members of a company, representatives of religious communities, experts in the area of cultural heritage protection, aliens engaged in activities related to the assembly, delivery or servicing of machinery or equipment, university professors, native speakers of foreign languages, scientists participating in professional training, civilian and military government officials from other countries participating in projects undertaken with the Republic of Croatia, accredited correspondents or reporters of foreign media, aliens attending professional training in a legal entity based in the Republic of Croatia, which is linked to the foreign employer in organisational terms, etc.
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There is a special category of aliens who are exempted from the Aliens Acts provisions governing the issuance of work or business permits, and who are only obliged to regulate their temporary stay for work purposes (volunteers working in non-profit associations and institutions, aliens working on the basis of international agreements on expert and technical assistance, which have been concluded between the Republic of Croatia and the European Union, other states or international organisations). A chapter in Title XI of the Aliens Act regulates the entry, stay and work of nationals of the European Economic Area (EEA) member states, their family members and family members of Croatian nationals, while a special chapter in Title XII regulates the entry, stay and work of third-country nationals who have been granted permanent stay in another EEA member state and their family members. Pursuant to the provisions of Title XI, nationals of EEA member states wishing to work in Croatia do not need a work or business permit. The provisions of Titles XI and XII will enter into force on the day of accession of the Republic of Croatia to the European Union. The aforesaid Titles of the Aliens Act have been aligned with Council Directive 2004/38 of 2 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 and with Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals who are long-term residents. The Ordinance on methods for determining the requirements to be met by nationals of European Economic Area member states and their family members and by family members of Croatian nationals applying for entry into and stay in the Republic of Croatia (OG 62/08) was issued on the basis of the Aliens Act. The Ordinance lays down the methods for determining the requirements for stay of nationals of EEA member states and their family members, the form and content of the application used to register temporary stay by nationals of EEA member states, the sojourn card for family members of nationals of EEA members states, the approval for permanent stay granted to nationals of EEA members states and their family members, and the content and methods of keeping data registers. The application of the Ordinance will also begin after the date of accession of the Republic of Croatia to the European Union. The administrative capacity of the Ministry of the Interior is being strengthened by organising staff training and by adding three more posts in the job classification for the Section for Status Issues of Aliens in the Ministrys headquarters. B) KEY PRIORITIES Work will continue on strengthening the administrative capacity by organising training for the existing staff and by filling newly established posts.
3.2.2. Co-ordination of social security systems

Croatian social security legislation covers pension insurance, health insurance, unemployment insurance and family benefits, that is, all branches of social security covered by Regulation 1407/8, which is the basic regulation of European social security legislation, and by Regulation 574/72, which contains procedural provisions for the application of Regulation 1408/7. The legal framework for social security and, specifically, for free movement of workers, is provided by bilateral social security agreements aimed at co-ordinating the social security systems of contracting states in these areas. Currently, the Republic of Croatia co-ordinates its social security system with 24 states, 16 of which are EU Member States, based on old social security conventions applied by the Republic of Croatia under the provisions of the Vienna Convention on Succession of States in Respect of Treaties, and on new social security agreements which Croatia has concluded as an independent state. The agreements are mostly based on the principle of insurance, which means that they apply to all persons who are or were covered by the laws of the contracting party, and also to their family members. They are based on generally accepted European principles, which correspond to the principles contained in European Regulations on the co-ordination of social security systems.
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Regarding the institutional framework for the co-ordination of social insurance and/or social security systems, the competent authorities are still the Ministry of the Economy, Labour and Entrepreneurship, the Ministry of Health and Social Welfare and the Ministry of Family, Veterans Affairs and Intergenerational Solidarity, while the Croatian Pension Insurance Institute, the Croatian Institute for Health Insurance, the Croatian Institute for Occupational Health and Safety Health Insurance, and the Croatian Employment Service are the competent institutions. In the forthcoming period, the principal task will continue to be to strengthen the administrative structures for the co-ordination of social security systems, since the planned progress has not been achieved, as has constantly been brought to our attention in the documents of the European Commission. Thus, the Croatia 2007 Progress Report states in Chapter 4 Ability to assume the obligations of membership, 4.2 Freedom of movement for workers that there has been no progress on co-ordination of social security systems, and that sufficient administrative capacity for co-ordination of social security systems has not yet been developed. The amended Decision on the Accession Partnership of 5 February 2008 repeats this, adding that any discriminatory measures towards EU migrant workers and EU citizens should be abolished (which has already been done through legislative amendments adopted in the preceding period). In this respect, it should be emphasised that efforts to strengthen the administrative capacity for applying the acquis communautaire are closely related to the need to undertake public administration reform, which was identified as one of the key priorities in the amended Decision on the Accession Partnership. Consequently, further developments concerning public administration reform will continue to be monitored, and measures will be undertaken to reinforce administrative capacity. This, in particular, pertains to the strengthening of the administrative capacity of state administration bodies in charge of supervising the legality of competent institutions activities. This will entail the training of existing staff, and the development of the skills necessary to take part in the preparation of regulations, as well as for familiarisation with the regulations of the European social acquis communautaire. When it comes to implementing capacity which should be strengthened along with the administrative capacity in order to meet the benchmark required to close Chapter 2, as stated in the Common Position the institutions responsible for implementation have been undertaking activities aimed at reassigning existing staff to special organisational units competent for the co-ordination of social security systems (in particular within the Croatian Pension Insurance Institute which is currently being reorganised). A) ACHIEVEMENTS IN 2008 As far as health insurance is concerned, aliens who have been approved temporary or permanent stay and who hold a work or business permit, enjoy the same rights and have the same obligations as Croatian nationals, provided that they are entitled to obtain the status of an insured person on the grounds of employment, self-employment or on similar grounds. The Compulsory Health Insurance Act (OG 85/08) stipulates that aliens who have been approved permanent stay exercise the right to compulsory health insurance under the same conditions as Croatian nationals with permanent residence in the Republic of Croatia. Aliens who have not been approved permanent stay exercise the right to basic health insurance and health care pursuant to the Act on the Health Care of Aliens in the Republic of Croatia (OG 114/97). In 2006 the Voluntary Health Insurance Act (OG 85/06) was passed, as was the Occupational Health and Safety Health Insurance Act (OG 85/06). So far, the Republic of Croatia has concluded the Arrangements on the Use of the European Health Insurance Card with the Republic of Slovenia (2004), the Czech Republic (2005) and the Republic of Hungary (2006). The European Health Insurance Card replaced the forms that had previously been used, and on the basis of this card, nationals of the aforesaid countries are entitled to receive health care services directly from health institutions and private health practitioners in a contractual relationship with the Croatian Institute for Health Insurance, to the extent provided for by the relevant bilateral agreements. No activities have been undertaken in the course of 2008 regarding the freedom of movement for workers and the position of aliens in the pension insurance scheme, because the relevant legislative adjustments to the regulations covering the status of aliens had been completed in 2007. No examples of unequal treatment of aliens can be found in the pension insurance scheme aliens employed in Croatia are entitled to join this scheme under the same conditions as Croatian nationals. The only area where aliens do not enjoy the same access to pension insurance is the voluntary pension insurance scheme based on individual capitalised savings, since access to this insurance scheme is only available to those who have permanent residence, which will, however, no longer be the case after Croatia becomes a full member of the EU. These changes were made as far back as 2007, when two pieces of legislation
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governing the pension insurance scheme based on individual capitalised savings were amended. The regulation governing the right to child allowance has also been amended to ensure full alignment with the acquis. B) KEY PRIORITIES As regards health insurance, plans have been made to pass a new Act on the Health Care of Aliens in the Republic of Croatia. In addition, Croatia is willing to conclude agreements on social security with all other interested states, as well as bilateral arrangements on the use of the European Health Insurance Card with interested EU member states. By the time it joins the European Union, Croatia will be fully prepared to implement the regulations on the European Health Insurance Card (Decisions 2003/751/EC, 2003/752/EC and 2003/753/EC) and to enable all its insured persons to use this card. When it comes to pension insurance, all the legislative activities planned for 2007 were implemented during that year. The activities aimed at strengthening the administrative capacity and those relating to preparations for the application of the Regulations on the co-ordination of social security systems are underway. For this purpose, a special programme will be drawn up providing for administrative capacity building in the bodies and institutions responsible for implementing social security legislation. Prior to accession to the EU, the Republic of Croatia will be ready to implement the European legislation, i.e. the regulations governing the co-ordination of social security systems, since this is the area in which the European legislation will be directly applied. The Republic of Croatia also believes it possible for some other regulations to enter into force before its admission to full membership of the EU, as it was specifically stressed in the Common Position for Chapter 2.
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3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES

Horizontal issues The Trade and Internal Market Directorate of the Ministry of the Economy, Labour and Entrepreneurship is the competent authority for the co-ordination of all activities pertaining to the right of establishment and freedom to provide services. Within the Trade and Internal Market Directorate of the Ministry of the Economy, Labour and Entrepreneurship, the Department for the Co-ordination of the Internal Market was set up in July 2005 and started work on 21 November 2005. With the Act on Amendments to the Act on the Organisation and Scope of the Central State Administrative Bodies (OG 27/08), which entered into force in March 2008, the Ministry of the Economy, Labour and Entrepreneurship gained, inter alia, a co-ordinating function in the area of the freedom to provide services. The role of the Ministry of the Economy, Labour and Entrepreneurship is to ensure a co-ordination policy and co-operation with ministries and the public sector in the area of the right of establishment and freedom to provide services. On the basis of the Regulation on the internal organisation of the Ministry of the Economy, Labour and Entrepreneurship (OG 41/08), a Section for the Development of Services has been set up within the Department for the Co-ordination of the Internal Market. A) ACHIEVEMENTS IN 2008 In the course of 2008, the administrative capacities of the Department for the Co-ordination of the Internal Market have been strengthened through the recruitment of one new employee Head of the Section for the Development of Services. Representatives of the said Department participated in the work of the body monitoring the implementation of the Stabilisation and Accession Agreement related to Chapter 3 and took part in technical consultation in Brussels pertaining to the alignment of Croatian legislation with the relevant acquis within this Chapter (Directive 2006/123/EC on services in the internal market, and Directive 2005/36/EC on the recognition of professional qualifications). B) KEY PRIORITIES In the forthcoming period, further strengthening of the administrative capacities of the Section for the Development of Services will continue, as will co-ordination of all activities pertaining to the completion of alignment with the acquis within Chapter 3 The Right of Establishment and Freedom to Provide Services.
3.3.1. The Right of Establishment

THE COURT REGISTER ACT
A) ACHIEVEMENTS IN 2008 On the basis of the Act on the Amendments to the Court Register Act (OG 40/07), on 18 December 2007 the new Ordinance on entry in the court register (OG 134/07) was adopted, working out in detail the provisions of the said Act. The Ordinance, inter alia, prescribes that the main book should be kept both in paper and electronic formats and that data should be entered on a daily basis into a single database. The Ordinance also prescribes that from 1 January 2009 the single database shall also include a collection of documents in electronic format identical to the collection of documents in paper format. In addition, the Ordinance lays down the possibility to submit a request for entry into the court register electronically, available from 1 January 2009.
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The Instruction on the conditions and manner of establishing electronic communication with the Registry Court for the purpose of registering a limited liability company with cash equity capital in the court register regulates the running of a pilot project of registering a limited liability company with cash equity capital in the court register of the Commercial Court in Varadin. The pilot project under the working title online registration began on 30 October 2007 and, in accordance with the Instruction on the amendments to the Instruction on the conditions and manner of establishing electronic communication with the Registry Court for the purpose of registering a limited liability company in the court register (OG 62/08), will continue until 31 December 2008. From 1 January 2008 to 1 September 2008, 292 entities were set up via online registration at the Commercial Court in Varadin, while 78 entities were set up in the conventional way. In other words, 79% of companies were entered into the court register electronically, while 21% were registered in paper form. These data pertain to all establishments, and since the pilot project online registration pertains only to limited liability companies, it can be concluded that it is running with success. The said pilot project is currently being expanded to the commercial courts in Osijek, Zadar and Split. In accordance with the Court Register Act and the Ordinance on entry in the court register, the deadline for the implementation of electronic communication with the court and the building of the collection of documents is 1 January 2009. The new application of the central court register database became operational on 14 April 2008. For the purpose of building the electronic collection of register documents in accordance with the Court Register Act (OG 1/95, 57/96, 45/99, 54/05 and 40/07), IT equipment has been delivered to all commercial courts and the application for scanning document collections has been completed. The Act on Amendments to the Companies Act, adopted on 3 October 2007 (OG 107/07), entered into force on 1 April 2008, except for the provisions of Article 142, which will enter into force on the day of the accession of the Republic of Croatia to the European Union. INSTITUTIONS ACT
A) ACHIEVEMENTS IN 2008 With a view to alignment with the acquis and in order to remove discriminatory provisions against EU Member State nationals, the Act on Amendments to the Institutions Act was adopted on 14 March 2008 (OG 35/08). ALIENS ACT
A) ACHIEVEMENTS IN 2008 The Aliens Act (OG 79/07), in force since 1 January 2008, prescribes that aliens may be employed in the Republic of Croatia on the basis of a work or business permit. According to the Aliens Act, a business permit may be issued to aliens who provide services on condition that they are employed with a foreign employer and have appropriate qualifications, and that the foreign employer has concluded a contract with a company in the Republic of Croatia. Furthermore, these have to be specific services connected to high technology, and the Republic of Croatia must have an interest in the supply of these services. In the said case, a business permit is issued for up to 6 months in a year with prior approval of the state office competent for the activity in which the service is to be provided, and in accordance with the Ordinance on granting approval (OG 26/08). A special chapter of Title XI of the Act regulates the entry, sojourn and work of nationals of the member states of the European Economic Area, their family members and family members of Croatian nationals. According to the provisions of this Title, EEA nationals do not need a work or business permit to work and provide services in Croatia. These provisions (Title XI) will enter into force on the day of the accession of the Republic of Croatia to the European Union.
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On the basis of the Aliens Act, the Ordinance on the manner of establishing conditions for the entry and sojourn in the Republic of Croatia of nationals of the member states of the European Economic Area and their family members and family members of Croatian nationals (OG 62/08) has been adopted. This Ordinance will also apply from the day of the accession of the Republic of Croatia to the European Union. B) KEY PRIORITIES Strengthening of administrative capacities will be continued through the provision of training to existing employees and the recruitment of new ones for the newly-established posts.
3.3.2. Freedom to Provide Cross-Border Services

SERVICES IN THE JUDICIARY
A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on the Legal Profession (OG 117/08) completed the alignment of the legislative framework regulating the legal profession in the Republic of Croatia with the position of the legal profession in the European Union, and with the conditions for the cross-border provision of legal services. The Act on the Legal Profession is aligned with the provisions of Directive 77/249/EEC of 22 March 1977 and Directive 98/5/EC of 16 February 1998 which pertain exclusively to the legal status of legal professionals in the cross-border provision of legal services. The Act enables foreign legal professionals from EU Member States to conduct the legal profession in the Republic of Croatia in the same manner as they conduct the profession in their home countries. According to this Act, foreign law firms may set up local offices in the Republic of Croatia. The provisions of this Act pertaining to the status of foreign legal professionals in the Republic of Croatia will apply from the day of the accession of the Republic of Croatia to the European Union. SERVICES IN THE HEALTH SECTOR
A) ACHIEVEMENTS IN 2008 In the process of alignment with EU legislation, the Republic of Croatia has initiated changes in the area of health care in line with the principles set out in Articles 43 and 49 of the Treaty establishing the European Community. The Act on Amendments to the Health Care Act (OG 117/08) has removed the restrictions for EU nationals in terms of taking the state professional examination and the requirement of knowledge of the Croatian language. The following legislation has also been adopted: the Act on Amendments to the Act on Medical Practice (OG 117/08); the Act on Amendments to the Act on Pharmacy (OG 117/08); the Act on Amendments to the Nursing Act (OG 117/08); the Act on Amendments to the Dental Care Act (OG 117/08); and the Act on the Amendments to the Act on Medical Biochemical Practice (OG 117/08). The said amendments have removed the restrictions for EU nationals in terms of taking the state professional examination and the knowledge of the Croatian language. The Midwifery Act (OG 120/08) regulates the profession of midwives in accordance with competencies in line with EU regulations.
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SERVICES IN TOURISM
A) ACHIEVEMENTS IN 2008 On the basis of the Act on the Provision of Tourism Services (OG 138/06), in the course of 2008 the following ordinances were adopted: Ordinance on the provision of hospitality and catering services in a rural household (OG 5/08); Ordinance on the registers of catering facilities and on the registers of the provision of hospitality and catering services in households and rural households (OG 5/08); Ordinance on the form, content and manner of keeping the guestbook and guest list (OG 5/08); Ordinance on the form, content and manner of keeping the book of complaints (OG 5/08); Ordinance on the classification, minimum requirements and categorisation of other types of accommodation facilities from the category Camps and other types of accommodation facilities (OG 49/08); Ordinance on the classification, minimum requirements and categorisation of catering facilities in camps from the category Camps and other types of accommodation facilities (OG 75/08). By adopting these ordinances, the Minister of Tourism has enacted all the subordinate legislation he is authorised to enact on the basis of the Hospitality and Catering Industry Act. In the course of 2008, on the basis of the Act on the Provision of Tourism Services (OG 68/07), the following ordinances were adopted: Ordinance on the form, content and manner of keeping the book of complaints (OG 5/08); Ordinance on the Travel Agencies Register (OG 30/08); Ordinance on the Register of the contracts on tourist representation for tourist agencies (OG 30/08); Ordinance on the state professional examination for tourist office manager (OG 50/08); Ordinance on the state professional examination for tourist guides and the examination programme for tourist escorts (OG 50/08 and 120/08); Ordinance on the tourist guide identification document (OG 50/08 and 90/08); Ordinance on the Tourist Guide Register (OG 50/08); Ordinance on the classification and categorisation of nautical tourism ports (OG 72/08); Ordinance on the types and categories of nautical tourism vessels (OG 69/08); and Ordinance on the list of tourist areas (sites) by counties (OG 76/08). By adopting these ordinances, the Minister of Tourism has enacted all the subordinate legislation he is authorised to enact on the basis of the Act on the Provision of Tourism Services, planned for 2008. With the adoption of the said acts and implementing regulations, alignment has been achieved with the acquis in terms of the principles set out in Articles 43 and 49 of the Treaty establishing the European Community. The non-alignment of the said Acts pertained to the remaining obstacles in terms of the freedom to provide cross-border services (the principle of non-discrimination Article 12 of the Treaty establishing the European Community) in the part referring to the provision of services by natural persons (citizens). In fact, one of the conditions for the provision of catering and tourism services by natural persons (citizens) used to be Croatian citizenship. The Act on Tourist Boards and the Promotion of Croatian Tourism, the Sojourn Tax Act, and the Act on Tourist Board Memberships have been enacted in the Croatian Parliament on 15 December 2008. B) KEY PRIORITIES Depending on the date of the enactment of the new regulations governing the system of tourist boards, all subordinate legislation necessary for their implementation is planned to be adopted in 2009. PRIVATE SECURITY SERVICES AND HUMANITARIAN MINE CLEARANCE
A) ACHIEVEMENTS IN 2008 The Private Detectives Act is currently under parliamentary procedure. The Act passed its first reading in September 2008. On 5 December 2008, the Government of the Republic of Croatia adopted the Final Proposal of the Act and submitted it to the Croatian Parliament for parliamentary procedure.
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The said Act is aligned with the provisions of the Treaty establishing the European Community (Articles 43 and 49), and prescribes that a private detective authorised to conduct detective activities by a EU Member State or a signatory country to the Treaty establishing the European Economic Area may conduct detective activities in the Republic of Croatia without the permission of the competent police administration. In addition, in order to issue authorisation for the conducting of activities of a private detective to nationals of EU Member States or signatories to the Treaty establishing the European Economic Area, permanent residence or approved temporary residence in the Republic of Croatia, and knowledge of the Croatian language and the Latin script are no longer required. These provisions will enter into force on the day of the accession of the Republic of Croatia to the European Union. At the session of 5 December 2008, the Government of the Republic of Croatia also adopted the Draft Proposal of the Act on Amendments to the Act on Humanitarian Mine Clearance and submitted it for parliamentary procedure. According to the proposed amendments to the Act on Humanitarian Mine Clearance (OG 153/05 and 63/07), the provisions regulating the work of aliens in the activities of humanitarian mine clearance will be amended with a view to regulating the freedom to provide services in accordance with Article 49 of the Treaty establishing the European Community. The Act on Amendments to the Act on Humanitarian Mine Clearance has been enacted in the Croatian Parliament on 15 December 2008 (OG152/08). VETERINARY MEDICINE SERVICES
A) ACHIEVEMENTS IN 2008 In April 2007, the new Veterinary Act (OG 41/07) introduced the possibility for natural and legal persons registered for conducting veterinary activities in EU Member States to conduct the same activities in the Republic of Croatia under the conditions laid down by the minister. This has created the legal basis for alignment with the acquis in the field of the provision of veterinary services. These provisions will enter into force on the day of the accession of the Republic of Croatia to the European Union. The adoption of the implementing regulation (Ordinance on the conditions under which nationals of EU Member States may conduct veterinary activities in the Republic of Croatia) is planned for the fourth quarter of 2008, and for this purpose a committee has been set up with the task of drawing up a Draft Proposal aligned with Directive 2005/36/EC on the mutual recognition of professional qualifications. Considering that for alignment with the acquis in this area it is necessary to adopt an umbrella act on the recognition of foreign professional qualifications within the meaning of this Directive, the said implementing regulations will be adopted upon the enactment of the said Act, which will regulate this matter. The administrative capacities of the Veterinary Directorate have been strengthened through the recruitment of 2 employees in the Section for the Organisation of Veterinary Service. B) KEY PRIORITIES Immediately upon the adoption of the umbrella act, this body will activate the previously established committee and start the process of drafting and adopting the Ordinance on the conditions under which nationals of EU Member States may conduct veterinary activities in the Republic of Croatia, and the Ordinance on the amendments to the Ordinance on the conditions, manner of issue, extension and revoking of authorisation for veterinarians. CONSTRUCTION SERVICES
A) ACHIEVEMENTS IN 2008 According to the plan to align key regulations with the acquis within Chapter 3, the Ministry of Environmental Protection, Physical Planning and Construction had the obligation for the third quarter of 2008 to draft a Proposal of the Act on Architectural and Civil
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Engineering Affairs and Activities in Physical Planning and Construction, and to submit it for government procedure. The said Act has been enacted in the Croatian Parliament on 15. December 2008 (OG 152/08). B) KEY PRIORITIES On the basis of the Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction, the following secondary legislation will be adopted in the course of 2009: Ordinance on the conditions and criteria for granting approval for conducting professional activities of physical planning (3rd quarter 2009); Ordinance concerning the granting of approval for conducting activities of construction and other related issues (2nd quarter 2009); Ordinance on internationally recognised systems of certification of the ability to manage projects and training programmes relevant to managing construction projects (2nd quarter 2009); Ordinance on the recognition of foreign professional qualifications in the area of architectural and civil engineering activities (2nd quarter 2009). SERVICES IN CULTURE
A) ACHIEVEMENTS IN 2008 With a view to alignment with the acquis in this area, the Ministry of Culture initiated the procedure of harmonising the Libraries Act (OG 105/97, 5/98 and 104/00), the Museums Act (OG 142/98) and the Archives and Archival Material Act (OG 105/97 and 64/00) with the Act on Amendments to the Institutions Act (OG 35/08), in order to make it possible for foreign legal and natural persons to set up libraries, museums and archives in the Republic of Croatia. B) KEY PRIORITIES In the second quarter of 2009, it is planned to adopt the Act on Amendments to the Libraries Act, the Act on Amendments to the Museums Act, and the Act on Amendments to the Archives and Archival Material Act.
3.3.3. Postal services

A) ACHIEVEMENTS IN 2008 An expert study entitled Development Strategy for the Postal Services Market in the Republic of Croatia by 2013 and the Implementing Action Plan of the Development Strategy for the Postal Services Market in the Republic of Croatia by 2013 has been compiled by the consultancy company Roland Berger Strategy Consultants Ltd. on the basis of a contract concluded with the Ministry of the Sea, Transport and Infrastructure (MSTI). The Government of the Republic of Croatia adopted the Strategy and Action Plan at its session of 19 March 2008. The Strategy is a fundamental document laying down the principles and guidelines for the development of the postal services market and national priorities in the preservation and development of postal services, especially universal postal services, and the dynamics of further liberalisation of the postal services market in the Republic of Croatia. This Strategy sets a timetable for the further liberalisation of the postal services market in the Republic of Croatia in line with a gradual market liberalisation scenario, which leaves
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optimal time for the preparation of the domestic postal services market and for the public operator, and to secure the accessibility of universal postal services (the opening of the postal market has been suggested, as has the secure and complete liberalisation of the postal services market by 2013). The crucial prerequisite for accepting the Third Postal Directive (adopted on 20 February 2008) into Croatian legislation and practice, as set out in the Strategy, is to restructure the public operator, adopt a business plan and implement it consistently until 2010. The Act on Amendments to the Postal Act (OG 63/08) has extended the powers of the national regulatory body for postal services (by increasing supervisory powers and powers pertaining to market regulation), which has been merged with the national regulatory body competent for electronic communications (telecommunications) into a new single national regulatory body the Croatian Agency for the Post and Electronic Communications (HAKOM). In addition, and in accordance with Article 7 of Directive 2002/39/EC amending Directive 97/67/EC, the weight limit for the reserved area for direct mail has been reduced from 100g to 50g, while the price limit has been reduced from triple the amount of the first weight step of the fastest standard category to a 2.5 times larger amount of the said weight and category. The Act on Amendments to the Postal Act entered into force on 1 July 2008, except for the provision pertaining to the reduction of the reserved area, which will enter into force on 1 January 2010. With the adoption of the said Act, all the requirements for the regulatory framework set by Directive 97/67/EC on common rules for the development of the internal market of Community postal services and the improvement of the quality of service, and Directive 2002/39/EC amending Directive 97/67/EC (Postal Directives) pertaining to the scope of reserved services, which, according to Directive 2002/39/EC of 1 January 2006, may go up to 50g for direct mail, and to professional supervision by the regulatory body, equal to inspection supervision and powers, have been aligned. The Department for Postal Services in the Directorate for Telecommunications and Postal Services of the Ministry of the Sea, Transport and Infrastructure currently employs four civil servants. Vacancies have been announced, and it is expected that four new civil servants will be recruited by the end of 2008 (two heads of section and two assistants). The Croatian Agency for Postal Services and Telecommunications (HAKOM) received two applications from courier services providers in the course of 2008. By 1 July 2008, an inspector of the former Council for Postal Services conducted inspections in terms of type, range and quality of postal and courier services with seven postal and courier services providers. By the end of 2008, HAKOM plans to conduct four more inspections, which will be conducted by a postal inspector. According to the Postal Act, HAKOM is competent for monitoring the development of postal activity and the postal and courier services market in the Republic of Croatia. In the course of 2008, HAKOM continued participating in the Project to collect statistical data in the postal sector, initiated in co-operation with EuroStat with the European Committee for Postal Regulation (CERP) and the European Commission. The former Council for Postal Services, as the national regulatory body, was the responsible authority for the Project and for all activities related to the collection of statistical data from providers of postal and courier services in the Republic of Croatia. As part of the Project, and in order to monitor the situation in the market, the Council drew up questionnaires for the public operator and other providers of postal and courier services and collected necessary statistical and financial data. The data for 2007 were collected in the course of 2008 and submitted to EuroStat. The data were processed, consolidated, analysed and will be published by the end of 2008 in a publication entitled Analysis of the postal and courier services market in the Republic of Croatia in 2007. The aim of this publication is to inform all participants in the market and interested institutions about the current situation and trends in the postal and courier services market. In 2008, the first stage of a new Project entitled Analysis of user satisfaction and usage of postal and courier services in the Republic of Croatia was completed and the target group were individual users of postal and courier services, i.e. citizens from the entire territory of the Republic of Croatia. The subject of the survey was customer satisfaction with the quality and prices of the services, customer habits and ways of using postal and courier services, as well as awareness of the right to universal postal services and
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understanding of the range of these services. The data collected in the survey are currently being processed and will be published by the end of 2008. The implementation of the CARDS 2004 Project Support to the Croatian Postal Services Council began on 29 May 2007 and the Project was officially completed on 29 January 2008. The Project partner to the Council was the German Federal Ministry of Economy and Technology, which entrusted the implementation of the Project to representatives of the Federal Agency for Electricity, Gas, Telecommunications, Post and Railway (BnetzA), the regulatory body in the Federal Republic of Germany. The general aim of this Project was to introduce, maintain and promote sustainable competition in the postal and courier services market, secure the effective application of regulations, and strengthen the institutional capacities of the postal regulator so that it may act as an independent national regulatory body in the postal and courier services market, in accordance with the regulations and practices of the European Union. Within the Project, representatives of the postal regulator took part in two study trips in order to become acquainted with internal procedures implemented by foreign regulators and with their role in the postal market. The Final Report, which includes the Strategic Document of the regulator (for the area of postal services) for the next three years, was signed in June 2008. In the course of 2008, HAKOM recruited two new employees. B) KEY PRIORITIES In the course of 2009, it is planned to implement the second stage of the Project Analysis of user satisfaction and usage of postal and courier services in the Republic of Croatia, which will target legal persons, i.e. business users. HAKOM will continue to monitor the development of postal activity and the postal and courier services market in the Republic of Croatia, and collect the necessary statistical and financial data, which it will continue to submit to EuroStat and which will continue to be published. In 2009, due to the setting up of HAKOM as the single regulatory body for postal services and telecommunications, it is expected that part of the employees who had performed general activities in the former Council for Postal Services will be transferred to other activities within HAKOM. It is also planned to recruit three employees for regulatory activities in the field of postal services, in accordance with the approved HAKOM Financial Plan for 2009, in the part pertaining to the area of postal services.
3.3.4. Mutual Recognition of Qualifications

SCIENCE, EDUCATION AND SPORT
A) ACHIEVEMENTS IN 2008 Legislative activities In December 2008, the Government of the Republic of Croatia accepted the Draft Proposal of the Act on the Recognition of Foreign Professional Qualifications. The said Draft is aligned with Directive 2005/36/EC. The Act prescribes, in accordance with Directive 2005/36/EC, that the national ENIC/NARIC Office be designated as the contact point for the recognition of qualifications for regulated professions. The Act on Vocational Education was accepted at the session of the Government of the Republic of Croatia in December 2008. The said Act is also aligned within its scope with Directive 2005/36/EC, i.e. it aligns the legal framework for the education of nurses and midwives.
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Implementing measures After the adoption of the Act on Amendments to the Act on the Recognition of Foreign Professional Qualifications (OG 138/2006), the national ENIC/NARIC Office, which operates within the Agency for Science and Higher Education, continues to be responsible for the recognition of foreign professional qualifications issued by institutions of higher education, for both regulated and non-regulated professions, and issues certificates of recognition. Within the Project Strengthening the Role of the Croatian ENIC/NARIC Office, implemented within the framework of the preaccession programme of the Dutch Government MATRA MPAP, in the course of 2008 the national ENIC/NARIC Office conducted a number of activities aimed at aligning procedures in the area of recognition of foreign professional qualifications with the requirements of Directive 2005/36/EC. In the course of the Project, administrative and institutional prerequisites were strengthened in order to apply the legal solutions in practice in the best possible way and to set up mechanisms for referring the recognition of qualifications for regulated professions to competent chambers and professional associations. Meetings have been held with representatives of particular regulated professions, competent professional associations, chambers and ministries. In addition, seminars on Directive 2005/36/EC have been organised, and the content and form of the database on the recognition of professional qualifications for regulated professions have been defined. This database will contain information on all regulated professions in the Republic of Croatia, competent decision-making bodies for the recognition of professional qualifications, and pertinent regulations. B) KEY PRIORITIES It is planned to complete the setting up of an operative and administrative system for the application of the new Act on the Recognition of Foreign Professional Qualifications. HEALTH CARE
A) ACHIEVEMENTS IN 2008 As regards the acquis, professions in the field of health care have for the most part been aligned on the basis of minimum educational requirements in order to ensure automatic mutual recognition of professional qualifications and diplomas between Member States. In the previous period in the Republic of Croatia, for the purpose of alignment with the acquis, the Midwives Act (OG 120/08) was adopted, regulating the profession of midwives in line with EU requirements. In addition, the Act on Physical Therapy Activities (OG 120/08), which regulates the profession of physical therapists, has been adopted. At the same time, measures are being undertaken to implement specialist training in line with the requirements of the acquis. For the purpose of alignment with EU qualifications and standards, it is planned to align traineeship and the education of doctors of medicine, doctors of medicine working in primary health care, dentists, and the specialist training of nurses-medical technicians. The Ordinance on specialist training for doctors of medicine (OG 73/08) has been adopted, while the specialisation curricula will be adopted after 1 January 2009. In addition, the Ordinance on specialist training for pharmacists (OG 73/08) and the Ordinance on specialist training for medical biochemists (OG 73/08) have been adopted. B) KEY PRIORITIES On the basis of the Ordinance on specialist training for doctors of medicine (OG 73/08), specialisation curricula will be adopted after 1 January 2009, in line with the UEMS recommendations and with Directive 2005/36/EC.
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Upon the entry into force of the Act on the Recognition of Foreign Professional Qualifications, the adoption of which lies within the competence of the Ministry of Science, Education and Sports, the need will be assessed to further align legislation and adopt additional regulations governing the recognition of regulated professions as stipulated by Directive 2005/36/EC. The Act on Health Care Activities will be adopted in the course of 2009. CONSTRUCTION
A) ACHIEVEMENTS IN 2008 In addition to what was outlined under 3.3.2 Construction Services, a special act regulates the profession of surveyors. The Act on Surveying Activities has been adopted by the Government of the Republic of Croatia and enacted in the Croatian Parliament on 15 December 2008 (OG 152/08). VETERINARY MEDICINE
A) ACHIEVEMENTS IN 2008 See 3.3.2 Veterinary Medicine Services
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3.4. FREE MOVEMENT OF CAPITAL 3.4.1. Movement of capital and current payments
A) ACHIEVEMENTS IN 2008 As part of the process of liberalising the capital account, the Republic of Croatia continued with the liberalisation of capital transactions in 2008. The Act on Amendments to the Insurance Act (OG 87/08) prescribes that privileged access of the public sector to the funds of insurance companies will be abolished upon the accession of the Republic of Croatia to the European Union. The Act on Amendments to the Act on the Fund for Croatian Homeland War Veterans and Members of their Families (OG 41/08) prescribes that privileged access of the public sector to the assets of the Fund will be abolished as of the date of Croatias accession to the European Union. The Act on Amendments to the Deposit Insurance Act (OG 119/08) prescribes that privileged access of the public sector to the free assets of the Deposit Insurance Fund managed by the State Agency for Deposit Insurance and Bank Rehabilitation will be revoked. The Regulation on Amendments to the Foreign Exchange Act (OG 150/08) postpones the liberalization of capital transactions regulated by the Act until 1 August 2009 (short-term financial loans to non-residents) and until 1 January 2010 (other remaining capital transactions covered by Article 78 of the Foreign Exchange Act). It should be noted that the Act on Amendments to the Foreign Exchange Act (2006) envisaged full liberalization of all capital transactions regulated by the Act from 1 January 2009. Real estate
A) ACHIEVEMENTS IN 2008 On 12 December 2008, the Act on Amendments to the Act on Ownership and Other Real Rights (OG 146/08) was passed in order to ensure that the citizens of EU Member States enjoy the same treatment as Croatian citizens as regards the acquisition of real estate rights. These amendments have removed the special requirements for EU Member State citizens and legal persons in respect of acquiring real estate. Applications submitted by EU citizens for real estate acquisition: From 5 November 2007 to 5 November 2008: A total of 2,892 applications for approval to acquire real estate in Croatia were received from EU citizens, and final decisions were reached in respect of 2,261 applications (1,579 applications were accepted and approvals granted, 55 applications rejected, and proceedings in respect of 27 applications were suspended because the parties withdrew their applications). Thus, 78% of all the applications received were processed. 600 applications are being processed (in 568 cases, conclusions were adopted inviting the applicants to submit relevant documents, and in 32 cases the opinion of the competent local or regional self-government unit was requested), while 631 cases have not yet been processed. Applications submitted by EU citizens and non-EU citizens for real estate acquisition: From 1 January 1991 to 5 November 2008: A total of 10,940 applications for approval to acquire real estate in Croatia were received from EU citizens and non-EU citizens
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Of that number, 9,716 applications (or 88%) were processed, which is about 10% more than stated in the previous report From 5 November 2007 to 5 November 2008: Overall, final decisions were reached in respect of 3,953 applications (approval was granted in 3,225 cases, in 484 cases approval was denied, while proceedings were suspended in 244 cases; in 1,680 cases the applicants were invited to provide additional documents to their applications, and in 129 cases the opinion of the competent local or regional self-government unit was requested).
3.4.2. Payments and collections

A) ACHIEVEMENTS IN 2008 After Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market was adopted in late 2007, the drafting of the new Payment Transactions Act started in 2008, in accordance with the provisions of the Directive. B) KEY PRIORITIES The new Payment Transactions Act will be passed by the end of June 2009, so that Croatian regulations will be aligned with the provisions of Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC, and 2006/48/EC, and repealing Directive 97/5/EC. All relevant subordinate regulations will be adopted by the end of 2009.
3.4.3. Prevention of money laundering

A) ACHIEVEMENTS IN 2008 On 31 January 2008, the Government of the Republic of Croatia adopted the Action Plan for the Fight Against Money Laundering and Terrorist Financing. The Action Plan relates to 11 government bodies and includes joint actions and co-operation. The Action Plan covers the Anti-Money Laundering Office, the Tax Administration, the Customs Administration, the Foreign Exchange Inspectorate, the Financial Police, the Croatian National Bank, the Croatian Financial Services Supervisory Agency, the Police Administration, the State Attorneys Offices, the courts and the Ministry of Justice. About 150 activities are planned with regard to specific segments of the given benchmark: legislative alignment (a new Act on the Prevention of Money Laundering and Terrorist Financing, along with subordinate legislation, etc.); raising awareness of the reporting bodies (training, etc.); strengthening supervision over the reporting bodies (target inspections, liaison officers within supervisory bodies, continuous training, etc.); strengthening of the Police and the State Attorneys Office (liaison officers, specialists, specialised units, training, focus on financial investigations, etc.);
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strengthening of courts (training, etc.); efficient co-operation between bodies in the implementation chain (co-operation agreements, IT interconnecting, joint training, liaison officers, joint statistics, etc.).
In accordance with the set deadlines, the application and implementation of the planned measures are in progress. Thus far, the following major activities foreseen under the Action Plan have been implemented: The new Act on the Prevention of Money Laundering and Terrorist Financing (passed by the Croatian Parliament on 15 July 2008 and published in the Official Gazette 87/08) is fully aligned with European standards in the area of the prevention of money laundering and terrorist financing, namely the Third Anti-Money Laundering Directive, the Regulation on controls of cash entering or leaving the Community, the Regulation on information on the payer accompanying transfers of funds, and some important elements of the Council of Europes Warsaw Convention. The new elements, or provisions, are designed to strengthen both the prevention system and the possibilities of co-operation among all competent bodies in preventing money laundering and terrorist financing. Among the innovations introduced by the Act is a detailed description of the Customer Due Diligence (CDD) procedure, which is based on FATF Recommendation 5. Furthermore, the term beneficial owner is introduced, and the Act prescribes the obligation for any party subject to the Act to establish the identity of the beneficial owner, i.e. the natural person controlling the client. The Act also introduces the term politically exposed person, which is based on FATF Recommendation 6. A party subject to the Act has to identify any client who is a politically exposed foreign person and to apply the special measures prescribed by the Act in respect of such a client. Furthermore, risk analysis is introduced as a new method of preventing money laundering and terrorist financing. Under this method, parties subject to the Act are required to analyse each of their clients or types of business transactions and to classify them in specific risk categories based on the results of such analyses. The new Act also purports to regulate cash transactions, which are recognised as particularly vulnerable in terms of money laundering. Certain restrictions on cash transactions are imposed, so legal persons and natural persons performing a registered business activity are required to execute the majority of their payments exceeding HRK 105,000 through designated accounts, i.e. to apply the procedure which enables CDD measures to be applied. The provisions of the Warsaw Convention aimed at increasing the powers of the Croatian financial intelligence unit, namely the Anti-Money Laundering Office, have been transposed. In addition to the powers set out in the Act (receiving, requesting, analysing and providing information on suspicious transactions, and issuing orders for transaction postponement), the Office is also authorised to order the party concerned to postpone a transaction at the request of a foreign financial intelligence unit. In addition, the Act specifies in detail the conditions under which co-operation between the Anti-Money Laundering Office and other competent bodies can be established in cases involving money laundering and terrorist financing, thus enabling more intensive co-operation among them. Besides the above Act, the new Financial Inspectorate Act (passed by the Croatian Parliament on 9 July 2008, OG 85/08) defines the Financial Inspectorate as the body responsible for overseeing the application of regulations on the prevention of money laundering and terrorist financing to all parties subject to the Act. On the basis of the Regulation on Amendments to the Regulation on the internal organisation structure of the Ministry of Finance (adopted at the session of the Croatian Government on 7 December 2007, OG 127/07), the following Departments were established within the Anti-Money Laundering Office: IT System and Strategic Analyses Department, Analytics and Suspicious Transactions Department (including the Section for Analytical Processing of Transactions and the Section for Suspicious Transactions), the Prevention and Supervision Department (including the Section for the Financial Sector and the Section for the Non-Financial Sector), and the International Co-operation Department. The number of employees has been increased by 63% (from 22 to 36). In the period from May to September 2008, the Ministry of Finance posted three vacancy announcements for the recruitment of ten new inspectors to work at the Office. By October 2008, four new employees had been recruited. Pursuant to the same Regulation, two new Departments were established within the former Foreign Exchange Inspectorate (now the Financial Inspectorate), namely the International Co-operation Department and the Financial Investigations Department. In accordance with the Act on the Prevention of Money Laundering and Terrorist Financing and in view of the increased number of
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parties subject to the Act, and with the aim of facilitating the detection of risk points and high-risk parties, the establishment of the Department of Risk Assessment, Strategic Analyses and IT Support is planned by the end of 2008. In order to strengthen the Supervision Sector (considering the larger number of parties subject to the Act due to the application of the new Act on the Prevention of Money Laundering and Terrorist Financing and the Financial Inspectorate Act passed in July 2008), five new employees were recruited in September 2008. As provided for in the Action Plan, the Financial Inspectorate has taken the necessary measures and actions to prepare a manual for inspectors participating in the supervision of the application and implementation of measures for preventing money laundering and/or terrorist financing. The preparation of guidelines for the parties subject to the application of the Act on the Prevention of Money Laundering and Terrorist Financing has also begun. The training plan for 2008 has been defined for all those subject to the application of the Act (freelance professions, money changers, banks and money transferors) and for employees of the Financial Inspectorate. The training is planned to be completed by the end of 2008. The Ministry of Justice has organised and carried out through the Judicial Academy five training sessions on money laundering for state attorneys and judges, which included about 100 participants. Among the lecturers were state attorneys and employees of the Anti-Money Laundering Office. At the international level, the Anti-Money Laundering Office has concluded, in accordance with the standards of the Egmont Group of Financial Intelligence Units, co-operation agreements with financial intelligence units of the USA, Indonesia and Paraguay. During 2007, the Protocol on co-operation and the establishment of an inter-institutional working group for the prevention of money laundering and/or terrorist financing, entered into force. The Protocol was concluded by eleven institutions, namely the Ministry of Justice, the State Attorneys Office of the Republic of Croatia, the Ministry of the Interior, the Anti-Money Laundering Office, the Customs Administration, the Foreign Exchange Inspectorate, the Tax Administration, the Financial Police, the Croatian National Bank, the Croatian Financial Services Supervisory Agency and the Central Intelligence Agency. In the course of 2008, the activities of the Inter-Institutional Working Group were continued, and several regular and ad hoc meetings took place in order to ensure more efficient and concerted co-operation in the exchange of information. This is a precondition for the prevention and suppression of money laundering and/or terrorist financing in the overall fight against organised crime both at the strategic and operational level. On 15 July 2008, the Croatian Parliament passed the Act on Ratification of the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (the 2005 Warsaw Convention)(OG IA 5/08). The Act prescribes that the State Attorneys Office of the Republic of Croatia is, besides the Ministry of the Interior, the Police Directorate, the Economic Crime and Corruption Department, the central body responsible for international co-operation and legal aid, as provided for in the Convention. The Police, the State Attorneys Office, and the Financial Intelligence Unit have one representative each on the Croatian delegation to the Council of Europes MONEYVAL Committee (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism). In 2008 MONEYVAL published its 3rd Round Evaluation Report on Croatia, setting out the results of evaluation of the measures against money laundering and terrorist financing according to the methodology of assessing compliance with the 49 FATF Recommendations. The measures aimed at preventing money laundering are not yet fully implemented in practice, and systematic procedures and standards for the implementation of appropriate measures and actions are still being developed. The organisational restructuring of the crime police started in 2008 with the establishment of the Police National Office for the Suppression of Corruption and Organised Crime. When the Office becomes operational, the prevention of money laundering will be improved because the organisational restructuring of the Office implies not only a changed concept of crime police operation, but also the introduction of police officers specialising in the prevention of money laundering and financial investigations. During 2008, the USA Embassy in Zagreb organised a three-week working visit to the United States for representatives of the Ministry of the Interior (Economic Crime and Corruption Department), the Anti-money Laundering Office (FIU) and the State Attorneys Office. On that occasion, the organisation, legal framework, work methodology and forms of inter-institutional co-operation among
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a number of US government and non-government bodies and institutions involved in the prevention of money laundering and terrorist financing were presented. In June 2008, the implementation of the CARDS 2006 regional project entitled Support to Prosecutors Network in South Eastern Europe - PROSECO began. Financed with EUR 1,666,669.20 by the European Commission and the Council of Europe, the project will last until April 2010 and cover the following states in South East Europe: Albania, Bosnia and Herzegovina, Croatia, Montenegro, Serbia, Macedonia and UNMIK/Kosovo. As part of the project, the 1st Regional Thematic Seminar, Financial Investigations and Confiscation of Proceeds from Crime, took place in Cavtat on 25 and 26 September 2008. Representatives of prosecutors offices, the police and other state bodies involved in financial investigations and the confiscation of proceeds of crime took part in the seminar (the participants from Croatia included representatives of the State Attorneys Office, the Office for the Prevention of Organised Crime and Corruption (USKOK), the Police Directorate Economic Crime and Corruption Department, the Tax Administration and the Financial Inspectorate). Ministry of Justice On 15 December 2008, the Croatian Parliament passed the new Act on Criminal Procedure (OG 152/08) and the Act on Amendments to the Criminal Code (OG 152/08). With the adoption of these acts, further alignment with the acquis communautaire in the field of the prevention of money laundering and terrorist financing is achieved. The amendments to the Criminal Code expand the scope of confiscation of proceeds to include all crimes. B) KEY PRIORITIES The implementation of the new Act on the Prevention of Money Laundering and Terrorist Financing will continue in 2009 through guidelines, training and supervision. Inter-institutional co-operation is also planned to continue through the activities of the InterInstitutional Working Group for the Prevention of Money Laundering and Terrorist Financing. Ministry of the Interior The implementation of the Action Plan for the Fight Against Money Laundering and Terrorist Financing will continue throughout 2009, with the following obligations arising for the Ministry of the Interior: adoption of the new Act on Amendments to the Police Act, which will prescribe additional obligations for the police in searching for proceeds of crime; at the regional level, nominating at least one police officer specialising in money laundering as a member of the Police National Office for the Suppression of Corruption and Organised Crime, which is planned to include four regional offices staffed, among others, by police officers specialising in money laundering and financial investigations; planning and implementing permanent training for police officers specialising in money laundering at the Police Academy; participation of police officers in appropriate forms of external training organised by domestic or international institutions; directing and intensifying police activities in financial investigations, etc.
Croatia is the first country in the region to have appointed its representatives, including the employees of the Police Directorate (Economic Crime and Corruption Department) and of the State Attorneys Office, to the CARIN NETWORK (Camden Assets Recovery Inter-Agency Network), an informal network of experts in the area of financial investigations and confiscation of proceeds of crime. The Croatian representatives will continue to participate in the activities of the Network. The Croatian delegation will take an active part in the MONEYVAL activities planned for 2009.
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Ministry of Justice Necessary administrative adjustments will be made during 2009 to enable the proper application of relevant regulations in all areas related to the prevention of money laundering. In order to facilitate the assessment of the implementation of these regulations, reports will be prepared on a quarterly basis to present statistical and other relevant information on investigations, legal charges, and proceedings, including judgments and seizures in money laundering cases.
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3.5. PUBLIC PROCUREMENT 3.5.1. Public Procurement

A) ACHIEVEMENTS IN 2008 On 20 June 2008, the Government of the Republic of Croatia adopted the Strategy for the Development of the Public Procurement System and its Action Plan. The Public Procurement Act (OG 110/07) entered into force on 1 January 2008. The Act on Amendments to the Public Procurement Act (OG 125/08) was also adopted and will enter into force on 1 January 2009. It serves to achieve further alignment with the acquis communautaire and, among other things, puts an end to the obligation to announce exemptions, creates the legal basis for further regulation of public procurement contracts in the field of defence and security through subordinate legislation, simplifies multiannual procurement procedures based on the framework agreement, introduces the mandatory category of the procurement plan, introduces a clarification of the subject matter of procurement and the method of determining it, and introduces professionalisation for procurement procedures with specific values. The following subordinate legislation was also adopted: Regulation on the conditions for applying the Common Procurement Vocabulary (CPV) (OG 13/08); Regulation on the methodology for drawing up and handling tender documents and tenders (OG 13/08); Regulation on public procurement notices and records (OG 13/08, 77/08); Regulation on the implementation of control through the activities of prevention and instruction (OG 14/08); Regulation on the content and the method of forwarding public procurement reports (OG 14/08); Regulation on the list of entities bound to adhere to the Public Procurement Act (OG 14/08); Regulation on the format, methods and conditions of training in the public procurement system (OG 54/08).
Activities on the project of setting up the Central Public Procurement Authority also began in the form of a needs analysis and a survey of the current situation. In connection with the activities of preventing corruption in the system of public procurement, the Act on Amendments to the Public Procurement Act introduced the so-called anti-corruption clause which prohibits the concluding of a public procurement contract with an economic operator where the head of the body or member of the management or supervisory body of the contracting authority is at the same time the holder of certain rights arising from a share in the capital of that economic operator. By the end of 2008, the Ministry of Economy, Labour and Entrepreneurship (MELE) will also sign a Co-operation Agreement with the State Attorneys Office, USKOK, the Ministry of the Interior, the State Audit Office and the Ministry of Finance. Training in the System of Public Procurement In 2008, MELE organised four 13-day modules for 16 participants civil servants, in co-operation with the Central State Office for Administration. In March 2008, MELE concluded the Agreement on Business Co-operation on the Implementation of Training concerning the System of Public Procurement with the Croatian Chamber of Economy (the CCE) and the Agreement on Business Co-operation in the System of Public Procurement with the Croatian Employers Association (CEA). Based on the said agreements, in 2008 MELE organised workshops, each for a group of 30 participants, that is, employees in the local self-government and municipal sector (14 three-day workshops in co-operation with the CCE) and workshops for representatives of tenderers (three one-day workshops in co-operation with CEA).
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The PHARE 2005 Twinning Light Project (TLP) was conducted under the title Strengthening the administrative capacity for the implementation of the new public procurement legal framework. It also served to run a training programme for the staff of MELEs Directorate for the Public Procurement System through 19 workshops and to organise a study trip to Hungary. The Manual for Contracting Authorities and the Manual for Tenderers were drawn up and presented to the public at the conference Novelties in the Public Procurement System Amendments to the Public Procurement Act and the Act on Public Private Partnerships, which was organised by MELE on 30 October. The project Further Strengthening of the Public Procurement System in the Republic of Croatia (a programme of the Kingdom of the Netherlands) is in its final phase of implementation. Three workshops and one study trip to the Netherlands took place as part of the said project, and the Public Procurement Glossary and a manual connected with the professionalisation of the function of public procurement will also be drawn up. Administrative Capacities With the Act on Amendments to the Act on the Structure and Scope of Central Bodies of State Administration (OG 27/08), the Ministry of the Economy, Labour and Entrepreneurship (MELE) was entrusted with the development of the overall system of public procurement, while MELEs Directorate for the Public Procurement System assumed the duties of the Public Procurement Office of the Government of the Republic of Croatia. Within the Directorate, there is the Department for the Analysis of Public Procurement Procedures, the Department for the Development of the Public Procurement System and for Training, the Department for Public Private Partnerships and the Department for Electronic Support to the Public Procurement System. To implement the Strategy for the Development of the Public Procurement System and its Action Plan, the Government of the Republic of Croatia adopted the Decision establishing the Implementation Monitoring Committee (OG 73/08), which is headed by MELE, and which consists of the representatives of Ministry of Finance, the State Commission for the Supervision of Public Procurement Procedures and Trade and Investment Promotion Agency - TIPA (that is, representatives of the Agency for Public Private Partnerships), as well as other relevant bodies of state administration involved in its implementation. Members of the said Committee were appointed by the Government of the Republic of Croatia in July 2008 (OG 92/08). Some of the main tasks of the Implementation Monitoring Committee are to gather, monitor and analyse data on measures taken in the system of public procurement, to improve the effectiveness of the implementing measures, to strengthen training programmes and to regularly report to the Government of the Republic of Croatia. The State Commission for the Supervision of Public Procurement Procedures (the Commission) Following the entry into force of the new Public Procurement Act, as of January 2008 it is possible to request review against all phases of the public procurement procedure, and active legitimacy has been expanded and is now fully in line with the requirements of the acquis communautaire. In the first quarter of 2008, the expected increase in the number of requests for review did not occur, but in the second quarter, the monthly inflow of review requests rose significantly. It is expected that in 2008 the number of requests for review against public procurement procedures will rise by 30% in comparison to 2007. In 2008, the Commission achieved all the goals set in 2007. In line with the standards set out in the Public Procurement Act, the Commission now publishes on its website all decisions in full, thus improving the transparency of the work of the institution and providing all interested parties with access to all decisions of the Commission. Decisions are published in the Register, which is published at www.dkom.hr (in the section Decisions, where all decisions are available in PDF format). They are published as soon as the return receipt is delivered as proof of service of the decision to the parties in the review procedure. The said system allows all interested parties to have access to the practice of the Commission. In October 2008, the procedure of selecting the Twinning partner of the Commission for the PHARE 2006 project Further Strengthening of the State Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection was concluded. The project is expected to last 6 months. Given that the term of office of the members of the first Commission ended on 16 October 2008, the Croatian Parliament passed a Decision appointing the president, deputy president and members of the State Commission for the Supervision of Public Procurement
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Procedures (OG 113/08). The new president of the Commission, two new members and two former members took office on 17 October 2008. The Commission, along with its main function of conducting the second-instance review procedure, also works on raising awareness of both the public and the private sector. Employees of the Commission led a number of informative seminars, as lecturers, concerning public procurement and the procedure of legal protection. The Act on Amendments to the Act on the State Commission for the Supervision of Public Procurement Procedures is currently being drawn up. It is expected to be adopted by the end of 2008. It will standardise the procedure for the appointment of members of the Commission in accordance with the provisions of Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts and Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts. B) KEY PRIORITIES With a view to ensuring the effective application of the legislative framework, amendments to the following regulations will be adopted in late 2008 and in the course of 2009: Regulation on the conditions for applying the Common Procurement Vocabulary (CPV) (OG 13/08); Regulation on the methodology for drawing up and handling tender documents and tenders (OG 13/08); Regulation on public procurement notices and records (OG 13/08, 77/08); Regulation on the content and the method of forwarding public procurement reports (OG 14/08).
The Ordinance on public procurement for the needs of diplomatic missions and consular offices of the Republic of Croatia will also be adopted. It will regulate the issue of procurement for the needs of diplomatic missions and consular offices. In line with the schedule of adopting the Proposal for a Directive of the European Parliament and of the Council on the coordination of procedures for the award of certain public works contracts, public supply contracts and public service contracts in the fields of defence and security, it is planned to adopt the Regulation on public procurement for the needs of defence and security. In January 2009, MELE will announce a tender procedure for the project of setting up the Central Public Procurement Authority at the level of the Government of the Republic of Croatia, and as part of the project it plans to implement the pilot project of central procurement. On completion of the test phase, recommendations will be drawn up to set up the Central Public Procurement Authority. All procurement categories in which the Central Public Procurement Authority are to participate will also be defined. It is planned for the Central Public Procurement Authority to be fully operational by the beginning of 2011. In 2009, MELE plans to conduct an awareness raising campaign Transparency in Public Procurement. The selection of the Public Relations Agency is planned for the period January-February 2009. The development of the campaign is planned for the period March-May 2009 and its implementation for June-December 2009. In 2009, MELEs Directorate for the System of Public Procurement will analyse electronic public procurement systems in EU Member States and, based on the results, will draw up a study for the development of electronic procurement. Training in the System of Public Procurement In 2009, further emphasis will be placed on the implementation of training in the system of public procurement. In co-operation with the Central State Office for Administration, it is planned to hold four modules for civil servants, while the organisation of workshops in co-operation with the Croatian Chamber of Economy and Croatian Employers Association will also continue. Training in the system of public procurement will involve approximately 500 participants through a total of 19 planned modules and workshops.
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Administrative Capacities In the course of 2009, with a view to strengthening the system and ensuring better implementation of the set goals, the recruitment of staff for the vacant posts will continue in MELEs Directorate for the System of Public Procurement. The State Commission for the Supervision of Public Procurement Procedures (the Commission) The budget of the Commission proposed for 2009 is satisfactory in terms of its normal functioning, but an increase will be requested in order to enable the recruitment of further expert staff. The said increase in the budget will be necessary in view of the expanded responsibilities of the Commission for the control of the award of concessions and for public private partnerships. In 2009, the main goals are further human resources development in the Commission, both of the members of the Commission and of expert and administrative staff. By the end of June 2009, it is foreseen to recruit 9 new expert advisors who will need to undergo expert training. Activities included in the Twinning project of the Commission are foreseen to facilitate changes to the current legislation in such a way as to enable the training of the members and advisors of the Commission, and of the representatives of the private sector concerning procedures of legal protection. In 2009, the staff of the Commission, as in previous years, will take part in training cycles for those who are obliged to apply the Public Procurement Act and for representatives of the private sector. Regional seminars and seminars for representatives of the media concerning legal protection in public procurement, as one of the activities included in the forthcoming Twinning project, will be held in Split, Rijeka and Osijek.
3.5.2. Concessions
A) ACHIEVEMENTS IN 2008 In 2008, the Concessions Act (OG 125/08) was adopted with a view to improving the system of concessions in the Republic of Croatia. The Act is fully aligned with the relevant acquis communautaire and serves to implement all the main factors of the new system of concessions set out in the Guidelines for the Development of the Concessions System 2007-2009. The new Concessions Act regulates the general conditions, rules, award procedures, termination and other issues connected with concessions which are awarded to national and foreign natural and legal persons. The Concessions Act is an umbrella act which regulates concessions in the Republic of Croatia, while other regulations are applied as leges speciales (sector-regulating laws and subordinate acts), which regulate specific issues connected with the award of concessions in the relevant fields and activities. In the part which regulates the award of concessions for public works, the Concessions Act invokes the subordinate application of the provisions of the Public Procurement Act (OG 110/07, 125/08). Application of the said rules ensures the implementation of a transparent and uniform concessions award procedure and the achievement of the goals of the Government of the Republic of Croatia, which are aimed at setting up an efficient and sustainable long-lasting concessions system, based on a uniform concessions award procedure in line with the principles laid down in the Constitution of the Republic of Croatia and the Treaty establishing the European Community. The provisions of the umbrella Concessions Act provide for the construction of an efficient system for the implementation of public private partnership projects (PPPs). In drawing up the Act, the Ministry of Finance (MF) co-operated intensively with the consultants of SIGMA. In line with the Strategy for the Development of the Public Procurement System and its Action Plan, on 14 November 2008 the Government of the Republic of Croatia adopted the Road Map for the co-ordination of special (sector-regulating) legislation governing concessions with the Concessions Act. The Road Map is based on an analytical presentation of the current legislative framework for concessions, and lays down detailed implementing measures and rules for the alignment of the special legislation with each
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specific provision of the Concessions Act. The implementation of the Road Map will be monitored by the Implementation Monitoring Committee of the Government of the Republic of Croatia for monitoring the implementation of measures in the public procurement system. The Road Map lays down the obligation of the line ministries to align the special legislation with the Concessions Act in accordance with the methodology and the time limits set out in the Road Map. Amendments to the Ordinance on the structure and maintenance of the Concessions Register will be adopted by the end of 2008, and the MF will also draw up The Guide for Concessions. Administrative Capacities In line with improvements to the system through the adoption of the new legislative framework in the field of concessions and the expansion of the scope of work of the MF to the concessions policy and a segment of the PPP system, new systematisation is in place in the MFs Directorate for the Economy, where a new Section for Concessions and Public Private Partnerships now exists within the Department for Concessions. Recruitment proceedings are underway to recruit new employees for the Section for Concessions and Public Private Partnerships. Regarding measures aimed at strengthening administrative capacities, the MF, in co-operation with the World Bank, drew up the proposal of a project to be implemented through the Public-private partnership Infrastructure Advisory Facility aimed at strengthening the administrative capacity of the MF to conduct the activities laid down in the new Act on Public Private Partnerships. In connection with the strengthening of administrative capacities, the Twinning Light project: Strengthening the Administrative Capacity of the Ministry of Finance for the Implementation of the New Legislative Framework for Concessions and Public Private Partnerships has been approved. Legal Protection in the Field of Concessions The Commission has completed the main preparations to take on implementation of control of the award of concessions contracts through the review procedure. B) KEY PRIORITIES Implementation of the new Concessions Act will begin on 1 January 2009 and the MF, as the authority competent for the concessions policy in the Republic of Croatia, will conduct the activities foreseen in the Concessions Act. As member of the Implementation Monitoring Committee for the implementation of the Road Map for the co-ordination of special (sector-regulating) legislation governing concessions with the Concessions Act, the MF will follow the line ministries and co-operate with them in the implementation of activities and obligations set out in the Road Map. Alignment of the special legislation with the Concessions Act will be conducted by 1 June 2009. On that same date, a uniform and co-ordinated legislative framework for concessions will also enter into force in the Republic of Croatia. Administrative Capacities There will be further improvement and strengthening of the administrative capacity of the organisational unit in charge of concessions and public private partnerships within the MF, primarily in the form of the implementation of the World Bank and the Twinning Light projects. Training will include new employees of the Department for Concessions of the Directorate for the Economy, who should be recruited by the end of 2008 based on the published vacancy announcements. At the same time, it is planned to train participants who are the subject matter of the application of the Concessions Act and to coordinate activities to ensure the efficient application of its provisions. Legal Protection in the Field of Concessions Activities will be conducted aimed at establishing the high-quality work of the Commission in relation to review proceedings in the award of concessions. Activities are also foreseen in the forthcoming Twinning project Further Strengthening of the State
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Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection, such as internships and tailor-made seminars for expert advisors and members of the Commission on the subject matter of concessions.
3.5.3. Public Private Partnerships

A) ACHIEVEMENTS IN 2008 The Act on Public Private Partnerships (OG 129/08) has been adopted. It promotes and allows for the systematic development of the application of public private partnership models as standard elements of public procurement involving investments by the private sector, thus enabling accelerated development which is not limited to budget funds. The Act regulates the entire field of PPPs, and in particular the following: the procedure of preparation, proposing, approval and monitoring of the implementation of PPP projects; the rights and obligations of public and private partners in the application of contractual and status models of PPPs; the competencies of the Agency for Public Private Partnerships (APPP). Further upgrading of the legislative framework will be implemented through the upscaling of the following implementing acts based on the Act on Public Private Partnerships by the end of the 1st quarter of 2009: Regulation on the criteria for the appraisal and approval of PPP projects; Regulation on the content of PPP agreements; Regulation on the monitoring of the implementation of PPP projects, stipulating the rights and obligations of the contractual parties in the procedure of monitoring the implementation of PPP projects; Regulation on the training of those participating in the procedure of preparing and implementing PPP projects; Ordinance on the structure and maintenance of the Register of PPP Agreements.
Simultaneously with the entry into force of the Act on PPPs, the MF will conduct the activities set out in the Act and launch the internal mechanisms for their effective implementation. Administrative Capacities The Act on PPPs establishes the Agency for Public Private Partnerships (APPP), which will promote best practice concerning PPPs based on the PPP policy of the Government of the Republic of Croatia. The APPP acquired legal identity on 21 November 2008 on its entry into the court register of the Commercial Court. In co-operation with the competent bodies of state administration, the APPP will evaluate the proposed projects and adopt decisions on the possibility of implementing the proposed projects according to the PPP model. The APPP will primarily deal with the pre-tender preparation and selection of PPP projects and with the monitoring of the implementation of the agreed PPP projects, including the establishment and maintenance of the Register of PPP Agreements. With a view to strengthening the administrative capacity of the APPP, the Delegation of the European Commission in Zagreb approved the IPA 2007 TWL project proposal Strengthening the Administrative Capacities of the Agency for Public Private Partnerships of the Republic of Croatia concerning the Implementation of the New Legislation on Public Private Partnerships. Legal Protection in the Field of PPPs The Commission concluded the main preparations for assuming the implementation of control of the award of PPP agreements through the review procedure.
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B) KEY PRIORITIES On the entry into force of the Act on Public Private Partnerships, the following implementing acts will be adopted by the end of the 1st quarter of 2009: 1. Regulation on the criteria for the appraisal and approval of PPP projects; 2. Regulation on the content of PPP agreements; 3. Regulation on the monitoring of the implementation of PPP projects, stipulating the rights and obligations of the contractual parties in the procedure of monitoring the implementation of PPP projects; 4. Regulation on the training of those participating in the procedure of preparing and implementing PPP projects; 5. Ordinance on the structure and maintenance of the Register of PPP Agreements. At the same time, the MF will conduct the activities set out in the Act on Public Private Partnerships, including establishing the required preconditions for their effective implementation. The APPP will draw up The Guide to Public Private Partnerships by the end of the 1st quarter of 2009. By the end of the 2nd quarter of 2009, the APPP, in co-operation with other bodies of state administration, will conduct an analytical overview of the national legislation in relation to the Act on Public Private Partnerships with a view to identifying potential obstacles to the effective application of the PPP model and drawing up a proposal of any alignments that might be necessary, by which the detected obstacles would be overcome and the optimal application of the PPP model ensured. In the 2nd quarter of 2009, the APPP will accede to the Business Co-operation Agreements by and between MELE and CCE, and MELE and CEA in the part relating to the training and exchange of experiences with the business community. Administrative Capacities The plan is to recruit 10 new employees in the APPP by the end of March 2009 and 10 more by the end of 2009. In the budget, there are funds in place for the recruitments planned in 2009 and also funds for the procurement of equipment and technical facilities. The APPP, in co-operation with MELE, will draw up and conduct training and education programmes for its own employees and for all other persons participating in PPPs, especially representatives of public bodies. In the realisation of its goals, the APPP will use the results achieved through the implementation of the approved IPA 2007 TWL project proposal, and bilateral assistance programmes. Legal Protection in the Field of PPPs Activities will be conducted aimed at establishing high-quality work of the Commission in relation to review proceedings in the field of PPPs. Activities are also foreseen in the forthcoming Twinning project Further Strengthening of the State Commission for the Supervision of Public Procurement Procedures and of the System of Legal Protection, such as internships and tailor-made seminars for expert advisors and members of the Commission on the subject matter of PPPs.
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3.6. COMPANY LAW 3.6.1 Company Law

ORDINANCE ON THE MANNER OF REGISTRATION IN THE COURT REGISTER Based on the Act on Amendments to the Act on the Court Register, adopted in March 2007 (OG 40/07), a new Ordinance on the manner of registration in the court register was adopted on 18 December 2007 (OG 134/07), determining in detail the provisions of the Act in question. The Ordinance prescribes the keeping of the ledger in both paper and electronic form, and daily data entry into a single database. The Ordinance further prescribes that the single database should also contain document files in electronic form as of 1 January 2009, identical to the document files in paper form. As of 1 January 2009, the Ordinance provides for the possibility of submitting a request for entry into the court register also in electronic form. The Instruction on the conditions and manner of electronic communication with the registry court for the purpose of entering a limited liability company into the court register prescribes the conducting of a pilot project for establishing a limited liability company with cash equity capital in the court register of the Commercial Court in Varadin. The pilot project, entitled Online Registration, which began on 30 October 2007, and which is based on the Instruction on amendments to the Instruction on the conditions and manner of electronic communication with the registry court for the purpose of entering a limited liability company into the court register (OG 62/08), will continue until 31 December 2008. From 1 January 2008 to 30 November 2008, 344 legal entities were established at the Commercial Court in Varadin through online registration, while 98 legal entities were established through the regular procedure, or 77,8% of companies were entered into the court register through online registration, while 22,2% of the entries took place through registration in paper form. These data encompass the establishment of all types of companies, while the online pilot project covers only the establishment of limited liability companies, leading to the conclusion that the project has been very successful. The project is being expanded to commercial courts in Osijek, Zadar and Split. In accordance with the Act on the Court Register and the Ordinance on the manner of registration in the court register, electronic communication with the court and the setting-up of electronic document files will be ensured by 1 January 2009. Operations with the new programme of the court registry central database began on 14 April 2008. For the purpose of creating court registry electronic document files as prescribed by the Act on the Court Register (OG 1/95, 57/96,45/99,54/05 and 40/07), IT equipment was delivered to all commercial courts, in addition to which the programme for scanning document files has been finalised. By 11 December 2008, the following entities were entered into the court register:
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Number and structure of registered entities
Legal form
Joint stock company Another person subject to registration by law Limited liability company Economic interest grouping Foreign founder General partnership Limited partnership Group of co-operatives Sole trader Institutions Co-operative Group of institutions
Entities
1,639 51 132,835 97 205 601 99 2 19 4,574 2,353 3 142,483
Duration of establishment in days:
Court
Commercial Court in Bjelovar Commercial Court in Dubrovnik Commercial Court in Karlovac Commercial Court in Osijek Commercial Court in Pazin Commercial Court in Rijeka Commercial Court in Sisak Commercial Court in Slavonski Brod Commercial Court in Split Commercial Court in ibenik Commercial Court in Varadin Commercial Court in Zadar Commercial Court in Zagreb Total in RC
Average no. of days for establishment

5.05 4.24 12.78 8.70 14.56 8.39 14.30 4.31 13.51 8.16 5.60 20.28 13.35 10.24
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B) KEY PRIORITIES During the third quarter of 2009, the adoption of the Act on Amendments to the Companies Act is planned, aligned with Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies. The Act in question will also be aligned with Directive 2007/63/EC of the European Parliament and of the Council of 13 November 2007 amending Council Directives 78/855/EEC and 82/891/EEC as regards the requirement of an independent experts report on the occasion of the merger or division of public limited liability companies. A draft proposal of the Decision of the Government of the Republic of Croatia on the conditions and manner of access to data from the court register has been planned for the last quarter of 2008 and the first quarter of 2009, as well as the preparation of subordinate legislation which will determine in detail court register codebooks, as well as security, storage and protection of data contained in the court register. Administrative capacities The Commercial and Company Law Department has been established within the Civil Law Directorate of the Ministry of Justice, authorised for administrative and professional tasks concerning the drafting of proposed acts and subordinate legislation and other regulations in the field of commercial law, company law and court registry entries. The Commercial and Company Law Department is also responsible for conducting analyses and making proposals regarding the alignment of these regulations with the acquis communautaire, for implementing the acts in question within the scope of activities of the Ministry of Justice, for providing expert opinion, and for conducting other activities entrusted to it by its director and the Head of Department. The Department has increased the number of its employees in accordance with the Ordinance on the internal organisation of the Ministry of Justice - List of positions and posts, number of employees and professional requirements for conducting tasks and activities in organisational units of the Ministry of Justice. Accordingly, the Department has an acting head and a senior judicial adviser, while an announcement for the post of administrative adviser has been issued.
3.6.2 Accounting
A) ACHIEVEMENTS IN 2008 Activities of the Republic of Croatia undertaken in the past period with the aim of alignment with the acquis communautaire in the field of accounting encompass the following: the new Accounting Act was published in the (OG 109/07) and implemented from 1 January 2008; the Government of the Republic of Croatia issued a Decision on the appointment of members of the Financial Reporting Standards Committee, on a proposal by the Minister of Finance; the Minister of Finance passed an Ordinance on the structure and contents of annual financial reports (OG 38/08); the Minister of Finance issued an Ordinance on the manner of keeping registers of annual financial reports, and the manner of receiving and the procedure of verifying the completeness and accuracy of annual financial reports and the financial report (OG 39/08). The Financial Reporting Standards Committee adopted the Croatian Financial Reporting Standards (OG 30/08), the Ordinance on the manner of operation of the Financial Reporting Standards Committee confirmed by a Decision of the Government of the Republic of Croatia (OG 114/08), the Decision on amendments to the Decision on publishing the International Financial Reporting Standards (OG 130/08 and 137/08), and a Decision on amendments to the Decision on publishing the International Financial Reporting Standards 6 and 7 (OG 137/08).
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Following the publication of the Croatian Financial Reporting Standards, a group of accounting experts issued a manual entitled Implementation of Croatian Financial Reporting Standards with tax regulations containing the Croatian Financial Reporting Standards in their original form as published in the Official Gazette, and the application of each particular standard. The Manual was structured according to the Croatian Financial Reporting Standards so that the original text is followed by a comment and examples of accounting and tax treatment for each standard. The Croatian Financial Services Supervisory Agency issued a Decision on the structure and contents of annual financial reports for company leasing (OG 29/08), the Ordinance on the structure and contents of annual financial reports of insurance companies (OG 31/08), and the Ordinance on the structure and contents of annual financial reports of pension insurance companies (OG 94/08). The Croatian National Bank issued a Decision on the structure and contents of annual financial reports of banks (OG 62/08). In June 2008, a package of regulations and concordance tables regarding the alignment of Croatian accounting regulations with the Fourth Directive 78/660/EEC and the Seventh Directive 83/349/EEC was submitted to the European Commission. B) KEY PRIORITIES In the course of 2009, the activities planned encompass those related to monitoring the development of accounting theory and practice, as well as activities related to the strengthening of administrative capacities in the field of accounting. A new department within the Ministry of Finance will be established, competent for issues of public interest in accounting. In order to improve decision-making that is in the public interest and raising public awareness, the recruitment of new personnel has been planned with suitable qualifications and experience in the field of accounting. Permanent education and professional training have been planned through the IDF deed of donation received by the Republic of Croatia from the World Bank. A portion of the deed of donation resources will be used for the strengthening of administrative capacities in the accounting profession.
3.6.3 Audit
A) ACHIEVEMENTS IN 2008 AMENDMENTS TO THE AUDIT ACT In the course of 2008, the Proposal of the Act on Amendments to the Audit Act (OG 146/05) was prepared, for the purpose of full alignment with the Eighth Company Law Directive (2006/43/EC) of the European Parliament and of the Council of 17 May 2006. In mid June 2008, the Proposal of the Act on Amendments to the Audit Act, along with the Table of Concordance between the Eighth Directive 2006/43/EC and the Proposal of the Act in question, was submitted to the European Commission for opinion, in order to obtain a professional conformity assessment of the Act in question with the acquis communautaire. In accordance with comments and remarks received from the European Commission, answers and amendments were prepared, additionally aligning the provisions of the Act with the Eighth Directive 2006/43/EC, which was then resubmitted to the European Commission for analysis and opinion. Due to a large number of amendments to the Proposal of the Act, and in accordance with the comments of the European Commission, it was sent for a third reading. The Croatian Parliament passed the Act on Amendments to the Audit Act on 21 November 2008 (OG 139/08). The adoption of this Act also encompasses the organisation of efficient quality assurance and public supervision of the auditing profession.
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B) KEY PRIORITIES The following activities have been planned in 2009 for the implementation of the Act on Amendments to the Audit Act (OG 139/08): A) The Public Supervision Committee will issue the Rules of Procedure of its operation within 60 days of its appointment. B) The Croatian Audit Chamber will align all acts with the provisions of this Act within 90 days. In the course of 2009, the activities planned include the monitoring of the development of the auditing profession, as well as activities regarding the strengthening of the public supervision of auditors. The Croatian Audit Chamber plans to employ a head of quality of work verification and his/her team, in which the recruitment of up to 5 auditing experts is anticipated. Within the Ministry of Finance, the establishment of a new department has been planned, competent for issues of public interest in the auditing profession, and for conducting the administrative and technical tasks of the Audit Public Supervision Committee. In order to improve decision-making that is in the public interest and raise public awareness, the recruitment of new personnel with suitable qualifications and experience in the field of audit has been planned. Permanent education and professional training have been planned through the IDF deed of donation received by the Republic of Croatia from the World Bank. In addition, the Project of attaining the common goal of strengthening administrative capacities in the auditing profession has been planned. The Project also encompasses technical assistance in the auditing profession through a professional training programme and a detailed analysis of recommendations for the Croatian Audit Chamber (particularly in relation to the professional education of the team for quality of work verification) and initiating the programme of permanent professional training (CPD) for auditors.
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3.7. INTELLECTUAL PROPERTY RIGHTS

On 1 January 2008, the Republic of Croatia became a full member of the European Patent Organisation on the basis of the Act on Ratification of the European Patent Convention (Official Gazette - International Agreements 8/07 of 24 August 2007). On 1 May 2008, the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (London Agreement) came into force on the basis of the Act on Ratification of the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (OG IA 8/07 of 24 August 2007). In 2008, the State Intellectual Property Office completed the legal activities that had been planned. The Act on Administrative Fees and the Regulation on amendments to the Regulation on reimbursement of fees and costs for SIPO information services (OG 77/08 of 18 June 2008) were adopted and came into force on 7 June 2008 (OG 62/08 of 30 May 2008) and 26 June 2008, respectively. Pursuant to the provisions of the Patent Act (OG 76/07 of 23 July 2007), the Boards of Appeal became operational on 1 June 2008. The Minister of the Economy, Labour and Entrepreneurship, who is in charge of this area, issued the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). The Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were prepared and published in the official newsletter of SIPO (HGIV) and on SIPOs website (www.dziv.hr). With the recruitment of the head of the Secretariat of the Boards of Appeal, the other administrative requirements for their work were also met. Pursuant to the Act on Amendments to the Act on the Structure and Scope of Central State Administrative Organisations (OG 27/08 of 5 March 2008), which came into force on 12 March 2008, the Ministry of the Economy, Labour and Entrepreneurship took charge of the work of the State Intellectual Property Office, which was formerly within the competence of the Ministry of Science, Education and Sports. The Government of the Republic of Croatia adopted the Regulation on the internal organisation of the State Intellectual Property Office at its session on 6 March 2008 (OG 30/08 of 12 March 2008) and on 19 March eljko Topi, MSc, was re-appointed Director General of SIPO (OG 35/08 of 19 March 2008). In June and July the Government of the Republic of Croatia appointed the new management of SIPO, on the basis of a public invitation to submit applications, and in line with the structure prescribed in the new Ordinance on the internal organisation of SIPO. On 22 January 2008, a new Intellectual Property Information Centre INCENTIVE was opened at SIPO. This will be a public information service centre providing expert IT assistance to all those wishing to protect, enforce and manage intellectual property efficiently. In January 2008, manuals for patent and trademark examination were published, as well as the 8th edition of the International Patent Classification in Croatian, and a Guide for Applicants How to Enforce a European Patent.
3.7.1. Copyright and Related Rights

A) ACHIEVEMENTS IN 2008 Within the framework of its competence in the field of copyright and related rights, and at the request of state administration bodies and other legal entities and natural persons, SIPO developed a series of interpretations of laws and regulations in this field, as well as technical opinions and positions, particularly in connection with the latest amendments to the Act on Copyright and Related Rights from 2007. Close co-operation has been established with a special unit of the Government of the Republic of Croatia for a regulatory guillotine procedure (Hitrorez) regarding all laws and regulations in this field.
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SIPO also prepared a series of technical opinions on the legal compliance of certain activities and procedures of organisations which are approved by SIPO for the collective enforcement of copyright. In 2008, SIPO also adopted a decision giving approval to the Society of Croatian Authors (DHK) to pursue the activity of the collective enforcement of public lending rights, in addition to the five already registered organisations the Croatian Composers Society (HDS ZAMP), the Croatian Performers Rights Collecting Society (HUZIP), the Association for Protection, Collection and Distribution of Phonogram Producers Rights (ZAPRAF), the Croatian Film Directors Guild (DHR) and the Association for the Protection of Publishers Rights (ZANA). In accordance with its authorisations, SIPO conducted inspection of collecting societies. In the course of its inspections in 2008, no irregularities were found and it was established that collecting societies had pursued their activities in accordance with the laws and regulations, and in line with the remit of SIPOs approval. B) KEY PRIORITIES Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of copyright and related rights.
3.7.2. Industrial Property

Patents
A) ACHIEVEMENTS IN 2008 The Patent Act and the Ordinance on patents are the main pieces of legislation regulating the field of patents in the Republic of Croatia. On 1 January 2008, the Convention on the Grant of European Patents (European Patent Convention (EPC)) - as drafted in Munich on 5 October 1973, and in the version amended by the Act amending Article 63 of the EPC of 17 December 1991, and the decisions of the Administrative Council of the European Patent Organisation of 21 December 1978, 13 December 1994, 20 October 1995, 5 December 1996, 10 December 1998 and 27 October 2005, and as last revised on 29 November 2000 - came into force in the Republic of Croatia. It was ratified by the Act on Ratification published in the Official Gazette, International Agreements (8/07). With the entry into force of the EPC, the Agreement between the Government of the Republic of Croatia and the European Patent Organisation on co-operation in the field of patents (the Co-operation and Extension Agreement) ceased to have effect. On 1 May 2008, the Agreement on the Application of Article 65 of the Convention on the Grant of European Patents (the London Agreement) came into force. The Act on Ratification of the Agreement was published in the Official Gazette, International Agreements (8/07). The Agreement requires the signatory states that ratified it or acceded to it to dispense with the translation requirements provided for in Article 65 of the European Patent Convention. The provisions of the Patent Act regulating the procedure of appeal against any decisions taken by SIPO in grant procedures came into force on 1 June 2008. The provisions on appeal apply mutatis mutandis to other laws in the field of industrial property. The competent Minister of the Economy, Labour and Entrepreneurship adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of industrial property rights (OG 52/08), and the Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were developed and published on SIPOs website (www.dziv.hr). With the recruitment of a head of the Secretariat of the Boards of Appeal, the other administrative requirements for their work were also met.
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The Plant Variety Protection Act and related ordinances regulate the protection of plant varieties in the Republic of Croatia. The Act on Amendments to the Plant Variety Protection Act was adopted in May 2008 (OG 67/08). These amendments completed the alignment of the Plant Variety Protection Act with the provisions of Directive 98/44/EC, and also incorporated the provisions on compulsory mutual licences into the Act. In 2008, activities were launched aimed at amending the Act on Administrative Fees in the Field of Intellectual Property Rights, and the Regulation on reimbursement of fees and costs for SIPOs information services. Accordingly, the Act on Administrative Fees in the Field of Intellectual Property Rights, and the Regulation on reimbursement of fees and costs for SIPOs information services were published on 30 May 2008 (OG 62/08) and 18 June 2008 (OG 70/08), respectively. Given that amendments to laws in the field of intellectual property rights and ordinances issued pursuant to them are being applied, it was necessary to adopt the above-mentioned pieces of legislation, as these laws and ordinances prescribe new procedures and introduce new legal institutions (primarily, the institution of appeal as of 1 June 2008), which, however, will not be available until the Act and the Regulation come into force. Thus, the necessary alignment with the acquis communautaire has also been achieved in the field of intellectual property rights in line with the obligations of the 2008 NPAEU for the second quarter of 2008. The Patent Search and Examination Manual was developed and published. B) KEY PRIORITIES With regard to the remaining obligations in connection with the alignment of the Patent Act with the acquis communautaire, relevant adjustments are envisaged for the first quarter of 2009, which relate to insufficiently precise definitions in Regulations (EC) No 1768/92 and (EC) No 1610/96. The necessary adjustments of the Patent Act will be adopted in the second quarter of 2009 in accordance with the comments received from the European Commission. In the framework of these amendments, technical modification of Article 65 of the Patent Act will take place in accordance with the requirements of the Directive 98/44/EC. The Act envisages the adoption of amendments by no later than 1 June 2009. It is planned to carry out the above stated activities in the first quarter of 2009. Further training and professional development of employees is planned in relation to the new instruments and those that will come into force (e.g. the Supplementary Protection Certificate). The Republic of Croatia will continue to monitor developments in the field of the establishment of the Community patent, and is ready to take due measures to align its legal system with the development of the acquis in this field. In the framework of the implementation of full membership of EPO, it is planned to develop a national action plan for professional and technical co-operation.
Trademarks
A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on Administrative Fees in the Field of Intellectual Property Rights (OG 62/08), and the Regulation on Amendments to the Regulation on reimbursement of fees and costs for SIPOs information services (OG 70/08) were adopted. With regard to trademarks, special tariff numbers were introduced for actions envisaged as a result of amendments to the Trademark Act of 2007. The Minister of the Economy, Labour and Entrepreneurship, who is in charge of this area, adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). The Rules of Procedure of
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the Boards of Appeal in the field of intellectual property rights were developed and published in the official newsletter of SIPO (HGIV) and on SIPOs website (www.dziv.hr). In addition, with the recruitment of the head of the Secretariat of the Boards of Appeal, the other administrative requirements for their work were also met. The Regulation on the internal organisation of the State Intellectual Property Office (30/08) and the related Ordinance on internal organisation were adopted. Thus, the envisaged changes in the organisation of SIPO were carried out, which also involved the reorganisation of the former Distinctive Marks Department that had previously been in charge of trademarks. Trademarks are now in the remit of the Trademarks and Industrial Designs Department. The fundamental change is that now, with the goal of utilising expert staff more efficiently, related tasks are grouped together in formal and substantive procedures, irrespective of the type of right, in contrast to the past when tasks were grouped according to types of rights. A trademark examination manual was developed and published. The staff of SIPO took part in the regular annual meetings of the Office for Harmonisation of the Internal Market (OHIM). B) KEY PRIORITIES As a result of informal discussions with the European Commission and certain comments in connection with the provisions enabling the extension of the effects of the Community Trademark to the territory of the Republic of Croatia and the implementation of certain specific actions in the interaction between the national and the Community Trademark (conversion), the idea to further amend the Trademark Act was accepted, in order to achieve full alignment using the formulations suggested by the European Commission. Specifically, this refers to three changes that the Republic of Croatia has undertaken to adopt in 2009. The amendments to the Trademark Act, including these changes, will be adopted in the first half of 2009. Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of trademarks.
Industrial Design
A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on Administrative Fees in the Field of Intellectual Property Rights (OG 62/08), and the Regulation on amendments to the Regulation on reimbursement of fees and costs for SIPOs information services (OG 70/08) were adopted. With regard to industrial design, special tariff numbers were introduced for actions envisaged as a result of amendments to the Trademark Act of 2007. The Minister of the Economy, Labour and Entrepreneurship, who is in charge of this area, adopted the Ordinance on remuneration to the members of the Boards of Appeal in the field of intellectual property rights (OG 52/08 of 7 May 2008). The Rules of Procedure of the Boards of Appeal in the field of intellectual property rights were developed and published in the official newsletter of SIPO (HGIV) and on SIPOs website (www.dziv.hr). In addition, with the recruitment of the head of the Secretariat of the Boards of Appeal, the other administrative requirements for their work were also met. The Regulation on the internal organisation of the State Intellectual Property Office (30/08) and the related Ordinance on internal organisation were adopted. Thus, the envisaged changes in the organisation of SIPO were carried out, which also involved the reorganisation of the former Distinctive Marks Department that had previously been in charge of industrial design. Industrial design is now in the remit of the Trademarks and Industrial Designs Department. The fundamental change is that now, with the goal of utilising expert staff more efficiently, related tasks are grouped together in formal and substantive procedures, irrespective of the type of right, in contrast to the past, when tasks were grouped according to types of rights.
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The staff of SIPO took part in the regular annual meetings of the Office for Harmonisation of the Internal Market (OHIM). B) KEY PRIORITIES As a result of informal discussions with the European Commission and certain comments in connection with the provisions enabling the extension of the effects of the Community Design to the territory of the Republic of Croatia, the idea to further amend the Industrial Design Act has been accepted, with a view to achieving full alignment using the formulations suggested by the European Commission. This involves one change that the Republic of Croatia has undertaken to adopt in 2009. The amendments to the Industrial Design Act including this change will be adopted in the first half of 2009. Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of industrial design.
Geographical Indications
B) KEY PRIORITIES Developments at international level and in the acquis communautaire will continue to be monitored in order to be able to adopt any necessary rules and regulations in the field of geographical indications.
Topographies
B) KEY PRIORITIES The provisions of Article 1 of the Act on Protection of Topographies of Semiconductor Products (OG 76/07) are based on the provisions of Article 3 paragraph 4 of Directive 87/54/EEC on the legal protection of topographies of semiconductor products in relation to its former (commercial) exploitation. With a view to achieving full alignment with the acquis communautaire in this area, Croatia has undertaken to remove minor differences with regard to Article 17 of the Act on Protection of Topographies of Semiconductor Products in order to fully align it in the first quarter of 2009 with Article 5 of Directive 87/54/EEC in accordance with the comments received from the European Commission.
3.7.3. Enforcement of Intellectual Property Rights

National Strategy for the Development of the Intellectual Property System 20052010 According to the reports of competent bodies, there have been no significant delays in the implementation of the Strategy measures so far. As the first half of the envisaged implementation period for the National Strategy is over, and during this period a large number of envisaged strategy measures have been implemented, the text of the National Strategy will be reviewed accordingly, with a view to consolidating it and possibly introducing some changes to the strategic measures which are to be applied during the remaining half of the implementation period. Recommendations from the Report of the Peer Mission of European Union Member
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States of April 2008 will be taken into consideration in the course of the review. With a view to implementing the reviewed National Strategy, the relevant Action Plan will be developed. Both documents will be prepared in early 2009. For the purpose of implementing the National Strategy for the Development of the Intellectual Property System 20052010, and in the framework of activities envisaged for 2007, the Ministry of Justice has prepared models for the statistical analysis of data on infringements of intellectual property rights which are intended for courts, i.e. misdemeanour courts, municipal and county courts, commercial courts, the High Misdemeanour Court of the Republic of Croatia, the High Commercial Court of the Republic of Croatia and the Administrative Court of the Republic of Croatia. The activities aimed at monitoring protection of intellectual property rights in the field of criminal law enforcement at municipal and county courts are conducted independently of monitoring protection of intellectual property rights at misdemeanour courts and the High Misdemeanour Court of the Republic of Croatia, and independently of the protection of intellectual property rights in the field of civil law enforcement conducted by commercial courts and the High Commercial Court of the Republic of Croatia. The above-mentioned courts have received requests to monitor cases of infringements of intellectual property rights and the forms to be completed and delivered regularly to the Ministry of Justice. The data required are monitored on a monthly basis and delivered to the Ministry of Justice on a quarterly basis. Such a model for monitoring case law in the field of infringements of intellectual property rights constitutes a significant improvement compared to the old monitoring system applied by the courts. The Ministry of Justice will collect information on the court cases and prepare annual reports. The reports will include information on the number of cases, types of infringements and judgements, as well as the time needed for judgements to be passed. The reports will be published on the website of the Ministry of Justice and will also be submitted to the State Intellectual Property Office. The first report is to be prepared in the first quarter of 2009, and will include data for 2008, since the collection of information based on the above-stated parameters started in 2008. In co-operation with the services of the European Commission, the Republic of Croatia has developed a special methodology for collecting statistical data, enabling the systematic and co-ordinated collection and processing of data in all areas of intellectual property (track record) by all bodies in charge of the protection of intellectual property rights against infringements. The comprehensive document Measuring Infringements of Intellectual Property Rights (Report on upgrading the methodologies for the collection of statistical data and the statistical data on infringements of intellectual property rights) containing the required statistical data was submitted to the European Commission in May 2008. In accordance with the recommendations of the European Commission, certain improvements were incorporated in the basic document and additional statistical data were collected. Schedules to the Report were also developed, which include a list of statistical tables and charts of the comprehensive body of statistical data on infringements and enforcement of intellectual property rights, including a series of tables and charts with relevant data for 2007. For the purpose of strengthening administrative capacities and institution building, activities are planned under the Phare 2006 programme Strengthening the Enforcement of Intellectual Property Rights, whose beneficiaries are, apart from SIPO, the State Inspectorate, the Ministry of Finance Customs Directorate, the Ministry of the Interior, and the Ministry of Justice. The programme is valued at EUR 1.63 million and its implementation started in November 2008.
STATE INSPECTORATE
A) ACHIEVEMENTS IN 2008 In 2008, the activities of the State Inspectorate focused on fulfilling the requirements of the second benchmark set by the European Union for the closing of Chapter 7 in negotiations for the accession of the Republic of Croatia to the European Union, which reads as follows: The Republic of Croatia should ensure sufficient administrative capacity to enforce the rights concerning the fight against piracy and counterfeit, and provide a satisfactory statistical track record of investigation, prosecutions and judicial treatment of violations.
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With a view to finding a solution and launching activities aimed at fulfilling the second benchmark in relation to providing a satisfactory statistical track record on investigation, prosecution, and judicial treatment of violations, in 2008 a working group was formed consisting of representatives from SIPO, CBS, MJ, SAO, MI, MF-CD and SIO, whose objective is to ensure a permanent track record of data. Representatives of the State Inspectorate participated in the working group, which in May 2008 prepared the following document: Measuring Infringements of Intellectual Property Rights Study for the Promotion of Methodology for the Collection of Statistical Data. The Study was presented to the European Commission by representatives of the Negotiating Team for Chapter 7 in June 2008, and comments were received requiring specific details in connection with the measures taken. A Supplement to the Study for the Promotion of Methodology for the Collection of Statistical Data was developed in July 2008 which, in relation to the State Inspectorate, includes data on the number of inspections conducted, and the number of applications to institute misdemeanour proceedings pursuant to individual provisions of the laws regulating the protection of intellectual property rights, and on temporarily seized goods, i.e. the number of pieces, and the value of goods, and the type and number of pieces by category of temporarily seized goods. It also includes a list of trademarks that were most often subject to infringements of rights. In the field of strengthening the administrative capacities of the State Inspectorate of the Republic of Croatia in the field of enforcement of intellectual property rights, further professional training in the area of enforcement of intellectual property rights was organised for economic inspectors and senior economic inspectors in 2008. Additionally, in 2008, economic inspectors of the State Inspectorate, as ordered by the Chief Inspector and based on the 2008 Programme of Activities of the State Inspectorate, Intellectual Property Department, carried out intensified controls of the enforcement of intellectual property rights. B) KEY PRIORITIES
Further strengthening of administrative capacities The National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010 envisages the following: purchase of IT equipment an upgrade of the information system of the State Inspectorate and equipping regional units and branches of the State Inspectorate with portable computers and digital cameras; procurement of software for the implementation of supervision over computer programmes; organisation of seminars and workshops on the protection of intellectual property rights further professional training of inspectors of the State Inspectorate; intensification of co-operation with the Ministry of the Interior and the Customs Directorate, with a view to efficiently identifying any potential infringements of intellectual property rights with regard to goods already placed on the market in the territory of the Republic of Croatia. The State Inspectorate, the Ministry of the Interior, and the Customs Directorate have not been provided with warehousing space for the storage of counterfeit and pirated goods temporarily seized as a result of operations in co-operation with one another, which was foreseen as a short-term measure in the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010. A needs assessment for such warehouses is to be carried out under the PHARE 2006 programme Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia. For 2009, intensified inspection controls of the protection of intellectual property rights are planned ex officio as a part of the programme of activities.
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Financing The implementation of these activities is to be financed from the funds of the PHARE 2006 programme Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia and partially, in the required amount, from the State Budget.
MINISTRY OF FINANCE CUSTOMS DIRECTORATE
A) ACHIEVEMENTS IN 2008 In 2008, the legal instruments of customs measures aimed at protecting intellectual property rights were fully implemented in the practice of the customs, as prescribed in the Regulation on amendments to the Regulation on the implementation of customs measures with regard to goods suspected of infringing specific intellectual property rights (OG 82/07), adopted by the Government of the Republic of Croatia on 2 August 2007, and which entered into force on 8 August 2007. These legal instruments refer to the area of exceptions to the application of customs procedures for the protection of intellectual property rights, which essentially implies a different regime in the application of customs procedures from the protection of intellectual property rights for goods in postal delivery, and from the so-called instrument of the simplified procedure for the destruction of goods infringing intellectual property rights. In 2008, regular activities in the implementation of customs procedures for the protection of intellectual property rights continued. Additionally, in line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010, activities were intensified and focused on enhancing co-operation with the Ministry of the Interior, the State Inspectorate and other competent government authorities of the national intellectual property system, particularly in relation to activities aimed at harmonising the systematic monitoring of statistical data on infringements of intellectual property rights. This led to the defining of common principles of the relevant methodology and to activities of co-operation in the specific implementation of intellectual property rights enforcement measures. In early 2008, a sub-system for risk management was implemented in the IT system of the Customs Directorate. Protection of intellectual property rights was identified as one of the risk areas. B) KEY PRIORITIES In 2009, regular activities on the implementation of customs measures in relation to the protection of intellectual property rights will continue. In this respect, and in line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010, plans are in place to intensify activities focused on enhancing co-operation with the Ministry of the Interior, the State Inspectorate and other competent authorities of the national intellectual property system. This particularly refers to those activities aimed at defining models of co-operation in specific cases of enforcement of intellectual property rights, by means of strengthening and practising specific co-operation activities at the local level, co-ordinating the joint action procedures of competent authorities, and the exchange of information between competent authorities. In this respect, new Procedural Instructions of the Customs Directorate for the implementation of customs measures for the protection of intellectual property will be adopted, which will define in greater detail the procedures within customs bodies in the implementation of measures for the protection of intellectual property.
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Co-operation with the Risk Management Department of the Central Office of the Customs Directorate will also be strengthened, with a view to improving the efficiency of detecting infringements of intellectual property rights regarding goods subject to customs procedures. In line with the National Strategy for the Development of the Intellectual Property System in the Republic of Croatia 2005-2010, and in the framework of the PHARE 2006 programme Strengthening the Capacity for Enforcement of Intellectual Property Rights in the Republic of Croatia, it is planned to equip customs offices with digital cameras for photographing goods infringing intellectual property rights. Such photographs will be forwarded to the rights holders and other competent bodies in the implementation of intellectual property rights. Further professional development and training of employees of the Customs Directorate will be carried out at the Customs Training Centre and in the framework of co-operation with rights holders. Financing The planned activities are to be financed from the funds of the PHARE 2006 programme Strengthening the Capacity for Enforcement of Intellectual Property Rights in Croatia and partially, in the required amount, from the State Budget.
MINISTRY OF THE INTERIOR
A) ACHIEVEMENTS IN 2008 In line with the National Strategy for the Development of the Intellectual Property System, priority is given, as envisaged, to the enforcement of intellectual property rights, which will continue to be one of the priorities of the Ministry of the Interior. With a view to developing and enhancing direct co-operation, in 2007 and 2008 the Ministry of the Interior strengthened its co-operation with Interpol and Europol in practical terms, so that in this respect the Ministry took an active part in arranging and planning various projects, such as the implementation of a twinning project in the framework of the PHARE 2006 programme, the implementation of which started in April 2008. Since almost all forms of crime relating to intellectual property have an international character, and since borders between states or even continents do not present a barrier to any of these criminal offences, successful co-operation has been achieved with Europol and Interpol, and relevant data and information have been exchanged. For the purpose of organising and implementing as efficiently as possible activities in the field of the prevention of different forms of criminal offences relating to the infringement of intellectual property rights, employees of the Ministry of the Interior attended various training courses, conferences and seminars. The activities of employees of the Ministry of the Interior during the first eight months of 2008 resulted in the temporary seizure of an increased number of various objects for which there were grounds to suspect that they were proceeds of crime, or were used to commit criminal offences in relation to intellectual property, such as digital media for the storage of data, computers, medicinal products, articles of clothing and shoes, personal vehicles, and various other items. In this period, 85 criminal investigations were carried out in relation to the protection of copyright, and 25 investigations relating to industrial property. As the majority of infringements of intellectual property rights are directly linked to the Internet, it should be mentioned that in the same period 67 criminal investigations also took place in connection with computer crime. B) KEY PRIORITIES In 2009, the training of employees in the area of protection of intellectual property rights will continue. Along these lines, the implementation of the above-mentioned twinning project will continue, and seminars will be organised not only for employees of the
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Ministry of the Interior, but also for those of the Customs Directorate, the Ministry of Justice, and the State Inspectorate. In addition, a study visit to Denmark and Estonia will be organised, and co-operation with Europol and Interpol will continue. In the planning of training activities, special focus will be placed on organising seminars in connection with the use of the EnCase programme, which is primarily intended to address problems of computer crime, and other forms of crime in the area of intellectual property. In 2009, the need for, and feasibility of, setting up a section for computer crime and protection of intellectual property in Categories I and II of the Police Administration (Zagreb, Primorje-Gorski kotar, Osijek-Baranja, Istria and Split-Dalmatia) will be considered. With a view to promoting the efficiency of procedures of police officers who deal with problems relating to the protection of intellectual property rights, the procurement of computer equipment (hardware and software) and the effective introduction of the necessary number of high-speed internet connections without restrictions will be examined.
MINISTRY OF JUSTICE
A) ACHIEVEMENTS IN 2008 The draft for the new Criminal Procedure Act is currently under parliamentary procedure. The provisions of Chapter XVIII of the Criminal Procedure Act, Evidentiary Measures, have been aligned with international instruments on cybercrime. The Draft of the new Criminal Procedure Act includes the provision of Article 263 regulating in detail the temporary seizure of objects in relation to data stored on computers and equipment connected to computers. The objective was to ensure that these aspects of evidence, which are growing in importance, are implemented in practice according to detailed rules. These rules have been aligned with the Convention on Cybercrime (ETS 185) and its Additional Protocol (OG IA 9/2002), as well as Recommendation R(89)9 on computerrelated crime, and Recommendation R(95)13 on problems of criminal procedural law connected with information technology. Electronic evidence (Article 331) is a new type of evidence which is expressly provided for. However, although special computerrelated criminal offences are provided for in substantive criminal law, there are also many other criminal offences committed using electronic devices, or in the area of electronic data. In all of these cases, the use of electronic evidence is highly important. In introducing this new type of evidence, the Convention on Cybercrime (OG IA 9/02 and 4/04) was primarily taken into account. In the case of electronic evidence, two Recommendations are also relevant. Recommendation R(89)9, on computer-related crime, stresses the transnational character of cybercrime and the need to legally regulate the liability of operators. It should be kept in mind that Recommendation R(95)13, on problems of criminal procedural law connected with information technology, expressly regulates electronic evidence. It is envisaged that these provisions of the Criminal Procedure Act will enter into force on 1 September 2011. Enforcement of Intellectual Property Rights The Ministry of Justice set up a system for keeping records of infringements of intellectual property rights so that statistical data are collected in connection with cases relating to infringements of intellectual property rights from misdemeanour courts, municipal courts, commercial courts, the High Commercial Court of the Republic of Croatia, the High Misdemeanour Court of the Republic of Croatia, and the Administrative Court of the Republic of Croatia. These data are collected continuously and sent to the State Intellectual Property Office and the Central Bureau of Statistics to be published. B) KEY PRIORITIES In 2009, the Ministry of Justice will provide funds for the training of judges dealing with cases relating to the enforcement of intellectual property rights.
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3.8. COMPETITION POLICY 3.8.1. Anti-trust and merger control

A) ACHIEVEMENTS IN 2008 After intensified activities had been carried out relating to the revisions of the 2003 Competition Act in co-operation with the German experts within the PHARE project, the Croatian Competition Agency (hereinafter CCA) finalised the Draft Proposal of the new Competition Act. The provisions introduced in the new Competition Act will ensure the establishment of an effective competition regime in Croatia. The Proposal seeks to empower the CCA to impose fines on undertakings for any infringement of competition rules and at the same time to establish judicial protection against the decisions of the CCA where one court will be given jurisdiction to review the decisions of the CCA regarding both the lawfulness of such decisions and the level of the fines imposed. In addition, the new Competition Act provides for a number of procedural changes, such as the short-form notification of concentration which may be used for the purpose of notifying concentrations under simplified procedure treatment for certain concentrations. The CCA completed the Draft Proposal in question in October 2008 and submitted it for opinion to a working group established for this purpose and to the Ministry of the Economy which is the formal sponsor of the given legal act. The Draft Proposal incorporates all the received relevant comments of the European Commission. The new Competition Act is planned to be adopted in the first quarter of 2009. In 2008, the CCA increased its staff by employing six lawyers and one economist. Strengthening administrative capacities continued through the PHARE project which will continue to be implemented until February 2009 and which in one part covers the area of antitrust and merger control. The resources from the project have been used for the purchase of IT equipment and for the establishment of a data management system. B) KEY PRIORITIES It is planned that the new Competition Act will enter into force in the third quarter of 2009. For the sake of conformity with the revised provisions of the new Competition Act, it will also be necessary to adopt at the same time a new Regulation on the notification and assessment of concentrations, together with other necessary subordinate legislation, such as the Regulation on block exemption granted to certain categories of agreements in the transport sector (the adoption of which will mean full compliance with the acquis in the area of competition in the transport sector), the Regulation on the method of setting fines and calculation of fines, and the Regulation on the reduction of fines and immunity from fines. The training of the expert staff of the CCA and other stakeholders in the area of anti-trust and merger control ensured within the PHARE project will continue. This project will be followed by the 2007 IPA project whose implementation is planned to start in autumn 2009. With regard to the changes introduced by the new Competition Act, it will also be necessary to introduce appropriate changes to the Courts Act. The provisions of a revised Courts Act will have to define a new court protection regime in respect of the lawfulness of the decisions of the CCA and the level of imposed fines. In addition, it will be necessary, due to its misleading wording, to delete Article 288 from the Criminal Code which provides for the criminal responsibility of a responsible person of a legal person for abuse of a monopolistic position which is created on the basis of the conclusion of an agreement. The Act on Administrative Fees will also need to undergo necessary changes concerning the introduction of new fees and tariffs for the new proceedings which are envisaged in the new Competition Act and which will be carried out by the CCA. The 2007 IPA project will be implemented from 2009 to 2011 on the basis of a twinning contract worth EUR 1,000,000 and an agreement on the provision of services worth EUR 1,000,000.
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3.8.2. State Aid

State aid control in the Republic of Croatia is regulated by the State Aid Act (OG 140/05) and the Regulation on state aid (OG 50/06). In addition, the Regulation on state aid ensures the alignment of the Croatian state aid subordinate legislation through the publication of the relevant EU state aid rules translated into Croatian in the Official Gazette, following the decision on the publication of such rules by the Government of the Republic of Croatia. It is important to note here that the criteria arising from the proper application of the relevant EC state aid rules are directly applicable in the Republic of Croatia pursuant to Article 70 paragraph 2 of the Stabilisation and Association Agreement between the Republic of Croatia and the European Communities and their Member States (OG 14/01, 14/02, 1/05, 7/05 and 11/06; SAA). The publication of the rules concerned has been undertaken exclusively with a view to achieving full transparency and effectiveness of the national state aid regime. Within the meaning of the above-mentioned Regulation on state aid, and given that preparation for the publication of the rules requires expertise in the area of state aid, the Minister of Finance has appointed a Committee for monitoring and preparing the lists of rules to be published and particular state aid rules. The Committee consists of representatives of the Ministry of Finance, the CCA, and the head of the Working Group in the accession negotiations covering Chapter 8: Competition policy. A) ACHIEVEMENTS IN 2008 Pursuant to Article 3 of the 2006 Regulation on state aid (OG 50/06), the Government of the Republic of Croatia, upon the proposal of the Minister of Finance, adopts decisions on the publication of the lists of relevant rules and particular state aid rules referred to under Article 2 of the Regulation concerned. Thus, in 2006 the Croatian government adopted the Decision on the publication of the lists of state aid rules (OG 121/06). In 2007, the government adopted the following decisions: the Decision on the publication of the rules concerning state aid for rescue and restructuring (OG 20/07); the Decision on the publication of the rules concerning de minimis aid (OG 45/07); the Decision on the publication of the rules concerning state aid for research and development and innovation (OG 96/07); and the Decision on the publication of rules concerning state aid for environmental protection (OG 98/07). The above Decision on the publication of the lists of state aid rules has been twice subject to changes and updated (OG 45/07 and OG 13/08). In 2008, the following decisions were adopted: the Decision on the publication of the rules on state aid in the form of guarantees (OG 13/08); the Decision on the publication of the rules on state aid to small and medium-sized enterprises (OG 39/08); the Decision on the publication of the rules on state aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OG 39/08); the Decision on the publication of the rules on state aid to short-term export-credit insurance (OG 39/08); the Decision on the publication of the rules on the application of the State aid rules to measures relating to direct business taxation (OG 46/08); the Decision on the publication of the rules on state aid relating to postal services (OG 46/08); the Decision on the publication of the rules on state aid relating to cinematographic and other audiovisual works (OG 46/08); the Decision on the publication of the rules on national regional aid (OG 58/08); the Decision on the publication of the rules on financial transparency within public undertakings (OG 58/08); the Decision on the publication of the rules on state aid for employment (OG 68/08); the Decision on the publication of the rules on state aid for training (OG 68/08); the Decision on the publication of the rules on state aid to public service broadcasting (OG 68/08); the Decision on the publication of the rules on state aid to promote risk capital investments in small and medium-sized enterprises (OG 91/08); the Decision on the publication of the rules on state aid elements in sales of land and buildings by public authorities (OG 106/08); the Decision on the publication of the rules on state aid for the steel sector (OG 134/08); the Decision on the publication of the rules on state aid for environmental protection (OG 154/08); the Decision on the publication of the rules on state aid in the shipbuilding sector (OG 154/08); the Decision on the publication of the rules on state aid in the transport sector (OG 141/08); and the Decision on the publication of the rules on state aid linked to stranded costs in the electricity sector (OG 150/08).
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In the area of state aid, the CCA has mobilised the majority of its resources and focused on fulfilling the commitments deriving from the SAA and complying with the benchmarks set in the EU negotiation process, particularly those relating to the restructuring of the shipbuilding industry in Croatia. In September 2008, the CCA adopted the Annual Report on State Aid for 2007 (detailed amounts of state aid are provided under Section 3: Economic Criteria). A constituent part of the Restructuring Programme for the Croatian Steel Industry from 2007 to 2011, which was adopted in its revised version by the Government of the Republic of Croatia at its session of 30 June 2008, is also the List of state aid authorised to Croatian steelworks in the period from 2002 to March 2007. The level of state aid granted to steelworks in the privatisation process is in accordance with the share sale agreements and is significantly lower than the aid which had been envisaged by the national restructuring programme if these steelworks had remained state owned. The new private investors have assumed the majority of the outstanding liabilities under the loans covered by state guarantees and committed themselves to new investments in the technological development of the steelworks. No new state aid has been awarded to steelworks after 1 March 2007. In its Opinion of 17 June 2008 on the business plan and the viability plan of the CMC Sisak d.o.o. and eljezara Split d.d. undertakings, the CCA established that in line with the relevant state aid rules and Protocol 2 of the SAA the amount and intensity of state aid are limited to the minimum required to restore viability and to cover the restructuring costs necessary to enable the restructuring of the Croatian steel sector. In the Croatia Progress Report for 2008, the European Commission states that some progress has been achieved on this chapter, in particular as regards state aid to the steel sector. In 2008, the Ministry of the Economy, Labour and Entrepreneurship developed the Operational Programme for the Textiles Industry and the Leather and Footwear Industry for 2008 which is based on the adopted Strategy for the Development of the Textiles Industry and the Leather and Footwear Industry. The Operational Programme provides for aid to foster regional development and training aid in the amount of HRK 100,000,000 for the textiles industry and HRK 29,000,000 for the leather and footwear industry. With its decision of 2 October 2008, the CCA authorised the aid schemes in question. The aid has been awarded following a public tender procedure. In 2008, the State Aid Sector of the CCA employed one new economist. Strengthening of administrative capacities continued with the support of German experts through PHARE 2005 which in one part also covers state aid. The CCA also received assistance in handling the most complex cases, particularly those in the shipbuilding and steel sector. B) KEY PRIORITIES In 2009, the remaining state aid rules are to be published (such as the Decision on the publication of the rules on state aid in the form of guarantees, revised state aid rules in the transport sector and the General Block Exemption Regulation). All the state aid rules are planned to be published in the first quarter of 2009. The Industrial Policy Strategy of the Republic of Croatia envisages state aid for sector specific projects and raising competitiveness through research and development and innovation programmes, with the aim of adopting measures to raise the competitiveness of Croatian industry, based on the Lisbon Strategy but also within the framework and deadlines feasible for Croatia. It is necessary to draw up Operational Programmes for the award of state aid in all sectors based on sector specific strategies. State aid will be granted in line with the state aid rules, where aid for research and development and sector specific strategies will be particularly represented. The Operational Programmes will be authorised by the CCA. Strengthening the administrative capacities of the State Aid Division of the CCA will continue through the PHARE project until February 2009, to be followed by the IPA project 2007 starting in autumn 2009.
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As in previous years, attempts will be made for the state aid policy to be focused on the allocation of state aid to horizontal objectives and regional development. The intention behind the further allocation of horizontal aid is to increase its share in the total amount of state aid while meeting the overall objective of less and better targeted aid and efficient allocation of resources to foster economic growth within the existing EU state aid criteria.
3.8.2.1. Fiscal aid
A) ACHIEVEMENTS IN 2008 In 2008, the fiscal aid measures falling under the jurisdiction of the Directorate for Investment Promotion and Export of the Ministry of the Economy, Labour and Entrepreneurship were fully adjusted to the acquis. The given fiscal aid measures fall under the Investment Promotion Act and the Free Zones Act. The Act on the Amendments to the Free Zones Act (OG 85/08) was adopted in June 2008, and in October 2008 the Ordinance on the method of calculation of realised investments, used investment aid and tax relief for free zone users (OG 122/08) was also adopted. Further progress has been achieved in alignment with the acquis in the area of fiscal aid in relation to tax benefits for corporate taxpayers as specified in the Act on Areas of Special State Concern, the Act on Hilly and Mountainous Areas, and the Act on Reconstruction and Development of the Town of Vukovar. Full alignment of the fiscal measures contained in the above-mentioned aid schemes with the relevant acquis has been conducted in such a way that tax benefits have been aligned with EU rules on de minimis aid. In other words, the Amendments to the Act on Reconstruction and Development of the Town of Vukovar (OG 80/08) and the Act on Amendments to the Act on Hilly and Mountainous Areas (OG 80/08) which were adopted by the Croatian Parliament on 2 July 2008, and the Act on Areas of Special State Concern (OG 86/08) which was adopted by the Croatian Parliament on 15 July, fully comply with the relevant state aid rules within the meaning of the binding decision taken by the CCA (OG 83/08). In March 2007, EUROSTAT authorised the National Classification of Territorial Units for Statistics NUTS II and in April 2008 the CCA issued its positive opinion on the proposed Decision of the Government of the Republic of Croatia on the regional aid map which was finally adopted by the Government of the Republic of Croatia on 2 May 2008. The above-mentioned decision is consistent with the Guidelines on national regional aid for 2007 2013 (OJ C 54, 4.3.2006), which allows for the implementation of legislative acts covering state aid, such as the Investment Promotion Act. The decision also complies with Article 70 of the SAA. Within the meaning of the data available from the Croatian Central Bureau of Statistics concerning per capita gross domestic product (GDP), measured in purchasing power standards of the EU-25 average for three years, from 2000 to 2002, the population data of the Republic of Croatia at NUTS II geographical units and the National Classification of Territorial Units for Statistics, published in OG 35/07 on 2 April 2007, the whole territory of the Republic of Croatia is divided into three NUTS level II geographical units which may be granted state aid under the derogation provided under Article 87(3)(a) of the EC Treaty. Thus, in accordance with the adopted regional aid map: 1. Northwest Croatia has a per capita GDP of 53.15% of the EU-25 average and thus the aid ceiling for regional aid must not exceed 40% GGE (gross grant equivalent) for large companies; 2. Central and East (Pannonian) Croatia has a per capita GDP of 31.37% of the EU-25 average; 3. the Adriatic coast of Croatia has a per capita GDP of 39.49% of the EU-25 average. Thus, the aid ceiling for regional aid in these regions must not exceed 50% GGE for large companies. The aid ceiling may be increased by 10 percentage points for medium-sized enterprises, and for small enterprises by 20 percentage points.
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B) KEY PRIORITIES The Ministry of Regional Development, Forestry and Water Management is drafting subordinate legislation in the form of ordinances to define in detail the eligibility of taxpayers for incentives (tax relief) as laid down in the above-mentioned laws containing fiscal measures. The given ordinances are planned to be adopted in the first quarter of 2009.
3.8.2.2. Steel
A) ACHIEVEMENTS IN 2008 The revised Restructuring Programme for the Croatian Steel Industry from 2007 to 2011 was adopted by the Croatian government on 30 June 2008. Under the Restructuring Programme in question, the new owners of the steel works assumed the majority of the outstanding liabilities under the loans covered by state guarantees, and committed themselves to new investments in the technological development of the steel works. In 2008, no new state aid was awarded to steelworks. In line with Article 6 of the State Aid Act and Protocol 2 of the SAA, the CCA assessed state aid for the restructuring of the steel sector in June 2008. The CCA assessed state aid for the Valjaonica cijevi Sisak d.o.o. company, i.e. its legal successor CMC Sisak d.o.o., and established that the total amount of state aid awarded to the CMC Sisak d.o.o. company by way of state guarantees, a soft loan and a debt write-off in the period from 2002 to 28 February 2007 totalled HRK 19,117,572.36. In the case of restructuring aid for the eljezara Split d.d. undertaking, the total amount of state aid granted through claim write offs, tax and contributions write offs, state guarantees and soft loans in the period from 2002 to 28 February 2007 amounted to HRK 221,693,825.38. B) KEY PRIORITIES The monitoring of the implementation of the restructuring plan for the steel sector will continue in line with the adopted Restructuring Programme for the Croatian Steel Industry from 2007 to 2011.
3.8.2.2. Shipbuilding With a view to ensuring the implementation of the restructuring process on 21 May 2008, the Government of the Republic of Croatia adopted the Decision on the privatisation of the following Croatian shipyards under majority state ownership: 3. Maj, Brodosplit, Brodotrogir, Brodogradilite Kraljevica and Uljanik. In July 2008, the CCA adopted Conclusions on suspending procedures of authorising state aid included in the shipyards restructuring plans initiated on the basis of a request by the Ministry of the Economy, Labour and Entrepreneurship. This is in compliance with the above Decision of the Croatian government which stipulates that the privatisation of the shipyards will be carried out in line with specific rules contained in the Privatisation Act. Legally speaking, the privatisation process appears as a preliminary issue in the procedure that the CCA is conducting pursuant to the provisions of the State Aid Act, since, without resolving this issue, the procedure of approving state aid based on the existing individual restructuring plans drawn up by the managements of the shipyards cannot be completed. The main objective of the privatisation process in the shipbuilding sector is to restore the long-term viability of the shipyards within the meaning of the rules on state aid for restructuring of companies in difficulty applicable in the EU. Before the tender announcement is published, it is necessary to establish the basic principles of privatisation. The drafting of tendering documents is underway, and it is expected that the tenders will be published in the first quarter of 2009.
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Along with the activities relating to the restructuring and privatisation process in the shipbuilding sector, further alignment with the relevant EU rules for state aid for shipyards has been achieved. The Ministry of the Economy, Labour and Entrepreneurship drafted the aid scheme for experimental development and innovation in the shipbuilding sector which was authorised by the CCA on 27 June 2008 and adopted by the Croatian Government on 31 October 2008. The aid scheme is in compliance with the SAA and is aimed at fostering innovation in the shipbuilding industry. B) KEY PRIORITIES Detailed principles for the privatisation and the content of tender documentation will be established with the representatives of the European Commission. The ultimate objective of privatisation is successful restructuring, whereby the shipyards will be sold to private investors who must satisfy the specific criteria and offer viable restructuring plans to ensure the long-term viability of the shipyards under market conditions. The authorisation process concerning state aid for the shipyards in question will be resumed after the CCA has been informed by the Ministry of the Economy, Labour and Entrepreneurship and the Croatian Privatisation Fund that the privatisation process has been completed and after the relevant investment plans, business plans and other necessary documentation have been submitted to it in conformity with the valid state aid rules.
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3.9. FINANCIAL SERVICES 3.9.1. Banking

The financial sector in the Republic of Croatia is centred on banks, with total bank assets accounting for 75.5% of total assets of all financial intermediaries at the end of June 2008. In terms of the share in total assets of all financial intermediaries, housing savings banks came next, accounting for 1.4%, while savings and loan co-operatives accounted for 0.4% of total assets of all financial intermediaries. Following a fall in the banks share in total assets of all financial intermediaries up to the end of 2007, to the benefit of an increase in the share of investment and pension funds, the share of bank assets in total assets of all financial intermediaries increased in 2008 as a result of a fall in the value of assets of investment funds (Table 1). The reason for the fall in the value of assets of investments funds lies in the reduction in the number of investors due to their decreasing preference for investments of this kind.
Table 1 Share of financial institutions in total assets at the end of the period9
2005
Banks Open-end investment funds, net assets Closed-end investment funds, net assets* Insurance undertakings Housing savings banks Compulsory pension funds, net assets Voluntary pension funds, net assets Savings and loan co-operatives Leasing companies Total 78.9 2.7 1.1 5.0 1.9 3.6 0.1 0.5 6.2 100.0
2006
76.7 4.0 1.4 4.9 1.6 4.0 0.1 0.5 6.8 100.0
2007
73.9 6.4 1.7 5.0 1.4 4.5 0.2 0.4 6.5 100.0
June 2008
75.5 4.1 1.4 5.3 1.4 4.8 0.2 0.4 6.9 100.0
Total bank assets rose from HRK 345.1 billion at the end of 2007 to HRK 348.2 billion at the end of the first half of 2008. The 1% growth in the first half of 2008, compared to the end of 2007, is the result of central bank measures aimed at restricting placements growth and the appreciation of the exchange rate of the kuna. Consolidation in the banking sector (Table 2) in the past few years has brought the number of banks down, declining to 33 institutions by the middle of 2008. At that point, there were 5 housing savings banks operating in the Republic of Croatia. The number of savings and loan co-operatives has been falling steadily by virtue of their obligatory transformation, by the end of 2008, to either savings banks or credit unions, pursuant to the Act on Amendments to the Banking Act (OG 141/06) and the Credit Unions Act (OG 141/06). The ratio of domestic to foreign owners of banks and housing banks has been stable for some time now, with 90.69% of their total assets being in foreign ownership at the end of June 2008 (Table 3).
Sources: the Croatian National Bank, the Croatian Financial Services Supervisory Agency, and the Ministry of Finance.
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Table 2 Number of banks (domestic / foreign ownership) and share in total assets
Year
2003 2004 2005 2006 2007 June 2008
Croatian ownership
22 22 20 19 18 18
Share in total assets of banks and housing savings banks (%)

8.97 8.47 8.68 9.02 9.03 9.31
Foreign ownership
19 15 14 19 20 20

91.03 91.53 91.32 90.98 90.97 90.69
At the end of June 2008, there were nine banking groups operating in the banking sector whose operations are reported to the CNB by their parent banks, pursuant to the Decision on consolidated financial reports of a banking group (OG 17/03 and 149/05). Business operations of the parent bank in a group accounted for the bulk of consolidated business operations of all banking groups.
Table 3 Number of banks (domestic / foreign ownership) and share in total assets as at 30 June 2008
Banks and housing savings banks according to ownership
Number of banks and housing savings banks

2007 June 2008 20 10 1 6 1 1 1 15 3 38

2007 90.57 59.42 7.32 20.10 0.04 3.41 0.28 4.80 4.63 100.00 June 2008 90.69 59.91 7.18 19.89 0.04 3.42 0.23 4.83 4.48 100.00
1. Foreign ownership 1.1 Austria 1.2 France 1.3 Italy 1.4 Luxembourg 1.5 Hungary 1.6 San Marino 2. Domestic private ownership 3. State ownership Total
20 10 1 6 1 1 1 15 3 38
Alignment with the Capital Requirements Directive In the process of aligning the business of existing savings and loan co-operatives with the acquis communautaire relating to the pursuit of the business of credit institutions, in December 2006 the Act on Amendments to the Banking Act (OG 141/06) was adopted, which made it possible for savings and loan co-operatives to be transformed into savings banks and for the establishment of savings
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banks. At the same time, the Credit Unions Act (OG 141/06) was also adopted, allowing for savings and loan co-operatives to be aligned with the said Act, i.e. for the possibility of establishing credit unions. According to preliminary data, 43 savings and loan co-operatives opted for transformation into savings banks, 37 opted to align with the Act and continue operating as credit unions, while 24 opted to dissolve and go into voluntary liquidation. However, in the course of the licensing procedure, by September 2008 37 savings and loan co-operatives had changed their minds and chose to go into voluntary liquidation, and 4 savings and loan cooperatives merged with the largest savings and loan co-operative. The Croatian National Bank thus received in total: 21 applications for the transformation of savings and loan co-operatives into savings banks and one application for establishing a savings bank; 18 applications to continue operations of savings and loan cooperatives as credit unions, and 2 applications for establishing a credit union; a notification on the merging of 4 savings and loan co-operatives; and decisions from 61 savings and loan co-operatives on the initiation of voluntary liquidation procedures. Based on the applications received from savings and loan co-operatives for transformation into savings banks, continuing operations as credit unions, or establishing a credit union, by September 2008 the Croatian National Bank had issued the following decisions: 1 savings and loan co-operative was transformed into a savings bank and one savings bank was established; 12 savings and loan co-operatives did not fulfil the conditions for transformation into a savings bank and their applications were refused; 18 applications from savings and loan co-operatives to continue operating as credit unions were granted, as were two applications for establishing a credit union. The processing of eight applications from savings and loan co-operatives for transformation into savings banks currently underway will be completed by the end of 2008. The Credit Institutions Act (OG 117/08) implementing the Capital Requirements Directive (CRD10) in the part relating to credit institutions was adopted by the Croatian Parliament on 26 September 2008. The Croatian National Bank plans to adopt subordinate legislation regulating in detail the calculation of the capital adequacy of credit institutions, and a range of other subordinate legislation based on the new Credit Institutions Act,11 up to the end of 2008. Under this Act, credit institutions are required to have a minimum capital adequacy of 12%. In addition to the Credit Institutions Act, the Croatian Parliament adopted, on 26 September 2008, the Electronic Money Institutions Act12 (OG 117/08) and the Act on Settlement Finality in Payment and Financial Instruments Settlement Systems13 (OG 117/08). The Act on Amendments to the Deposit Insurance Act14 was adopted by the Croatian Parliament on 15 October 2008 (OG 119/08) and the Financial Conglomerates Act15 on 5 December 2008. In 2008, a number of technical meetings were held relating to the implementation of the CRD by parents of banks in Croatia. Thus, in co-operation with FMA, the Austrian supervisory authority, the members of the working group for the IRB approach in calculations of capital requirements for credit risk participated in meetings and prevalidations of Austrian banks present in the Republic of Croatia. Under the organisation of the Italian supervisory authority, Banca dItalia, the members of the subgroup for operational risk participated in meetings relating to the implementation of the AMA model by Italian banks in the Republic of Croatia, while the members of the subgroup for economic capital participated in meetings for the introduction of the model in Italian banking groups operating in the Republic of Croatia. Technical assistance relating to the supervision of market risk was provided to colleague supervi-
10 11
12 13 14 15
The Capital Requirements Directive comprises Directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions and Directive 2006/49/EC on the capital adequacy of investment firms and credit institutions. Including, in addition to the CRD, transposition of the provisions of Directive 2001/24/EC on the reorganisation and winding up of credit institutions, Directive 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions, and Council Directive 89/117/EEC on the obligations of branches established in a Member State of credit institutions and financial institutions having their head offices outside that Member State regarding the publication of annual accounting documents. Directive 2000/46/EC on the taking up, pursuit of and prudential supervision of the business of electronic money institutions. Directive 1998/26/EC on settlement finality in payment and securities settlement systems. Directive 94/19/EC on deposit-guarantee schemes. Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate.
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sors from Montenegro, while colleagues from the German central bank held a workshop in the CNB on the type and supervision of market risks management models. In general, it can be said that the CNB maintains regular contacts and co-operation on various issues relating to CRD legislation and implementation and regular supervisory issues with all supervisors with whom it has signed memoranda of understanding. Memoranda of understanding Based on the Agreement on Co-operation between the Croatian National Bank and the Croatian Financial Services Supervisory Agency signed in October 2006, a Working Committee for Financial System Supervision was established to co-ordinate the procedures and activities of the signatories to this Agreement. In addition, in co-operation with the Ministry of Finance, the Agreement on Co-operation and Exchange of Information in the Area of Anti-money Laundering and Combating of Terrorism Financing was signed in August 2006. The Agreement on Co-operation in the Area of Competition in the Banking and Financial Services Market has been in force since 2005. Prompted by the entry of new foreign shareholders in the ownership structure of banks in the Republic of Croatia, preparations were launched towards the conclusion of a memorandum of understanding between the Croatian National Bank and Commission Bancaire, and Bundesbank and BaFin as, respectively, the French and German banking supervisors, as well as between the Croatian National Bank and the central bank of San Marino. The basis for co-operation with supervisors of banks in foreign ownership are memoranda of understanding concluded with home supervisors from Austria, Italy, and Hungary, while the memorandum of understanding concluded with supervisors from Bosnia and Herzegovina deals with the activities of host supervisors. Other changes in subordinate legislation To help reduce credit growth, largely based on the foreign borrowing of banks from their parents, at the end of 2006 the Croatian National Bank (CNB) introduced a measure of credit control obligating banks, whose annual placements growth in 2007 exceeded 12%, to subscribe to CNB bills in an amount equal to 50% of the excess. The measure was further tightened in July 2007 (OG 132/07) and March 2008 (OG 29/08). Restriction of banks placements growth was also achieved through appropriate capital adequacy requirements as a precondition of growth, and in this context, the Croatian National Bank issued two Decisions on Amendments to the Decision on the capital adequacy of banks (OG 130/07 and 31/08). As regards credit risk, it should be stated that, with a view to achieving better management of currency induced credit risk (CICR) in light of the significant euroisation of bank assets, the regulation adopted by the CNB in 200616 is still in force. Under this regulation, greater weighting is used for credit risk in the calculation of the capital adequacy of banks for exposure to clients with an unmatched currency position, i.e. the currency in which they realise their income is not matched with the currency of the placement. Since May 2007, a better insight into credit risk when granting new placements has been made possible for the founding banks of the Croatian Registry of Credit Obligations (HROK) which provides information on the credit history of their clients. Supervision statistics Responsibility for on-site supervision of banks in the Prudential Regulation and Bank Supervision Area of the Croatian National Bank lies with the On-Site Risk Management Supervision Department and the Specialised On-Site Supervision Department. To ensure a specialist approach to the supervision of bank operations, and to perform tasks related to preparations for new legislation, experts in law, information technology and mathematics were recruited by the CNB in 2008.
16
Decision on Amendments to the Decision on the capital adequacy of banks (OG 149/05) and Decision on Amendments to the Instruction for the uniform implementation of the Decision on the capital adequacy of banks (OG 41/06).
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Table 4 Number of employees in the Prudential Regulation and Bank Supervision Area
Number of employees Organisational unit 31 December 2005

4 11 22 27 22 8 94
31 December 2006
5 12 22 32 21 7 99
31 December 2007
6 11 23 29 22 10 101
30 June 2008
6 12 22 28 23 11 102
Prudential Regulation and Bank Supervision Area (PRBSA) Prudential Regulation and Banking System Analysis Department Specialised On-Site Supervision Department On-Site Risk Management Supervision Department Prudential Analysis Department Licensing and Market Competition Department Total:
An overview of the total number of on-site supervisions of business operations, total bank assets supervised in on-site supervisions as well as data on assets supervised per employee is presented below. The number of employees actively participating in on-site supervisions (at the end of 2007, 40 employees; in the middle of 2008, 32 employees) was used in the statistical analysis.
Table 5 Number of on-site supervisions and assets supervised (total and per employee)
On-site supervisions
Supervision of overall operations Supervision of individual segments of operations Total number of on-site supervisions Assets supervised in on-site supervisions (in HRK thousands) Assets supervised in on-site supervisions per employee (in HRK thousands)
2005
0 33 33 213,590,933.42 4,449,811.11
2006
4 34 38 290,415,117 8,067,087
2007
4 30 34 192,555,478 4,813,887
30 June 2008
6 16 22 110,882,084 3,465,065
A large number of employees responsible for the conduct of on-site supervision were also engaged in 2007 and 2008 on the drafting of regulations for the transposition of the CRD. Their efforts in this context will continue in the next period, until the final adoption of all the regulations that are to bring about full alignment with the provisions of the CRD. However, it should be noted that, their additional tasks notwithstanding, these employees managed to complete the majority of the planned on-site supervision activities. During 2008, greater attention was paid to introducing the employees of PRBSA to legislation whose implementation was pending. It has been estimated that the amount of time dedicated to the training of PRBSA employees up to the end of 2008 will remain almost equal to that in 2007.
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Table 6 Number of training hours of PRBSA employees
Department/Area
Prudential Regulation and Banking System Analysis Department Prudential Analysis Department On-Site Risk Management Supervision Department Specialised On-Site Supervision Department Licensing and Market Competition Department Area Total
Total hours of training 2005

1,229 1,584 2,467 2,220 884 215 8,599
2006
1,033 1,572 3,411 3,048 636 321 10,021
2007
416 1,512 2,631 1,725 376 512 7,172
30 June 2008
240 460 1,340 1,008 80 208 3,336
B) KEY PRIORITIES Planned for adoption by the end of 2008 is the draft subordinate legislation based on the Credit Institutions Act which is to regulate in more detail the business of credit institutions as from the year 2009. This subordinate legislation includes the following:17 Table 7 List of new subordinate legislation
No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
Title of new subordinate legislation

Decision on the capital adequacy of credit institutions Decision on own funds of credit institutions Decision on the classification of placements and off-balance sheet liabilities of credit institutions Decision on liquidity risk management Decision on the management of interest rate risk in the non-trading book Decision on the internal capital adequacy assessment process for credit institutions Decision on public disclosure of compliance with prudential requirements by credit institutions Decision on the method of exercising supervision of credit institutions and imposing supervisory measures Decision on the supervision of a group of credit institutions on a consolidated basis Decision on financial reports of credit institutions (FINREP) Decision on reports on own funds and capital requirements of credit institutions Decision on large exposures of credit institutions17 Decision on limits on credit institutions holdings in non-financial institutions and holdings of tangible assets Decision on detailed conditions for the establishment, operation and dissolution of branches of third-country credit institutions in the Republic of Croatia Decision on representative offices of credit institutions with registered offices outside the Republic of Croatia Decision on the criteria and procedure for granting prior approval of the Croatian National Bank for the appointment of the chairperson or a member of the management board of a credit institution Decision on internal control systems Decision on risk management
17
In accordance with the June 2008 recommendation of the European Commission, the Decision on large exposures is to implement the amendments to the CRD currently taking place in Member States.
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19. 20. 21. 22. 23.
Decision on the contents of audits of credit institutions Decision on outsourcing Decision on the effective interest rate of credit institutions and credit unions and on service contracts with consumers Decision on the obligation to make provisions for litigations conducted against a credit institution Decision on submitting reports about borrowers whose debt to a credit institution exceeds a specified amount
Taking into account the legislation which is already being drafted, the CNB, as a banking supervisory authority, continually works towards improving its supervisory approach, placing greater emphasis on the supervision of risk management (credit risk, market risk, liquidity risk) and the supervision of the system of internal controls, information technology and the implementation of the measures of monetary and exchange rate policies. In the context of drafting legislation for the implementation of the CRD, seminars and workshops are planned to be held for all the employees of the Prudential Regulation and Bank Supervision Area and representatives of banks and auditors to ensure an optimum level of transparency and preparedness for the new legislation. As regards efforts to promote bank reporting pursuant to the new legislation, the CNB held four workshops in the period from May 2007 to October 2008 to acquaint the banks with the future requirements in respect of financial and statistical reporting to the CNB and to enable them to prepare their information systems on time. The primary objective is the implementation of regulations that will enter into force during the said period. In that context, priority in supervisory activities will be given to the promotion of co-operation with other supervisory authorities, both domestic and foreign. Further activities will also take place in the alignment of the existing regulations in the field of banking with the changes introduced by the new International Financial Reporting Standards.
3.9.2. Insurance
The Croatian Financial Services Supervisory Agency (hereinafter: HANFA) was founded by virtue of the Act on the Croatian Financial Services Supervisory Agency (OG 140/05) and started operating on 1 January 2006. HANFA unites three institutions: the Croatian Securities Commission, the Agency for the Supervision of Pension Funds and Insurance Companies, and the Insurance Companies Supervisory Authority. HANFA is responsible for the supervision of the non-banking financial system, i.e. insurance, pension and investment funds, the securities market, and leasing, factoring, and pension insurance companies. The main objectives of HANFA are the promotion and preservation of the stability of the financial system and supervision of the legality of operations of supervised entities. In the accomplishment of these objectives, it is guided by the principles of transparency, trust building among the participants in the financial market, and the provision of information to consumers. HANFA is an independent legal person with public authority within its scope of activity and competencies, as prescribed by the Act on the Croatian Financial Services Supervisory Agency (hereinafter: the Act) and other legislation, and is accountable to the Croatian Parliament. Once a year, HANFA is obligated to submit to the Government of the Republic of Croatia and the Croatian Parliament a report on its activities in the previous year and on the condition of the financial institutions and markets that fall within its scope of activity and competencies. HANFAs funding in 2008 came from fees for services rendered and fees from income and assets of supervised entities and not from the state budget. As at early October 2008, HANFA had a staff of 121 employees. With the date of Croatias entry into the EU approaching, and as a result of the growing competitiveness of Croatian insurance undertakings and the increased quality and range of insurance products and services, the number of newly established insurance undertakings continued their trend upwards in 2008. As at 30 September 2008, there were 25 licensed insurance and 2 licensed reinsurance companies operating in Croatia. This is an increase of 2 insurance undertakings in 2008, compared with the end of 2007. The total assets of the insurance market in the Republic of Croatia was HRK 23.2 billion at the end of 2007 and HRK 25.9 billion on
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30 September 2008. At the same time, gross written premiums of insurance and reinsurance undertakings stood at HRK 9.5 billion at the end of 2007 and HRK 7.7 billion on 30 September 2008, which points to steady growth in the insurance market compared to the previous period, given that written gross insurance premiums stood at HRK 7.2 billion in the first nine months of 2007.
Table - Number of insurance and reinsurance undertakings (domestic/foreign ownership) and share in total assets
Year
2006 2007 Sept. 2008
Domestic ownership
10 11 11
Share in total assets of insurance and reinsurance undertakings

62.2% 54.3% 52.8%
Foreign ownership
12 14 16
Share in total assets of insurance and reinsurance undertakings

37.8% 45.7% 47.2%
Table - Number of insurance and reinsurance undertakings (domestic/foreign ownership) and share in total gross written premiums
Year
Domestic ownership
Share in total gross written premiums of insurance and reinsurance undertakings

66.8% 59.6% 61.7%
Foreign ownership
Share in total gross written premiums of insurance and reinsurance undertakings

33.2% 40.4% 38.3%
2006 2007 Sept. 2008
10 11 11
12 14 16
In the context of the insurance market, there were two insurance groups operating as at 30 September 2008 whose business is reported to HANFA on a semi-annual basis by the leading insurance undertakings pursuant to the Ordinance on the supplementary supervision of insurance groups (OG 132/06). The business of leading insurance undertakings accounted for the bulk of the total business of groups.
Table - Number of insurance and reinsurance undertakings (domestic/foreign ownership)
Insurance and reinsurance undertakings in terms of ownership

2007 1. Foreign ownership 1.1. Austria 1.2. France 1.3. Italy 1.4. The Netherlands 1.5. Germany 14 6 1 1 1 1
No. of insurance and reinsurance undertakings

Sept. 2008 16 7 1
1 2
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1.6. Slovenia 1.7. Switzerland 2. Domestic private ownership 3. State ownership Total
1 3 8 3 25
2 3 8 3 27
As at 30 September 2008, there were 24 insurance brokerage companies operating and 196 insurance brokers providing insurance brokerage services as natural persons. There were 152 insurance representation trades and 154 insurance agencies, while 5,458 insurance agents provided insurance representation services as natural persons (including insurance agents in bank assurance). Compulsory vehicle owner or user liability insurance policies can be taken at 30 vehicle technical examination centres, covering damage to third parties, and additional vehicle accident insurance. All the above-mentioned legal and natural persons operate on the basis of authorisations issued by HANFA, while 24 banks have obtained authorisation from the Croatian National Bank for insurance representation, subject to prior approval by HANFA, in accordance with the provisions of the Insurance Act (OG 151/05). In 2008, HANFA issued 13 decisions approving the appointments of members of the board of directors, 2 decisions on authorisation for the business of an authorised actuary, and 1 decision on a conditional withdrawal of authorisation for the business of an authorised actuary. A) ACHIEVEMENTS IN 2008 The legal framework of the insurance market in the Republic of Croatia is provided by the Civil Obligations Act (OG 35/05, 41/08), the Insurance Act (OG 151/05, 87/08), the Act on Compulsory Insurance within the Transport Sector (OG 151/05), the Accounting Act (OG 109/07), the Audit Act (OG 146/05), the Act on the Croatian Financial Services Supervisory Agency (OG 140/05), and the Companies Act (OG 111/93, 34/99, 118/03 and 107/07) and the relevant subordinate legislation enacted by HANFA. Based on the Insurance Act, to achieve alignment with the acquis communautaire HANFA passed the following subordinate legislation in 2008:
No.
Legislative measure
Ordinance on the Metology for calculating the amounts retained by insurance undertakings in the tables of maximum coverage and the methodology for calculating probable max. loss Ordinance amending the Ordinance on the requirements for professional training and examination of technical knowledge needed to perform duties of a certified actuary
Competent authority
To be aligned with the following acts of the acquis (celex number)
Article of the Insurance Act OG 151/05
Phase
SUBORDINATE LEGISLATION
31973L0239 HANFA 31991L0647 32002L0083 Art. 101. item 7.
1.
OG 04/2008 (09.01.2008)
2.
HANFA
Art. 66. par.
OG 26/2008 (14.03.2008)
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3. SUBORDINATE LEGISLATION
Ordinance on the structure and contents of annual financial reports of insurance companies Ordinance amending the Ordinance on the requirements for professional training and examination of technical knowledge needed to perform duties of a certified actuary Ordinance amending the Ordinance on minimum standards, methods of calculating and guidelines for calculating technical provisions in insurance
HANFA
31978L0660 31991L0647
Art. 144. par. 1. Art. 155. par.
OG 31/2008 (29.02.2008)
4.
HANFA
Art. 66 par.
OG 55/2008 (16.05.2008)
31973L0239 HANFA 31991L0647 32002L0083 Art. 101. item 7
5.
OG 112/2008 (01.10.2008)
The legislative framework of the Republic of Croatia in the insurance area is for the most part aligned with the acquis communautaire. To ensure further harmonisation of the legislative framework in the insurance sector, in accordance with the provisions of the Insurance Act (OG 151/05), the Act on the Croatian Financial Services Supervisory Agency (OG 140/05) and the conclusions of the Screening Report of the European Commission on Chapter 9 Financial services, the authorities enacted an Act on Amendments to the Insurance Act (OG 87/08) in July 2008. This Act has removed inconsistencies in the area of solvency margin calculation, the supervision of insurance groups and reinsurance undertakings, and insurance brokerage and representation, about which the European Commission gave a positive opinion in its Progress report under Chapter 9: Financial services. As regards the implementation of the acquis communautaire in the insurance market in the Republic of Croatia, several meetings were held in 2008 with the representatives of insurance and reinsurance undertakings in connection with the liberalisation of the compulsory insurance market in the transport sector, risk management in the insurance market, the introduction of Solvency II, instructions for the application of a chart of accounts of insurance and reinsurance undertakings, and changes under the Amendments to the Insurance Act (OG 87/08). HANFA also maintains regular contacts and co-operation on numerous issues pertaining to the application of the acquis communautaire in the insurance field, and regular supervision of insurance and reinsurance undertakings and related undertakings with all regulatory authorities with which it has signed agreements on co-operation. B) KEY PRIORITIES Amendments have been planned to the existing subordinate legislation available on the official website of HANFA (www.hanfa.hr) with the aim of their alignment with the provisions of the Act on Amendments to the Insurance Act (OG 87/08). The authorities plan to achieve full alignment of the Croatian legislation in the area of insurance with the acquis communautaire through the adoption of subordinate legislation with postponed application, given that it pertains to the period following the entry of the Republic of Croatia into the EU, of which they have informed the European Commission during the Bilateral screening under Chapter 9: Financial services, and through effective implementation of aligned legislation and the implementation of new EU guidelines (preparations for Solvency II).
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3.9.3. Capital market

A) ACHIEVEMENTS IN 2008 In the process of the alignment of the capital market with the acquis communautaire, after partial alignment in 2007, in April 2008 the authorities completed the First Draft of the Capital Market Act and submitted it, together with drafts of some of the subordinate legislation, to the European Commission for comments. This Act regulates the market in financial instruments, market transparency, prevention of market abuse and the capital adequacy of investment firms. The Draft Proposal was submitted for public consultations through invitations for comments and it was also made available to wider audiences and posted on HANFAs website. Comments and suggestions on the proposed text that were received from the European Commission, the Central Depository Agency, the industry and the CNB were incorporated into the Proposal of the Act which was submitted for legislative procedure. The fully aligned Capital Market Act (OG 88/08) was enacted in mid-July 2008. It provides for a large body of subordinate legislation which is currently being prepared. The first drafts of subordinate legislation were submitted for public consultations to the relevant industry in September, while broader public consultation of the final drafts is planned for October. With a view to achieving better and more comprehensive co-ordination and preparation of the market for the forthcoming changes, a number of meetings with industry representatives, the Zagreb Stock Exchange, and the Central Depository Agency, were held. In addition to preparing subordinate legislation, HANFA, as a supervisory authority for business operations of participants in the capital market, works to revise and update its approach which in the forthcoming period will be based on risk management control and internal control of supervised entities. In this context, work is underway on the drafting of the methodology of risk-based on-site supervision of investment firms. Particular attention in the second part of 2008 was paid to technical meetings with industry representatives relating to the implementation of the Capital Requirements Directive and in that context draft subordinate legislation has been prepared regulating in detail the calculation of capital adequacy. The Capital Market Act has introduced into the Croatian legal system an investor protection scheme which provides for the establishment of a fund that is to protect the stakes of small investors and lead to improved market confidence and investor protection. Within that framework, a number of meetings were held with industry representatives and the Central Depository Agency as the operator of this fund to reach a consensus on the manner of calculating contributions to the fund with a view to achieving investor protection without creating unfair and disproportionate costs for contributing undertakings. In the context of drafting legislation, seminars and workshops are held for HANFA employees in charge of capital market supervision, industry representatives, the State Attorneys Office and the press, so as to acquaint all the concerned entities with the changes introduced by the new legislation. B) KEY PRIORITIES Plans for the first quarter of 2009 include the enactment of all the subordinate legislation aimed at achieving full alignment with the acquis communautaire and ensuring full implementation of the Capital Market Act. The deadline for alignment of all the concerned entities on the market with the new Act and the subordinate legislation is the end of June 2009. HANFAs activities during that period will include further work on the methodology of supervision, consultations with industry representatives, and the education of market participants with a view to achieving alignment with European standards. HANFA will continue to monitor new legislative developments in the EU, and interpretations of the European Commission and CESR, and to ensure that its activities are updated and aligned accordingly. The enactment of subordinate legislation, regulating in detail the implementation of the investor protection scheme and the functioning of the Investor Protection Fund, is planned by the date of alignment.
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FURTHER ACTIVITIES In 2009, participants in the capital market (investment firms, the Stock Exchange and the Central Depository Agency) will align their business operations with the Act and the subordinate legislation while HANFA will, in accordance with its legislative authority, monitor their compliance with the prescribed requirements. HANFA plans to focus, during that period, on co-operation with other EU regulators, and on monitoring new EU legislation and its legislative implementation in the Republic of Croatia within a reasonable time. Memoranda of understanding In early 2007, HANFA signed a Protocol on Co-operation and the Establishment of the Inter-institutional Working Group for the Prevention of Money Laundering and Terrorist Financing which entered into force on 1 March 2007. Apart from HANFA, the signatories to the Protocol include the Ministry of Justice, the State Attorneys Office, the Ministry of the Interior Police Administration, the Ministry of Finance (Office for Money Laundering Prevention, Customs Administration, Tax Administration, Foreign Exchange Inspectorate, Financial Police), the Croatian National Bank and the Security Intelligence Agency. In this Protocol, the signatory institutions have expressed their readiness and willingness to strengthen co-operation in the area of the prevention and combating of money laundering and financing of terrorism with a view to contributing to the development of an efficient system of prevention and combating of money laundering and financing of terrorism in the Republic of Croatia. Based on the Agreement on Co-operation between the Croatian National Bank and the Croatian Financial Services Supervisory Agency which was signed in September 2006 and in which the two institutions have defined the content and the manner of their mutual co-operation in the conduct of their legislative authorities, an Operative Committee for Financial System Supervision was established, whose purpose is to co-ordinate the procedures and activities of its signatories. The Committee, which consists of six members, three from each of the signatory institutions, convenes at least once in every three months to examine the current condition of the financial system and issues related to the efficient supervision and regulation of financial institutions and financial groups. In 2007, HANFA also co-operated with other domestic institutions, most notably the Ministry of Finance, the Ministry of Foreign Affairs and European Integration, the Ministry of the Interior, the Ministry of Economy, Labour and Entrepreneurship, the Ministry of Health and Social Welfare, the County State Attorneys Office and the Croatian Competition Agency. In response to heightened international activity on the capital and insurance markets and the need for mutual co-operation between relevant supervisory authorities and with a view to improving legislative implementation in their fields of competencies, HANFA and the Hungarian Financial Supervisory Authority signed a Memorandum of Understanding on Mutual Assistance and the Exchange of Information in August 2007. In this context, HANFAs employees paid a three-day study visit to Hungary, where they exchanged experiences with the Hungarian supervisory authority, with special emphasis on the insurance sector. In 2007, HANFA maintained a regular level of contact and co-operation on numerous issues with supervisory authorities with which it has signed memoranda of understanding, and with other relevant foreign institutions. Towards the end of 2007, HANFA launched an initiative for the conclusion of a memorandum of understanding with FMA, the Austrian supervisory authority, and BaFin, the German supervisory authority, which was signed in the course of 2008. HANFAs membership in IOSCO (International Organisation of Securities Commissions) and IAIS (International Association of Insurance Supervisors) is based on Article 18 of the Croatian Financial Services Supervisory Agency which provides for HANFAs membership in international organisations competent for the area of supervision of financial institutions and markets. There is a Capital Market Regulatory and Supervisory Consultative Group operating within IOSCO, which was established on 30 May 2001 in Warsaw and whose membership currently includes twenty supervisory bodies from the region, including HANFA. Towards the end of 2007, the Deputy President of the Management Board of HANFA took over the duty of presiding over this group, while HANFA took over the responsibility of maintaining the groups website. HANFA is also an active member of the Emerging Markets Committee and the European Regional Committee within the IOSCO organisation. It is also worth noting that, in the context of its IOSCO-related activities, HANFA has launched preparatory activities for the signing of a multilateral memorandum of understanding.
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3.10. INFORMATION SOCIETY AND MEDIA 3.10.1. Electronic communications

A) achievements in 2008
Legislative alignment In the process of legislative alignment with the acquis communautaire and fulfilment of the closing benchmarks for Chapter 10 Information society and media, the new Electronic Communications Act was adopted (OG 73/08), entered into force on 1 July 2008, and has been applied since then. It has fully replaced the Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05), with the exception of Articles 97, 98, 99, 100 and 102 on R&TT equipment and electromagnetic compatibility (EMC), which remained in force until 1 January 2009, i.e. until the entry into force of subordinate legislation adopted pursuant to the Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07) regulating these areas in compliance with relevant EU directives. The new Electronic Communications Act gives particular attention to the further strengthening of the independence and administrative capacity of the national regulatory authority in the field of electronic communications and postal services, to the further improvement of the efficiency of its work, organisation and supervisory authority, to faster, better and more efficient legal protection mechanisms of the rights of electronic communications end-users, to market competition and the regulation of significant SMP operators of electronic communications networks and services, to the authorisation procedure for the operators of electronic communications networks and services (which includes the replacement of all existing licence (concession) agreements, telecommunications service licences, notifications and other existing authorisations by the new system of general authorisation), to the required conditions for the full introduction and development of digital broadcasting and associated interactive services in the Republic of Croatia, and to the further development, construction and use of electronic communications infrastructure and associated facilities by ensuring equal and non-discriminatory access to the infrastructure for all operators on the market, by the introduction and implementation of the new legal institute of right of way, and by the transparent conditions of access and shared use of the existing electronic communications infrastructure and associated facilities. The Electronic Communications Act implements further institutional reinforcement of the national regulatory authority for electronic communications and postal services that becomes the Croatian Post and Electronic Communications Agency (HAKOM), whereby regulatory tasks in electronic communications and postal services are unified, as is the case in the majority of EU Member States. This will lead to further synergic effects and the strengthening of the administrative and financial capacities of the single regulatory authority, contributing to the much faster and higher quality building of the required know-how, skills and competences for regulatory tasks in both the electronic communications networks and services and postal services markets. Strategy for the Development of Broadband Internet Access The Government of the Republic of Croatia adopted the Implementation Action Plan of the Strategy for the Development of Broadband Internet Access in the Republic of Croatia for 2008, obliging the competent state administration bodies and regulatory authorities to carry out the measures and activities in their field of competence within the time limits defined in the Action Plan. The stipulated measures and activities are to contribute to the further development of broadband Internet access by creating competitive conditions on the market and providing for new investments in broadband infrastructure, technologies and broadband access services in the Republic of Croatia. On 5 June 2008, the Government of the Republic of Croatia passed the Decision on the amount and manner of distribution of surplus revenues over expenditures of the Croatian Telecommunications Agency (CTA) in 2007 to additionally stimulate the development of broadband infrastructure.
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Strategy for the switchover from analogue to digital broadcasting of radio and television programmes in the Republic of Croatia At its session held on 31 July 2008, the Government of the Republic of Croatia approved the Strategy for the Switchover from Analogue to Digital Broadcasting of Radio and Television Programmes in the Republic of Croatia defining the basic strategic guidelines for introducing digital terrestrial television in the Republic of Croatia, following the European Commission Recommendation on complete switchover from analogue to digital television by 2012 (or earlier). Implementation of this Strategy will provide all Croatian end-users of digital television services, including the Croatian economy in general, with a wide range of opportunities to use all the advantages of advanced digital broadcasting services and technologies, in particular in the area of new and innovative programme contents, intended primarily for information, education and entertainment. The main strategic goal is to complete the entire switchover to digital terrestrial broadcasting of television programmes by not later than 31 December 2010, meaning that as of January 2011 terrestrial broadcasting of television programmes will be by digital technology only. Two Action Plans are components of the above Strategy: the Action Plan for the switchover from analogue to digital terrestrial television broadcasting according to digital regions; the Advertising Campaign Implementation Action Plan.
Tasks of the Croatian Post and Electronic Communications Agency In 2008, the Croatian Post and Electronic Communications Agency (HAKOM) passed a number of regulatory and other decisions from its statuary scope. Regulatory decisions are published on the HAKOMs website (www.telekom.hr). The Council of HAKOM passed the new Statute of the Croatian Post and Electronic Communications Agency (OG 116/08), for which the Croatian Government granted its statutory prior approval on 12 September 2008. In order to staff the Council of HAKOM to enable it to operate with the full number of seven members, the Government of the Republic of Croatia passed on 30 September 2008 the Conclusion on a Public Call to propose three candidates for the Council of HAKOM. After completing the procedure, which ended on 1 November 2008, applications for the position of member of the Council of HAKOM were collected based on which the Croatian Government will propose to the Croatian Parliament three candidates for appointment. Protection of service users As part of activities under the CARDS 2004 Project Capacity Building of the Croatian Telecommunications Agency, a project was initiated for the protection of service users aimed at simplifying, improving and accelerating the procedures related to exercising the protection of end-users (consumers). The result of these activities is the established new Section for Consumer Protection and Network Security in HAKOM, which has unified all the tasks related to resolving the complaints of service users. The Section began work on 1 November 2007. The goals and tasks of the Section are defined in the principles and purpose of the Croatian Post and Electronic Communications Agency so as to ensure a high level of protection to service users through the following key activities: processing cases and preparing documents for decisions, proposals and opinions of the Council of Users of Telecommunications Services which, as the regulators advisory body, mediates in the resolution of disputes between service providers and service users, in accordance with the provisions of the previously valid Telecommunications Act (OG 122/03, 158/03, 60/04 and 70/05); monitoring and analysing the situation in public communications services, based on the received complaints of service users, and proposing appropriate amendments to the existing regulations with a view to improving the situation in the protection of service users rights. In line with the new electronic communications Act, the Section will become an internal organisational unit of HAKOM responsible for the protection of the rights of service users that will act in the capacity and fulfil the tasks of an advisory body under the Consumer Protection Act (OG 79/07, 125/07), following the example of EU Member States with the highest level of protection of
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service users. Further, based on the opinion of its organisational units, HAKOM will pass final decisions resolving disputes between operators and subscribers to public communication services that will be binding on all parties in the dispute. Thus, in terms of quality and efficiency, the regulatory framework for the protection of service users in electronic communications stands out in comparison to public services provided in other lines of activities in the country, ranking Croatia among the most developed European countries. Electronic communications market
Services in fixed communications networks At the end of the third quarter of 2008, the total number of subscribers to public voice services in the fixed network reached 1,844,380 (penetration of approximately 41.6%). The total number of subscribers to 9 new operators in the fixed network reached 400,900, representing a market share of around 21.3% in the public voice services in the fixed network relative to the number of users, and a market share of approximately 16.6% in the total revenues on this market. By 1 November 2008, there were a total of 255,366 ported numbers in the fixed network. By 1 November 2008, there were 408 realised co-locations and 86,497 unbundled local loops in Croatia. The number of subscribers to the cable distribution services at the end of the third quarter of 2008 was 133,450. Services in mobile electronic communications networks Presently, three carriers operate in the mobile communications market: T-Mobile Croatia LLC (GSM900 + UMTS) VIPnet d.o.o. (GSM900 + UMTS) TELE2 d.o.o. (GSM/DCS-1800 + UMTS)
The total number of mobile electronic communications network users reached 5,618,200 at the end of the third quarter of 2008, representing a penetration rate of 126.7%). By 1 November 2008, the total of ported numbers in the mobile networks reached 58,931. Internet services and broadband access services During the past period, development of the Internet services market and broadband access services has been encouraged, and presently there are 44 Internet Service Providers (ISPs) in the market licensed to provide Internet access services, and 39 service providers licensed to provide voice over the Internet Protocol services (VoIP), while the total number of Internet users is currently 2,148,500, representing a penetration of approximately 48.4%. At the end of the third quarter of 2008, the number of broadband Internet users reached 488,200, accounting for a penetration rate of around 11% relative to the number of citizens in the Republic of Croatia. The share of new broadband Internet service providers is 15.4%. Following a reduction in the price of broadband Internet access in the market, further growth in the number of broadband Internet users is expected. The most important generator of progress in competition with respect to broadband Internet access in 2008 was the wholesale service of broadband access of SMP operators (HT d.d.) and the intensified process of local loop unbundling. At the end of the second quarter of 2008, 13 licences were issued for the provision of services of electronic communications line lease and 14 licences for the provision of the leased electronic communications network or parts of network services.
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Inspection in electronic communications In 2008, a total of 84 inspections of legal and natural persons were performed on account of infringements of acts and subordinate legislation on electronic communications. Telecommunications inspectors from the Ministry of the Sea, Transport and Infrastructure (MSTI) received 277 requests for inspection supervision and enforcement of statutory measures that were submitted by legal and natural persons and electronic communications supervisors of HAKOM, of which 154 cases have been resolved. International co-operation Representatives of MSTI (the Electronic Communications and Postal Service Directorate) and HAKOM actively monitor and participate in the operation of working groups of the International Telecommunications Union (ITU) and the European Conference of Postal and Telecommunications Administrations (CEPT), and, as observers, they take part in the work of the Communications Committee of the European Commission (COCOM). Representatives of MSTI also participate as observers in the regular meetings of high representatives of the national electronic communications directorates, at the invitation of the Director General of the European Commissions Information Society and Media Directorate General (DG INFSO), while HAKOM representatives participate as observers in the work of the European Regulators Group (ERG). Representatives of MSTI regularly participate in the work of the NATO Civil Communications Planning Committee (CCPC). On 26 November 2007, a contract was signed with the company Astec Global Consultancy to implement the project under the 2005 Phare programme Capacity strengthening of the Directorate for Telecommunications and Postal Service through assistance in the process of drafting proposals for subordinate legislation, especially in the area of consumer protection and implementing the best EU practices in this area. The project was successfully completed on 30 September 2008. B) KEY PRIORITIES In the area of electronic communications for 2009, MSTI and HAKOM plan to draft and adopt the following subordinate legislation for implementing the Electronic Communications Act: 1. Ordinance on the operation of the internal organisational unit of the Croatian Post and Telecommunications Agency responsible for the protection of rights of service users; 2. Ordinance on the provision of universal services; 3. Ordinance on a comprehensive public subscribers directory and information service; 4. Ordinance establishing the zone of electronic communications infrastructure and associated facilities, the protective zone and radio corridor, and obligations of the investor, works or building in this zone; 5. Ordinance on the Reference Interconnection Offer in electronic communications; 6. Ordinance on number portability; 7. Ordinance on the prevention and fight against abuse and fraud in electronic postal services; 8. Ordinance on the single European number for emergency services; 9. Ordinance on fees of the Croatian Post and Telecommunications Agency. In 2009, an internal organisational unit responsible for the protection of the rights of service users will be set up within HAKOM to provide quality and efficiency in the Agencys work. HAKOM will pass the Rules of Procedure of this department and its organisation will be regulated in a general act. Special attention will be paid to training and informing service users and raising awareness of the importance of consumer protection in this area, including co-operation with other bodies in the Republic of Croatia responsible for the protection of service users (consumers) rights.
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For the purpose of strengthening the administrative capacities of MSTI the Directorate for Electronic Communications and Postal Service and the Directorate for Transport Inspection (Telecommunications and Postal Services Inspection Department) recruitment of new staff is planned pursuant to the Ordinance on the internal order of MSTI. A public call is underway to recruit four employees in the Directorate for Electronic Communications and Postal Service for tasks of electronic communications, and three employees (inspectors) for tasks of electronic communications inspection control in the Telecommunications and Postal Services Inspection Department. In 2009, it is planned to fill the remaining vacancies in the Directorate for Electronic Communications and Postal Service, up to seven employees, to work on electronic communications. Likewise, it is planned to recruit three employees for electronic communications inspection control in the Telecommunications and Postal Services Inspection Department. In order to fulfil legally stipulated regulatory principles and objectives on the electronic communications market, it is necessary to continue to strengthen the administrative capacity of HAKOM. To this end, and through the plans for 2009, HAKOM will additionally encourage the employment of young highly educated experts and will invest financial resources in the further education and training of current employees.
3.10.2. Information society services

Legislative alignment With the adoption of the Electronic Signature Act (OG 10/02) in 2002, the Republic of Croatia began the process of creating the legal environment necessary for the successful creation, functioning and development of the information society, followed by the adoption of the Electronic Commerce Act (OG 173/03), in force since 8 November 2003. With the aim of further alignment of the Electronic Signature Act (OG 10/02) and the Electronic Commerce Act (OG 173/03) with the acquis, amendments thereto were drawn up in 2008. Thus, in July 2008 the Act on Amendments to the Electronic Signature Act (OG 80/08) was adopted, fully aligning the Electronic Signature Act with Directive 1999/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community framework for electronic signatures. The Act on Amendments to the Electronic Commerce Act (OG 67/08) was adopted in June 2008 and was to a large extent aligned with Directive 2000/31/EC on certain legal aspects of information society services, in particular electronic commerce. 2008 saw the implementation of the measures and recommendations defined in the Strategy for the development of electronic business in the Republic of Croatia for the period 2007 2010, adopted by the Croatian Government on 7 December 2007, aimed at the further development of electronic commerce in both the economic and public administration sectors. At its session held on 5th June 2008 the Government of the Republic of Croatia adopted the Implementation Plan of the e-Croatia 2008 Programme. The key activities of this years programme include three goals: continued building and strengthening of the existing information and telecommunications infrastructure, continued efforts in putting public administration at the service of citizens, and continued development of the information society in order to reduce the digital gap. The central public administration portal Moja Uprava continued running in 2008. The presently active system meets the functionality necessary to establish an initial system serving as the starting point for organisational adjustment of administration bodies for user-directed operation and establishing basic communication with users. On the Economy tab, an e-Business topic was launched
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(as a result of the E-Business Strategy), and under the Citizens tab, a topic Persons with special needs was launched. Other published topics have been supplemented and updated. Under the Interreg IIIB Cadses Programme, the Central State Office for e-Croatia is conducting the project Establishing Telecentres for supporting education, entrepreneurship and access to the information society in isolated geographical areas Teleaccess Project Under the Project, two telecentres were opened in 2008 in the same area as the two existing SME centres in entrepreneurial zones Skrad and Vinkovci in order to provide fast Internet access for the local workforce and citizens, aimed at providing the opportunity for lifelong learning, creativity development and progress. During 2008, the telecentres continuously organised workshops whose topics were Computers and Internet, and they successfully implemented the planned activities. The Project will finish at the end of 2008. The national CERT (National Centre for Computer Security) was established and began work. By the end of 2008, the Proposal of the Strategy for the Development of Electronic Administration for the period 20092012 will have been presented to the Croatian Government. It is aimed at creating the conditions for developing a single public administration information space whose frame of reference is the information-communication platform for exchange of information among all public administration bodies, and the central authorisation and authentication service based on the electronic identity of citizens. The proposal of the Implementation Plan of the Programme e-Croatia 2009 will also be presented to the Croatian Government by the end of 2008, aimed at the establishment and networking of the system that will enable citizens to communicate with public administration and to use a number of services over the Internet. The meeting of the National Information Society Council took place in 2008. The National Council was established by a Government Decision to review, establish and promote all the important issues for the development of the information society in the Republic of Croatia, and, in particular, priority measures and development goals. By the end of 2008, the appointment of new members to the National Information Society Council will have started. Institutional framework Under the new Regulation on the internal order of the Ministry of the Economy, Labour and Entrepreneurship (OG 41/08, 119/08), which is responsible for the implementation of the Electronic Commerce Act and the Electronic Signature Act, a separate Trade, Market and e-trade Promotion Department was established with two divisions: the Application of Electronic Signatures Division and the e-Business Promotion Division. Participation in Community Programmes On 14 March 2008, the Memorandum of Understanding between the Republic of Croatia and the European Community on the participation of the Republic of Croatia in the Community Programme Information and Communication Technology Policy Support Programme (ICT PSP) in the Competitiveness and Innovation Framework Programme (2007 to 2013) (OG 03/08) was adopted. The Memorandum entered into force on 21 May 2008. The Programme opens up for Croatia the opportunity of joining pilot projects, thematic networks, studies determining the level of development of the information society, participation in professional conferences, and other complementary activities pertaining to the development of the information society. The National Contact Point (NCP) was nominated at the Information Technology Support Agency APIS IT. The main tasks of the NCP are to inform the public about the ICT PSP support programme, promotion, to provide support to stakeholders, and to provide training in ways of partaking in the Programme. The Central State Office for e-Croatia and APIS IT regularly post current information about the ICT PSP Programme (available at http://www.e-hrvatska.hr/cip-ict/index.html) on a separate website. In June 2008, the first Info Day on the CIP ICT PSP Programme was held, organised by the Central State Office for e-Croatia, which drew together a number of participant from the public and private sectors.
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In 2008, the Republic of Croatia participated in the Community programme on Interoperable Delivery of Pan-European eGovernment Services to Public Administrations, Business and Citizens (IDABC). This opens for Croatia further opportunity to take part in the process of developing the e-Public Administration programme in the EU and the European Interoperability Framework. Through participation in the IDABC Programme, the Republic of Croatia was given the opportunity to take part in the sTESTA Project (secure Trans European Services for Telematics between Administrations), which is aimed at providing safe exchange of data between European and national public administrations. The Central State Office for e-Croatia and FINA are working on meeting the technical criteria for access to the sTESTA network to be implemented within the HITRONet network. Furthermore, this opened the opportunity to use the tool CIRCA (Communication and Information Resource Centre for Administrations), which will enable a safe and fast service to be provided for allocating resources and documents, based on the Open Source Software. CIRCA is implemented on the e-hrvatska.hr domain, and in order to test its functionality it is used for the purposes of the Central Portal of Public Administration and the Central State Office for e-Croatia. The Ministry of Science, Education and Sports expressed interest on behalf of the Republic of Croatia to join the Community Programme Safer Internet+ and with CARNet concluded an agreement on assuming the role of the National Contact Point for this Community Programme. B) KEY PRIORITIES In accordance with the European Commission remark, in the first quarter of 2009 it is planned to implement technical amendments to the provision of Article 4, paragraph 2 of the Electronic Commerce Act (OG 173/03 and 67/08), laying down derogations from the application of the rights for information society service providers with a seat in a Member State of the European Union, so as to fully align it with the provision of Article 3, paragraph 3 and areas referred to in Annex to Directive 2000/31/EC. During 2009, the Central State Office for e-Croatia, as the body responsible for co-ordinating the implementation of measures and activities from the Implementation Plan for the e-Croatia 2009 Programme, will report thereon semi-annually and annually to the Government of the Republic of Croatia. In early 2009, it will present to the Croatian Government the report on the enforcement of the Implementation Plan for the e-Croatia 2008 Programme containing descriptions of the activities implemented in 2008 related to the development of the information system in the Republic of Croatia at all levels. In addition, the Central State Office for e-Croatia will monitor the implementation of the Strategy of Electronic Administration Development of and Implementation of the Strategy for the switchover from analogue to digital broadcasting of radio and television programmes in the Republic of Croatia, and it will report thereon to the Croatian Government semi-annually and annually. In 2009, the Ministry of Science, Education and Sports will initiate a procedure to conclude the Memorandum of Understanding for the participation of the Republic of Croatia in the Safer Internet+ Programme. The target accession date is 1 January 2010. During 2009, CARNet, in co-operation with the Ministry of Science, Education and Sports and the European Commission, will implement preparatory measures to assume the role of the National Contact Point for the Safer Internet+ Programme starting on 1 January 2010.
3.10.3. Audiovisual policy

A) ACHIEVEMENTS IN 2008 Full alignment of the media legislation with the acquis communautaire was implemented with the Act on Amendments to the Electronic Media Act (OG 79/07) adopted in July 2007, and the Act on Amendments to the Electronic Media Act adopted in 2008 (OG 32/08).
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These legislative amendments, among other things, regulate the administrative strengthening of the Council for Electronic Media to which the Electronic Media Agency has been adjoined. The Agency performs administrative and professional tasks for the Council, and the Chairman of the Council is the Head of the Agency. The Electronic Media Agency has been entered in the court register as an independent legal person with public authority. The Fund for Media Pluralism and Diversity has been transformed from a state-owned fund into a Fund of the Electronic Media Agency, so the Act also regulates the criteria for the allocation of funds for the promotion of pluralism and diversity of radio and television programmes. In 2008, the Council for Electronic Media carried out its tasks related to the implementation of the Electronic Media Act, primarily with regard to the award of concessions for radio and television broadcasting and the allocation of resources for the promotion of pluralism and diversity of the media. In line with the Electronic Media Act, the Council for Electronic Media passed the Ordinance on the criteria and manner of increasing the share of European audiovisual works of independent producers (OG 47/08), the Ordinance on the manner of conduct of television broadcasters for the protection of minors (OG 47/08) and the List of important events (OG 47/08). A debate on the procedures for the election of members of the HRT Programme Council and the Council for Electronic Media was held at the Ministry of Culture on 21 February 2008, with a view to preparing an analysis of the role of civil society in the work of regulatory bodies, the independence of regulatory bodies and their protection from potential political intervention. Apart from eminent Croatian media experts, participants in the discussion were representatives of professional organisations, representatives of the main electronic media publishers, and others, as well as representatives of the Delegation of the European Commission to the Republic of Croatia and the OSCE Office in Zagreb. On this occasion, the experts concluded the following: participation of civil society in the election of members of the HRT Programme Council and the Council for Electronic Media, as stipulated in positive regulations, is adjusted to the needs of the Croatian public media and is appropriate as it provides for the political and operating independence of these bodies. Thus, the civil society sector is represented in a satisfactory manner in the election procedures for the above bodies. On 7 April 2008, the Verified Minutes of the above discussion, together with the public discussion paper entitled Election procedures for the HRT Programme Council and the Council for Electronic Media: the revised role of civil society were opened for a comprehensive online public debate on the website of the Ministry of Culture (http://www.min-kulture.hr/default.aspx?id=3728), in accordance with the instruction of the European Commission. The public discussion lasted from 8 April to 8 May 2008, in which period the Ministry of Culture received just two opinions. Neither of the received opinions dealt with the issue of creating additional safety measures against political intervention in the election process for these bodies. The first opinion deals with an analysis of the structure and contents of the Croatian Radio television programme, and the second proposes amendments to the Electronic Media Act so as to provide the right to associations of citizens to establish electronic media. Even though these proposals are very interesting, they do not address the subject-matter of the public debate. Following this, the public debate was concluded by confirming the conclusion that the legal framework for electronic media operation in its current form is satisfactory, as established at the Round Table held in February 2008. Furthermore, the financing of HRT was ensured in line with the EU competition rules through the Decision amending the HRT Statute which the HRT Programme Council adopted on 23 June 2008. As of 1 January 2009, the Decision obliges HRT to record in the business books (ledgers, analyses) of each organisational unit financed from the subscription fee (HR, HTV) the revenues from the subscription fee and expenses (costs) in using the subscription fee for the purposes laid down in the HRT Act. This provision is applied to the funding which HRT receives from the state budget as grants or donations. This will ensure the transparency of HRTs financial transactions, primarily by separating commercial revenues and expenses from subscription revenues and expenses. On 25 April 2008, the Croatian Parliament adopted the Act Confirming the Memorandum of Understanding between the Republic of Croatia and the European Community on the accession of the Republic of Croatia to the Community MEDIA 2007 Programme, 2007-2013 (OG IA 3/08).
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With a view to implementing the Memorandum, a MEDIA Desk was established as a Department at the Croatian Audiovisual Centre, an institution established under the Act on Audiovisual Activities (OG 76/07). The premises, equipment and professional staff have been provided for the operation of the MEDIA Desk Department, which currently employs one professional employee and the recruitment of one more professional is planned. In 2008, Media Desk Croatia engaged in the following activities: promotion of the Media Programme within (International Experimental Film and Video Festival -25 FPS, Zagreb Film Festival) and outside the Republic of Croatia (Sarajevo Film Festival), the creating and updating of a website (www.mediadesk.hr), the compiling of a concise and informative brochure on the MEDIA Programme entitled A Guide through the MEDIA Programme, regular information on financing tenders (training, project development, distribution, promotion/festivals, new technologies), organising meetings with potential candidates, and providing technical and advisory assistance. MEDIA Desk Croatia, apart from educating Croatian film experts, provides Croatian citizens and relevant institutions with all the necessary information related to Croatian accession to the MEDIA 2007 Programme, primarily about the functioning of the MEDIA Programme, the way to secure funding under the Programme, and the procedure to apply for tenders for Programme funding. The activities of the MEDIA Desk Croatia envisage continuous co-operation with different departments of the Executive Agency and with other European MEDIA Desks, including participation in the annual MEDIA desks meeting in Brussels. The activities of the MEDIA Desk Croatia are financed by the Ministry of Culture and the European Commission in accordance with the annual co-financing tender called by the European Commission and the Education, Audiovisual and Culture Executive Agency (hereinafter: Executive Agency), which are responsible for the implementation of the MEDIA 2007 Programme (2007 2013). At the end of the year, the MEDIA Desk Croatia will submit to the European Commission and the Executive Agency a report on its work and on the implementation of the envisaged activities, together with a work plan for the following year. In April 2007, the Croatian Parliament adopted the Act on the Ratification of the European Convention for the Protection of the Audiovisual Heritage (OG IA 5/07). In 2007 and 2008, all activities under the Programme and Measures for the Protection of the National Film Collection, which are implemented by the Croatian Cinematheque of the Croatian State Archive in Zagreb, were carried out. B) KEY PRIORITIES In the fourth quarter of 2009, it is planned to adopt the amendments to the Electronic Media Act to align it with the new Audiovisual Media Services Directive. In 2009, further implementation of the media legislation is planned, as is the further strengthening of the administrative capacities of the Electronic Media Agency and the staffing of the MEDIA Desk Croatia. In its further work, MEDIA Desk Croatia will carry out all the activities planned in the Work Programme, and it will meet the obligations stipulated by the EC, according to the needs of the Programme beneficiaries, the arrangements and activities with other Media desks under the Media 2007 Programme, and the recommendations of the Executive Agency. 2009 will see the continued implementation of the Programme and measures for the protection of the national film collection.
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3.11. AGRICULTURE AND RURAL DEVELOPMENT 3.11.1. Agricultural policy and horizontal measures
A) ACHIEVEMENTS IN 2008 The implementation of the Agricultural Acquis Cohesion Project, which is funded by a World Bank loan, has commenced. The general aim of the project is to assist the Government of the Republic of Croatia in the process of the association of the Republic of Croatia with the European Union in the area of agriculture and rural development, aligning agricultural legislation with the acquis communautaire and establishing an efficient administrative infrastructure. Project priority tasks are concerned with strengthening horizontal administration, and sectoral administration and procedures, particularly with regard to the Directorate for Market and Structural Support in Agriculture (the future Paying Agency). They are also concerned with the establishment of the tools and procedures necessary for the implementation of market and price policy measures and rural development policy, and the strengthening of structures related to food safety and quality i.e. veterinary and phyto-sanitary services. In the course of 2007, the alignment of agricultural statistics also commenced. The Ministry of Agriculture, Forestry and Water Management, together with the Central Bureau of Statistics, prepared the Strategy to Improve the Agricultural Statistics of the Republic of Croatia, in which a detailed plan for the development of particular segments of agricultural statistics was provided in line with Eurostat standards. In March 2008, with a view to strengthening administrative capacities, the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/08), pursuant to which the reorganisation of the Ministry has been undertaken. Integrated Administration and Control System (IACS) In accordance with the Action Plan drawn up with the assistance of TAIEX expert missions, numerous activities were undertaken concerning the establishment of the Integrated Administration and Control System (IACS), which serves as an administrative standard and is obligatory in carrying out the direct payment scheme within the framework of the EU Common Agricultural Policy, and in carrying out payments relating to agricultural plots and payments per head of livestock. In order to strengthen the organisational structure needed for the implementation of the IACS, the Regulation on internal organisation provides for the creation of new organisational units, and the strengthening of the existing units, in the Directorate for Market and Structural Support in Agriculture. A new Registers Department has been created to develop and integrate databases needed for cross checks. In order to strengthen administrative control, the Sector for Direct Support has been strengthened. The new Department for the Control of Common Agricultural Policy Measures has been set up to co-ordinate controls on the ground, and the Directorate for Agricultural Inspection, which operates within the Ministry and is in charge of controls of national support measures, i.e. controls on the ground, has also been strengthened. The Process Documentation Management Department has been created within the Sector for Information and EU Relations. The Sector will be in charge of co-ordinating the development of written procedures for the business processes of the Directorate, and of monitoring legislation. The Security Department has been set up within the Information Management Sector, which is responsible for providing hardware and software support for the business processes of the Directorate. Pursuant to the above-mentioned Regulation, in 2008 a competition was held to fill some of the job vacancies. During 2008, a new computer centre was purchased, which meets the technical requirements for supporting IACS processes and other processes of the Directorate. In order to develop an adequate software support system for the maintenance of the Register of Farmers, submission of applications, administrative control, controls on the ground and approval, work began on redesigning the
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existing software, installed in 2003, with a view to developing a new modular system capable of being quickly adapted to changes in IACS processes and other business processes of the Directorate. As a result of the software redesign, a separate database of the Register of Farms and a separate database of aid applications were created. It has been made possible to enter data on controls directly in the field, and to directly transfer data to the Sector of Finance. The new modular software package should enable a quick adjustment of the implementation of new aid schemes. Work is being done on linking with different databases (Register of Animals and other registers). A unique farm identification number (UFIN) is used as a unique reference for identifying a farmer who submits an aid application and as a data element for linking databases. Various activities directed towards establishing a land parcel identification system (LPIS) have been undertaken. The organisational structure for the application and implementation of the LPIS has been established, and a methodology was developed and tested in pilot projects conducted at six locations with different agricultural structures and landscape features. On the basis of the results obtained, the methodology has been revised and preparations are being made to fully implement it by the end of 2008. IT equipment for the central and local offices has been purchased, and software to support the LPIS has been implemented. In mid-2008, preparations began for implementing an information campaign targeting farmers. A contract has been concluded for the development of the initial LPIS layer. Invitations to tender for the purchase of spatial bases have been issued and contracts are expected to be concluded by the end of 2008. Work began on redesigning the Register of Farms to harmonise various databases for the purposes of the IACS. An expert working group was designated, which will develop a new detailed action plan for the full establishment of the IACS. This structure will build on the existing structure for the establishment of the LPIS. The aim of the working group is to strengthen the administrative capacity for the full implementation of the IACS and the IPA project Support for the Establishment of a Fully Operational Paying Agency in Line with the EU Standards. Pending the commencement of the IPA project, technical assistance for the development and testing of general IACS procedures will be provided through a World Bank project. In addition, the structure for the implementation of the common market organisation (CMO) has been established within the Directorate for Market and Structural Support in Agriculture, and work on developing draft procedures for individual processes is underway within the PHARE 2005 programme. SAPARD/IPARD In 2008, in the Directorate for Market and Structural Support in Agriculture, which acts as the SAPARD/IPARD agency, the third round of tenders for the allocation of funds under the SAPARD programme was launched, and applications received in the first two tender rounds were processed. In the first quarter, work began on developing procedures for the implementation of the following three IPARD measures: Measure 1.1. - Investments in agricultural holdings to restructure and to upgrade to Community standards; Measure 1.2. - Investments in improvement of the processing and marketing of agricultural and fishery products, to restructure those activities, and to upgrade them to Community standards; Measure 3.1. - Improvement and development of rural infrastructure. The procedures for these three measures have been developed, and following self-evaluation the national accreditation process began. FADN As part of the preparations for the establishment of the Farm Accountancy Data Network (FADN), the implementation of the World Bank project Establishment of the Farm Accountancy Data Network (FADN) commenced in early 2008. The Ministry of Agriculture, Fisheries and Rural Development issued the Ordinance on the establishment and implementation of the Farm Accountancy Data Network (OG 46/08), which will enter into force on 1 January 2009. The Ordinance provides for the appointment of a FADN implementing agency (Croatian Agricultural Extension Institute). Regarding the activities related to FADN, the following has been accomplished: the questionnaire and instructions for the survey have been developed, the staff of the Croatian Agricultural Extension Institute have been trained for conducting a pilot survey, a campaign
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to inform farmers about FADN is being run, software for conducting the pilot survey has been developed and the survey itself is being conducted, after which the data obtained will be checked and processed. B) KEY PRIORITIES The following are planned for 2009: further implementation of activities related to the strengthening of the administrative capacities of the Directorate for Market and Structural Support in Agriculture, and preparations for assuming the role of the Paying Agency; intensification of activities related to the implementation of the Integrated Administration and Control System (IACS); acceleration of activities directed towards establishing the Land Parcel Identification System (LPIS); recruitment, equipping and training of structures required for the implementation of the IACS; development of written procedures for administrative controls, inspection field controls, approvals, payments and bookkeeping; continuation of preparations for the implementation of the common organisation of the market, the administration of quotas, price reporting and monitoring; the conferral of management powers is expected to be obtained by the end of the second quarter of 2009 for the full implementation of the three IPARD measures, and by the end of the year for the implementation of the remaining measures; further implementation of activities under the World Bank Agricultural Acquis Cohesion Project; implementation of the activity plan determined by the Strategy to Improve the Agricultural Statistics of the Republic of Croatia. As part of the PHARE 2005 project Institutional Capacity Building and Support for Implementation of the SAPARD-IPARD Programme in Croatia, Component 5 Common organisation of markets, activities will be undertaken to prepare for the implementation of the common organisation of the market for the following priorities: trade mechanisms (horizontal activity), cereals, milk and milk products, fruit and vegetables, and wine. Since this project will end in June 2009, technical assistance is planned to be provided through various bilateral co-operation agreements with EU Member States. During 2009, specifications for basic IACS procedures are planned to be prepared and tested in pilot projects in three different areas, using technical assistance under a World Bank project. The IPA programme Support for the Establishment of a Fully Operational Paying Agency in Line with the EU Standards is expected to commence in late 2009, which will finalise the establishment of the IACS and other necessary functions of the Agency. During 2009, capacity strengthening of DMSSA will continue through the recruitment of new staff in accordance with the existing Regulation, to ensure the performance of the planned functions of the Paying Agency. The establishment of the IACS in line with EU requirements is planned to be completed by the end of 2010. The Paying Agency, which will have a defined status (appropriate registers, delegated functions), is planned to be established by the middle of 2010. Regarding the implementation of FADN, it is expected that the pilot survey will be completed in April 2009. As regards the collection of data and price reporting for agricultural products on the domestic market, MAFRD will carry out the following activities in 2009: By the end of the second quarter of 2009, pursuant to the Agriculture Act (OG 66/01; Article 37), the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in cereals, which will be aligned with Council Regulation (EC) No 1234/2007 and the document of the EUs Management Committee for Cereals AGRO-D.2/
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FAL D (2008). The Ordinance will lay down the methodology for the collection, processing and reporting of information on the prices and quantities of cereals on the representative domestic market for national and EU Commission purposes. By the end of the third quarter of 2009, pursuant to the Agriculture Act (OG 66/01; Article 37), the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in pig meat, which will be aligned with Council Regulation (EC) No 1234/2007 and will lay down the methodology for the collection, processing and reporting of information on the prices and quantities of pig carcasses on the representative domestic market for national and EU Commission purposes. By the end of the fourth quarter of 2009, pursuant to the Agriculture Act (OG 66/01; Article 37), the Section for the Agricultural Market Information System plans to adopt the Ordinance on the market information system for the market in beef, which will be aligned with Council Regulation (EC) No 1234/2007, and will lay down the methodology for the collection, processing and reporting of information on the prices and quantities of bovine carcasses on the representative domestic market for national and EU Commission purposes. Institutional capacity building of the Section for the Agricultural Market Information System will continue in 2009 in order to bring it into compliance with EU legislation as regards the monitoring and reporting of information on the prices and quantities of agricultural products on the representative domestic market. The responsibilities of the Section for the Agricultural Market Information System will be defined in more detail through amendments to the Agriculture Act. As regards trade mechanisms, the plan for 2009 is to change the system of allocation of preferential import quotas for agricultural products and foodstuffs. According to the currently valid Regulation on allocation of tariff quotas for agricultural products and foodstuffs originating from member states of the World Trade Organisation and countries with which the Republic of Croatia has concluded free trade agreements and the Stabilisation and Association Agreement (OG 55/04, 146/04, 138/05), the Ministry of Agriculture, Fisheries and Rural Development (MAFRD) is responsible for the allocation of tariff quotas for all products, while the Customs Directorate of the Ministry of Finance is responsible for the monitoring of tariff quota utilisation. Amendments to the Regulation will provide for the division of responsibilities for allocating tariff quotas between MAFRD and the Customs Directorate in a similar way as in the European Union, meaning that the Customs Directorate would allocate quotas for products on a first-come first-served basis (in which case the list of relevant products would be extended compared to the one contained in the currently valid Regulation), while MAFRD would continue to allocate import quotas for other products. The new Regulation will be adopted in the second quarter of 2009 at the latest, so that it can be applied from 2010. It should be noted that this primarily concerns preparations of the authorities responsible for the implementation of the quota allocation system after Croatia becomes an EU member, and not alignment with specific acquis provisions, which is not possible due to the different international commitments of the Republic of Croatia as regards the importation of agricultural and food products.
3.11.2. Rural development policy

A) ACHIEVEMENTS IN 2008 During 2008, work continued on aligning legislation with the EU legislative framework and on drafting regulations envisaged by NPAEU in the field of rural development policy. The following documents and regulations were drafted: 1. The Rural Development Strategy of the Republic of Croatia 2008-2013, adopted by the Government of the Republic of Croatia at its session on 21 May 2008; 2. The Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC-financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession IPA (Sectoral Agreement) was signed on 13 October 2008 by the
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Minister of Agriculture, Fisheries and Rural Development of the Republic of Croatia and by the EC. The Act on the Ratification of the Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession (IPA) was passed by the Croatian Parliament on 21 November; 3. Ordinance on the implementation of Measure 1.1 and Measure 1.2 under the IPARD programme (adopted at the level of MAFRD on 29 September 2008); 4. Ordinance on the implementation of Measure 3.1 under the IPARD programme (adopted at the level of MAFRD on 29 September 2008); 5. Ordinance on the implementation of Measure 4 Technical assistance under the IPARD programme (adopted at the level of MAFRD on 25 August 2008). These Ordinances (items 3 5) have been approved by the collegiate body of MAFRD and will be published in the Official Gazette after the publication of the Act on the Ratification of the Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia and the implementation of assistance under Component V (IPARD) of the Instrument for Pre-Accession (IPA). Activities related to the establishment of the Croatian Rural Development Agency (CRDA) are in progress. Following the adoption of the Regulation on the establishment of CRDA, steps for implementation will be taken, important among which is the drafting and adoption of the Statute of CRDA. B) KEY PRIORITIES The adoption of the Act on Support for Rural Development is planned for the first quarter of 2009. In the course of 2009, legal provisions will also be adopted which will make it possible to commence payments for less favoured areas under the rural development measures from 2010 at the latest. In addition, in 2009, preparations will commence for the development of the National Rural Development Programme for the period up to 2013.
3.11.3. Livestock breeding

A) ACHIEVEMENTS IN 2008 The Ordinance on amendments to the Ordinance on the quality of eggs was adopted in 2008 (OG 76/08). B) KEY PRIORITIES The plan for 2009 is to fully complete the alignment of legislation in the field of livestock breeding with that of the European Union, and, in that context, legislation on the organisation of the markets in poultrymeat, sheepmeat, goatmeat, and eggs will be adopted.
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3.11.4. Plant production

Cereals A) ACHIEVEMENTS IN 2008 The Regulation on the organisation of the market in cereals (OG 75/08, 80/08, 114/08, 125/08) was adopted pursuant to the Agriculture Act (OG 661/01, 83/02). Fruit and vegetables A) ACHIEVEMENTS IN 2008 In 2008, the following pieces of subordinate legislation were adopted aligning the Croatian legislation with that of the European Union: Ordinance on the quality of vegetables (OG 114/08, 137/08); Ordinance on the quality of fruit (OG 114/08, 137/08).
B) KEY PRIORITIES The following pieces of subordinate legislation are planned for drafting in 2009: the Regulation on the organisation of the market for fruit and vegetables, the Ordinance on quality standards for flowering bulbs, corms and tubers, and the Ordinance on quality standards for fresh and cut flowers and ornamental foliage. Sugar KEY PRIORITIES In the second quarter of 2009, it is planned to adopt a regulation introducing some of the elements of the organisation of the market, as a preparation for the future implementation of EU trade policy. This will provide a basis for the implementation of a production quota system, and will prepare the competent section of the Directorate for Market and Structural Support in Agriculture of MAFRD for the administration of the system (also referred to under Chapter 3.33 Financial and budgetary provisions). To this end, a special regulation will be adopted to define a marketing year as it is defined in the EU, determine purchase terms for sugar beet, and establish a data collection system in the sugar sector, which is necessary for future notifications to the European Commission and production monitoring. It should be emphasised that this primarily concerns preparations of the authorities which will be responsible for the implementation of the sugar production quota system after Croatia becomes an EU member, and not alignment with the organisation of the sugar market that is in place in the EU, since the Republic of Croatia does not apply production quotas and does not plan to introduce them in the pre-accession period. Olives and olive oil Wine and spirit drinks A) ACHIEVEMENTS IN 2008 In March 2008, the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/2008), pursuant to which the reorganisation of the Ministry has been undertaken. The Directorate for Agriculture and Food Industry has been set up, within which the Sector for Food Industry has been created consisting of two departments: the Department for the Food Processing Industry and the Department for the Wine and Spirit Drinks Industry. Within the Department for the Food Processing Industry, the Market Section has been created to be responsible, among
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other things, for the market in olives and olive oil. In the fourth quarter of 2008, a new employee was recruited to the Section to be responsible primarily for the field of olives and olive oil. Pursuant to the Food Act (OG 46/07), an implementing regulation, i.e. the Ordinance on olive oils and olive-pomace oils (OG 07/09) was adopted in the fourth quarter of 2008, which transposes the provisions of Annex XVI to Council Regulation (EC) No 1234/2007 and the provisions of Commission Regulation (EC) No 1019/2002 on marketing standards for olive oil, and Commission Regulation (EEC) No 2568/91 on the characteristics of olive oil and olive-residue oil and on the relevant methods of analysis. This Ordinance establishes mechanisms for approving establishments for the packaging of oil and transposes the provisions of the existing Ordinance on olive oils and olive-pomace oils (OG 63/06), which will be repealed with the adoption of the new ordinance. B) KEY PRIORITIES In 2009, further alignment of the legislation in the fields of olives and olive oil and wine and spirit drinks needs to be carried out with a view to fulfilling the measures set out in the Negotiating Position for Chapter 11: Agriculture and Rural Development. Olives and olive oil: Ordinance on the accreditation of olive oil sensory evaluation panels The accreditation of independent olive oil sensory evaluation panels will be regulated by a special implementing regulation, which is expected to be adopted in the third quarter of 2009 with a view to alignment with the provisions of Commission Regulation (EEC) No 2568/91 on the characteristics of olive oil and olive-pomace oil and on the relevant methods of analysis. Legislation regulating the olive oil market In 2009, pursuant to the new Agriculture Act, Croatia will adopt a regulation establishing a system for the approval of operators' organisations and for the financing of their work programmes in accordance with Council Regulation (EC) No 1234/2007, Council Regulation (EC) No 865/2004 in the part relating to the approval of operators' organisations, and Commission Regulation (EC) No 2080/2005. Wine and spirit drinks: Ordinance on spirit drinks Pursuant to the new Regulation (EC) No 110/2008 of the European Parliament and of the Council on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89, the Republic of Croatia will align its implementing regulations governing the field of spirit drinks. Ordinance on the documents accompanying the transport of grapes and wine The EUs wine sector reform undertaken in accordance with the new common organisation of the wine market has brought about significant changes. In that context, and based on the EU legislation currently in place, Croatia plans to align the provisions governing the documents accompanying the transport of wine (so-called accompanying documents). The recruitment and training of staff in the Sector for Food Industry within the Directorate for Agriculture and Food Industry will continue in 2009, with a view to implementing the legislation governing the fields of olives and olive oil and wine and spirit drinks.
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3.11.5. Quality policy

A) ACHIEVEMENTS IN 2008 The Act on Designations of Origin, Geographical Indications and the Traditional Speciality Logo for Agricultural Products and Foodstuffs (OG 84/08) was adopted and aligned with the relevant EU regulations. As regards implementing measures, certification bodies operating the system of supervision and control of compliance of foodstuffs that bear a designation of origin or a geographical indication or a traditional speciality logo have not yet been accredited since no application has been received in response to a public tender. The implementation of the programme Co-financing Accreditation of Certification Bodies for Operating the System of Supervision and Control of Compliance of Foodstuffs Bearing a Designation of Origin or a Geographical Indication or a Traditional Speciality Logo is in progress. A public tender remains open until 1 November 2008. The re-organisation of MAFRD resulted in the creation of the Directorate for Food Safety and Quality, and of the Department for Indigenous Products within the Sector for Food Labelling and Quality. Continuing education courses were provided to civil servants. The new Act authorises the agricultural inspection and food quality inspection established within MAFRD to carry out inspection of agricultural products and foodstuffs bearing a registered designation or indication. B) KEY PRIORITIES Work will continue on aligning legislation with the acquis communautaire, i.e. the implementing Commission Regulation (EC) No 1898/2006 of 14 December 2006 laying down detailed rules of implementation of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs and Commission Regulation (EC) No 1216/2007 of 18 October 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 509/2006 on agricultural products and foodstuffs as traditional specialities guaranteed. In that context, the Ordinance on designations of origin and geographical indications for agricultural products and foodstuffs and the Ordinance on traditional speciality logos for agricultural products and foodstuffs will be adopted. The following activities will be carried out in 2009: continuation of activities related to the accreditation of certification bodies operating the system of supervision and control of compliance of foodstuffs which bear a designation of origin or a geographical indication or a traditional speciality logo on the basis of the announced public tender; re-development and implementation of the programme Co-financing Accreditation of Certification Bodies for Operating the System of Supervision and Control of Compliance of Foodstuffs Bearing a Designation of Origin or a Geographical Indication or a Traditional Speciality Logo; recruitment of staff for the Directorate for Food Safety and Quality; training of civil servants and inspectors in control activities in the area of quality policy.
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3.11.6. Organic production

A) ACHIEVEMENTS IN 2008 During 2008, work continued on aligning legislation with the EU legislative framework and on drafting regulations envisaged by NPAEU in the field of organic farming. The following implementing regulations were drafted and published: 1. Ordinance on amendments to the Ordinance on processing in organic production (OG 8/08); 2. Ordinance on keeping the database of agricultural reproductive material from organic production (OG 89/08). The Ordinance on keeping the database of agricultural reproductive material from organic production is aligned with Commission Regulation (EC) No 1452/2003 of 14 August 2003 maintaining the derogation provided for in Article 6(3)(a) of Council Regulation (EEC) No 2092/91 with regard to certain species of seed and vegetative propagating material and laying down procedural rules and criteria relating to that derogation. Thus, the field of organic farming has now been fully aligned with Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs and with related implementing acts. B) KEY PRIORITIES In 2009, work will continue on the further alignment of organic production legislation with the acquis communautaire. The plan is to draft and adopt the following regulations: 1. Ordinance on the marking and labelling of organic products; 2. Ordinance on amendments to the Ordinance on processing in organic production. These Ordinances need to be aligned with the new EU regulations published in 2007 and 2008, i.e. Council Regulation (EC) No 834/2007 of 28 June 2007 and Commission Regulation (EC) No 889/2008 of 5 September 2008.
3.11.7. Vertical legislation

A) ACHIEVEMENTS IN 2008 The Ordinance on the maximum level of erucic acid in oils and fats (OG 70/08, 86/08) transposes the provisions of Council Directive 76/621/EEC and Commission Directive 80/891/EEC. The Ordinance on spreadable fats (OG 89/08), which transposes the provisions of Council Regulation (EC) No 2991/94 of 5 December 1994 and Commission Regulation (EC) No 445/2007 of 23 April 2007, was also adopted in 2008. These Ordinances were adopted pursuant to the Food Act (OG 46/07). B) KEY PRIORITIES In 2009, pursuant to the Food Act (OG 46/07), the following legislation will be adopted: The Ordinance on sugar and other saccharides, their solutions, and starch and starch syrups (OG 174/04, 90/05), is to a large extent aligned with the acquis communautaire. However, full alignment will be achieved through two new regulations.
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In the first quarter of 2009, it is planned to adopt a special regulation which will fully transpose the provisions of Council Directive 2001/111/EC relating to certain sugars intended for human consumption, and the provisions of Commission Directive 79/796/EEC laying down Community methods of analysis for testing certain sugars intended for human consumption. In the second quarter of 2009, it is planned to adopt a special regulation transposing the provisions of Commission Regulation (EEC) No 1265/69 establishing methods for determining the quality of sugar bought in by intervention agencies. By the end of 2009, the Ordinance on the quality of honey and other bee products (OG 20/00), which lays down the basic quality requirements for honey, will be amended to be fully aligned with Council Directive 2001/110/EC. In the first quarter of 2009, it is planned to adopt a special regulation transposing the provisions of Commission Directive 93/45/EEC concerning the manufacture of nectars without the addition of sugars or honey. In the second quarter of 2009, it is planned to adopt a special regulation transposing the provisions of Commission Directives 85/503/ EEC and 86/424/EEC concerning methods of analysis and methods of sampling for edible caseins and caseinates. In the third quarter of 2009, it is planned to adopt a special regulation transposing the provisions of Commission Directives 79/1067/ EEC and 87/524/EEC concerning methods of analysis for testing certain partly or wholly dehydrated milk (and milk powder) for human consumption and methods of sampling for chemical analysis of milk products. In the first quarter of 2009, it is planned to adopt the Ordinance on milk and milk products, which will transpose the provisions of Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products, or more precisely, the provisions of Article 114 and of Annexes XII and XIII. In the second quarter of 2009, it is planned to adopt the Ordinance concerning poultrymeat, which will transpose the provisions of Commission Regulation (EC) No 543/2008 of 16 June 2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for poultrymeat.
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3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 3.12.1. Food safety
A) ACHIEVEMENTS IN 2008 Legislative measures During 2008, work continued on aligning legislation with the EU legislative framework and on drafting implementing legislation pursuant to the Food Act (OG 46/07) envisaged by the 2008 NPAEU. The following pieces of legislation were adopted in 2008: Ordinance on the labelling, advertising and presenting of foodstuffs (OG 41/08); Ordinance on nutritional labelling of foodstuffs (OG 60/08, 74/08);
Implementation measures The Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12 - Food Safety, Veterinary and Phytosanitary Policy into National Legislation was adopted. The development of guides for the implementation of the Ordinance on the labelling, advertising and presenting of foodstuffs, envisaged for 2008 as part of the CARDS project Further Capacity Building in the Area of Live Animals and Food Products, is in progress and will be completed in the fourth quarter. The re-organisation of the Ministry of Agriculture, Fisheries and Rural Development resulted in the creation of the Directorate for Food Safety and Quality, consisting of the Sector for Food Labelling and Quality and the Food Safety Sector. In the area of food safety, the Ministry of Health and Social Welfare achieved the following in 2008, regarding matters falling within its competence: Legislative measures The following pieces of legislation were adopted in 2008: 1. Ordinance on processing aids (OG 38/08); 2. Ordinance on sanitary safety of materials and articles intended to come into direct contact with foodstuffs (OG 48/08); 3. Ordinance on quick-frozen foodstuffs (OG 38/08); 4. Ordinance laying down methods of sampling and analysis for the official control of the levels of dioxins and dioxin-like polychlorinated biphenyls in foodstuffs (OG 45/08); 5. Ordinance on the sampling plan and methods of analysis for the official control of the levels of nitrates in foodstuffs (OG 42/08); 6. 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); 7. Ordinance on the sampling plan and methods of analysis for the official control of the levels of mycotoxins in foodstuffs (OG 45/08); 8. Ordinance on food treated with ionising radiation (OG 38/08); 9. Ordinance on flavourings (OG 53/08);
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10. Ordinance on foods for infants and young children and processed cereal-based foods for infants and young children (OG 74/08); 11. Ordinance on foodstuffs intended for particular nutritional uses (OG 74/08); 12. Ordinance on food additives (OG 81/08); 13. Ordinance on foods intended for weight reduction (OG 89/08); 14. Ordinance on dietary foods for special medical purposes (OG 100/08); 15. Ordinance on foods enriched with nutrients (vitamins, minerals and other substances added to food) (OG 148/08); 16. Ordinance on food supplements (OG 148/08); 17. Ordinance on nutritional and health claims made on food (OG 17/09); 18. Ordinance on maximum levels for certain contaminants in foodstuffs (OG 154/08). Implementation measures Implementation measures mainly concerned the training and specialised training of inspection staff in the implementation of the new regulations. Within the PHARE 2005 project Support to the Sanitary Inspection in the Development, Implementation and Maintenance of the HACCP System, specialised training in the area of food safety was provided for sanitary inspectors. The training was organised on a regional basis in two Modules (Module 1: The basics of the HACCP, and Module 2: HACCP auditing), each lasting three days. A total of 141 sanitary inspectors received training. In order to prepare for the implementation of EU Regulations (EC) No 883/2006, (EC) No 333/2007, (EC) No 401/206 and (EC) No 1882/2006 concerning contaminants and for the training of inspection staff, representatives of the MHSW applied for a TAIEX study visit, which has been approved. As part of preparations for the implementation of EU Regulation 1924/2006 concerning nutritional and health claims made on food, representatives of the MHSW participated in an expert mission, organised in co-operation with TAIEX, from 24 to 27 November 2008. As part of preparations for the implementation of EU Directives 89/398/EEC, 2006/125/EC and 2006/141/EC concerning foodstuffs for particular nutritional uses, representatives of the MHSW organised and participated in a TAIEX workshop held on 14 November 2008 in Zagreb. Through specialised training, organised by TAIEX in collaboration with the Regional Training Programme (RTP), sanitary inspectors were trained to become RTP experts, and made a study visit to Ireland in September 2008 in order to gain insights into the practical aspects of implementing EU food safety legislation (Regulations (EC) No 178/2002, (EC) No 852/2004, (EC) No 882/2004). In addition, vacancy announcements were issued in September for the posts of a sanitary inspector and a senior sanitary inspector in the Food Safety Department. From 15 June to 15 September 2008, the Ministry of Health and Social Welfare conducted regular monitoring for the following parameters: artificial colours in non-alcoholic beverages, pesticides (plant protection product residues), allergens in confectionery products, biologically active substances, mycotoxins, microbiological parameters, metals and metalloids in processed cereal-based foods, food supplements and dietary products, and probiotics. A total of 692 samples were taken. Within the IPA 2008 project Continued Support to Capacity Strengthening of the Veterinary, Phytosanitary and Sanitary Border Inspection, project documentation is being drawn up for the purchase of equipment for use by border sanitary inspectors at the border crossings at Zagreb-Pleso Airport and in Rijeka and Bajakovo.
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Representatives of the Food Safety Department were speakers at 12 workshops and seminars aimed at familiarising food business operators with new regulations. B) KEY PRIORITIES It is planned to recruit new employees to the MAFRDs Directorate for Food Safety and Quality in 2009. In addition, continued training will be provided through projects and professional meetings. The key priorities of the MHSW in the field of food safety in 2009 are: Legislative measures In the field of novel foods, the Ordinance on the conditions and procedure for authorising the placing on the market of novel foods and the labelling of such foods is planned for adoption. Implementation measures In 2009, education and specialised training will continue to be provided through seminars, workshops, study visits, etc. Instructions and procedures for carrying out official controls in accordance with the Food Act will be developed. The new Sanitary Inspection Act will enter into force on 1 January 2009, pursuant to which the sanitary inspection service will be centralised and all inspectors become employees of the Ministry of Health and Social Welfare. This will ensure a coherent approach, better planning of official controls and acting in accordance with guides and instructions. The Sanitary Inspection will begin conducting inspections of HACCP-based self-inspection systems established by food business operators. The upgrading of establishments will be monitored regularly, and quarterly reports produced. The implementation of the MATRA 2007 project Capacity Building for Implementation of the HACCP Principles in Institutional Kitchens will continue. The MATRA 2008 project Multi-annual Plan for Monitoring Toxic Metals and Mycotoxins in Certain Foodstuffs is planned for implementation. As part of the project, an assessment will be made of the situation in the Republic of Croatia regarding the presence of toxic metals and mycotoxins in foodstuffs, and training in this field will be provided for inspection and laboratory staff.
3.12.2. Veterinary policy

A) ACHIEVEMENTS IN 2008 In March 2008, the Government of the Republic of Croatia adopted the new Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/08). Pursuant to this Regulation, the structure of the competent authority in the field of veterinary medicine has been changed and two directorates have been set up: the Veterinary Directorate and the Veterinary Inspection Directorate. In 2008, work continued on aligning Croatian legislation with that of the EU, in accordance with the Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12: Food Safety, Veterinary and Phytosanitary Policy into National Legislation. The following pieces of subordinate legislation were drawn up and published: 1. Ordinance on amendments to the Ordinance on the obligatory identification and registration of bovine animals (OG 41/08); 2. Ordinance on amendments to the Ordinance on the veterinary conditions for non-commercial transport of pets (OG 39/08);
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3. Ordinance on feed hygiene (OG 41/08); 4. Ordinance on feedingstuffs intended for particular nutritional purposes (OG 35/08); 5. Ordinance laying down the requirements that must be met by control posts for animals (OG 37/08); 6. Ordinance on animal health requirements for aquaculture animals and products thereof, and on prevention and control of certain diseases in aquatic animals (OG 42/08); 7. Ordinance laying down requirements regarding introduction of products of animal origin in personal luggage of travellers (OG 35/08); 8. Order recognising anti-rabies vaccines (OG 39/08); 9. Ordinance on the protection of animals at the time of slaughter or killing (OG 39/08); 10. Ordinance concerning the collection of information during inspections of production sites on which animals are kept for farming purposes (OG 74/08); 11. Ordinance laying down minimum rules for the protection of chickens kept for meat production (OG 79/08); 12. Ordinance on microbiological criteria for food (OG 74/08); 13. Ordinance on maximum residue limits of veterinary medicinal products in foodstuffs of animal origin (OG 75/08); 14. Ordinance on the method of conducting controls for trichinella in meat (OG 62/08); 15. Ordinance on specific control methods in the framework of the national programmes for the control of salmonella in poultry (OG 72/08); 16. Ordinance on animal health conditions governing trade in and importation of embryos of domestic animals of the bovine species (OG 74/08); 17. Ordinance on animal health requirements applicable to trade in and imports of semen of domestic animals of the bovine species (OG 60/08); 18. Ordinance on the monitoring of certain substances and residues thereof in live animals and animal products (OG 79/08); 19. Order on additional requirements for the surveillance of avian influenza in wild birds (OG 70/08); 20. Ordinance on the requirements to be fulfilled by veterinary border inspection posts (OG 72/08); 21. Ordinance on the list of epizootic diseases to be suppressed when importing animals into the Republic of Croatia (OG 62/08); 22. Ordinance laying down the procedures for the reduction of the prevalence of Salmonella enteritidis and Salmonella typhimurium in broilers (OG 72/08); 23. Ordinance on the animal health requirements applicable to the trade in and imports of semen of domestic animals of the porcine species (OG 112/08); 24. Ordinance on diagnostic procedures, sampling methods and criteria for the evaluation of results of laboratory tests for the confirmation and differential diagnosis of swine vesicular disease (OG 99/08); 25. Ordinance on measures to control and combat African horse sickness (OG 112/08); 26. Ordinance on the diagnostic manual for avian influenza (OG 99/08); 27. Order prohibiting the use in stockfarming of certain beta-agonists and substances having a hormonal or thyrostatic action (OG 112/08); 28. Order prohibiting the placing on the market and use of bovine somatotrophin (OG 93/08);
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29. Ordinance on the placing on the market of feed materials and compound feedingstuffs (OG 112/08); 30. Order banning the placing on the market and the import and export of cat and dog fur and products containing cat or dog fur (OG 100/08); 31. Ordinance on the guidelines for the development and implementation of surveillance programmes for avian influenza in poultry and wild birds (OG 114/08); 32. Ordinance on measures to prevent the spread of highly pathogenic avian influenza to captive birds kept in zoos and approved bodies, institutes or centres (OG 116/08); 33. Ordinance on the African swine fever diagnostic manual (OG 116/08); 34. Ordinance on the animal health conditions for imports of certain birds and the quarantine conditions thereof (OG 123/08); 35. Ordinance on conditions for non-commercial movements of young dogs and cats (OG 124/08); 36. Ordinance on the manner of conducting veterinary health checks and controls on products of animal origin moving across the borders of the Republic of Croatia (OG 132/08); 37. Ordinance on the issuance of veterinary-health certificates for live animals and products of animal origin moving in international trade (OG 137/08); 38. Ordinance on detailed rules on official sampling for the monitoring of certain substances and residues thereof in live animals and animal products (OG 138/08); 39. Ordinance on veterinary checks in trade with the European Union Member States with a view to the completion of the single market (OG 139/08); 40. Ordinance on the methods of veterinary checks and certification conditions for products destined for introduction into free zones, free warehouses, customs warehouses or operators supplying cross border means of sea transport (OG 139/08). The remaining pieces of subordinate legislation are being drafted and are expected to be adopted within the time limits set in the 2008 NPAEU. The Action Plan for the Control and Eradication of Classical Swine Fever in Domestic Pigs and Wild Boars was drawn up in 2008. During 2008, the system for the identification and registration of pigs was established and all necessary measures were taken to achieve full operability of the database for bovine animals (Central Register of Bovine Animals). As regards the identification and registration of pigs, the Ordinance on the obligatory identification and registration of pigs (OG 51/07) was adopted, which is aligned with Directive 92/102/EEC and Decision 2000/678/EC, and Directive 64/432/EEC in the part relating to the register of pigs. As regards the identification and registration of sheep and goats, the Ordinance on the obligatory identification and registration of ovine and caprine animals (OG 111/07) was adopted, which is aligned with Regulations (EC) No 21/2004 and (EC) No 1505/2006 and Decision 2006/968/EC. Detailed rules for its implementation were published along with the Ordinance. The categorisation of all food business establishments was completed in April 2008 in accordance with the acquis communautaire. Teams of county and state veterinary inspectors from the MAFRD categorised 960 food business establishments that handle food of animal origin, as well as 40 establishments that handle animal by-products. The categorisation of these establishments will serve as the basis for the future National Plan for the Upgrading of Establishments. The development of this Plan has started and the first draft is expected to be finished in the fourth quarter of 2008. The implementation of the international CARDS 2004 projects Capacity Strengthening of the Veterinary Border Inspection and Further Capacity Building in the Area of Live Animals and Food Products continued in 2008. Several training courses were held
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for border veterinary inspectors, official veterinarians and veterinary inspectors. These projects are expected to be completed in early 2009. With regard to the strengthening of administrative capacities, recruitment is underway to fill 11 posts in the Veterinary Directorate and 35 posts in the Veterinary Inspection Directorate. One of the key priorities in the field of veterinary policy is the development of a plan for the establishment of a new system for official controls on live animals and products of animal origin, which includes financing the system, in accordance with EU requirements. The development of the plan is in progress and the first draft is expected to be finished by the end of 2008. B) KEY PRIORITIES The key priorities in the field of veterinary policy are related to the priorities listed in the Accession Partnership and the European Commissions 2008 Progress Report and they concern the further alignment of legislation in accordance with the Annex to the Croatian Strategy for the Transposition and Implementation of the acquis communautaire in Chapter 12: Food Safety, Veterinary and Phytosanitary Policy into National Legislation, the strengthening of the institutional framework and administrative capacities, the implementation of legislation in practice and the construction of long-term border inspection posts. In addition, training will continue to be provided for the staff of the Veterinary Directorate and the Veterinary Inspection Directorate and the professional staff of the Croatian Veterinary Institute through training courses, workshops and study visits, as part of the TAIEX programmes and new IPA projects. In accordance with the above-mentioned Strategy, 54 pieces of subordinate legislation are to be drawn up and published in 2009 for the purpose of alignment with the acquis communautaire in the following fields: animal health protection related to specific infectious animal diseases; animal welfare; disposal of animal by-products; trade in live animals and products of animal origin; veterinary requirements applicable to the importation of animals and products of animal origin.
As regards the assessment of food business establishments that handle food of animal origin, work began on developing a national programme for the upgrading of food business establishments that handle food of animal origin. The first draft is expected to be finished in the fourth quarter of 2008, and the final version is to be completed in 2009. The National Programme will include individual plans of upgrading and deadlines for correcting deficiencies. One of the key priorities in 2009 is the further recruitment of staff in the civil service. In that context, the Veterinary Directorate plans to recruit 24 employees and the Veterinary Inspection Directorate plans to increase the number of civil servants carrying out veterinary inspectional supervision from the present 104 state veterinary inspectors to 275, of whom 83 will be state veterinary inspectors, and 192 official veterinarians. To ensure improved efficiency, some official veterinarians will specialise in animal health and welfare, while others will specialise in veterinary public health and food safety. In 2009, work will continue on the 2008 activities related to the preparation of projects to be funded by IPA pre-accession funds for the further construction and equipping of long-term veterinary border inspection posts and the procurement of equipment needed for the day-to-day work of the veterinary inspection service.
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3.12.3. Zootechnics
A) ACHIEVEMENTS IN 2008 Five pieces of subordinate legislation were adopted in 2008, in accordance with the 2008 NPAEU, and three more are planned for adoption by the end of the year, as listed below. 1. Ordinance on the conditions for entering hybrid breeding pigs in the breed register (OG 53/08); 2. Ordinance on acceptance of hybrid breeding pigs for breeding (OG 53/08); 3. Ordinance on the amendment to the Ordinance on the methods for monitoring performance and assessing the genetic value of pure-bred breeding pigs (OG 64/08); 4. Ordinance on the form and content of the certificate of origin of semen, ova and embryos of pure-bred breeding equidae (OG 93/08); 5. Ordinance on the form and content of the zootechnical certificate for pure-bred breeding sheep and goats, their semen, ova and embryos (OG 100/08); 6. Ordinance laying down the conditions for participation of equidae in competitions, and on the collection of data concerning competitions for equidae (OG 154/08); 7. Ordinance on keeping herd books and breeding registers and registration therein of pure-bred breeding animals of bovine species (OG 135/08); 8. Ordinance on amendments to the Ordinance on the methods for monitoring performance and assessing the genetic value of pure-bred breeding animals of the bovine species (OG 142/08) B) KEY PRIORITIES The plan for 2009 is to finalise alignment with the acquis communautaire in the field of livestock breeding and zootechnics, and to develop a programme to improve the quality of milk in the Republic of Croatia.
3.12.4. Phytosanitary policy

3.12.4.1. Plant health protection
A) ACHIEVEMENTS IN 2008 Legislative measures Work continued on aligning implementing regulations envisaged by the 2008 NPAEU. Thus, the following implementing regulations were prepared and published: 1. Ordinance laying down the minimum conditions for carrying out plant health checks of plants, plant products or other regulated objects at points of entry (OG 50/08); 2. Order on measures to prevent the introduction and spread of Pepino mosaic virus (OG 56/08);
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3. Ordinance establishing the measures to prevent the introduction and spread of Phytophthora ramorum Werres, De Cock & Man in t Veld.sp.nov. (OG 64/08); 4. Ordinance on measures to prevent the spread of the western corn nematode Diabrotica virgifera Le Conte (OG 80/08); 5. Ordinance on measures to prevent the introduction and the spread of the pine wood nematode Bursaphelenchus xylophilus (Steiner et Buhrer) Nickle et al. (OG 80/08); 6. Ordinance on amendments to the Ordinance on conducting systematic surveys and on taking measures to prevent the spread of and to control potato ring rot caused by Clavibacter michiganensis (Smith) Davis et al. ssp. sepedonicus (Spieckermann et Kotthoff) Davis et al. (OG 89/08); 7. Ordinance on amendments to the Ordinance on conducting the systematic surveys and on taking measures to prevent the spread of and to control brown rot in potato tubers and bacterial wilt in potato and tomato plants caused by Ralstonia solanacearum, (Smith) Yabuuchi et al. (OG 89/08); 8. Ordinance on points of entry for consignments of plants, plant products and other regulated objects subject to plant health checks (OG 99/08); 9. Ordinance on measures to prevent the introduction and the spread of oriental chestnut wasp Dryocosmus kuriphilus Yasumatsu (OG 124/08). Implementation measures In 2008, the provisions of the Ordinance on the plant health register and plant passports (OG 54/07) began to be implemented, with respect to the establishment of the Phytosanitary Register. The eighth Programme of Specific Surveys for Certain Organisms Harmful to Plants has been adopted. This programme describes the actions and measures to be taken during specific surveys. However, the scope of these measures and actions is limited by the financial resources, infrastructure and human resources available. The programme was implemented in the field by the Phytosanitary Inspection, together with experts from the Plant Protection Institute and Forestry Inspection. The monitoring programme covers the organisms harmful to plants that are monitored in the EU Member States, and is based on the relevant directives and decisions of the European Commission and of the Council. During 2008, workshops were held for producers, importers and distributors of fruit and vine planting material, seed potatoes and ornamental trees and shrubs, to inform them about the procedure for registration in the Phytosanitary Register. The workshops were also attended by representatives of the Phytosanitary Inspection and the Plant Protection Institute. Following the workshops, registration in the Register began in accordance with the adopted plan (starting with fruit and vine planting material, seed potatoes etc.). Relevant data from the Phytosanitary Register, as well as data about production sites and planned plant production, were sent to competent phytosanitary inspectors, for the purpose of conducting plant health checks in accordance with the implementing regulations. In the second half of 2008, the procedure began for granting authorisation for the issue of plant passports to those registered in the Phytosanitary Register. This procedure is underway and will continue in 2009. In late September/early October, a TAIEX-organised workshop The implementation of the plant passport system for fruit and vine planting material, ornamental forest plants and planting material of forest plants was held for the competent administrative and inspection staff of the MAFRD and the MRDFWM, experts from the Plant Protection Institute, and experts from other relevant services and institutions. The first part of the workshop was held in the MAFRD in Zagreb and in the field in nearby nurseries, while the second part was held in Slovenia, in the Ministry of Agriculture, Forestry and Food (Ministarstvo za kmetijstvo, gozdarstvo in prehrano) and in Slovenian nurseries producing the planting material concerned. In early 2008, following a transitional period, during which phytosanitary inspectors and customs officers distributed leaflets to importers explaining the content and application of phytosanitary provisions concerning wood packaging material, the Phytosanitary Inspection began ordering the return, destruction or treatment of wood packaging material that is not marked according to regulations, or incorrectly marked.
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For the purpose of continuing the training of phytosanitary inspectors, work continued in 2008 on improving the knowledge and skills of phytosanitary inspectors through various national and international workshops and seminars. Intensive efforts were made to update existing chapters and write new chapters of the manual for phytosanitary inspectors. A considerable amount of time was devoted to the development of a table to systematically arrange data on quarantine pests, methods for detecting and identifying them, and references to general and specific phytosanitary requirements. In early 2008, work continued on the development of a concept design for a comprehensive Information and Communication Technology System (ICT) for the Ministry. One of its main subcomponents is the Information System for the Phytosanitary Sector and for the Phytosanitary Inspection Sector. Funds have been secured from a World Bank loan. The selected consultancy company, in co-operation with the competent staff of the relevant Sectors, has developed a conceptual design for the ICT for the Phytosanitary Sector and for the Phytosanitary Inspection Sector. The proposal is currently being evaluated by the World Bank, and the next phase is to invite tenders and select a company to develop and implement the system. According to the concept design, the building and implementation of the ICT is expected to be completed about 15 months after development begins. During the further implementation of the National Strategy for Integrated Border Management, developed as part of the CARDS 2001 project Integrated Border Management Inter-agency Co-operation, the Action Plan was updated and a series of activities was undertaken to further improve co-operation between the Phytosanitary Inspection and other services operating at borders. In 2008, due to the increased amount of work assigned to the Phytosanitary Inspection, resulting from the implementation of the newly adopted regulations, three new phytosanitary inspectors were recruited to posts already classified and described. According to the new Ordinance on points of entry for consignments of plants, plant products and other regulated objects subject to plant health checks (OG 99/08), the Tovarnik phytosanitary border inspection post was excluded from the list of points of entry for consignments of plants, plant products and other regulated objects subject to plant health checks, which will still apply after the accession of the Republic of Croatia to the European Union. Thus, eight long-term phytosanitary border inspection posts (phytosanitary BIPs) have been designated, need to be constructed and equipped and will remain in operation after the accession of Croatia to the EU. They are: the road border crossings at Bajakovo, Stara Gradika, Metkovi and Karasovii, the ports of Rijeka and Ploe, Zagreb Airport, and Zagreb Post Office. From January to October 2008, as part of the PHARE 2005 project Upgrading of Long-term Veterinary and Phytosanitary Border Inspection Posts, technical assistance was provided for the development of technical and project documentation necessary for the construction and equipping of the infrastructure needed for phytosanitary inspections at three phytosanitary border crossing points (the port of Rijeka and the road border crossings at Metkovi and Karasovii) which will remain in operation after the accession of the Republic of Croatia to the EU (long term phytosanitary BIPs). The documentation prepared within this project for the port of Rijeka phytosanitary BIP serves as the basic documentation for the IPA 2008 project Continued Support for Capacity Strengthening of the Veterinary, Phytosanitary and Sanitary Border Inspection Posts. The main objective of this project is to construct two longterm phytosanitary BIPs (Zagreb Airport and the port of Rijeka) and to equip three long-term phytosanitary BIPs (Zagreb Airport, the port of Rijeka and the road border crossing at Bajakovo) until Croatias accession to the EU. Representatives of Zagreb Airport will themselves prepare all the necessary technical and project documentation for the construction of the Zagreb Airport phytosanitary BIP and obtain the necessary building permits. In addition to the Phytosanitary Inspections, the Veterinary Inspection and the Sanitary Inspection are also involved in this project. Part of the funds (75%) needed for the construction of these long term BIPs will be provided by the EU, while 25% of the value of the project will be covered by State Budget funds. The project fiche, necessary designs, technical specifications for equipment and work, market surveys, estimate of costs, etc., have been completed, and the necessary building permits are being obtained. In late 2008, work began on preparing working materials for the development of the Strategy for the Development of the National Phytosanitary Service, and the commission for the development of the Strategy was set up. The Strategy is expected to be adopted by the end of the calendar year.
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Preparations for the construction of an office building for the Institute for Plant Protection in the Agriculture and Forestry of the Republic of Croatia continued in 2008. The building permit was obtained in March 2008. The documentation prepared by an architecture company is currently being evaluated by World Bank experts, and the next phase is to invite tenders, select a building contractor and begin construction. In January 2008, the MAFRD adopted the draft proposal for the Strategy for the Development and Reorganisation of the Institute for Plant Protection in the Agriculture and Forestry of the Republic of Croatia for the coming four-year period. The implementation of the objectives of the Strategy began in 2008, firstly with the recruitment of experts specialised in areas currently not adequately covered. One ecotoxicologist was employed in the second quarter, and the recruitment of experts specialised in other key areas, such as chemists, toxicologists, IT experts, administrative staff, etc., continued in the fourth quarter. B) KEY PRIORITIES Legislative measures In 2009, the alignment of phytosanitary legislation with the remaining EU directives and decisions concerning plant health harmful organisms will continue, and is expected to be completed by the end of 2009. Implementation measures In 2009, work will continue on informing other persons who must be included in the Phytosanitary Register (importers, producers and distributors of propagating material: vegetable and flower seedlings, citrus distributors and warehouses, etc.) of their obligation to register in the Phytosanitary Register and of the establishment of the plant passport system. Registration in the Register and the granting of authorisation for the issue of plant passports will continue. In accordance with the further establishment of the Register and the gradual establishment of a pilot plant passport system that will be applicable only in the territory of the Republic of Croatia, until Croatias accession to the EU, the Phytosanitary Inspection will, in accordance with its competencies, continue to carry out ongoing phytosanitary controls, as regards persons registered in the Register. With regard to the implementation of new regulations, which are yet to be adopted, and phytosanitary inspections, which will be conducted after the further establishment of the Register, additional training will be provided for phytosanitary inspectors through national and international workshops, seminars and study visits. In order to ensure that uniform work procedures are applied by phytosanitary inspectors, intensive work will continue to be done on developing and updating the manual for phytosanitary inspectors. In the coming period, it is planned to further supplement and modernise equipment for the purposes of phytosanitary inspection, to further improve phytosanitary inspectors knowledge of foreign languages, and enable them to acquire adequate IT skills. The recruitment of the planned number of staff in the Phytosanitary Sector departments is planned for this period, as is the continued provision of training through new EU assistance projects (TAIEX, bilateral projects, etc.). In accordance with the estimated scope of work in the field, the plan for this period is to recruit new phytosanitary inspectors to fill positions that have already been classified and described, but are still vacant. The continuing gradual relocation of phytosanitary inspectors from phytosanitary BIPs to regional offices is also planned. In this context, it is planned to provide and equip adequate inspection facilities at inland inspection sites. The construction of facilities for the purposes of border veterinary, phytosanitary and sanitary inspections at long term BIPs, i.e. Zagreb Airport, the port of Rijeka and the road border crossing at Bajakovo, is planned to commence during 2009, within the IPA 2008 project Continued Support for Capacity Strengthening of the Veterinary, Phytosanitary and Sanitary Border Inspection Posts.
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The construction of these and the remaining phytosanitary BIPs, in accordance with the relevant EU directives, is planned before the accession of Croatia to the EU. Funds for construction will be provided from pre-accession funds and the State Budget. The plan for 2009 is to continue implementing the Plant Protection Institutes Strategy, to finalise the setting up of new organisational units with a new job description and classification scheme, and to proceed with the planned recruitment. The construction of an office building for the Plant Protection Institute is planned for 2009. In the same year, work will continue on implementing the ICT system in the phytosanitary field, with the final aim of connecting the entire phytosanitary service and institutions, both within and outside the MAFWM. Throughout 2009, all three departments of the Phytosanitary Sector, as well as the Phytosanitary Inspection Sector, will co-operate with experts from companies developing the necessary databases, SW applications, web pages and portals needed for the development of the ICT system of the Ministry. Finally, in 2009, the objectives set out in the Strategy for the Development of the National Phytosanitary Service, which will serve as the basis and guide for the planning and implementation of goals set in the next four-year period, are planned for implementation. In particular, this means finalising the recruitment of planned staff, training them and acquiring the necessary infrastructure. Work will also continue on further improving specific surveys of organisms harmful to plants, other methods of monitoring plant health status, and procedures for processing data and preparing usable reports, on the basis of which the most efficient method of controlling harmful organisms will be determined. A condition for the implementation or improvement of current activities is the provision of additional budgetary resources, in accordance not only with plans already made, but also with the recommendations of the expert bodies of the European Union.
3.12.4.2. Plant Protection Products and Pesticide Residues
A) ACHIEVEMENTS IN 2008 Legislative measures Work continued on aligning legislation with the acquis relating to plant protection products and pesticide residues. In order to ensure that the status of active substances contained in plant protection products (PPPs) is aligned with that of active substances in the EU, the List of active substances authorised for use in PPPs was regularly updated according to the amendments to Annex I to Council Directive 91/414/EEC. The latest List of active substances authorised for use in PPPs in the Republic of Croatia was published in the Official Gazette (8/08). The drafting of the Ordinance on the methods of sampling for the official control of pesticide residues in and on products of plant and animal origin (OG 77/08) was completed in 2008. The Ordinance on maximum permitted residue levels of pesticides in and on products of plant and animal origin was drafted as part of the CARDS 2004 project Further Development and Capacity Building in the Area of Plant Protection Products. The Ordinance will be published by the end of 2008 and apply from 1 January 2009. The Ordinance will be published in the Official Gazette by the end of December 2008. With regard to national legislation, the Ordinance on border crossing points through which plant protection products may be transported (OG 21/08) was adopted. The new List of Authorised Plant Protection Products (OG 10/08) was also published; PPPs in respect of which decisions on withdrawal had been issued were excluded from the List and newly authorised PPPs were added. Implementation measures
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Following the recommendations made as part of the CARDS 2002 project Capacity Building in the Area of Agriculture, Live Animals and Food Products, authorisation was renewed for all PPPs for which authorisations expired in 2008, provided that the active substance contained in the PPPs concerned is included in Annex I to Council Directive 91/414/EEC, or the evaluation procedure for the active substance is underway. In order to harmonise the status of PPPs authorised in the Republic of Croatia with EU legislation and new Croatian legislation, the withdrawal of authorisation continued for PPPs containing active substances which are not included in Annex I to Council Directive 91/414/EEC, or which are not on the List of active substances authorised for use in plant protection products in the Republic of Croatia (OG 8/08). New decisions on withdrawing authorisation for PPPs were issued, permitting the sale and application of such products 18 months from the date of application of the decision: The third and fourth decisions, which began to apply on 1 June 2008, prohibit the placing on the market of PPPs containing the following active substances: brodifacoum, flumetsulam, phoxim, chlorophacinone, lactofen, lecithin, methomyl, paraffin oil (CAS numbers: 64741-88-4, 64741-89-5, 64741-97-5, 64742-55-8, 64742-65-0, 8012-95-1), petroleum oil (CAS numbers: 7486922-0, 64742-55-8/64742-57-7), fish oil, trifluralin, iron (3) pyrophosphate and vinclozolin. The fifth decision, which began to apply on 1 December 2008, prohibits the placing on the market of PPPs containing the active substance paraquat. The re-registration (re-evaluation) programme for all PPPs containing active substances included in Annex I to Council Directive 91/414/EEC has been developed, based on which the authorised PPPs have been classified into eight groups, with deadlines for submission of the necessary documentation. The deadlines for the first three groups of PPPs have expired, re-registration applications have been received and re-registration of PPPs is underway, in order to ensure that PPPs authorised pursuant to old regulations are now authorised in accordance with the Ordinance on the uniform principles for the evaluation and authorisation of plant protection products (OG 116/06 and 80/07), i.e. in accordance with Annex VI to Council Directive 91/414/EEC. In parallel with these activities, the authorisation of PPPs has begun, in accordance with the new authorisation scheme and permit issue system for PPPs, in accordance with the Act on Plant Protection Products (OG 70/05), and subordinate regulations have been made under this Act. Under the CARDS 2004 project Further Development and Capacity Building in the Area of Plant Protection Products, the implementation of which began in September 2007 and will last for 18 months, the following activities were continued: the strengthening of administrative capacities of the MAFRD and authorised institutions, i.e. the Institute for Plant Protection in Agriculture and Forestry of the Republic of Croatia (PPI) and the Institute for Medical Research and Occupational Health (IMR); the drawing up of legislation on pesticide residues in accordance with the acquis communautaire, the provision of training and workshops for evaluators of PPP dossiers, and training on co-ordination activities during PPP registration and re-registration procedures for staff of the Plant Protection Products Department; the provision of training for staff of the MAFRD on checking the documentation submitted in support of applications for registration and re-registration of PPPs; the provision of training on planning, organisation and control activities for management staff; the provision of training and workshops for the laboratory staff of the PPI and the Croatian National Institute of Public Health (CNIPH); the provision of training for staff of the MAFRD, experts from the PPI and Agricultural Inspection on the planning and efficient implementation of the Programme for Post-registration Control of Plant Protection Products.
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Additional information letters were sent to PPP authorisation holders, and several workshops were held to ensure that all interested parties are better informed about the changes brought about by the new PPP registration system, which is aligned with EU requirements.
In accordance with the provisions of the Act on Plant Protection Products, the 2008 Programme for Post-registration Control of Plant Protection Products was drafted and is being implemented. The objective of the Programme is to check whether the authorised PPPs comply with the prescribed requirements, by verifying, based on selected active substances, whether their physical and chemical properties comply with the decision on authorisation. The 2008 Programme covers PPPs based on the following active substances: pendimethaline and acetochlor. Laboratory analyses of samples of PPPs are conducted by the PPI. The 2008 National Monitoring Programme for Pesticide Residues in and on Products of Plant Origin was developed and its implementation is underway. The objective of the Programme is to determine the level of pesticide residues in foods of plant origin, and to verify whether they comply with international and national standards concerning maximum residue levels (MRL) for pesticides. Thus, it will be assessed to what extent pesticide residues exceeding MRLs pose a risk to consumers of food containing such levels of pesticide residues. The Programme covers the following products of plant origin: commodities covered by the EU recommendation concerning a co-ordinated Community monitoring programme: beans (pods), carrots, cucumbers, oranges or mandarins, pears, potatoes, rice, and spinach; commodities that are important in the diet of the Croatian population: apples, bread, peaches or nectarines, peppers (fresh), and pasta; other commodities: lettuce (in which pesticide residues exceeding the MRL were found during the previous monitoring programme). Samples are collected by the Sanitary Inspection of the Ministry of Health and Social Welfare or by county sanitary inspection services in retail shops, big shopping centres and markets. Of the total number of samples planned for collection, 33% will be collected in Zagreb, and the remainder in Pula, Zadar, Varadin and Slavonski Brod. Laboratory analyses are conducted by the CNIPH. B) KEY PRIORITIES Legislative measures It is planned to continue aligning the List of active substances authorised for use in plant protection products in the Republic of Croatia with new directives on the inclusion or non-inclusion of active substances in Annex I to Council Directive 91/414/EEC and with the future amendments to Regulation (EC) No 396/2005 of the European Parliament and of the Council on maximum residue levels of pesticides in or on food and feed of plant and animal origin. It is also planned to continue drawing up other, so-called national, implementing regulations which do not transpose, but supplement, EU legislation, and, as such, are necessary for the full application of the Act on Plant Protection Products in practice. Implementation measures In accordance with the agreed work plan, until the completion of the CARDS 2004 project Further Capacity Building in the Area of Plant Protection Products, work will continue on strengthening the administrative capacities of the MAFRD and authorised institutions, i.e. the Institute for Plant Protection in Agriculture and Forestry of the Republic of Croatia (PPI) and the Institute for Medical Research and Occupational Health (IMR), providing training and workshops for evaluators of PPP dossiers, training on co-ordination activities during PPP registration and re-registration procedures for staff of the Plant Protection Products Department, training on planning, organisation and control activities for management staff, training and workshops for the laboratory staff of the PPI and the Croatian National Institute of Public Health (CNIPH).
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In order to protect human and animal health and the environment from the harmful effects of pesticides, the withdrawal of authorisation will continue for plant protection products containing active substances for which decisions on non-inclusion in Annex I to Council Directive 91/414/EEC are adopted. Efforts will be made to improve the knowledge that the staff of the MAFRD need in order to check the documentation for registration and re-registration of PPPs, as well as the knowledge that experts from the PPI and IMR need to evaluate documentation in all areas of risk assessment. The 2009 National Programme for Post-registration Control of Plant Protection Products and the 2009 National Monitoring Programme for Pesticide Residues in and on Products of Plant Origin will be developed and implemented. A register of legal and natural persons (service providers) who are engaged in the control and eradication of harmful organisms by means of PPPs will be set up. A system for mandatory record keeping on the use of PPPs by producers of plants and plant products intended to be placed on the market, and by persons using PPPs in forestry, will be established. Work will also be done on establishing a register of legal and natural persons engaged in trade in PPPs. One important activity will be the participation of the Plant Protection Products Department staff in planning and implementing an ICT system in the area of PPPs and pesticide residues, which will operate as a component of the comprehensive ICT system of the MAFRD. In order to fulfil these activities, it is planned to finalise the recruitment of the planned number of staff in the Plant Protection Products Department and experts in specific areas of pesticide risk assessment in the PPI.

3.12.5.1. Quality of seeds and planting material
A) ACHIEVEMENTS IN 2008 The following pieces of primary and subordinate legislation, aligned with EU legislation, were adopted: Act on Amendments to the Act on Seeds, Planting Material and Registration of Varieties of Agricultural Plants (OG 35/08); Ordinance on registration in the registers of suppliers, laboratories and samplers of agricultural seed and agricultural planting material (OG 29/08); Ordinance on the inclusion of varieties in the list of varieties (OG 45/08); Ordinance on amendments to the Ordinance on the inclusion of varieties in the list of varieties (OG 84/08); Ordinance on the registration of varieties of agricultural plants (OG 99/08); and Ordinance on methods of sampling and testing the quality of seeds (OG 99/08). The following pieces of subordinate legislation are planned to be published by the end of 2008: Ordinance on the field inspection of the production of agricultural propagating material; Ordinance on amendments to the Ordinance on the marketing of agricultural propagating material of ornamental plants; and Ordinance on the marketing of fruit plant propagating material and fruit plants intended for fruit production.
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Registration in the Register of Seed Suppliers and the Register of Planting Material Suppliers began in 2008. Within the scope of responsibilities of the Ministry of Regional Development, Forestry and Water Management, the following subordinate legislation was adopted, bringing Croatian legislation in line with that of the EU (Council Directive 1999/105/EC (Annexes II, III, IV, V, VI and VII) and Commission Regulation (EC) No 2301/2002 of 20 December 2002 laying down detailed rules for the application of Council Directive 1999/105/EC as regards the definition of small quantities of seed): Ordinance laying down the requirements and criteria for the classification of forestry reproductive material into categories and quality classes and the manner of labelling, marking and packaging such material (OG 61/08). B) KEY PRIORITIES In 2009, work will continue on aligning implementing regulations with EU legislation in the field of quality of seeds and planting material. In forestry, the continuing alignment of Croatian legislation with that of the EU is planned, as is the drawing up of other, so-called national, implementing regulations, which do not transpose, but supplement, EU legislation, and, as such, are necessary for the full application of the Act on Forest Reproductive Material in practice. The Republic of Croatia has developed a plan for DUS testing of varieties not subjected to DUS testing prior to inclusion in the list of varieties. The Institute for Seeds and Seedlings plans to include 55 varieties in DUS testing, out of a total of 214.
3.12.5.2. Plant varieties protection
A) ACHIEVEMENTS IN 2008 The Act on Amendments to the Act on the Protection of Plant Varieties (OG 67/08) was adopted in 2008.
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3.13. FISHERIES
A) ACHIEVEMENTS IN 2008 Legislative measures The New Ordinance on the register, landing declarations and reporting of data on commercial fishing at sea (OG 95/07) was published on 17 September, and entered into force on 1 January 2008. The Ordinance is fully aligned with the legislation of the European Union in the sector, and also transposes the model of the European fish catch register. The Ordinance on amendments to the Ordinance on the conditions and method of placement of fish and other marine organisms on the market (OG 104/08) was also adopted and published on 12 September 2008. By virtue of the above-mentioned Ordinance, the application of the provisions of Articles 6, 7 and 8, paragraphs 2, 3, 4 and 6 is postponed until 1 January 2009. Administrative capacity The Fisheries Directorate is responsible for fishery policy issues as part of the Ministry of Agriculture, Fisheries and Rural Development (hereinafter MAFRD). For the purpose of alignment of national legislation and administrative structure with the acquis, in 2008 the Fisheries Directorate underwent changes in its structure in line with the Regulation on the internal structure of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/08). There are three sectors within the Directorate: the Sector for Resource and Fleet Management, the Sector for Structural and Market Measures in Fisheries, and the Fisheries Inspection Sector. The Department for Resource and Fleet Management consists of four departments: the Marine Resources Management Department, the Fleet Management Department, the Department for Aquaculture and the Freshwater Fishing Department. Within the Fleet Management Department, there are three sections: the Fisheries Monitoring Centre (FMC), the Fleet Management Section, and the Section for Statistics and Economics in Fisheries. The Department for Aquaculture consists of two sections: the Section for Freshwater Aquaculture and the Section for Marine Aquaculture, while the Freshwater Fishing Department is organised into the Section for Recreational Fishing and the Section for Commercial Fishing. Apart from the central office in Zagreb, employees of the Sector are also deployed in regional units of the Fisheries Directorate in the coastal counties of the Republic of Croatia. A newly established sector within the Fisheries Directorate is the Sector for Structural and Market Measures in Fisheries, which consists of two departments. The Department for Structural Measures and International Co-operation in Fisheries consists of two Sections: the Section for Structural Measures in Fisheries and the Section for International Co-operation in Fisheries. The Department for Market Measures and State Aid in Fisheries also consists of two sections: the Section for Market Measures in Fisheries and the Section for State Aid in Fisheries. The third sector organised within the framework of the new organisational scheme is the Fisheries Inspection Sector, which consists of two departments the Department for Inspections at Sea and the Department for Inspections on Land. Implementation measures Within the framework of the project component of the pre-accession aid programme PHARE 2005 technical aid contract no 2005-0505-0202 support to the fisheries administration of the Republic of Croatia in drawing up the National Strategic Plan is also envisaged. The obligation to produce such a document ensues from Council Regulation (EC) No 1198/2006. The National Fisheries Strategy is incorporated into the National Programme for the Accession of the Republic of Croatia to the EU for 2008 as an implementation measure, while producing the draft is anticipated for the fourth quarter of 2008.
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B) KEY PRIORITIES
Legislative measures Resources and fleet For the purpose of alignment with the acquis with regard to resource and fleet management, it is planned to draft and adopt the new Marine Fisheries Act in the second quarter of 2009. National fisheries policy would thus be aligned with the acquis, taking into consideration primarily the provisions of Council Regulation (EC) No 2371/2002 as well as the guidelines of the Common Fisheries Policy for the Mediterranean which are embodied in Council Regulation (EC) 1976/2006. Inspections and controls In order to establish full inspections and controls over landing sites and points of first sale, as well as introducing a system of crosschecking among registers, landing declarations and sales certificates, the adoption of the new Ordinance on the conditions and method for placement of fish and other marine organisms on the market is scheduled for adoption in the second quarter of 2009. Thus a part of national legislation related to the respective issues of inspections and controls in fisheries would be aligned with the provisions of Council Regulation (EEC) No 2847/1993. Structural and market measures in fisheries In order to align structural and market policy with the provisions of the acquis, the Fisheries Directorate is planning to draft the new Act on Structural, Market and State Aid to Fisheries. The Act would regulate the issues of structural aid in fisheries pursuant to the acquis, taking into consideration primarily the provisions of Council Regulation (EC) No 2371/2002, Council Regulation (EC) No 1198/2006, Commission Regulation (EC) No 498/2007 and Council Regulation (EC) No 104/2000. Furthermore, the Act will specify market measures and state aid in fisheries defined in Community legislation, as well extract all the aid mechanisms from the currently valid Act on State Aid in Agriculture and Fisheries. The adoption of the Act on Structural, Market and State Aid in Fisheries is scheduled for the third quarter of 2009. Throughout the fourth quarter of 2009, it is planned to adopt two subordinate regulations. One of those planned is the Ordinance on establishing and recognising producer organisations in compliance with the provisions of Commission Regulation (EC) No 2381/2001. With regard to the organisation of the market, apart from the above-mentioned subordinate act, the legal basis of whose adoption will be contained in the new Act on State Aid in Agriculture and Fisheries, it is also planned to adopt in the second quarter of 2009 the Ordinance on market standards of fishery products, the legal basis for whose adoption is provided in the existing Marine Fisheries Act. The following regulations will also be adopted in 2009: the Ordinance on the quality of preserved sardines; the Ordinance on the quality of preserved tuna and bonito.
Implementation measures Resources and fleet The Fisheries Directorate will pursuant to Regulation (EC) No 1921/2006 of the European Parliament and of the Council of 18 December 2006 on the submission of statistical data on landings of fishery products in Member States and repealing Council Regulation (EEC) No 1382/91 introduce a system of data collection, and its preliminary application is anticipated in the second quarter of 2009. Supervision and controls
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Pursuant to the relevant provisions of Council Regulation (EC) No 2847/1993, the Fisheries Directorate will in the third quarter of 2009 draw up appropriate procedures and forms for implementing supervision and controls. Structural and market mechanisms in fisheries Concerning implementation measures, in the second quarter of 2009 it is planned to adopt the National Strategic Plan as defined in Council Regulation (EC) No 1198/2006. Producing the draft of the Operative Programme ensuing from the National Strategic Plan is scheduled in the fourth quarter of 2009, while the acquis upon which the obligation to draw up such a programme document is based refers to Council Regulation No 1198/2006 and Commission Regulation (EC) No 498/2007. It is also planned to set up in the course of 2009 appropriate administrative structures assigned with special tasks and responsibilities with regard to the implementation of the measures of the European Fisheries Fund. Strengthening administrative capacity On the basis of the adopted three-year recruitment plan, in 2009 it is planned to strengthen the Fisheries Directorate in terms of the number of employees, with a particular emphasis on the Fisheries Inspection Sector. By the end of 2009, this sector should have a total of 34 employees, comprising 24 inspectors at sea, 9 on land, plus the head of the sector. By introducing the new Fisheries Directorate organisational scheme based on the Regulation on the internal structure of the Ministry of Agriculture, Fisheries and Rural Development, a total of 94 workposts in the Fisheries Directorate have been classified for the period 2008-2011. In order to strengthen administrative capacities further, the Fisheries Directorate will in 2009 continue to implement PHARE 2005 Twinning components and will request 2 TAIEX seminars/technical assistance facilities in the field of structural measures and market policy.
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3.14. TRANSPORT POLICY 3.14.1. Road transport

Alignment of legislation The process of aligning legislation with the acquis communautaire in the area of road transport continued in 2008 in the field of social legislation related to road transport and admission into the occupation of road operator. The Act on amendments to the Road Transport Act (OG 63/08) was adopted, thus ensuring further alignment in the field of admission into the occupation of road operator and access to the market in the carriage of goods or passengers by road. The Act is aligned with the following EU acquis: Council Directive 96/26/EC of 29 April 1996 on admission to the occupation of road haulage operator and road passenger transport operator and mutual recognition of diplomas, certificates and other evidence of formal qualifications intended to facilitate for these operators the right to freedom of establishment in national and international transport operations, amended by Council Directive 98/76/EC of 1 October 1998 amending Directive 96/26/EC on admission to the occupation of road haulage operator and road passenger transport operator and mutual recognition of diplomas, certificates and other evidence of formal qualifications intended to facilitate for these operators the right to freedom of establishment in national and international transport operations; Directive 2006/1/EC of the European Parliament and of the Council of 18 January 2006 on the use of vehicles hired without drivers for the carriage of goods by road; Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers, amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC; Council Regulation (EEC) No 881/92 of 26 March 1992 on access to the market in the carriage of goods by road within the Community to or from the territory of a Member State or passing across the territory of one or more Member States; Council Regulation (EEC) No 3118/93 of 25 October 1993 laying down the conditions under which non-resident carriers may operate national road haulage services within a Member State, amended by Regulation (EC) No 484/2002 of the European Parliament and of the Council of 1 March 2002 amending Council Regulations (EEC) No 881/92 and (EEC) No 3118/93 for the purposes of establishing a driver attestation; Council Regulation (EEC) No 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus, implemented by Commission Regulation (EC) No 2121/98 of 2 October 1998 laying down detailed rules for the application of Council Regulations (EEC) No 684/92 and (EC) No 12/98 as regards documents for the carriage of passengers by coach and bus; Council Regulation (EC) No 12/98 of 11 December 1997 laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State; and Council Regulation (EEC) No 3916/90 of 21 December 1990 on measures to be taken in the event of a crisis in the market in the carriage of goods by road. The new Act on Working Hours, Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic (OG 60/08) was adopted, and is aligned with the following EU acquis:
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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;
Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC;
Council Regulation (EC) No 2135/98 of 24 September 1998 amending Regulation (EEC) No 3821/85 on recording equipment in road transport and Directive 88/599/EEC concerning the application of Regulations (EEC) No 3820/84 and (EEC) No 3821/85; and
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.
In December 2008, the Croatian Parliament adopted the Act on Amendments to the Public Roads Act (OG 146/08), aligning it with the acquis in the field of the use of infrastructure for heavy goods vehicles, interoperability and electronic road toll systems, and on minimum safety requirements in the Trans-European Road Network. The Act was aligned with the following: Directive 2004/54/EC of 29 April 2004 on minimum safety requirements for tunnels in the Trans-European Road Network; Directive 2004/52/EC of 29 April 2004 on the interoperability of electronic road toll systems in the Community; Directive 1999/62/EC of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures; and Directive 2006/38/EC of the European Parliament and of the Council of 17 May 2006 amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructures. In addition, the Road Traffic Safety Act (OG 67/08) was adopted, which ensured alignment with Council Directive 91/671/EEC of 16 December 1991 on the approximation of the laws of the Member States relating to compulsory use of safety belts in vehicles of less than 3.5 tonnes (91/671/EEC) amended by Directive 2003/20/EC of the European Parliament and of the Council concerning the exception to compulsory use of safety belts in vehicles for official persons and for medical reasons. The Ordinance on the right to use the accessibility sign (OG 78/08) was also adopted, which is in line with Council Recommendation of 4 June 1998 on a parking card for people with disabilities (98/376/EC). In addition, a Programme for an exam of professional competence for the occupation of road transport operator (OG 91/08) was adopted, as was the Ordinance on amendments to the Ordinance on the method and procedure of holding exams of professional competence for the occupation of road transport operator (OG 98/08), which ensured further alignment with Council Directive 96/26/EC by means of amendments. The Ordinance on tachographs and speed limiting devices (OG 89/08) was adopted and published, and ensured further alignment with the following acts: Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC; Council Regulation (EC) No 2135/98 of 24 September 1998 amending Regulation (EEC) No 3821/85 on recording equipment in road transport; Directive 88/599/EEC concerning the application of Regulations (EEC) No 3820/84 and (EEC) No 3821/85; and 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.
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Ordinance on the conditions for granting public authority to issue cards, tender dossiers, public opening and the procedure of opening tenders was adopted (OG 147/08). Simultaneously with the drafting of the above-mentioned Ordinance, a tender dossier has been prepared for the publication of a tender for the selection of a legal person with public authority to issue cards. Public tender was published in December 2008. In addition, a Form reporting the Ministry of the Sea, Transport and Infrastructure, i.e. the Directorate of Road Traffic, as the competent body for digital tachographs was sent to the European Commission for approval in November 2008. Also in November 2008, the first draft of the National guidelines for safety policy in the field of digital tachographs was prepared and sent to the European Commission for its comments. Form of the vehicle licence was aligned with Council Directive 1999/37/EC of 29 April 1999 on the registration documents for vehicles, adapted to technical progress with Commission Directive 2003/127/EC, at the end of 2008. This was done by introducing data letter codes and the data that is currently missing (type-approval number, type of fuel and power/weight ratio). To this effect, the Ordinance on amendments to the Ordinance on vehicle registration (OG 156/08) was adopted at the end of 2008. In addition, the Ordinance on amendments to the Ordinance on roadworthiness tests for motor vehicles (OG 148/08), which is aligned with Directive 2000/30/EC of the European Parliament and of the Council of 6 June 2000 on the technical roadside inspection of the roadworthiness of commercial vehicles circulating in the Community adapted to technical progress with Directive 2003/26/EC, was adopted by the end of 2008. The Ordinance on transportable pressure equipment (OG 126/08) and the Ordinance on aerosol diffusers (OG 126/08) were adopted and will be aligned with Council Directive 1999/36/EC of 29 April 1999 on transportable pressure equipment and 2003/525/EC: Commission Decision of 18 July 2003 deferring the date of implementation of Council Directive 1999/36/EC, which ensures that alignment of legislation in the field of carriage of dangerous goods is continued. Traffic inspection In accordance with Article 39, paragraph 3 of the Act on Working Hours, Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic (OG 60/08), by the end of 2008 the Directorate for Road Inspections fully performed checks within the scope defined by the article concerned, i.e. the inspection of 1% of working days of drivers of vehicles covered by this Act. Roadside checks were performed by road traffic inspectors and traffic police, and checks of the premises of companies by road traffic inspectors in accordance with Article 39, paragraph 5 of the above-mentioned Act, so that at least 30% of the total number of checked working days are checked at the roadside, and at least 50% on the premises of the company. B) KEY PRIORITIES Legislative activities The Ordinance on the initial qualification and periodic training of drivers will be adopted by mid-2009, which will ensure further alignment with Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers, amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC. The Ordinance on minimum safety requirements for tunnels from the planning stage to the construction and exploitation stage will also be adopted by mid-2009, which will ensure further alignment with Directive 2004/54/EC of 29 April 2004 on minimum safety requirements for tunnels in the Trans-European Road Network. For the purpose of further alignment of legislation in the field of prices and fiscal conditions, the Ordinance on the amount of annual fees for the use of public roads paid upon registration of motor and towing vehicles and the Decision on the introduction and the amount of user fees will be adopted by the second half of 2009.
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Implementation measures Additional activities with the aim of introducing digital tachographs will continue in 2009, namely the procurement of equipment and program support for the control of digital tachographs. Obtaining expert and technical assistance for quality control checks on roads and in companies through the TAIEX assistance programme (workshops, seminars, study visits or expert missions) is also planned. The end of preparation of the final text of the National guidelines for safety policy in the field of digital tachographs and sending it to the EC for approval is planned for the first quarter of 2009. The Directorate for Road Inspections plans to increase the number of checks in the course of 2009 (at least 2% of days performed by drivers of vehicles covered by the Act on Working Hours, Compulsory Breaks for Mobile Workers and Recording Equipment in Road Traffic), which will completely ensure the carrying out of checks in accordance with the requirements of Directive 2006/22/EC. The above plans are based on the recruitment of new inspectors, the training of current inspectors, the professional training of newly employed ones, the procurement of equipment, and professional and technical assistance for quality control checks at the roadside and in companies.
3.14.2. Railway transport

A) ACHIEVEMENTS IN 2008 Pursuant to the Railways Act (OG 123/03, 30/04 and 79/07), railway infrastructure is under public ownership with the status of public goods for public use. The company H Infrastruktura d.o.o. is a legal entity that manages the railway infrastructure, and with which the Republic of Croatia concluded an Agreement on railway infrastructure management on 15 June 2008. This regulated mutual rights and obligations, technical and other conditions for the safe conduct, organisation and regulation of railway transport, the amount of funds for the maintenance, modernisation (and renovation), and construction (and completion) of railway infrastructure, and charges for its use. The Railway Market Regulatory Agency was established as a regulatory authority by the Act on the Railway Market Regulatory Agency (OG 79/07) in accordance with Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification. In November 2008, the Government of the Republic of Croatia issued a public invitation for the proposal of candidates for the president and members of the Railway Market Regulatory Agency Management Board. The Act on the Railway Transport Safety Agency (OG 120/08) was adopted in October 2008, thus establishing the Railway Transport Safety Agency for the purpose of ensuring the impartial, open and non-discriminatory performance of regulating, managing and controlling the railway transport safety system, and the establishment and monitoring of the operation of the safety management system of infrastructure manager, railway operators and legal entities performing own account transport. In accordance with the above Act, the Railway Transport Safety Agency performs the function of the authority competent for safety. An Independent Department for the Investigation of Railroad Accidents, which performs the function of an independent investigating authority, was established by the Regulation on the internal structure of the Ministry of the Sea, Transport and Infrastructure (OG 41/08) and the Ordinance on the internal order of the Ministry of the Sea, Transport and Infrastructure (May 2008). On 5 March 2008, the Croatian Parliament adopted the National Railway Infrastructure Programme (OG 31/08), which as a basic document defines priorities concerning the development, construction, modernisation, renovation and maintenance of the functionality of the railway infrastructure system for a period of five years.
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Pursuant to the Railway Transport Safety Act (OG 40/07), the following subordinate legislation was adopted in 2008 in the field of safety and interoperability of railway transport in the Republic of Croatia: Ordinance on the method and terms of the provision of the safe flow of railway transport (OG 155/08); Ordinance on the technical requirements for railway transport safety to be met by railroads (OG 128/08); Ordinance on the technical requirements for railway transport safety to be met by railway vehicles; Ordinance on the technical inspection of railway vehicles (OG 155/08); Ordinance on work hours of railway workers in railway transport (OG 105/08); and Ordinance on the international carriage of dangerous goods by rail (RID) (OG IA 6/08).
In the course of 2008, the PHARE 2006 main project Restructuring and Development of the Croatian Railway system within the framework of EU legislation Technical Assistance, Republic of Croatia EuropeAid/126842/D/SER/HR was launched, as were the related framework projects: Staff Training Infrastructure Manager; Staff Training Regulatory Body; National implementation plan of Technical Specifications for Interoperability; and Preparation of Implementation of IT support. The total value of the projects is EUR 2.2 million, and their implementation should follow railway sector development in the next 2 years. A tender dossier was prepared for the above-mentioned projects, as were all of the procedures for the publication of tenders. All published tenders had closed by the end of 2008. The following projects were launched at the end of 2008: the TAIEX Study visit on Railway Infrastructure capacity and safety and the TAIEX Seminar regarding the Implementation of Directive 2004/49/EC - Railway Infrastructure capacity and safety. The Ministry of the Sea, Transport and Infrastructure, Directorate of Railroad Traffic published an announcement for the recruitment of new personnel in 2008. B) KEY PRIORITIES Alignment with the acquis will continue in the course of 2009 with the adoption of subordinate legislation pursuant to the Railway Transport Safety Act. Thus the adoption of the Ordinance on emergency events is envisaged. The establishment and beginning of operations of the Railway Transport Safety Agency is planned for the second half of 2009. In addition, the establishment and start of operations of a competent and efficient Railway Market Regulatory Agency is expected in 2009. The Railway Transport Safety Act, which contains the provisions of Railway Safety Directive 2004/49/EC, lays down that the duties, authorities and tasks of the Notified body will be provided by the date of the accession of the Republic of Croatia to the European Union. The need to establish a separate notified body will be considered in the course of 2009, taking into account alignment with the acquis. The start of the implementation of the PHARE 2006 project Restructuring and Development of the Croatian Railway system within the framework of EU legislation Technical Assistance, together with the related framework projects Staff Training Infrastructure Manager, Staff Training Regulatory Body, National implementation plan of Technical Specifications for Interoperability and Preparation of Implementation of IT support is envisaged in 2009. The projects should be finished by 2011 at the latest. The implementation of the TAIEX project Study visit on Railway Infrastructure capacity and safety and the TAIEX Seminar regarding the Implementation of Directive 2004/49/EC Railway Infrastructure capacity and safety is planned in 2009. The Ministry of the Sea, Transport and Infrastructure, Directorate of Railroad Traffic, plans to recruit new employees in 2009, depending on the number of newly employed workers in 2008.
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3.14.3. Combined transport

A) ACHIEVEMENTS IN 2008 A Memorandum of Understanding on the Participation of the Republic of Croatia in the Marco Polo II Community Programme was signed in Brussels on 1 October 2008. The ratification of this memorandum is expected in the Croatian Parliament in the first quarter of 2009. In 2008, a request for technical assistance in the form of an expert mission was sent as part of the TAIEX assistance programme, aiming at the implementation of alignment of national legislation with Directive 92/106/EEC on the establishment of common rules for certain types of combined transport of goods between Member States. B) KEY PRIORITIES Depending on the recommendations of the TAIEX expert mission, the working group in charge of alignment of national legislation in the field of combined transport plans to complete alignment with Directive 92/106/EEC through the drafting of the Combined Transport Act. Alignment will be completed by the end of the second quarter of 2009 at the latest.
3.14.4. Inland navigation

A) ACHIEVEMENTS IN 2008 Pursuant to the Inland Navigation and Inland Ports Act (OG 109/07 and 132/07), alignment with the acquis continued in 2008 through the following subordinate legislation: Ordinance laying down special conditions for running commercial transport services on inland waterways (OG 38/08) transposes the special conditions to be met by national boatmasters in order to run commercial transport services on inland waterways, the procedure for issuing authorisation, and the validity of authorisation, in accordance with Council Directive (EEC) 87/540 of 9 November 1987; Ordinance on the occupations and professional competence of boatmasters (OG 38/08) transposes the occupations, professional competences, additional competences, exam programmes, conditions for and method of entering the profession, the procedure of issuing, recognising, renewing and replacing boatmasters certificates, and the conditions to be met by persons performing the training of boatmasters, in accordance with Council Directive 91/672/EEC of 16 December 1991 and Council Directive 96/50/ EC of 23 July 1996; Ordinance on the technical supervisory body for certification of vessels in inland navigation (OG 99/08) transposes the composition, procedure and the appointment criteria for the technical supervisory body for certification of inland waterway vessels and the procedure and the conditions for recognised classification societies in accordance with Directive 2006/87/EC of the European Parliament and of the Council of 12 December 2006, and Directive 2006/137/EC of the European Parliament and of the Council of 18 December 2006; and Ordinance on river information services (OG 99/08) transposes the method of organisation of the RIS service, technical specifications for equipment and services, the method and responsibility for issuing type-approval and all other issues related to the management and administration of river information services in inland navigation in accordance with Directive 2005/44/EC of 7 September 2005.
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In addition, the Croatian Parliament adopted the Inland Waterways Transport Development Strategy for the period 20082018 (OG 65/08).
B) KEY PRIORITIES The implementation of activities related to establishing a National Control Centre will be continued in 2009. As regards implementing activities relating to the process of adjustment to the EU system, implementation of the Inland Waterways Transport Development Strategy is envisaged in various spheres of inland navigation activity in line with the recommendations referred to in NAIADES the European action programme for inland waterway transport (Communication from the Commission on the promotion of inland waterway transport NAIADES, COM 2006/6/final). Drafting of the Action Plan for shipping is envisaged in 2009 in accordance with the recommendations referred to in NAIADES the European action programme for inland waterway transport.
3.14.5. Air transport

A) ACHIEVEMENTS IN 2008 The Act on amendments to the Act on Obligatory and Proprietary Rights Relations in Air Transport (63/08) was adopted in 2008 thus ensuring alignment with Regulation No 2027/97 on air carrier liability in the event of accidents, amended by Regulation No 889/2002, Regulation No 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, and Regulation No 1107/2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air. The Act on Ratification 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 on the Establishment of a European Common Aviation Area (ECAA Agreement) (OG IA 4/08) was also adopted. The following subordinate legislation was adopted in 2008: Ordinance on conditions and manner of issuing operative licences (OG 5/08 and 45/08) implementing Regulation 2407/92 on licensing of air carriers; Ordinance on conditions and manner of providing air navigation services (OG 40/08) implementing Regulation (EC) No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation); Ordinance on certification of aircraft and project and product organisations (OG 40/08) implementing Commission Regulation (EC) No 1702/2003 laying down implementing rules for the airworthiness and environmental certification of aircraft and related products, parts and appliances, as well as for the certification of design and production organisations; Order on establishing the list of air carriers subject to an operating ban within the territory of the Republic of Croatia (OG 40/08 and 50/08) implementing Regulation 2111/2005 on the establishment of a Community list of air carriers subject to an operating ban within the Community and on informing air transport passengers of the identity of the operating air carrier; Ordinance on fares for air services for passengers and goods (OG 53/08) implementing Council Regulation (EEC) No 2409/92 on fares and rates for air services;
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Ordinance on route and terminal charges (OG 37/08) implementing Commission Regulation (EC) No 1794/2006 laying down a common charging scheme for air navigation services;
Ordinance on air space management (OG 58/08) implementing Regulation (EC) No 551/2004 on the organisation and use of the airspace in the single European sky (the airspace Regulation) and Commission Regulation (EC) No 2150/2005 laying down common rules for the flexible use of airspace (FUA Regulation); and
Ordinance on conditions and manner of issuing certificates on competence - air navigation service provider certificates (OG 81/08) implementing Regulation (EC) No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation), Commission Regulation (EC) No 2096/2005 laying down common requirements for the provision of air navigation services, and Commission Regulation (EC) No 1315/2007 on safety oversight in air traffic management and amending Regulation (EC) No 2096/2005.
With regard to strengthening administrative capacities and restructuring its organisational structure, three new Departments were established within the Ministry of the Sea, Transport and Infrastructure Directorate of Air Traffic, which should contribute to the faster and better performance of activities. An announcement was published concerning 7 vacancies. This procedure is still in progress. In addition, the investigation of aircraft accidents was separated from the Directorate of Air Traffic, and an Independent Department for Investigation of Accidents was established. This Department is now part of the Ministry of the Sea, Transport and Infrastructure as one of its organisational units, separated from the Directorate of Air Traffic as a civil aviation authority, as stipulated in European and international regulations. After the completion of the regular expert mission for the purpose of assessing the implementation of the ECAA Agreement in Croatia from 22 to 24 September of this year, the preliminary report of the EC stated that the Republic of Croatia had achieved great progress in relation to the previous year and that it meets over 90% of the set requirements on the implementation of the first phase of the ECAA Agreement. In accordance with EC comments and recommendations, amendments to the Ordinance on the provision of earth services are being drafted, and their adoption is envisaged by the end of 2008. In November 2008, the EC was officially notified of the National Supervisory Body for the supervision of air navigation service providers, which also constitutes one of the obligations of phase 1 of the ECAA Agreement. B) KEY PRIORITIES In 2009, the Republic of Croatia will proceed with the implementation of EU aviation legislation in the air transport sector in the part arising from Protocol IV, Article 2 of the ECAA Agreement. It is planned to fully implement Annex 1 to the ECAA Agreement Regulations applicable to civil aviation, listing the relevant part of the acquis to be applied between the contracting parties, and by adopting new regulations or amendments to existing legislation to align them with the regulations and directives referred to therein. To this effect, amendments to the Air Transport Act have been planned. Alignment with some of the regulations and directives from Annex I to the ECAA Agreement will be ensured in accordance with EC comments and recommendations. By adopting subordinate legislation, alignment will also be ensured with the following regulations and directives: Regulation (EEC) No 2407/92 on licensing of air carriers - through the drafting of a new Ordinance on operating licences; Regulation (EC) No 785/2004 on insurance requirements for air carriers and aircraft operators - through amendments to the Act on compulsory insurance in transport (OG 151/05);
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Directive 2006/93/EC on the regulation of the operation of aeroplanes covered by Part II, Chapter 3, Volume 1 of Annex 16 to the Convention on International Civil Aviation, second edition (1988) - through amendments to the Ordinance on the operation of aircraft; and
Council Regulation (EEC) No 2299/89 of 24 July 1989 on a code of conduct for computerized reservation systems, amended by Council Regulation (EEC) No 3089/93 and Council Regulation (EC) No 323/1999.
The training of employees of the Ministry of the Sea, Transport and Infrastructure, Directorate of Air Traffic, who are working on the adoption and implementation of EU legislation on civil aviation transport will also continue (attending seminars, courses and workshops). Activities related to the start of operations of the Civil Aviation Agency will also continue in 2009. Activities are being implemented in phases: the adoption of internal acts; the description of activities; the description of workplaces; the systematisation of workplaces; the listing all existing documentation and equipment; and decisions on the transfer of certain employees, equipment and documentation of the MSTI to the Agency. It is expected that the Agency will start operating in the first quarter of 2009. It is also expected that a sufficient number of experts will be recruited for the Civil Aviation Agency in 2009. Activities related to the issuing of certificates to the Croatia Control, Croatian Air Navigation Services have begun, and the procedure will continue in 2009. The procedure will be implemented in phases: receiving requests; initial processing of requests; establishing a certification team; review of documentation; audits; possible correction measures; reports on implemented procedures; considering decisions on issuing certificates; issuing certificates or refusing requests.
3.14.6. Maritime transport

A) ACHIEVEMENTS IN 2008 In December 2008, the Croatian Parliament adopted the Act on amendments to the Maritime Code (OG 146/089. The amendments concerned ensured alignment with the EU principles of freedom of establishment in the part regulating the entry of ships into the Croatian Register in line with EC comments. In addition, these amendments created the legal basis for the adoption of regulations that will ensure further alignment with Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC. The remaining provisions of Regulation (EC) No 782/2003 of the European Parliament and of the Council of 14 April 2003 on the prohibition of organotin compounds on ships have been implemented through the Ordinance on amendments to the Ordinance on the inspection and control of navigational safety (OG 38/08) and the Ordinance on amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia (OG 10/08). The provisions of Council Directive 1999/35/EC of 29 April 1999 on a system of mandatory surveys for the safe operation of regular ro-ro ferry and high-speed passenger craft services (Article 13 of Directive) have been applied through the Ordinance on amendments to the Ordinance on inspection and control of navigational safety (OG 38/08). The same Ordinance has been aligned with the relevant provisions of Council Directive 95/21/EC of 19 June 1995 concerning the enforcement, in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States, of international standards for ship safety, pollution prevention and shipboard living and working conditions (Port State Control) as amended, and the remaining provisions of Council Directive 97/70/EC of 11 December 1997 setting up a harmonised safety regime for fishing vessels of 24 metres in length and over, in the part relating to control measures (Article 7 of Directive).
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The Ordinance on marine pilotage (OG 39/08) transposes the provisions concerning the obligation of pilots to report deficiencies in respect of foreign ships which they learn of in the course of their normal duties, as laid down in Article 13, paragraph 1 of Council Directive 95/21/EC of 19 June 1995 concerning the enforcement, in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States, of international standards for ship safety, pollution prevention and shipboard living and working conditions (Port State Control). The Ordinance on amendments to the Ordinance on the contents, forms and method of keeping ship documents and ship books of merchant marine ships (OG 39/08) has been aligned with the provisions of Directive 93/103/EC. Pursuant to the provisions of Regulation (EC) No 789/2004 of the European Parliament and of the Council of 21 April 2004 on the transfer of cargo and passenger ships between registers within the Community, and repealing Council Regulation (EEC) No 613/91, new Technical Rules (Part 1) (OG 130/07) have been drafted as the basic rules for the new system of Technical Rules for the statutory certification of maritime vessels. Pursuant to the Maritime Code, these are adopted by the Minister. The said Rules were adopted, with the date of Croatias accession to the European Union being the deadline for their entry into force. These Technical Rules are fully aligned with the acquis, and do not contain the provisions of the Regulation that apply directly upon the accession of the Republic of Croatia to the European Union. The said Rules have also been aligned with the provisions of Regulation (EC) No 789/2004 of the European Parliament and of the Council of 21 April 2004 on the transfer of cargo and passenger ships between registers within the Community. The obligation to hold on board ship the relevant collective agreements and national regulations for crews referred to in Article 8, paragraph 3 of Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of the working time of seafarers concluded by the European Community Ship-owners Association (ECSA) and the Federation of Transport Workers Unions in the European Union (FST) Annex: European Agreement on the organisation of working time of seafarers has been transposed through the Ordinance on amendments to the Ordinance on the conditions and method of watchkeeping and carrying out other activities on board ships, yachts or boats, ensuring safe navigation and protection of the sea from pollution originating from vessels (OG 126/08). With the Ordinance on recognised organisations for ship inspection, surveys and certification (OG 03/08), alignment was ensured with Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations. The Republic of Croatia, as founder of the recognised organisation the Croatian Register of Shipping (CRS), and taking into account the exceptional contribution of the CRS to the protection of human life and protection of the marine environment, considers it especially important for the CRS to gain the status of a recognised organisation pursuant to Article 4, paragraph 3 of Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations, and to join the list of recognised organisations pursuant to Commission Decision 96/587/EC. Ordinance on amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia was adopted at the end of 2008 (OG 155/08), which ensured full application of the 1965 Convention on the Facilitation of International Maritime Traffic (1965 IMO FAL Convention) pursuant to Directive 2002/6/EC on reporting formalities for ships arriving in and/or departing from ports of the Member States of the Community, as well as remaining obligations ensuing from Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC. These obligations include that of the company co-operating with the coastal state in the case of a hazard or similar event. The aforementioned alignment has been ensured as the result of the Project Maritime traffic safety: Strengthening administrative capacities ship control and management phases I and II. In addition, through amendments to the Ordinance on the conditions and method of maintaining order in ports and other parts of the internal waters and territorial sea of the Republic of Croatia (OG 10/08), the Ordinance concerned was aligned with certain provisions of Directive 2002/59/EC and Council Directive 95/21/EC.
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The amendments concerned also implemented Council Directive 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community. The Ordinance on places of refuge (OG 03/08) ensured that the obligations referred to in Article 20 of Directive 2002/59/EC are met. With regard to the unfavourable detention rate of Croatian-flagged ships in flag state controls in the areas covered by the Paris Memorandum, an Activity Plan on improving fleet quality was adopted. The plan covers permanent and occasional, legislative, institutional and operative measures and activities oriented towards achieving the defined goal. Along with permanent measures, additional measures were introduced including: 1. additional annual audits of the safety management systems in companies; 2. carrying out of additional inspections and checks of Croatian ships in foreign ports; 3. increased supervision of recognised organisations; 4. removal of state aid to ship operators that have had ships detained in foreign ports; 5. removal of the possibility of obtaining a concession for state public transport lines for regular maritime transport services for ship operators that have had ships detained in Croatia or in the region of the Paris Memorandum on Port State Control; and 6. strengthening administrative capacities by recruiting new inspectors and additional training of safety navigation inspectors is underway. In addition, the Order on the maximum age of ships to be entered in the register of shipping in the Republic of Croatia (OG 38/08) was adopted in the framework of legislative activities. In November 2008, the coastal infrastructure for the supervision of navigation, and the reception, use and distribution of AIS data at national level was completed. The Project Maritime traffic safety: Strengthening administrative capacities ship control and management phases I and II is also being implemented through ensuring professional-technical support in establishing the IT, statistical and operational arrangements of the VTMIS system, the training of Ministry staff, and drawing up a study on the further development of the system. In December 2008, a Central register of ships and yachts and an internet website for checking the validity and authenticity of certificates of the competence and additional competence of seafarers was put into operation. A central database on the embarkation and disembarkation of seafarers was launched at the beginning of 2008. B) KEY PRIORITIES The provisions of Regulation (EC) No 725/2004 of the European Parliament and of the Council of 31 March 2004 on enhancing ship and port facility security with regard to passenger ships engaged in category A domestic navigation, the enforcement of compulsory risk assessments and the application of requirements to other types of ships and ports where such ships call, as well as the penalty provisions, plus certain remaining requirements of Directive 2005/65/EC of the European Parliament and of the Council of 26 October 2005 on enhancing port security will be transposed in the third quarter of 2009 through the adoption of amendments to the Act on the Security of Merchant Ships and Ports Open to International Transport (OG 48/04). With the aim of ensuring that all ships flying under the Croatian flag are certified by a recognised organisation on the day of the accession of the Republic of Croatia to the European Union, Croatia will submit a request to the European Commission for the Croatian Register of Shipping to gain the status of a recognised organisation in the first quarter of 2009. With the aim of implementing Articles 4 and 5 of Directive 2003/25/EC of the European Parliament and of the Council of 14 April 2003 on specific stability requirements for RO-RO passenger ships, the Republic of Croatia has formed a working group of repre-
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sentatives from all Adriatic states, and has given it the task of defining significant wave heights and areas in the Adriatic sea as the basis for imposing special requirements concerning stability. To specify significant wave heights, funds from the Stage Budget have been appropriated so that hydrographical surveys may be conducted by the Croatian Hydrographical Institute. The provisions of this Directive have a significant impact on the construction and fitting out of Croatian flagships operating on regular international lines. Upon completion of the above-mentioned activities, the provisions of the Directive will be applied through the Ordinance on mandatory requirements imposed on ships and ship operators in international liner shipping, passed pursuant to the Act on Liner Shipping and Seasonal Coastal Maritime Transport Services (OG 33/06), and the Technical Rules (Part 6 Subdivision) which came into force on 1 August 2007 (OG 77/07). The Republic of Croatia will be ready to apply the said Directive by the date of its accession to the EU. Through the adoption of the Ordinance on amendments to the Ordinance on ranks and certification of seafarers in the first quarter of 2009, Croatian legislation will be fully aligned with the remaining provisions of Directive 2001/25/EC of the European Parliament and of the Council of 4 April 2001 on the minimum level of training of seafarers (as amended), and particularly Directive 2005/45/ EC of the European Parliament and of the Council of 7 September 2005 on the mutual recognition of seafarers certificates issued by the Member States. The provisions of Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC in the part concerning the monitoring and collecting of data relating to ships will be largely applied in the Republic of Croatia through implementation of the Project Maritime traffic safety: Strengthening administrative capacities ship control and management phases I and II with support from the PHARE 2005/2006 programme. With the implementation of all three phases of the Project no later than mid-2010, a complete legislative framework will be instituted together with an organisational, institutional and technological system for monitoring all maritime shipping in internal waters, the territorial sea and the protected ecological-fishing zone of the Republic of Croatia. This will have a direct impact on reducing the number of accidents at sea, improving the results of search and rescue at sea, reducing sea pollution from ships, and making possible the exchange of data with the relevant bodies of the European Commission. The CVTMIS IT communication system, as part of an integrated maritime IT system, will be fully adjusted in terms of the possibility of data exchange to the requirements set by the European Agency for Maritime Safety, as provided for in Regulation (EC) No 1406/2002 establishing a European Maritime Safety Agency. The Ministry of the Sea, Transport and Infrastructure will continue to establish co-operation among Adriatic states in terms of the development of intercoastal transport connections (short sea shipping) and will participate in the development of the Motorways of the Sea concept at regional level. The Ministry of the Sea, Transport and Infrastructure will co-ordinate activities with the aim of defining and establishing the Maritime Cluster, which is expected by 2010.
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3.14.7. State aid

Alignment of legislation The Republic of Croatia continued activities aligning legislation with the acquis in the field of state aid in the transport sector. The Decision on publication of the rules on state aid in the form of public service subsidies (OG 39/08) published the Rules on state aid in the form of public service subsidies. The rules concerned are contained in the Commission Decision of 28 November 2005 on the application of Article 86, paragraph 2 of the EC Treaty to State aid in the form of public service subsidies granted to certain undertakings entrusted with the operation of services of general economic interest and the Judgment of the European Court of Justice of 24 July 2003 in Case C-280/00 Altmark Trans GmbH and Regierungsprsidium Magdeburg v Nahverkehrsgesellschaft Altmark GmbH 62000J0280 (IES /2003/ p. I-07747). In addition, in November 2008 the Government of the Republic of Croatia adopted the Decision on the publication of rules on state aid in transport (OG 141/08). The Decision concerned published the rules contained in Regulation (EEC) No 1191/69 of the Council of 26 June 1969 on action by Member States concerning the obligations inherent in the concept of a public service in transport by rail, road and inland waterway; Regulation (EEC) No 1107/70 of the Council of 4 June 1970 on the granting of aids for transport by rail, road and inland waterway; Regulation (EEC) No 1473/75 of the Council of 20 May 1975 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway; Council Regulation (EEC) No 1658/82 of 10 June 1982 supplementing by provisions on combined transport Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway; Council Regulation (EEC) No 1893/91 of 20 June 1991 amending Regulation (EEC) No 1191/69 on action by Member States concerning the obligations inherent in the concept of a public service in transport by rail, road and inland waterway; Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes; 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); Council Regulation (EEC) No 3578/92 of 7 December 1992 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway; Council Regulation (EC) No 2255/96 of 19 November 1996 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway; Council Regulation (EC) No 543/97 of 17 March 1997 amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway; Commission communication C(2004) 43 Community guidelines on State aid to maritime transport; and Commission communication Community guidelines on financing of airports and start-up aid to airlines departing from regional airports. Maritime transport A study entitled Croatian Maritime Sector: State Aid and Market Access (Implementation of Regulation 3577/92 and Regulation 4055/86)(EUROPEAID/119860/C/SV/multi) was prepared as part of the PHARE 2005 project in co-operation with the Croatian Competition Agency. Railway transport The division of the national railway company in accordance with the Act on the Division of H Hrvatske eljeznice d.o.o. (Croatian Railways) (OG 153/05) into H Holding d.o.o., H Putniki prijevoz d.o.o., H Cargo d.o.o., H Vua vlakova d.o.o. and H Infrastruktura d.o.o. allowed the implementation of basic market principles, as well as the transparent use of the State budget funds of the Republic of Croatia.
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In the railway transport sector, in 2008 state aid was granted to promote railway passenger and combined transport, and for the procurement of new railway vehicles and the modernisation of mobile capacities. Funds were also allocated for redundant workers (severance pay). B) KEY PRIORITIES
Maritime transport Granting concessions for the remaining state lines will proceed in accordance with the provisions of the Act on Liner Shipping and the Seasonal Coastal Maritime Transport Service (OG 33/06). Railway transport Through the co-operation of companies from the railway transport sector and a consultancy, the process of restructuring the railway sector and the liberalisation of the railway market is continuing. The granting of state aid in the railway transport sector is planned. On the whole, these funds are allocated to redundant workers, the promotion of passenger and combined railway transport, the procurement of new railway vehicles, and the modernisation of railway vehicles.
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3.15. ENERGY 3.15.1. Energy product market and security of supply

A) ACHIEVEMENTS IN 2008 On the basis of the already established legislative framework the Gas Market Act (OG 40/07), the Act on Amendments to the Energy Act (OG 68/01, 177/04 and 76/07), the Act on Amendments to the Electricity Market Act (OG 177/04 and 76/07), and the Act on Amendments to the Act on Regulation of Energy Activities (OG 177/04 and 76/07) which provides for the liberalisation of the electricity and gas market, the process of alignment continued in 2008. On 18 October 2007, the Republic of Croatia became the sole shareowner of the entire Croatian Energy Market Operator, which is financed from the fees for the organisation of the electricity market, which are paid by all market participants in accordance with the Decision of the Government of the Republic of Croatia (OG 94/07). In this way, the autonomy and independence of the institution has been secured. As of 1 July 2008, the electricity market was opened to all customers, and the gas market as of 1 August. As far as electricity is concerned, by 1 June 2008 seventeen agreements on the regulation of mutual relations on the electricity market had been concluded between the Croatian Energy Market Operator and energy undertakings, which thus became entitled to participate on the market. Two of the signatories are producers using wind energy. The opportunity of being granted eligible producer status has so far been used by 19 producers, including the two using wind energy. In the field of energy, on 9 October 2008 more than 1,970 customers enjoyed the status of eligible customers. The total annual electricity consumption by eligible customers amounts to 5.62 TWh, which makes up 36% of total annual electricity consumption in Croatia. Around 2,500 eligible customers accounting for 7 TWh are expected by the end of 2008, which would represent 45% of the total electricity market. Trade in electricity is conducted on the basis of bilateral agreements, whereas HEP Supply, a daughter company of the HEP Group, contracts electricity supplies with eligible customers. At the end of 2007, HEP Transmission System Operator signed the two-year ITC Clearing and Settlement Agreement 2008-2009, which has been in force since 1 January 2008. It should be emphasised that HEP Transmission System Operator no longer collects an electricity transit fee. In the framework of the Agreement on the upgrading and modernisation of the transmission system, at the end of 2007, HEP Transmission System Operator decided on a new ICT platform for market activities within its area of competence. In December 2007, HEP Distribution System Operator adopted and published the Programme to ensure and implement the principles of objectivity, transparency and non-discrimination in the carrying out of energy activities by HEP Distribution System Operator. Within the framework of their legal obligations, in 2007 both operators prepared tri-annual plans for the development and construction of facilities for the transmission and distribution network in the period 2008-2010. As far as oil is concerned, the launch of the Croatian Compulsory Stocks Agency (HANDA) has been very successful. The Ordinance on the organisation, monitoring and collection of the fee for HANDA operations and compulsory oil and petroleum product stocks (OG 3/08) was adopted in 2008. It regulates the content, methods and deadlines for the submission of data as well as methods of calculation and deadlines for the payment of the fee required for the operation of HANDA and compulsory oil stocks and petroleum products. The analysis of available storage facilities for compulsory stocks within the territory of the Republic of Croatia has been drafted, and it has been concluded that there are no sufficient storage facilities for 90-day compulsory stocks available. The Programme for establishing the prerequisites and operations of HANDA and compulsory oil stocks and petroleum products has been drafted with the aim of securing compulsory 90-day stocks by 31 July 2012. It is currently pending adoption.
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The physical building-up of stocks has begun concurrently with the search for a long-term solution for storage facilities. As a result, the first consignment of 135,000 tonnes of crude oil has been delivered and the delivery of an additional 80,000 tonnes will be contracted by the end of 2008. The drafting of bilateral intergovernmental agreements on the storage of compulsory oil stocks and petroleum products has begun. The Republic of Croatia plans to sign such agreements with the Italian Republic, the Republic of Hungary, and the Kingdom of the Netherlands, the Federal Republic of Germany, the Republic of Slovakia and the Republic of Slovenia. As far as natural gas is concerned, following the adoption of the Market Gas Act, the foundations have been laid for opening the market. System operators have been introduced for all activities, and market activities have been separated from regulated and system activities. As a basis for drafting market rules, a suitable gas market model has been prepared which has been submitted for review along with the document entitled General Conditions for Gas Supply. The adoption of both documents is expected at the beginning of 2009. Security of supply is an area regulated under the Gas Market Act in accordance with Council Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply. To this end, the Regulation on the security of natural gas supply (OG 112/08) has been adopted. It regulates measures for securing a reliable and effective supply of natural gas, the criteria and models for determining sufficient quantities of natural gas to ensure a reliable supply of natural gas to protected customers, the sequence of reducing or cutting off the supply of natural gas for certain categories of customers in the event of emergencies, and also the content of the gas suppliers report on natural gas supply security. Measures to ensure a reliable and effective natural gas supply, which have been provided by the Regulation can be divided into three categories: long-term measures; measures planned and implemented on an annual basis so as to recognise and eliminate the causes that might lead to the occurrence of emergency events; and intervention measures in the event of an unforeseeable emergency. The measures for the protection of the security of natural gas supplies are in accordance with Council Directive 2004/67/EC Further strengthening of the administrative capacity of the Croatian Energy Regulatory Agency has continued. The Regulatory Committee of the Energy Community has appointed the Croatian Energy Regulatory Agency as supervisor of the Implementation group for the establishment of the South East Europe Co-ordinated Auction Office. The Decision establishing the percentage of biofuels in the total share of energy fuel consumption in 2008 and on the percentage of biofuels that must be placed on the domestic market in 2008 (OG 52/08) has been issued. The percentage of biofuels in the total share of energy fuel consumption in 2008 amounts to 1.21%. The drafting of the Biofuels Act is currently underway, and its adoption is planned for the first quarter of 2009. In 2008, the security and quality of supply of energy products reached a very high level in Croatia, including tourist areas with exceptionally high consumption in summer. A document of crucial importance has been drawn up Updating and upgrading of the energy strategy and implementation programme of the Republic of Croatia (the so-called Green Book) which represents an extension of the 2002 Energy Development Strategy, and which has been subject to public debate scheduled to end by 10 December 2008. Three fundamental energy-related objectives have been set: the security of the energy supply; the competitiveness of the energy system; and the sustainability of energy development. The Strategy for the management of the mineral raw materials of the Republic of Croatia has been adopted at the level of the Government of the Republic of Croatia. As far as the Mining Act is concerned, discussions are still in progress. B) KEY PRIORITIES One of the main priorities is the continuation of the process of strengthening administrative capacity in all institutions relevant to the energy sector.
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Project activities ensuring a greater security of supply of energy products, especially natural gas, will continue. For this purpose a study has been conducted which proposes, on the basis of multiple criteria, the two most favourable locations on the northern part of the Adriatic for an LNG terminal. A suitable environmental impact assessment study will be prepared in 2009 for the LNG terminal. In addition, activities regarding the building-up of compulsory oil stocks and petroleum products will continue. A further increase in physical crude oil stocks is planned for 2009 as well as the signing of bilateral intergovernmental agreements on the storage of compulsory stocks, the establishment of a regional distribution of compulsory stocks, and the commencement of the construction of supplementary storage facilities. Activities regarding Pan-European Oil Pipeline projects will also continue. At the beginning of 2008, the oil companies of Romania, Serbia and Croatia signed an agreement on the establishment of the Project Development Company in London which will be responsible for the promotion of the Constanza (Romania) Trieste (Italy) Pan-European Oil Pipeline. An investment conference is planned for 2009. Realisation of the Adriatic Ionian Pipeline project is also a high priority, regarding which Croatia, Montenegro and Albania have signed a Ministerial Declaration. Croatia has also proposed the establishment of an Interstate Committee to speed up the project.
3.15.2. Energy efficiency and renewable energy sources

A) ACHIEVEMENTS IN 2008 The adoption of the Act on Efficient Energy Use, which has already been forwarded for Government procedure, is foreseen for December 2008. The following documents have also been prepared for adoption: the Energy Efficiency Programme of the Republic of Croatia and the First National Action Plan for Energy Efficiency and the National Potential for Cogeneration. However, since the adoption of the Strategy for Energy Development of the Republic of Croatia is planned for the first quarter of 2009, which will among other things include further development of the production and use of renewable energy sources and cogeneration, whereby the obligations of the Republic of Croatia will be aligned with the planned amendments to the acquis (the obligations of Member States until 2020), the said documents will be adopted in a package together with the Strategy. The Action Plan for the Implementation of the Directive concerning Energy Performance of Buildings has been adopted, and the study on the development of the applicability of alternative systems has been drawn up. Activities which are to ensure a sufficient number of experts for the certification of buildings are being carried out, and the Ministry of the Economy, Labour and Entrepreneurship and the Ministry of Environmental Protection, Physical Planning and Construction are participating in the CA-EPBD II Project. In addition, the Ministry of Economy, Labour and Entrepreneurship and the Ministry of Environmental Protection, Physical Planning and Construction have started participating in a project of directed action for the transposition and implementation of the Directive on energy end-use efficiency and energy services (CA ESD). By the end of the year, a relevant implementing regulation will be adopted, which will transpose the framework of Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products (see: 1. Free movement of goods). The Decision establishing the annual percentage of biofuels in the total share of energy fuel consumption in 2008 placed on the domestic market was issued. This regulates the compulsory quantities of biofuels that suppliers must place on the domestic market as well as methods of use of biofuels, with a view to achieving the national indicative target set on the basis of the Regulation on the quality of biofuels (OG 141/05). The quantity of biofuels established by the Decision amounts to 1.13 PJ, which is equivalent to a share of 1.21% of total expected fuel consumption in 2008. Implementing regulations to stimulate electricity generation as eligible electricity production from renewable energy sources and high-efficiency cogeneration are being applied (Tariff system for the production of electricity from renewable energy sources and
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cogeneration (OG 33/07), the Regulation on incentive fees for promoting electricity production from renewable energy sources and cogeneration (OG 33/07), the Regulation on the minimum share of electricity produced from renewable energy sources and cogeneration whose production is incentivised (OG 33/07), the Ordinance on the use of renewable energy sources and cogeneration (OG 67/07), the Ordinance on attaining the status of eligible electricity producer (OG 67/07)). Obligatory administrative procedures are being carried out as well as registration in the Register of projects and plants for the use of renewable energy sources and cogeneration, and of eligible producers (OIEKPP Register). For this purpose, one new employee has been hired at the Ministry of Economy, Labour and Entrepreneurship (MELE). New software has also been purchased. More than 250 applications for the issuance of preliminary energy approval for the construction of plants and/or energy approval for construction or registration of already constructed plants in the OIEKPP Register had been received by September 2008. Most of these applications were related to wind energy plants. Concerning the energy performance of buildings, pursuant to the Act on Physical Planning and Construction (OG 76/07), the Ordinance on the certification of buildings (OG 113/08) and the Ordinance on the conditions and standards for persons carrying out the certification of buildings (OG 113/08) were adopted. These regulate conditions and standards for persons who are to carry out the certification of buildings, the classification and identification of buildings for which public display of certificates will be obligatory, the methods of certification, the methods of inspection of the certificates and their content and form, etc. In addition, the Technical regulation on heating and cooling systems in buildings (OG 110/08) and the Technical regulation on energy economy and heat retention in buildings (110/08) were adopted. B) KEY PRIORITIES Pursuant to the Biofuels Act and the Act on Efficient Energy Use, the adoption of relevant implementing regulations is planned for 2009. Specific activities and measures established by the Energy Efficiency Programme of the Republic of Croatia and the First National Action Plan for Energy Efficiency will be initiated. The establishing of implementing activities pertaining to the further development of the production and use of renewable energy sources and cogeneration will be analysed, whereby the obligations of the Republic of Croatia will be aligned with the planned amendments to the acquis (obligations of Member States until 2020). The CARDS 2004 RELEEL (Approximation of Renewable Energy Legislation and Energy Efficiency Labelling with the acquis) project will be completed in the first half of 2009. This will provide recommendations with regard to the development and application of economic instruments for promoting the use of renewable energy sources and energy efficiency as well as a system for the guarantee of origin for electricity from renewable energy sources and high-efficiency cogeneration (green and white certificates). The Ministry of Economy, Labour and Entrepreneurship and the Environmental Protection and Energy Efficiency Fund will continue to invite tenders for (co)-financing projects in the field of energy efficiency and renewable sources. The Ministry of Economy, Labour and Entrepreneurship and the Ministry of Environmental Protection, Physical Planning and Construction continue to participate in the project of directed action for the transposition and implementation of the Directive on energy end-use efficiency and energy services (CA ESD). Continued activities are envisaged to achieve the set target for the production of electricity from renewable sources (solar energy, wind and biomass energy, geothermal and hydraulic energy and small hydro power plants with up to 10 MW in power) amounting to 5.8% of total electricity consumption by the end of 2010, which equals 1140 GWh. Further strengthening of the administrative capacity of the Department for Renewable Energy Sources and Energy Efficiency is also planned.
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3.15.3. Nuclear safety and radiation protection

Nuclear safety
A) ACHIEVEMENTS IN 2008 In 2008, pursuant to the Nuclear Safety Act (OG 173/03), the State Office for Nuclear Safety adopted three Ordinances: the Ordinance on the control of nuclear material and special equipment (OG 15/08); the Ordinance on conditions for nuclear safety and protection with regard to the siting, design, construction, use and decommissioning of a facility in which a nuclear activity is performed (OG 71/08); and the Ordinance on the conditions and procedure for issuing and withdrawing the approval for packaging used for transport of nuclear materials (OG 83/08). In accordance with the short-term priorities listed in the Accession Partnership and the EC Croatia 2008 Progress Report regarding strengthening administrative capacity in the field of nuclear safety, 2008 saw continued work on strengthening the administrative capacities of the State Office for Nuclear Safety through the employment of new staff. As a result, one new employee with university qualifications was hired as senior inspector in the Inspection Department in the Nuclear Materials Sector. In 2008, the Installation of the RODOS system in the Republic of Croatia project was completed, which is part of the Phare Nuclear Safety Programme for 2005, aiming to strengthen both the professional and technical base for planning and preparedness in the case of a nuclear emergency in the Republic of Croatia. In addition, technical specifications and other tender documentation were prepared and there was a call for international tenders for the procurement of equipment and services as part of the Support to the State Office for Nuclear Safety for the upgrading and modernisation of a timely radiological warning system project as part of the Phare Nuclear Safety Programme 2006. The Office for Nuclear Safety will, through co-ordinating this project, greatly contribute to the reliability of a timely warning in the case of a nuclear emergency. The entire scope of activities of the State Office for Nuclear Safety has, since 2006, been harmonised with the requirements of the ISO 9001:2000 standard related to quality management systems, and since 2007 with the requirements of the ISO 14001:2004 standard related to environmental management systems. During 2008, the State Office for Nuclear Safety worked on introducing measures aimed at harmonisation with the requirements of the ISO 27001:2005 standards related to information safety management systems. B) KEY PRIORITIES Along with the regular administrative and technical work that the State Office for Nuclear Safety performs within its area of competence, further strengthening of administrative capacity will be among its key priorities in 2009. This will be carried out by filling vacancies in the Office and through the specialisation and professional training of its employees, which is in accordance with the closing benchmark No. 2 for Chapter 15 Energy. To this end, the recruitment of five new employees with university qualifications is planned for 2009. These would, among other activities, be involved in work related to the process of the accession of the Republic of Croatia to the EU. Further activities connected with the Support to the State Office for Nuclear Safety for the upgrading and modernisation of a timely radiological warning system project as part of the Phare Nuclear Safety Programme 2006 are also planned.
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Radiation protection
A) ACHIEVEMENTS IN 2008 Pursuant to the Act on Ionising Radiation Protection and Safety of Ionising Radiation Sources (OG 64/06), hereinafter referred to as the Act, the following subordinate legislation was adopted: the Ordinance on conditions, deadlines and methods for acquiring the required professional training and renewal of knowledge on the application of measures for protection against ionising radiation (OG 30/08); the Ordinance on radiological and physical safety measures for ionising radiation sources (OG 39/08); the Ordinance on the method of removal of radioactive contamination, disposal of the radioactive source or undertaking other indispensable measures in order to reduce the damage to people and the environment or eliminate further threats, hazards or damage (OG 53/08); the Ordinance on the conditions, manner, places and deadlines for systematic testing and monitoring of the type and activity of radioactive substances in the air, soil, the sea, rivers, lakes, ground waters, solid and liquid precipitation, drinking water, foodstuffs and general use products and dwelling and working spaces (OG 60/08); and the Ordinance on the requirements for the design, construction and removal of structures accommodating sources of ionising radiation or in which practices involving sources of ionising radiation take place (OG 99/08). The Government of the Republic of Croatia adopted the Regulation on the conditions and methods of disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources which are not intended for further use, which, for the first time in the Republic of Croatia, regulates the conditions required for the disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources not intended for further use. Article 53 of the Regulation stipulates that the Government of the Republic of Croatia shall, within 6 months of the day when the Regulation came into force (18 April 2008), designate a location for the disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources not intended for further use (central disposal facility). The decision has not been issued yet. Within the framework of the IAEA-RER-9.073 project entitled the Implementation of National Strategies for Regaining Control over Orphan Sources, the Strategy for Management of Radioactive Waste and Spent Nuclear Fuel has been drawn up. The Strategy covers highly active radioactive waste, as well as intermediate and low level radioactive waste, and orphan ionising radiation sources and sources without users. Pursuant to Article 37 of the Act, upon the proposal of the minister competent for health, the Government of the Republic of Croatia adopted the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency, which was published in the Official Gazette (49/08) on 24 April 2008. The National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency is a strategic document of the Republic of Croatia related to intervention measures in the case of emergencies that may arise while performing activities with ionising radiation sources or nuclear activities. It is intended for the prevention of deterministic and the reduction of stochastic effects of ionising radiation on the exposed population as well as for the prevention or reduction of radiological pollution of the environment. In 2008, administrative capacities of the State Office for Radiation Protection were strengthened to a certain extent. On 15 October 2008, three new civil servants were recruited, among them one with university qualifications and two with secondary school qualifications. As a result, the Office has filled a total of twelve (12) out of fourteen systematised posts. A proposal for a new Regulation on the internal structure of the State Office for Radiation Protection has been sent for procedure, which foresees a substantial increase in the number of civil servants. In the area of non-ionising radiation, the following implementing regulations had been adopted by October 2008: the Ordinance on Amendments to the Ordinance on protection from electromagnetic fields (OG 41/08); and
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the Ordinance on the minimum health and safety requirements regarding the exposure of workers to the risks arising from electromagnetic fields (OG 38/08).
B) KEY PRIORITIES In 2009, the legislation adopted in the previous year will be implemented. Instructions will be drawn up for obtaining approval for activities including sources of ionising radiation, their use, import, export and supply of ionising radiation sources. Measures aimed at alignment with the acquis and EU practices will be implemented, particularly those regarding measures for radiological and physical safety of ionising radiation sources. The Regulation on the conditions and method of disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources which are not intended for further use will be implemented. The National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency will also be implemented. Plans and procedures will be adopted, for the adoption of which the director of the State Office for Radiation Protection is responsible. In addition, plans, manuals and operational procedures, for the adoption of which the competent officials in other state administration bodies are responsible, will be encouraged and their adoption ensured. Stationary portal devices for the control of nuclear and other radioactive material at border crossings have been procured as part of the Border Control of Nuclear and Other Radioactive Materials with Stationary Portal Monitor Practices in Croatia project as part of the PHARE 2006 Programme. Procedures in the case of detection of illicit transfer of radioactive material over state borders have been devised by the Ordinance on the method and procedure for supervising the import or export of materials reasonably suspected of being contaminated by radionuclides or of containing radioactive sources. Implementation of the project will continue in 2009. Training in using equipment will be organised for customs officials as well as for personnel involved in the detection, identification and disposal of all types of radioactive materials. Software for monitoring and the central collection of data recorded by monitors installed on border crossings will be developed, which will ensure the accessibility and high quality of data and its timely exchange, facilitating in this way decision-making on necessary measures. Other implementing activities will primarily include the strengthening of administrative capacities within the State Office for Radiation Protection. With regard to the need to strengthen administrative capacity in the field of radiation protection, which is specified in the European Partnership with Croatia, chapter 3.2, Mid-term Priorities, Sector Policy, in the negotiation process for the chapter Energy Radiation Protection, the European Commission has identified the administrative capacities of the Office as insufficient. At its session held on 21 May 2008, the Government of the Republic of Croatia issued the Conclusion on taking note of EU common positions concerning the negotiation chapters 14 Transport Policy and 15 Energy. According to the fourth benchmark for the Energy chapter, the Republic of Croatia has assumed the obligation to ensure appropriate administrative capacities before its accession to the EU, so as to be able to apply and implement the relevant legislation appropriately in all fields related to nuclear safety and radiation protection. In order to meet the said benchmark, the number of civil servants working in the Office should be increased, since the existing staff is insufficient to perform all activities that have been stipulated by law, including those related to the accession procedure. The adoption of the new Regulation on the internal structure of the State Office for Radiation Protection is planned for 2009. Amendments to the Regulation are necessary not only due to the insufficient administrative capacities but also because the existing structure of the Office is not able to keep up with needs. The current structure of the Office does not provide for work posts for a whole range of activities primarily related to the following areas: the implementation of the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency, the disposal of radioactive waste and orphan sources, the establishment of a national warehouse for radioactive materials, appropriate institutional infrastructure, as well as the establishment of a monitoring system for metal waste for the prevention of possible contamination by radioactive agents, and co-operation with neighbouring countries in this field.
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3.16. TAXATION
3.16.1. ACHIEVEMENTS IN 2008
Legislative activities Indirect taxation Value-added tax With the aim of aligning the Value-added Tax Act with Council Directive 112/2006/EC on the common system of value-added tax, in 2008 the Tax Administration worked on the preparation of legislative alignment in the area of indirect taxation. To this end, the Act on the Personal Identification Number (OG 60/08) was adopted in May 2008. It is applicable from 1 January 2009 and will provide a basis for establishing a uniform register of taxpayers and international data exchange in the area of taxation. Excise duties Towards the end of 2008, the authorities prepared a Draft Proposal of the uniform Excise Duties Act. The Draft Proposal of the Act envisages alignment in the area of taxation of alcohol and alcoholic beverages, tobacco products, energy products and electricity with relevant EU legislation, where alcohol and alcoholic beverages, energy products and electricity are defined in accordance with the tariff codes of the Customs Tariff. The Draft Act also introduces the excise duty suspension system, excise duty warehousing and authorised warehouse-keepers, administrative documents accompanying goods under and outside the suspension system, and a new system of excise duty guarantee. In the context of the alignment of the national excise duty legislation of the Republic of Croatia with relevant EU guidelines, expert bodies are working on analyses of the impact and effects of the use of new European excise duty regimes for tobacco products and alcoholic beverages on the budget, the Croatian economy and citizens. Analyses of the impact and effects of these new excise duty regimes for energy products and electricity have already been completed. As regards the national tax legislation regulating the taxation of products not included in the acquis communautaire (excise duty on non-alcoholic beverages, coffee, luxury products, passenger cars, motorcycles, vessels and aircrafts), whose application at the national level has been made possible by virtue of the provisions of Article 3 of Council Directive 92/12/EEC, a comparative analysis has been made of the national legislation of individual Member States, with a view to ensuring that the provisions of Croatian national legislation regulating the taxation of these products do not present barriers to smooth trade in these products between Member States of the Common Market. On 5 December 2008, the Government of the Republic of Croatia adopted the Act on Amendments to the Tobacco Products Tax Act and submitted it for further parliamentary procedure and enactment. This Act envisages a 50% reduction in tax burden differences between A, B and C cigarette classes as of 1 January 2009, and the full elimination of all tax burden differences between these classes as of 1 January 2010. Direct taxation As regards the implementation of Council Directive 90/434/EEC of 23 July 1990 on a common system of taxation applicable to mergers, divisions, transfers of assets and exchanges of shares concerning companies of different Member States, Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between affiliated companies of different Member States, and Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States, all preparatory measures for the alignment of
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national legislation with these directives have been made. In this context, the Croatian Parliament enacted, on 5 December 2008, the Act on Amendments to the Profit Act, which ensures alignment with the said directives and which enters into force on the date of the accession of the Republic of Croatia to the European Union. For the purpose of adopting the principles from the Code of Conduct for business taxation, all preparatory measures have been completed for the enactment of the Conclusion of the Government of the Republic of Croatia, obligating the ministries and other state administrative bodies to align draft legislation with the taxation principles contained in this document. The proposal of the Conclusion of the Government of the Republic of Croatia was submitted to the Government of the Republic of Croatia for further procedure and its enactment is planned for the fourth quarter of 2008. In July 2008, a new Contributions Act was adopted (OG 84/08) and will enter into force as of 1 January 2009. Administrative co-operation For the purpose of prescribing the necessary legislative framework in the area of administrative co-operation, the Croatian Parliament enacted on 5 December a new General Tax Act aligning Croatian tax legislation with the acquis communautaire, i.e. Council Directive 77/799/EEC, Council Directive 2008/55/EC, and Council Directive 2003/48/EC relating to administrative co-operation between Member States in the area of taxation and exchange of information between the Member States on savings income in the form of interest payments. The Act is planned to come into force on 1 January 2009, except for the provisions relating to administrative cooperation between Member States in the areas of taxation and exchange of information between Member States on savings income in the form of interest payments, which will come into force on the date of the accession of the Republic of Croatia to the European Union. Implementation measures Customs Administration For the implementation of the PHARE 2005 projects entitled EMCS development management support and EMCS Phase 2 software development, a project team has been appointed (business and IT) consisting of officers of the Central Office of Customs Administration (Excise Duty Unit, IT, Statistics and Analysis Unit, Inspection Unit) and customs offices (Section for Excise Duties). PHARE 2005 consists of two components: The first component of the PHARE 2005 twinning project EMCS development management support was launched on 19 November 2007 and builds on the CARDS 2003 twinning project Support for Customs Administration in the field of excise duties, which was successfully completed in 2006 and 2007. The basic purpose of the twinning project is to provide support in the management of the development of the future Excise Movement Control System (EMCS), which will be the backbone of a new excise system incorporating a suspension regime for authorised excise duty payers. The project consists of 8 components, with a total of 50 activities that will take place in the Customs Administration, the Central Office, and the Customs Training Centre, including study visits to the Republic of Austria, the Czech Republic, and Lithuania. All the planned workshops have been held as scheduled. One was held in Rijeka and others in the Central Office. Five-day study visits were also organised to Lithuania and the Czech Republic. Project activities are running as scheduled under the Twinning contract. The second component of PHARE 2005, entitled EMCS Phase 2 - software development, began on 7 December 2007, with a planned duration of 18 months. The project is being conducted in co-operation with the company IBM Croatia Ltd. The purpose of the project is to develop a national EMCS software application which incorporates all the functional requirements of phase 2 EMCS development. The project is scheduled to take place in four phases, and by 15 September 2008, 36 workshops had been held for members of the project team of the Customs Administration and the contractor. Project managers meet regularly on a weekly basis.
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Project activities are running as scheduled under the work plan. The first three project phases have been completed successfully, and all documents were delivered within the set deadlines. Tender documentation for the PHARE 2006 project, EMCS Phase 3 software development, was prepared in the first quarter of 2008. A meeting of the Shortlist Panel for PHARE 2006 EMCS Phase 3 software development was held on 22 July 2008, while bid evaluation for the final selection of the application development partner took place from 21 to 23 October 2008. Work on the further enhancement of the functionality of the SEEDv0 application has continued. With a view to strengthening the administrative capacities of current and future excise duty officers and the organisational units for excise duty, work profiles have been elaborated and recommendations given in respect of the organisation and management of the excise duty system, while further activities are being conducted towards preparing the excise system work specification. In this context, training was provided for 18 trainers of the Customs Administration in the Customs Training Centre. The training included the presentation of EU Directives which relate to the movement, warehousing, and monitoring of excise duty products (EEC Directives 92/12, 92/79, 92/80, 95/59, 92/83, 92/84, 2003/96, and 95/60). The same training was provided for one inspector from each of the customs offices. Two new employees were also hired in 2008 in the Excise Duty Unit of the Central Office of the Customs Administration. Excise duty officers actively participated in the Fiscalis 2007 and 2013 exchange programmes in Hungary, Ireland, Latvia, Italy and Denmark. Tax Administration With a view to strengthening administrative and institutional capacities, the Tax Administration has conducted a range of activities envisaged under PHARE 2005. In the fourth quarter of 2007 and in early March 2008, 5 employees were transferred to the IT Department of the Design, Creation and Solution Implementation Division. These employees underwent a comprehensive training programme in the area of VIES, business processes analysis and project management. Their contribution to the operations of the IT Department involves mainly regular participation in project activities of the PHARE 2005 twinning project VIES effective management and business support. To strengthen the administrative capacities needed for successful administrative co-operation in the area of exchange of tax information, a CLO Division was set up in the Central Office of the Tax Administration. Five employees were also recruited from the Regional Office in Zagreb to work in the CLO Division. They will undergo continuous training to prepare them for work in the Croatian CLO. As regards the strengthening of administrative capacities in the area of audit, the Tax Administration of the Republic of Croatia has conducted, since early 2008, a twinning light project entitled Strengthening and enhancement of the Tax Administration in the audit field in co-operation with the French Tax Administration. The project focuses on strengthening the audit function with respect to large taxpayers, with special emphasis on the supervision of banks, insurance undertakings, financial institutions, transfer prices and e-audit. The last seminar before the final seminar for inspectors of the Tax Administration was held towards the end of June 2008 at which an e-audit project paper was drafted and analysed. The Tax Administration of the Republic of Croatia thus acquired both basic and broad knowledge on the use of modern electronic tools, and was acquainted with European legislation in this area, as well as with the basic preconditions for the introduction of e-audit. Although the Final Report has not been analysed yet, it is generally felt, by both the representatives of the Tax Administration of the Republic of Croatia and the representatives of the Tax Administration of the French Republic, that with its participation in this project, the Tax Administration of the Republic of Croatia has enhanced its knowledge and capabilities for more efficient audit, particularly with regard to large taxpayers such as banks, insurance undertakings and financial institutions, transfer prices, and the use of modern electronic tools. Given the comprehensiveness of the subject covered by the project, the Tax Administration of the Republic
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of Croatia has expressed interest in further broadening the knowledge of inspectors in the area of audit, simultaneously with the introduction and acquisition of the necessary programmes and equipment needed for the conduct of e-audit. In the area of the fight against money laundering and terrorist financing, 30 audit employees were recruited from all the regional offices of the Tax Administration of the Republic of Croatia, to take part in a seminar and workshop under the Action Plan for the Fight against Money Laundering and Terrorist Financing, to be held jointly with European experts until the end of 2009. The Audit department carries out audit in a number of casinos and slot parlours in the territory of the Republic of Croatia, auditing, among other things, cash payments of wins over HRK 100,000, for which the holder of the licence has to issue a receipt. Proceedings have been initiated to revoke the licence from one casino with a head office in Zagreb due to infringement of the Act on Conducting Games of Chance and Promotional Award Games. FISCALIS 2013 As regards the activities envisaged under the FISCALIS programme, the Tax Administration takes regular and active part in working visits, seminars and workshops. The active participation of a much larger number of employees of the Tax Administration in the FISCALIS programme in 2008, compared with previous years, contributed to a better understanding of the acquis communautaire. In June 2008, the Ministry of Finance - Tax Administration, in co-operation with the European Commission, held a Fiscalis seminar in Dubrovnik on the co-operation of tax administrations of Member States in cases of double taxation, which was found to be highly successful by the European Commission and the participants. In September 2008, the Ministry of Finance - Tax Administration organised working visits to regional offices in Rijeka, Split and Dubrovnik regarding the organisation and procedure of tax audit in the Republic of Croatia. TAIEX In the course of preparatory activities related to the amendments to the Profit Tax Act, technical consultations were held with the European Commission in the organisation of TAIEX in July 2008 in Brussels, with a view to achieving a better understanding of the acquis communautaire in the area of direct taxes. World Bank Revenue Administration Modernization Project The purpose of the project is to support Tax Administration modernisation with a view to achieving further improvements in business efficiency, the provision of services to taxpayers, and the orderly fulfilment of tax obligations, through capacity strengthening and improvements in the system of Tax Administration. The project is planned to be achieved through 3 components: 1. modernisation of the business infrastructure (organisational consolidation and functional realignment of tax offices in the City of Zagreb, and offices for large taxpayers, including those in the construction industry) through improved solutions in terms of organisation and human resources, services to taxpayers, enforcement of collection, and human resources policy management; 2. modernisation of the educational infrastructure, in terms of the enhanced professionalism, competencies and expertise of Tax Administration officers and taxpayers, through improved capacities in human resources management and training, and an improved system of training and knowledge exchange programmes for tax officers; 3. modernisation of IT infrastructure (improvement of the management information system and tax identification number implementation support).
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Pursuant to the plan of activities, the project of evaluation of the Regional Office in Zagreb and local offices for large taxpayers is underway. Preparations are also underway for the purchase of land for the construction of the building. IT INTERCONNECTIVITY As regards the construction and development of a VIES system for the purpose of introducing and further developing the new system and efficient VAT information exchange, successful new system management, successful interconnectivity with Member States systems and strengthening administrative capacities, the following results have been achieved: PHARE 2005 1. Twinning project VIES effective management and business support. Austria is the twinning partner, and the agreed duration of the project is 18 months. The project commenced in December 2007 and is scheduled for completion in June 2009. Project purpose: to assist the Tax Administration in creating the conditions for the introduction and effective management of the VAT information exchange system (VIES) through the adaptation of the existing national VAT information system. This includes the establishment of an IT network so as to ensure interconnectivity with the EU tax system, the strengthening of administrative capacities to ensure successful management of the new system, and efficient administrative co-operation with Member States and DG TAXUD. Project activities are running according to schedule and following the work plan, with exceptionally good co-operation with the Austrian twinning partners. A Draft Proposal of Amendments to the General Tax Act was prepared in 2008, relating to procedures regarding administrative cooperation and information exchange. Four Guides have been prepared with descriptions of work processes in the future Croatian CLO. Continuous efforts are also being made towards preparing a Draft Proposal of the new Value Added Tax Act. 2. Service contract Functioning VIES Enhancements and VES Development. The contractual partner is IBM Hrvatska d.o.o., and the agreed duration of the project is 18 months. The project commenced in December 2007 and is scheduled for completion in June 2009. Project purpose: VIES (VAT Information Exchange System) design and development for the Croatian Tax Administration which will ensure timely and accurate VAT information exchange between Member States. Project activities are running according to schedule and following the work plan. Methods, processes and procedures are being implemented to ensure the efficient development of software which has to meet the requirements of CLO and the activities of the Tax Administration. A VIES sub-system is being developed for the verification of validity of VAT identification numbers and verification of turnovers; sub-system testing is being carried out. In accordance with the project plan, project deliveries are made regularly to the Tax Administration and are monitored in co-operation with the twinning partner. APIS-IT has been included in the realisation of the project as the partner responsible for national IT support in VIES interconnectivity structures. The status of the CCN/CSI project is directly contingent upon further successful implementation of PHARE 2005 Service contract Functioning VIES Enhancements and VES Development. Due to delays in CCN/CSI realisation, steps are being taken to avoid possible delays in the implementation of the project activities under the PHARE 2005 Services contract.
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PHARE 2006 VIES system establishment and testing will be followed by the development of advanced VIES system functions (so-called VIES 2) and VoES (information exchange on VAT through e-services). This next phase of VIES development will be financed under the 2006 project: Strengthening the IT function of the Tax Administration in order to meet EU standards in the VAT field. The expected beginning of the project is the second quarter of 2009. The project will consist of two components: Component 1: Twinning for Project Management Twinning Project documentation has been prepared, the tender has been conducted and Austria has been selected as the twinning partner. Activities are currently underway on the co-ordination of the Work Plan between the Tax Administration and the twinning partner. Component 2: Functioning VIES Enhancements and VoES Development Services contract Thus far, part of the tender procedure has been completed. The evaluation of bids (short list) for VIES 2 and VoES software development was conducted on 28 July 2008. The evaluation procedure and the selection of the contractor are currently underway. The tender procedure has to be completed in a very short time, i.e. by 30 November 2008. Unless the Services contract is signed by 30 November 2008, the funds earmarked under the PHARE 2006 programme cannot be used and the mandatory development of this IT field project will have to be financed from other sources. The project entitled ePorezna (electronic Tax Administration) continued with the introduction of two new modules, eID and ePD, on a trial run until September 2007. Since October 2007, the regular operations (production) of ePorezna have included: verification of tax account data of businesses (ePKK), VAT returns (ePDV), ID returns (eID) and electronic profit tax returns (ePD). In addition, specific activities have been carried out to overcome implementation obstacles for service users (enabling registered users to authorise another person to use the ePorezna service on their behalf). A tender procedure has been initiated for system and network maintenance outsourcing. Preliminary analyses have been made of the status of the computer network infrastructure of the Tax Administration with a view to launching network infrastructure development and modernisation projects (equipment and programme support). Preliminary analyses have been made and a status overview provided with a view to launching a project to enhance security in the field of back-up policy in the Tax Administration, and to acquiring the necessary equipment and programme support. APIS-IT, as the outsourcing partner in the development and maintenance of tax records applications, is working on the introduction of modern technologies in the IT area in the context of a project involving the redesign of the register of taxpayers. The status of the CCN/CSI gateway is the responsibility of the Customs Administration. As at early September 2008, the realisation of CCN/CSI had not been completed. CCN/CSI is an essential precondition for the establishment of IT interconnectivity and for the successful implementation of other projects in the area of IT interconnectivity which fall within the remit of the Tax Administration.
B) KEY PRIORITIES
Legislative measures Indirect taxation Value-added tax
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With a view to achieving alignment with Council Directive 2006/112/EC on the common system of value added tax and the acquis communautaire, a Value Added Tax Act is planned for adoption in the second quarter of 2009, and preparatory measures in this direction are already underway. Excise duties In order to ensure the more efficient and easier implementation of the new Excise Duty Act, which is pending adoption, implementing instructions and work instructions for customs offices will be issued. Implementation measures Tax Administration PHARE 2005 The projects under PHARE 2005 which commenced in December 2007 continued into 2009 with implementation measures. These projects will help the Tax Administration in the design and development of a VAT information exchange system (VIES) and in strengthening administrative capacities for the successful management of the new system and for the efficient exchange of information with EU Member States. By the end of the duration of the project, scheduled for the second quarter of 2009, the VIES system will be in place and will have been tested. PHARE 2006 The projects under the PHARE 2006 programme are building on the projects and the results of the PHARE 2005 programme, and their completion is expected in June 2009. Activities in both projects under PHARE 2006 are planned to continue. These include further activities and the completion of all activities related to the VIES system, the CLO, the VES and making the VIES system operational in accordance with EU requirements. With the finalisation of PHARE 2006, the enhanced VIES system has to be fully operational. Further training of inspectors will take place in the area of audit, based on modern tools and techniques, including the introduction of e-audit of taxpayers, with special emphasis on e-audit of VAT and e-audit of banks and financial institutions. This objective is to be achieved through the implementation of the twinning light project under IPA 2007. The next phase of VIES system development under PHARE 2006 will build on the results of the projects under PHARE 2005. The envisaged project activities include the development of advanced VIES system functions (so-called VIES2) and the development of the VoES system (information exchange on VAT through e-services). The start of the project is expected in the second quarter of 2009 and the planned duration is 18 months. MATRAFLEX Further activities will be conducted under the MATRAFLEX project entitled Project Risk Analysis in order to Select Taxpayers for Audit in co-operation with the Tax Administration of the Netherlands. The project was carried out in 2007 in co-operation with the Tax Administration of the Netherlands and further bilateral co-operation in this area is planned for the purpose of the implementation or practical application of concrete risk-analysis methods to select taxpayers for audit. Further OECD seminars will take place on transfer prices for Tax Administration inspectors in charge of the inspection supervision of large taxpayers.
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Information system Work will continue towards increasing the number of taxpayers who are using at least one e-service of the Tax Administration. Preparations will be made for the project of data exchange in the area of electronic transactions taxation between EU Member States VES within the framework of the planned PHARE 2006 projects. Activities will be conducted on the preparation of a proposal for a book of standard electronic records for data exchange between the Tax Administration and other state administration bodies, falling within the competence of the Tax Administration. These moves are included in the activities on the project of the introduction of a personal identification number (OIB). Associated activities will be undertaken, depending on OIB project priorities. Until the end of 2009, a project for the digital coverage, processing and permanent storage of paper documents will be developed, as will a document management system project in the Central Office of the Tax Administration. The establishment of a data storage and analysis system is planned before the end of 2009, as is the setting up of business intelligence in relation to the taxation system. Strengthening administrative capacities Further strengthening of the administrative capacities of the future Croatian CLO is envisaged. Employees already included in training within the PHARE 2005 project will continue training within the PHARE 2006 project and through other forms of training. As regards audit, there is a need for the further training of inspectors in the area of audit of large taxpayers, banks, insurance undertakings, investment funds and other financial institutions, with an emphasis on the use of modern techniques and tools (eaudit). Plans have also been made to strengthen capacities in the area of VAT audit, with special emphasis on the fight against VAT evasion. The IT Department plans to recruit new employees in accordance with the Information System Development Strategy of the Tax Administration. Education and training FISCALIS The Tax Administration will regularly and actively participate in the activities of the FISCALIS 2013 programmes, such as working visits and seminars in accordance with the work plan. Technical support WORLD BANK - Revenue Administration Modernisation Project Further activities in 2009 will take place in accordance with the Plan of Activities in 2008. Customs Administration Excise duties In 2009, the authorities plan to complete the project EMCS Phase 2 management support and software development, and to start with the implementation of the PHARE 2006 project, together with the further development of the EMCS application (phase 3). Establishing a system for the exchange of information on the movements of excise goods between the Republic of Croatia and the European Union (ELO) is planned through co-operation on the introduction of the SEED and EMCS IT system.
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In the context of strengthening administrative capacities, the Excise Duty Unit, in co-operation with the Unit for Organisation, Legal Affairs, HR Development and Training, and General Services, will work out a detailed specification of tasks of excise officers and define in more detail the system of excise organisational units. Continuous professional training will be provided for customs officers responsible for excise duties in the implementation of a uniform excise duty act. Further development of the database for the register of excise duty payers and the register of excise duty warehouses is planned. The Croatian excise duty experts are expected to continue with their participation in the Fiscalis programme.
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3.17. ECONOMIC AND MONETARY POLICY 3.17.1. Priorities in legislative alignment

A) ACHIEVEMENTS IN 2008 The new Act on the Croatian National Bank, which was passed by the Croatian Parliament in June 2008 and entered into force on 9 July 2008 (Official Gazette 75/08), is fully in line with the acquis communautaire. The Act has established a new legal framework which guarantees the Croatian National Bank (CNB) complete independence. The provisions ensuring the integration of the CNB into the European System of Central Banks as of the date of the accession of Croatia to the European Union and the introduction of the euro as the official currency in Croatia are also incorporated into the Act. On 10 September 2008, the CNB Council adopted amendments to the Statute of the Croatian National Bank, which entered into force on 24 September 2008. With these amendments, the Statute of the Croatian National Bank has been brought fully into line with the new Act on the Croatian National Bank. In accordance with the acquis communautaire in the area of public sector privileged access to the assets of financial institutions, Croatia has already adopted the Credit Unions Act (Official Gazette 141/06) and the Act on Amendments to the Act on Mandatory and Voluntary Pension Funds (Official Gazette 71/07) abolishing public sector privileged access to the assets of financial institutions. In addition, the Act on Amendments to the Insurance Act was passed in 2008 (Official Gazette 87/08), which ensures that privileged access of the public sector to financial institutions is revoked as of the date of Croatias accession to the European Union. The same provisions were also adopted as part of the amendments to the Act on the Fund for Croatian Homeland War Veterans and Members of their Families (Official Gazette 41/08). The provisions allowing the public sector privileged access to the assets of financial assets were contained in the Deposit Insurance Act (Official Gazette 177/04). However, these provisions were amended by virtue of the Act on Amendments to the Deposit Insurance Act (Official Gazette 119/08), passed by the Croatian Parliament on 15 October 2008. The amendments will enter into force on 1 January 2009. After the adoption of this Act, Croatian legislation in this area is fully aligned with the acquis communautaire. B) KEY PRIORITIES In the forthcoming period, the CNB will proceed with its preparations for integration into the European System of Central Banks. In order to protect the financial interests of the European Union and the Republic of Croatia, and to enable the efficient supervision of counterfeiting, in mid-2008 national centres for combating currency counterfeiting, the analysis of banknotes and the analysis of coins were established within the CNB. At present, preparatory activities are underway, and the national centres are expected to be fully operational by March 2009.
3.17.2. Co-ordination of economic and fiscal policies

Fiscal policy is part of the overall economic policy aimed at encouraging positive rates of economic growth, reducing unemployment, lowering the general level of central government deficit, further reducing the level of public debt and stabilising the level of external debt. In the next mid-term period, fiscal policy will be implemented in synergy with monetary policy in order to prevent negative effects of external macroeconomic conditions and to preserve macroeconomic stability. It will be characterised by the continuation of fiscal adjustment, as a result of which net lending/borrowing (deficit/surplus according to the ESA 95 methodology) has more than halved,
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i.e. it narrowed from -5.5% of GDP in 2003 to -1.6% of GDP in 2007, to -1.3% of GDP in 2008. Due to the very unfavourable external macroeconomic conditions which marked 2008, the fiscal deficit is expected to amount to -0.9% of GDP in 2009. The policy of comprehensive fiscal adjustment will continue in the forthcoming period, and will help further reduce net lending/borrowing to -0.6% of GDP in 2011. It is important to note that fiscal policy aimed at further fiscal adjustment and the continuous reduction of fiscal deficit has had a positive impact on the reduction of public debt as a proportion of GDP. Considering that the share of public debt in GDP was reduced in 2007 by 2.3 percentage points (annualised), a further narrowing of the share of public debt in GDP is expected in the next period.
3.17.3. Monetary and exchange rate policy

In the years until Croatias accession to the European Union, the CNB will continue to implement an exchange rate policy known as a managed float with the aim of preserving price stability. The choice of exchange rate stability as the nominal anchor reflects the environment in which the monetary policy of Croatia is implemented, primarily the openness of the Croatian economy and a high degree of euroisation, due to which exchange rate movements have a strong impact on inflationary expectations, financial system stability and economic activity as a whole. The kuna to euro exchange rate is formed freely on the foreign exchange market depending on changes in supply and demand, while the CNB prevents excessive exchange rate volatility through occasional interventions (foreign currency auctions). The exchange rate mechanism has proven efficient so far, and is not incompatible with the European Exchange Rate Mechanism II (ERM II). In circumstances of free movement of capital, the importance of a stable exchange rate lies in the fact that it limits the functioning of the transmission mechanism through the interest rate channel. As a result, CNB operations on the open market have mainly been used for liquidity management rather than to conduct an interest rate policy. The CNB will continue, to the greatest extent possible, to strengthen market-oriented monetary policy instruments, taking into account future adjustments of monetary policy instruments to those of the European Central Bank. On account of its approach to the EU, the CNB will gradually lower the reserve requirement rate. In order to exert a stronger influence on unfavourable macroeconomic developments, the CNB has employed various administrative measures in recent years. The most important measures have included the marginal reserve requirement and the mandatory purchase of CNB bills. The marginal reserve requirement was introduced in 2005, and increased the cost of foreign funding for commercial banks. As a result, the level of external debt of commercial banks declined substantially, and the overall international liabilities of the banking sector fell to almost the same level as that when the measure was first introduced. In early October 2008, the central bank abolished the marginal reserve requirement, and foreign exchange assets allocated to this purpose were returned to the banks. Given the unfavourable developments both on the global and domestic financial markets, the measure has substantially improved the foreign exchange liquidity of commercial banks. The other measure successfully implemented throughout 2008 is the mandatory purchase of CNB bills, which is aimed at reducing the annual credit growth of commercial banks to 12%.
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3.18. STATISTICS 3.18.1. Support to statistical data, technical infrastructure

A) ACHIEVEMENTS IN 2008 In accordance with the new National Classification of Activities 2007 (NCD 2007) (OG 58/07), a new version of the National Classification of Activities (NCD) began to be applied in 2008, primarily in the Register of Business Entities. As this involves a significant revision of NCD, which at the lowest level (the class level) means an increase of a hundred and one numeric positions compared with the previous version, it was necessary to ensure good co-operation and co-ordination within the Central Bureau of Statistics and the statistical system as a whole. Since the Central Bureau of Statistics is responsible for the assignment of the principal activity code, it was ensured that each business entity received in 2008 a new communication on classification consisting of an ID number and a new principal activity code in accordance with NCD and the Ordinance on the classification of business entities according to the National Classification of Activities 2007 (NCD 2007) (OG 80/07). This allowed for the continued application of European standards in the statistical system of the Republic of Croatia. As regards development of the Statistical Business Register (SBR), thus far in 2008 processes for SBR updating have been defined. Freelancers and local units will be included in the register until the end of the year. In the area of Regional Statistics, Urban Statistics was set up. In the context of MB PHARE 2005, in the component Urban Audit, a classification of the list of variables was made, existing data and maps of spatial units were transmitted to Eurostat, quality control of variables and indicators was performed, and reports were made on project implementation, with the quality control of variables and indicators being conducted only by the CBS, and not by Eurostat. In 2008, the publication of statistical data at the level of the European standard NUTS began. The adoption of the National Classification of Spatial Units for Statistics (OG 35/07) in accordance with the European statistical standard NUTS which is used for collecting data necessary for the development, alignment and promotion of regional EU statistics also allowed in 2008 for the establishment of local statistics and the transmission of data on local administrative units, compliant with EU requirements. The use of the Geographic Information System (GIS) began in 2008, mainly in the implementation of the Portrait of Regions and the Urban Audit components of the MB PHARE 2005 project. Within the IT Sector, information technology support was provided for the processing of statistical surveys and dissemination of results. In addition to support provided for regular statistical surveys, support was also given to other activities covered by all EU-financed projects as well as in relation to ad hoc enquiries by users of statistical data within and outside the Bureau. In addition, further steps were taken towards developing an information system for the automated processing of statistical surveys ISIS (Integrated Statistical Information System) and software for the presentation of statistical data on the Internet. The results of these projects should ultimately ensure the gradual abandonment of the Bureaus mainframe and faster and improved quality of work with significant financial savings. The ISIS system was upgraded and tested in 2008 and was presented on several occasions at international statistical gatherings. By the end of 2008, the ISIS system will include pilot projects of the following statistical surveys: DEM-1 (birth statistics), IR-1, 2, 3 (annual research and development reports), TU-11 (monthly report on tourist arrivals and departures), TRG-2 (quarterly reports on distributive trade for legal persons), IND-2 REPRO (survey on the consumption of raw materials, materials and energy). B) KEY PRIORITIES The introduction of NCD 2007 in statistical surveys will begin in 2009. As a gradual introduction is planned, parallel codification of principal activities will again be necessary in 2009 in accordance with NCD 2007 and NCD 2002. This will also allow for statistical data comparability and recalculation of time series.
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As regards development of a Statistical Business Register (SBR), it is planned to include groups of companies in the register in 2009. To this end, the following activities will be undertaken: carrying out a tender procedure to acquire the services of methodology drafting for the inclusion of groups of companies in the SBR, the drafting of methodology for the inclusion of groups of companies in the SBR, and software development for registering and updating groups of companies. Further stabilisation of the ISIS information system (Integrated Statistical Information System) is planned for 2009 to enable the results of statistical surveys to be transmitted from the mainframe to the network environment. Further efforts are also planned for the development of a statistical database and its presentation on the Bureaus website to ensure users easier access to statistical data. Preparations for the development of IT support for the 2011 Census have also been scheduled for 2009.
3.18.1. A Information and statistical data
A) ACHIEVEMENTS IN 2008 The Dissemination component of the MB PHARE 2005 project started on 1 October 2007 with a planned duration of 12 months until 1 October 2008 when the MB PHARE 2006 project commences with a planned duration of a further 12 months. In the context of this project, the CBS is participating in a Eurostat project entitled European Statistical Data Support (ESDS) which aims to assist users in searching European statistical data and to ensure data sources (which has so far not been done). B) KEY PRIORITIES Plans for 2009 include the drafting of a strategy for statistical data dissemination based on an analysis of the existing situation and needs and EU experience in statistical data dissemination. A Draft Proposal of the Dissemination Strategy will be made and a discussion will be held, while the adoption of the strategy is planned by the end of the third quarter.
3.18.2. Demographics and social statistics

3.18.2. A Population
A) ACHIEVEMENTS IN 2008 Preparations for the 2011 Census of Population, Households and Dwellings began in 2008. UNECE/Eurostat recommendations (Conference of European Statisticians Recommendations for the 2010 Censuses of Population and Housing) were translated, and questionnaires for the 2011 Census are being prepared in accordance with these recommendations. For the purpose of alignment with international standards, external migration data collected in a trial survey are being processed and analysed. Previous fertility, mortality and population migration data were further analysed with a view to establishing a hypothesis on the future developments of the said components for population projection purposes.
B) KEY PRIORITIES Census A trial census will be conducted in 2009 in connection with the 2011 Census of Population, Households and Dwellings.
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Migration statistics and population projections Activities in the further alignment of migration statistics with international standards and the development of population projections will take place in the framework of the PHARE 2006 project. In 2009, a project application for external migration and test data processing will be made, applying the definition of international migrant to data collected in a trial survey. In 2009, continuous data series on fertility, mortality and natural increase and population migrations will be collected and analysed for the preparation of a population projection.
3.18.2. B Labour market statistics
A) ACHIEVEMENTS IN 2008 Employment and unemployment The implementation of the Labour Force Survey was aligned with the acquis communautaire in 2008. The survey is conducted on a weekly basis throughout the year and ensures results on a quarterly basis at the national level and at the NUTS 2 level. The survey sample is panel-based and rotating and enables the flows of persons in the labour market in the Republic of Croatia to be monitored. In addition to the existing NCD 2002 classification of activities, NCDa new NCD 2007 classification NCDwas implemented. The Labour Force Survey is the first survey to provide NCD 2007 compliant data in the Republic of Croatia. Data will be transmitted to Eurostat within the set deadline. The results of the survey are transmitted to Eurostat in the form of individual databases and are published together with those of the Member States. An ad hoc module on accidents at work and health problems in connection with activities in the framework of the MB PHARE 2005 project was completed in 2008. Ad hoc module data were published in the Republic of Croatia and transmitted to Eurostat. Work on methodological improvements to the Labour Force Survey began in 2008 in the context of the MB PHARE 2008 project. The project is scheduled for completion in 2009. Earnings and labour costs The development of methodology for the production of a labour cost index started under the CARDS 2003 Programme Labour market statistics development and continued under the MB PHARE 2005 Programme, Component 10, Labour Cost Index. This project started in 2007 with a planned duration until the end of 2008. In 2008, methodological instructions were prepared, variables defined, data collected from the Tax Administration, and databases developed for quarterly labour cost index calculation. The publication of results and transmission of data to Eurostat are planned before the end of 2008. For the implementation of the Labour Cost Survey, methodological preparations were made for the survey to be conducted for the second time in 2009, this time as a regular survey. The existing form has been expanded in accordance with EU requirements and the sample requirement has been defined, which is to be based on the Business Register for the first time. B) KEY PRIORITIES Employment and unemployment Continuous weekly implementation of the Labour Force Survey is planned for 2009, as is the quarterly processing and publication of data and transmission of results to Eurostat.
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Earnings and labour costs The second Labour Cost Survey in the Republic of Croatia will be conducted in 2009 in accordance with EU legislation (Council Directive (EC) 530/99 and Commission Regulation (EC) No 1737/2005). In 2009, quarterly labour cost indices will be calculated in accordance with EU legislation (Regulation (EC) No 450/2003, Commission Regulation (EC) No 1216/2003, and Commission Regulation (EC) No 224/2007). Methodological preparations for a pilot survey on earnings structure will be conducted in 2009 and in the first half of 2010. Implementation will depend on the establishment of a business register and a register of employed persons.
3.18.2. C Income allocation and living conditions
A) ACHIEVEMENTS IN 2008 Income, poverty and social exclusion In 2008, activities planned under the PHARE 2005 project relating to the establishment of a new Survey on Income and Living Conditions (SILC) were carried out. Several expert missions took place, a CAPI (Computer Assisted Personal Interviewing) questionnaire was created for the pilot survey, the sample size needed for the pilot survey was defined, and the training of interviewers that are to collect field data for the pilot survey was conducted. As regards the Household Budget Survey, activities in 2008 included the updating of the data collection questionnaire through the introduction of new questions in accordance with Eurostat recommendations. Data collection based on such updated questionnaires will commence in the course of 2009. B) KEY PRIORITIES Income, poverty and social exclusion The plans for 2009 include further activities under the PHARE 2005 project, in connection with the introduction of a new Survey on Income and Living Conditions (SILC) and a pilot survey analysis.
3.18.2. D Education statistics
A) ACHIEVEMENTS IN 2008 Activities in 2008 included the drafting of methodology for statistical adult education surveys based on Eurostat methodology (Adult Education Survey AES). A survey was conducted, the results processed, and work is underway on the preparation of a data set for transmission to Eurostat. The UOE questionnaire (UNESCO/OECD/Eurostat) was also completed with data for all educational levels, including financial data, in co-operation with the Ministry of Science, Education and Sports. Towards the end of the year, implementation will begin of a pilot Continuing Vocational Training Survey CVTS. B) KEY PRIORITIES The activities planned for 2009 include the processing and analysis of the results of the pilot Continuing Vocational Training Survey CVTS.
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3.18.2. E Science and technology
A) ACHIEVEMENTS IN 2008 In the context of the MB PHARE 2005 project, a methodological basis and a national questionnaire were prepared for a survey on Careers of Doctorate Holders CDH 2006. The survey was completed, the findings assessed and the preparation of a data set and a final report for transmission to Eurostat are currently underway. Preparations were initiated for a survey on General Budget Appropriation and Outlays for Research and Development GBAORD. Innovations statistics In 2008, in the context of the MB PHARE 2005 project, instruments were prepared and a survey conducted. Data have been weighted, processed, analysed and published nationally. A data set was also prepared in accordance with Eurostat requirements. In July, microdata and tabular data were transmitted to Eurostat by means of the eDAMIS application, followed in September by the submission of a Quality Report. B) KEY PRIORITIES The plans for 2009 include a second Survey on Careers of Doctorate Holders CDH 2008, which is to be conducted in the context of the MB PHARE 2006 project, for reference year 2008. The activities planned in this context include work on the methodology and instruments for a pilot survey on budgetary outlays for research and development and the implementation of the pilot survey. Statistics innovation In the context of the MB PHARE 2006 project, the Community Innovation Survey CIS 2008, which is the second in a row, will be conducted for the reference period 20062008. The results are expected towards the end of 2009.
3. 18. 2. F Judiciary and administration statistics
A) ACHIEVEMENTS IN 2008 A Classification of Criminal Offences with a Comparative Review was drafted and published. A study on economic crime and corruption, giving a statistical and analytical overview of criminal offences associated in everyday practice with economic crime and corruption, was drafted and published. A study on domestic violence which analyses the phenomenon of domestic violence in the period from 2001 to 2006 was drafted and published. Its publication represents a contribution by the CBS to the achievement of the objectives outlined in the National Strategy of Protection against Family Violence 20082010. A pilot International Crime Victims Survey ICVS is being conducted through a public tender. In accordance with international recommendations and in co-operation with external experts, methodology was drafted which incorporates all the recommendations contained in relevant European documents. B) KEY PRIORITIES The following activities have been planned for 2009: Analysis of the results of a pilot International Crime Victims Survey ICVS and implementation of the main Survey on a sample of 6,000 households/persons. The main purpose of the International Crime Victims Survey is to obtain good-quality data on crime
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victims and peoples opinions on crime. The obtained data will be useful in evaluating the activities of the judicial system and non-governmental organisations that work with victims. To transmit to the Commission (Eurostat) Money Laundering Indicators needed for drafting a Eurostat pilot survey on money laundering. The drafting and publication of studies on: criminal acts committed against children and minors; corruption; abuse of narcotic drugs.
3.18.3. A Macroeconomic statistics
A) ACHIEVEMENTS IN 2008 In 2008, in the context of the MB PHARE 2006 project, a large-scale revision was made to GDP/GNI18 data at current prices and in volume terms within the framework of meeting the closing benchmarks for Chapter 18: Statistics. The revision included GDP time series, in the following time intervals: a) annual GDP from 1995 to 2007; b) quarterly GDP from the first quarter of 2000 to, and inclusive of, the third quarter of 2008. This large methodological revision covered the following elements which can affect the quality of GDP calculation, i.e. its alignment with ESA 95 requirements:19 a) The inclusion of non-coverage (the grey economy) in official GDP data, on an annual and quarterly level, in accordance with the above-mentioned length of time series of annual and quarterly GDP. Non-coverage has been classified in fine detail in all three main categories of GDP calculation: output, intermediate consumption, and value added, at the level of 60 NCD divisions (i.e. according to activities). Similarly, the coverage has been classified in seven main types (N1 N7) in accordance with the Eurostat tabular approach. All forms of non-coverage (N1 N7), except illegal activities, have been introduced in official GDP data at constant prices and in volume terms; b) Financial intermediation services indirectly measured (Cro. UFPIM20, Engl. FISIM21) have been classified according to institutional sectors and NCD activities (60 divisions of NCD). The basis for FISIM classification according to activities was the structure of output in all 60 activities. Since this is a new method of FISIM calculation, which provides for a methodologically more consistent calculation of bank output and of intermediate consumption of all the sectors using financial intermediation services, GDP was revised upwards for the value of financial intermediation services allocated into final consumption; c) A new calculation was made of imputed rent through the addition of imputed income which brought the value of this item closer to its value in the countries of Eastern Europe which calculate imputed rent by means of the so-called cost method. Calculation of this item, as in the cases under a) and b), was made at constant prices and in volume terms.
18 19 20 21
GDP/GNI Gross domestic product/Gross national income ESA 95 European System of National Accounts UFPIM Usluge financijskog posredovanja indirektno mjerene FISIM Financial intermediation services indirectly measured
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In the context of the MB PHARE 2005 project, in the chain-linking component, the time series of quarterly GDP at constant prices (the price base was 1997) was recalculated into GDP in volume terms (i.e. at the average prices of the previous year). This type of GDP calculation has changed somewhat the quarterly GDP rates, which is common for this type of procedure, but has also made them more realistic as they now reflect the more recent structure of relative prices (always the previous years price structure). In the context of negotiations on Chapter 33: Budgetary and Financial Provisions, VAT WAR was calculated for the first time in 2008 for reference year 2004. This statistical indicator was calculated in the context of own resources statistics. The VAT base as a percentage of GDP was also calculated. The regular annual calculation of these two indicators, once the Republic of Croatia accedes to the EU, will serve as a basis for planning the payments of the Republic of Croatia into the EU budget, in the framework of the so-called third sources VAT. In 2008, a document entitled GNI Inventory was drafted. The priority chapters include: a) Chapter 1 Introduction b) Chapter 3 GDP production aspect c) Chapter 7 Description of GDP non-coverage d) Chapter 9 Description of FISIM allocation by sectors and description of neutralisation of the export and import effects of FISIM on GNI. In 2008, all the methodological conditions were met and data sources ensured for compiling quarterly sectoral accounts for two sectors: a) General government sector; b) Out-of-Croatia sector. In 2008, the conditions were met for completing the basic items of Transmission Table 25 non-financial sectoral account of the general government (responsibility of CBS) and Table 27- financial sectoral account of the general government (responsibility of the CNB). B) KEY PRIORITIES Further to the activities to improve GDP calculation in 2008, the plans for 2009 include further alignment with ESA 95 through minor, regular GDP revisions of the following elements: a) calculation of fixed capital expenditure in the general government sector by means of the PIM method; b) classification of all types of taxes, strictly in accordance with the ESA 95 requirements to establish a better transition from GDP at base prices to GDP at market prices (the difference between these two categories being so-called taxes on products); c) improved distinction between market and non-market production and, consequently, better GDP alignment with ESA 95 requirements. Further to the activities related to Tables 25 and 27 (the non-financial and financial sectors of the government) in 2008, plans for 2009 include improvements in the calculation of individual essential items of this account, taking into account the following three aspects: a) re-calculation of the accounts essential items, from the cash principle into the accruals principle; b) further elaboration of all available techniques to improve consistency between quarterly and annual data for all items of the quarterly accounts of the government, with respect to the non-financial sectoral accounts which are the responsibility of the CBS; c) with respect to the financial sectoral accounts, which are the responsibility of the CNB, the National Accounts Sector of the CBS will hold regular methodological meetings in 2009 to achieve better methodological alignment between the non-financial and the financial sectoral accounts of the government.
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3.18.3. B Business statistics
A) ACHIEVEMENTS IN 2008 Structural business statistics Due to a lack of IT support, the own structural business surveys for 2007 as the reference year were not conducted in 2008, so available resources were channelled into the definition of a new approach based on a combination of administrative sources of data at the level of business entities, and own surveys at the level of local units by activity types. To this end, co-operation was established with the Financial Agency (FINA), and annual financial reports of companies (GFI/POD) were expanded to accommodate additional data for statistical purposes, with the CBS defining the contents of the necessary variables and providing methodological explanations based on the alignment of structural business statistics with business accounting. A methodology was also drafted for carrying out own surveys at the level of local units according to activity types. PRODCOM statistics A new version of the PRODCOM-based Nomenclature of Industrial Products (NIP) 2007 was drafted in 2008. The PRODCOM survey for 2007 was completed and the results were disseminated within the given deadlines and verified by Eurostat. Conversion was made of PRODCOM list data 2008 in accordance with the new structure of NCD 2007/KPD 2008 classification systems (i.e. NACE Rev. 2/CPA 2008) to ensure weights for short-term indicators (IPI industry index and PPI price index). Preparation is also underway of Statistical standards for the PRODCOM survey for 2008, in the context of which a new version of NIP 2008 will be made, in compliance with NCD 2007/KPD 2008 classifications. Short-term business statistics (SBS) In 2008, work began on the preparations for the reconstruction of the time series of available SBS business indicators and for the change of the base year 2000 to 2005. Dissemination of the available set of SBS continued until the end of 2008. A decision was also issued on the bodies competent for individual SBS indicators, as a first step towards their implementation. As planned, all the preparations were made for the application of the revised NACE Rev. 2/CPA 2008 classification system in SBS surveys, i.e. work on the revision of all existing SBS surveys, the drafting of new national versions of production classifications, weighting systems of the sample framework and back-casting reconstruction of time series to a new base year of 2005, in accordance with the new NCD 2007 and KPD 2008 structures (NACE Rev. 2/CPA 2008) and Annex III of Regulation (EC) No 1893/2006 concerning the application of NACE Rev. 2 in SBS and other relevant EU legislation. The above was conducted partly with PHARE 2005 project and MB PHARE 2006 programme support. Energy statistics In the context of a continuous development project in this field, Croatian energy statistics were aligned with Eurostat methodology in 2008. The manner of monitoring energy efficiency was also determined. A table on energy consumption was introduced in the household budget survey to improve the base for developing the energy balance statistics of the Republic of Croatia in energy services and household consumption. Information society statistics Three components of the MB PHARE 2005 project relating to information society statistics were successfully completed in 2008. All three ICT surveys based on Eurostat and Regulation (EC) No 808/2004 of the European Parliament and of the Council of 21 April 2004 concerning Community statistics on the information society, and the implementing Regulation of the EC for 2007, the enterprise survey (IKT-POD), the survey on investments and expenditure in enterprises, and the household survey (IKT-DOM) were completed. Survey results were disseminated to Eurostat and verified by the competent persons. Two new communications on the information society were drafted and published. The implementation of all the three ICT surveys for 2008 began in 2008, also in accordance with EU legislation and with financial support from the MB PHARE 2006 project. Results and dissemination to Eurostat are expected by the end of 2008.
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Transport and communications statistics In the area of statistics of road transport of goods, a revised Eurostat methodology-compliant survey has been conducted since 1 January 2008. Quarterly data sets and accompanying tables were defined and prepared, and were transmitted to Eurostat. In the area of statistics of railway transport, the annual data sets for 2007 were transmitted to Eurostat, while the data sets for 2008 are being regularly transmitted to Eurostat. In respect of air transport statistics, a pilot survey of 5 airports which are obligated to report in detail on aircraft, passenger and cargo traffic at airports in accordance with the acquis communautaire has been conducted since 1 January 2008. Work on monthly data analysis and correction is currently underway. The first quarterly data sets have been transmitted to Eurostat. In the area of statistics on transport on inland waterways, a survey revision has been conducted and the survey has been brought in line with the methodological requirements of Eurostat, while data sets for 2008 are transmitted to Eurostat on a regular basis. With regard to maritime transport statistics, data sets for 2008 are transmitted to Eurostat on a regular basis. The new NST 2007 classification has been implemented in all statistical areas. All data sets for the said areas are transmitted to Eurostat by means of the eDAMIS web application. Continuous efforts are being made with regard to data quality analysis and its improvement. The database on road traffic accidents has been transmitted to Eurostat. In the area of communications, since 2008 data from administrative sources such as the Croatian Telecommunications Agency and the Croatian Post and Electronic Communications Agency have been collected and analysed. Tourism statistics In the context of accommodation statistics, the missing data series from 2000, including regional data, were produced in 2008. All the required data are transmitted on a regular annual basis and, as of June 2008, on a monthly basis as well. In the context of statistics of tourist demand, a survey on tourist activities of domestic households was conducted in co-operation with the Institute for Tourism. The first results, covering the first to the third quarters of 2008 inclusive, will be processed by December 2008 and transmitted to Eurostat. This survey is planned to be conducted on a regular basis in the future. Statistics on foreign trade in goods The Twinning Light Intrastat component of the PHARE 2005 project was successfully completed in 2008 in co-operation with the Danish statistical office. The main results achieved in the context of this project include a draft agreement on mutual co-operation in the area of Intrastat research between the CBS and the Customs Administration and between the CBS and the Tax Administration, a draft work plan necessary for the introduction of Intrastat, the first draft of a national methodology, and a proposal for developing an Intrastat register. B) KEY PRIORITIES Business statistics In all areas of business statistics, further steps will be taken in 2009 towards improving data quality and monitoring EU legislation and, where changes in EU legislation so require, implementing such changes into the statistical system of the Republic of Croatia through the adjustment of the existing and/or introduction of new surveys. Structural business statistics The plans for 2009 include the completion of the system of Structural Business Statistics for Annexes 1-4 at the level of enterprises based on administrative sources (FINA GFI/POD-DOP). Plans have also been made to implement own surveys at the level of local units according to activity types. Efforts will also be made towards further developing these statistics in the context of and in accordance with the obligations assumed under the PHARE 2006 project. With a view to accomplishing these tasks, plans have been made to improve and expand co-operation with the necessary administrative sources.
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Short-term business statistics The plans for 2009 include reconstruction of the time series of available SBS indicators and changing the base year of 2000 to 2005 in accordance with EU SBS legislation. Dissemination is also planned of the available set of SBS indicators back-casted in accordance with NACE Rev. 2 (i.e. NCD 2007) and the Eurostat time schedule. Also envisaged for 2009 is the application of the new NACE Rev. 2/CPA 2008 classification system in SBS surveys, covering the revision of all current SBS surveys, the drafting of new national versions of production classifications, and the weighting systems of the sample framework, i.e. the application of EU legislation in connection with the application of NACE Rev. 2 in the SBS domain. The production of 8 new SBS indicators and their dissemination to Eurostat is planned. These activities have been partly covered by the PHARE 2005, MB PHARE 2006 and PHARE 2006 projects. Statistics on foreign trade in goods Further development in this field involves alignment in the area of Extrastat in accordance with changes in EU legislation. Further acquisition of knowledge and further work on the introduction of the Intrastat survey (trade in goods between Member States) into the statistical system of the Republic of Croatia are also envisaged.
3.18.4. Agriculture, forestry and fisheries

A) ACHIEVEMENTS IN 2008 In 2008 the drafting of description of methodology used and organisational structure in agricultural statistics was completed, within the framework of meeting the benchmarks for closing the negotiations in Chapter 18 Statistics, whereby the draft of mentioned document has been forwarded for opinion to Eurostat. Agro-monetary statistics In the field of agro-monetary statistics, the work continued on the following two projects: 1. Within the framework of the PHARE 2005 project, the work on component Value-based agricultural statistics continued; the work on trial calculations of price index based on Eurostat methodology continued; 2. Within the framework of the PHARE 2005 project, the work on component Development of the approach to collection of data concerning sustainable and semi sustainable agricultural holdings continued. The survey carried out on 4000 units was processed. Register of agricultural holdings Within the framework of PHARE 2005 project, the work on the project of establishing a Register of agricultural holdings continued. In 2008, a final list of attributes to be contained in the Register was specified, a threshold for holdings to be included in the Register was set and initial entries were made into the Register.
Crop production statistics In 2008, the project Improving the crop production statistics within the framework of MB PHARE 2005, proceeded. Within the framework of the project, key data series referred to in the Crop production statistics were recalculated. Livestock statistics Within the framework of the project MB PHARE 2005 programme, activities proceeded on the project for improving the Livestock statistics.
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In 2008, the data tables within the context of meeting the benchmarks for closing the negotiations in Chapter 18 Statistics were produced. The tables were produced retroactively as from 2000, more precisely for cattle slaughter statistics, external trade in live animals, milk statistics, and the production of and trade in eggs and one-day-old chicken. B) KEY PRIORITIES Further work on establishing the agricultural holdings register updating system is envisaged in course of 2009. The mentioned activities dating in 2008 shall proceed and progress through the following activities: a) establishing the system of updating and launching the activities on updating the Agricultural holdings register b) drafting the manual of statistical register of agricultural holdings Agro-monetary statistics In 2009, the work on PHARE 2005 project shall continue in its component Value-based agricultural statistics. The most significant activities in said component in course of 2009 shall be those on improving the Price statistics in agriculture and Production and workforce input accounting in agriculture. Crop production statistics In 2009, the work on improving the Crop production statistics shall proceed. Implementation of the following activities in envisaged in 2009: a) early estimate system enforcement b) producing the list of orchards and vineyards in compliance with available funds. Livestock statistics The work on introducing the livestock production forecasts in the segment of monthly cattle and fowl slaughter by livestock types and categories shall proceed in course of 2009.
3.18.5. Multi-sector statistics

A) ACHIEVEMENTS IN 2008 Pilot project on the use of pesticides has been implemented within the framework of PHARE 2006 project and the data have analysed. Within the framework of PHARE 2005 project, which encompassed the component Improving the water statistics monitoring by drawing up the reviewed forms, the forms have been reviewed. B) KEY PRIORITIES Within the framework of PHARE 2006, the initial results concerning the introduction of environmental taxes and fees which constitute an integral part of the National environmental accounting are expected in course of 2009. On the basis of results obtained, the quality of administrative data shall be analyzed and elaborating the methodology shall be embarked upon.
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3.18.6. Sources and management

A) ACHIEVEMENTS IN 2008 The activities on instituting the new organisational structure of the Central Bureau of Statistics (hereinafter CBS) proceeded in 2008, in line with the generally accepted principles of structuring statistical bureaus, current trends and national needs, which are to ensure harmonisation and better performance of official statistics tasks in compliance with basic principles of official statistics (relevance, impartiality, reliability, transparency, timeliness, professional autonomy, rationality, consistency, statistical confidentiality, use of personal data for statistical purposes only and public liability). In course of 2008 the activities on examining the change of role and status of state administration office in counties and administration body of the City of Zagreb responsible for official statistics affairs proceeded as well, so as to set the organisational model which is to ensure the enhancement of statistical system of the Republic of Croatia. In support of mentioned activities, the work within the framework of PHARE 2005 project, Technical assistance to CBS in adopting the acquis, carried out through Twinning and Service contract. New structure is aimed at establishing the new organisation of CBS as the main responsible entity, disseminator and coordinator of the official statistics system of the Republic of Croatia and in mid-term period resolve the status of county statistical offices and introducing the system of regional statistical offices, for the sake of more efficient implementation of statistical activities. New Regulation on internal organisation of CBS shall be drafted by the end of 2008. In line with the Regulation on classification of work posts in civil service (OG 13/08) and the Ordinance on common standards and criteria for defining the title and description of work posts in civil service (OG 116/07), the analysis of the description of jobs at work posts in CBS was made in July and August 2008. Pursuant to Article 61 of the State Administration System Act (OG 75/93, 48/99, 15/00, 127/00, 59/01, 199/03 and 79/07) and Article 60 of the Regulation on internal organisation of the Central Bureau of Statistics (OG 70/01 and 108/06) the Ordinance on internal order of CBS was produced. The mentioned Ordinance was forwarded for opinion to Central state administration office. A Plan of recruiting new employees to the CBS was drawn up, constituting an integral part of the Programme of drafting into civil service for state administration bodies and professional services of the Government of the Republic of Croatia fir 2008 (OG 36/08 and 75/08). Announcing the job vacancies and the recruiting itself proceeds in line with the Programme. Plan of training the employees of CBS which involves general and special programmes was drawn up in 2008. This plan was forwarded to the Central state administration office. With the scope of training the statisticians in 2008, a responsible person was appointed in the CBS in charge of coordination related to the training which is implemented within the framework of the European Statistical Training Programme (hereinafter ESTP). The employees of CBS take part in the training within the context of ESTP. Further training of statisticians in CBS is implemented in 2008 within the framework of PHARE 2005 project. In line with the Plan of setting up the financial management and control in CBS, scheduled activities of specifying the management processes in CBS and establishing the activities within each process were completed. Further activities in instituting and development of the system of internal financial and other controls shall be implemented through PHARE 2005 project. B) KEY PRIORITIES The PHARE 2005 project activities in statistics shall proceed with the scope of strengthening administrative capacities of CBS. Particular attention shall be paid to training of human resource and building of the new organisation of CBS which shall ensure better performance of principal tasks of Croatian statistical system: gathering, processing, dissemination of statistical data, keeping professional autonomy, raising confidence of the public in official statistics and developing international cooperation.
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3.19. SOCIAL POLICY AND EMPLOYMENT 3.19.1. Labour legislation

A) ACHIEVEMENTS IN 2008 At its session of 29 December 2008, the Croatian Government has adopted the draft of the new Labour law act. The draft is expected to be submitted for parliamentary procedure by the end of the Croatian Parliaments session in February 2009. After its adoption, labour legislation will be fully aligned with: Directive 2003/88/EC of the European Parliament and of the Council concerning certain aspects of the organisation of working time; Council Directive 97/81/EC concerning the Framework Agreement on part-time work concluded by UNICE, CEEP and the ETUC; Council Directive 1999/70/EC concerning the framework agreement on fixed-term work concluded by ETUC, UNICE and CEEP; Council Directive 98/59/EC on the approximation of the laws of the Member States relating to collective redundancies; Council Directive 2001/23/EC relating to the safeguarding of employees rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses; Council Directive 94/45/EC on the establishment of a European Works Council; Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees; Council Directive 2003/72/EC supplementing the Statute for a European Co-operative Society with regard to the involvement of employees; Directive 2005/56/EC of the European Parliament and of the Council on cross-border mergers of limited liability companies; Council Directive 96/34/EC on the framework agreement on parental leave concluded by UNICE, CEEP and the ETUC; Directive 2006/54/EC of the European Parliament and of the Council on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation; Council Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation; Council Directive 94/33/EC on the protection of young people at work; and Directive 2002/73/EC of the European Parliament and of the Council amending Council Directive 76/207/ EEC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions. To achieve the full alignment of national legislation with Council Directive 97/81/EC concerning the Framework Agreement on parttime work and consistent application of the pro rata temporis principle, the following new laws were adopted in July 2008: the Act on Employment Mediation and Unemployment Rights (OG 80/08), enabling part-time workers to have equal access to unemployment benefits, the Contributions Act (OG 84/08), regulating the manner in which contributions are paid in accordance with the pro rata temporis principle regarding part-time work, and the Act on Amendments to the Pension Insurance Act (OG 35/08), enabling part-time workers to have the same access to the right to early old-age retirement, occupational rehabilitation, a disability pension and a survivors pension as full-time workers. Additional training has been organised through TAIEX seminars for the Tax Administration staff responsible for monitoring and collecting contributions for compulsory insurance, to train them in the consistent application of the pro rata temporis principle. Specific working hours requirements in the railway traffic sector, regulated by the sectoral directive Council Directive 2005/47/EC, whose basic requirements have already been built into the Railway Safety Act, were additionally elaborated upon in the Ordinance on the working hours of mobile railway workers of September 2008 (OG 105/08). In the same vein, the working hours of workers engaged in cross-border road transport, regulated by the Act on Working Hours, Obligatory Rest Periods for Mobile Workers and Recording Equipment in Road Transport, adopted in May 2008 (OG 60/08), were aligned with Directive 2002/15/EC. In the area of the approximation of laws relating to the protection of employees in the event of employer insolvency, in July 2008 the new Act on Securing Workers Claims in the Event of an Employers Bankruptcy (OG 86/08) was adopted together with the accompanying Ordinance on the contents of the application form used by workers to realise their rights in the event of an employers bankruptcy. In this way, national legislation was fully aligned with Directive 2002/74/EC of the European Parliament and of the Council amending Council Directive 80/987/EEC on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer, and normative preconditions were created for separating and transfer-
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ring the tasks of the guaranteeing agency for workers claims from the Development and Employment Fund to a new guaranteeing institution the Agency, which is currently being established. Since the safeguards contained in Croatian labour legislation and collective agreements did not extend to workers posted by foreign employers, as required by Directive 96/71/EC concerning the posting of workers in the framework of the provision of services, the arrangements prescribed by this Directive were built into the new Aliens Act, which was adopted on 13 July 2007 (OG 79/07) and entered into force on 1 January 2008. The following laws were adopted as far back as late 2007: the Act on Amendments to the Court Register Act (OG 40/07), the Act on Amendments to the Companies Act (OG 107/07), and the Act on the Introduction of a European Company Societas Europea (SE) and the European Economic Interest Grouping (EEIG) (OG 107/07) of October 2007. These laws created the legal preconditions for implementing Council Directive 94/45/EC and Council Directive 2001/86/EC in the new Labour Act, since no normative preconditions had previously existed in Croatian legislation for regulating the establishment of European Works Councils and the involvement of employees in the affairs of European companies and European co-operative societies. When it comes to further strengthening administrative capacity, the Regulation on the internal organisation of the Ministry of the Economy, Labour and Entrepreneurship of 27 March 2008 created the preconditions for further strengthening the organisational structure of the Ministry in that the previous Department for European Integration and Project Management in the Directorate for Labour and the Labour Market was organised as a new directorate the Directorate for International Co-operation in the Field of Labour and Social Security (with a total of 20 staff positions), composed of two departments: the Department for European Integration and International Co-operation and the Department for Preparation and Implementation of EU Programmes and Projects (9 positions are currently filled), whereas in three departments within the Directorate for Labour and the Labour Market 35 staff positions are provided for in the job classification (17 positions are currently filled). Due to problems relating to the lack of appropriate premises, which will be solved by the end of March 2009, a new announcement of vacancies will not be issued before the beginning of 2009. In the area of strengthening the administrative capacity of inspection services and the supervision of labour relations and occupational health and safety, the amendments to the Regulation on the internal organisation of the State Inspectorate (OG 127/07), which entered into force on 20 December 2007, and the new Ordinance on the internal organisation of the State Inspectorate, which entered into force on 29 February 2008, created the preconditions for hiring additional labour inspectors. Consequently, in 2008 funds were provided for hiring 53 new inspectors, 27 in the area of labour relations and 26 in the area of occupational health and safety. Following two public announcements of vacancies issued in 2008 to fill these positions, 24 labour inspectors were recruited, 10 in the area of labour relations and 14 in the area of occupational health and safety, as well as 22 expert assistants and trainees who will be preparing to take up posts as independent labour inspectors. During 2007 and continuing through September 2008, 45 labour inspectors and 37 expert assistants-trainees were hired by the State Inspectorate, which makes a total of 82 civil servants. The most recent figures (September 2008) show that 270 civil servants (including the Assistant Chief Inspector, heads of departments, heads of other organisational units, senior labour inspectors, labour inspectors, expert assistants and trainees) were working at the State Inspectorate. According to data published by the Central Bureau of Statistics, in 2007 the average number of employed persons in the Republic of Croatia was 1,516,909. Of this number, about 1,300,000 persons were under the jurisdiction of labour inspectors responsible for labour relations and about 1,490,000 were under the jurisdiction of labour inspectors responsible for occupational health and safety. Pursuant to the provisions of the new State Inspectorate Act, which was adopted in late September 2008 (OG 116/08), the number of State Inspectorate labour inspectors and senior labour inspectors is determined according to the number of employed workers in the economic activities supervised by labour inspectors. As a rule, there should be one inspector for every 4,000 to 5,000 workers. Within 90 days of the entry into force of this Act, a new Regulation on the internal organisation of the State Inspectorate will be adopted, by which the current number of labour inspectors will be aligned with these provisions of the new Act, that is to say, at least 280 labour inspector positions will be provided for. The same Act lays down the requirements for the position of labour inspector in terms of previous length of service in the profession in that a labour inspector must have twelve months of work experience
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in his or her profession, whilst a senior labour inspector must have four years of such work experience. These measures have made inspection a more attractive career choice and have helped strengthen the administrative capacity of the State Inspectorate in the areas of labour and occupational health and safety. During 2007, a total of 31 labour inspectors completed the appropriate training programmes at the Central State Office for Administration the Civil Service Training Centre. A further 26 inspectors had completed their training by 30 September 2008. Training topics included information technology, office procedures, organisation of work and management in the civil service, and administrative procedures and basic principles of the acquis communautaire. The aforesaid amendments to the Regulation on the internal organisation of the State Inspectorate of December 2007 created the preconditions for hiring staff in the Training Department responsible for providing professional training to newly recruited and existing labour inspectors with the participation of prominent experts from the Republic of Croatia and the European Union as part of the Occupational Health and Safety Project implemented under IPA Component I. A plan for the further improvement of labour inspectors working conditions will be implemented by the end of 2008, for which HRK 3,743,964 has been provided. Of this amount, a total of HRK 2,074,964 will be used by the end of 2008 to purchase computer equipment, and the remaining funds will be used for office equipment, communications equipment, etc. A share of the invested funds was also used to improve the working conditions of labour inspectors working within the State Inspectorate. B) KEY PRIORITIES With the aim of ensuring full alignment with Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time, the Ordinance on the working hours of fishermen will be issued in the second quarter of 2009. As regards the new Labour Act and alignment with Council Directive 94/45/EC on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees, a new Ordinance on election to works councils will be enacted in the second quarter of 2009. In 2009, it is planned to fill all the vacancies in the job classification for the Directorate for Labour and the Labour Market, the Directorate for Pension Insurance and the Directorate for International Co-operation in the Field of Labour and Social Security of the Ministry of the Economy, Labour and Entrepreneurship. The State Inspectorate plans to continue strengthening its administrative capacity in accordance with the new State Inspectorate Act and its implementing regulations, depending on the funds available from the State Budget. As regards professional training for experts in judicial bodies, the Judicial Academy will include in its 2009 Annual Programme all the obligations incumbent on it under national strategies and action plans relating to training for judicial officials and employees. Training in the acquis communautaire for all civil servants and, in particular, for new employees will continue through seminars and workshops organised by the Ministry of Foreign Affairs and European Integration, and also as part of bilateral and multilateral forms of technical assistance. Assistance provided through TAIEX seminars and workshops will be used to give civil servants more details about the acquis communautaire.
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3.19.2. Health and safety at work

A) ACHIEVEMENTS IN 2008 The basic regulation in this field is the Occupational Health and Safety Act (OG 59/06, 94/96, 114/03 and 100/04), which is aligned with Framework Directive 89/391/EEC. In 2008, work continued on aligning legislation with the acquis communautaire. As a result, pursuant to the Action Plan, the following subordinate regulations have been adopted: 1. Ordinance on the safety and health requirements for the use of work equipment (OG 21/08) (Council Directive 89/655/EEC of 30 November 1989 concerning the minimum safety and health requirements for the use of work equipment by workers at work (second individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC); 2. Ordinance on safety and health requirements at temporary work sites (OG 51/08) (Council Directive 92/57/EEC of 24 June 1992 on the implementation of minimum safety and health requirements at temporary or mobile construction sites (eighth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC); 3. Ordinance on the protection of workers from the risks related to exposure to noise at work (OG 46/08) (Directive 2003/10/EC of the European Parliament and of the Council of 6 February 2003 on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (noise) (seventeenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC); 4. Ordinance on the minimum health and safety requirements regarding the exposure of workers to the risks arising from electromagnetic fields (OG 38/08) (Directive 2004/40/EC of the European Parliament and of the Council of 29 April 2004 on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (electromagnetic fields) (eighteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC); 5. Ordinance on the minimum requirements and conditions for the providing of medical care on board vessels, boats and yachts (OG 14/08) of February 2008, which has been aligned with Council Directive 92/29/EEC of 31 March 1992;
6. Decision on technical rules of the Croatian Register of Shipping Rules for statutory certification of fishing vessels (OG 77/07) of July 2007, which has been aligned with Council Directive 93/103/EC of 23 November 1993.
7. Ordinance on the minimum health and safety requirements regarding the exposure of workers to vibration (OG 155/08) (Directive 2002/44/EC of the European Parliament and of the Council of 25 June 2002 on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (vibration) (sixteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Joint Statement by the European Parliament and the Council; 8. Ordinance on the protection of workers from risks related to exposure to biological agents at work (OG 155/08)
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(Directive 2000/54/EC of the European Parliament and of the Council of 18 September 2000 on the protection of workers from risks related to exposure to biological agents at work (seventh individual directive within the meaning of Article 16 (1) of Directive 89/391/ EEC); 9. Ordinance on the protection of the health and safety of workers from the risks related to chemical agents at work (OG 155/08) (Council Directive 98/24/EC of 7 April 1998 on the protection of the health and safety of workers from the risks related to chemical agents at work (fourteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC)); In addition, drafts have been prepared of four ordinances on occupational health and safety, whose adoption is expected by the beginning of 2009: 1. Ordinance on maximum permissible concentrations of harmful substances in the atmosphere of work premises and areas and on biological limit values (Commission Directive 2000/39/EC of 8 June 2000 establishing a first list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC on the protection of the health and safety of workers from the risks related to chemical agents at work (Text with EEA relevance) and Council Directive 91/322/EEC of 29 May 1991 on establishing indicative limit values by implementing Council Directive 80/1107/EEC on the protection of workers from the risks related to exposure to chemical, physical and biological agents at work). The Ordinance laying down requirements for issuing health certificates to the crew members of seagoing ships, boats and yachts (OG 93/07) has also been issued. When it comes to strengthening institutional capacity, in 2008 normative preconditions were created for establishing a new institution the Croatian Institute of Health Protection and Safety at Work. Its existence and effective operation were defined as benchmarks for Chapter 19, and its establishment was provided for by the Action Plan for the Alignment of Legislation and the Building-up of the Necessary Capacities for the Implementation and Enforcement of the Acquis Communautaire. The legal framework for establishing the new Institute was provided by the Act on Amendments to the Occupational Health and Safety Act (OG 86/08), the Act on Amendments to the Occupational Health and Safety Insurance Act (OG 67/08), and the Act on Amendments to the Health Care Act (117/08). Pursuant to these Acts, after 1 January 2009, the Croatian Institute for Occupational Medicine will continue operating as the Croatian Institute of Health Protection and Safety at Work, and its operations will be financed from State Budget funds earmarked for the Ministry of Health and Social Welfare. The work of the Institute is organised in such a way that the legislative initiatives and supervision of some of its expert functions fall within the competence of the Department for Occupational Health and Safety within the Ministry of the Economy, Labour and Entrepreneurship, whilst the supervision of the Institutes occupational medicine activities is carried out by the Ministry of Health and Social Welfare. The Croatian Institute for Occupational Medicine organised workshops as part of the MATRA project in March and April 2008. These workshops were attended by stakeholders from the occupational health and safety system the National Council for Occupational Health and Safety, the Office for Social Partnership of the Croatian Government, trade union representatives, the Ministry of the Economy, Labour and Entrepreneurship (Department for Occupational Health and Safety), the Ministry of Health and Social Welfare, a representative of the College for Safety at Work, a representative of the Zagreb University School of Medicine, a representative of the Association for the Advancement of Human Safety in the Working and Living Environment, and representatives of the Croatian Pension Insurance Institute. The topics of these workshops were related to the need to expand the scope of work of the Croatian Institute for Occupational Medicine to include safety at work, the functions of this institution and the necessary qualifications (knowledge and skills) of its expert staff and employees.
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Furthermore, in line with the obligations arising from the Action Plan and Council Resolution of 25 June 2007 setting out the Communitys new strategy on health and safety at work, a proposal for the National Programme for Occupational Health and Safety has adopted by the end of 2008. The National Programme defines the occupational health and safety policy and funds needed to solve particular issues, and provides for the implementation of occupational health and safety regulations, primarily the Occupational Health and Safety Act. The Programme indicates the areas in which it is necessary to define occupational health and safety measures in Croatia, strategic principles (partnership and co-operation between all stakeholders, timely prevention of risks, sustainable development and reasonableness as a strategy to minimise risks). The basic goals of the Programme are to reduce the number of employment injuries, occupational diseases, employment-related diseases, and work accidents, and to prevent and reduce economic losses. B) KEY PRIORITIES As part of Component I of the Instrument for Pre-Accession Assistance (IPA), work will continue on preparing a project aimed at strengthening the capacity and level of equipment of the new Croatian Institute of Health Protection and Safety at Work, the State Inspectorate and the Department of Occupational Health and Safety within the Ministry of the Economy, Labour and Entrepreneurship (EUR 2.66 million). The implementation of this project should begin in late 2009 and end in mid-2011. It is also envisaged that the new institute will have 55 employees, including 11 members of staff of the Croatian Institute for Occupational Medicine. Plans have been made to hire an additional 24 experts in 2009, and the remaining vacancies will be filled in the following two years. The administrative capacity of the Department for Labour and the Labour Market within the Ministry of the Economy, Labour and Entrepreneurship will be reinforced by hiring three new civil servants and in this way all staff positions in the job classification will be filled. Pursuant to the provisions of the new State Inspectorate Act, which was adopted in late September 2008 (OG 116/08), the number of State Inspectorate labour inspectors and senior labour inspectors is determined depending on the number of employed workers in the economic activities supervised by labour inspectors. As a rule, there should be one inspector for every 4,000 to 5,000 workers. Within 90 days of the entry into force of the new Act, a new Regulation on the internal organisation of the State Inspectorate will be adopted, by which the current number of inspectors will be aligned with the provisions of the new Act, that is to say, at least 280 labour inspector positions will be provided for. The same Act lays down the requirements for the position of labour inspector in terms of previous length of service. Thus, a labour inspector must have twelve months of work experience in his or her profession and a senior labour inspector must have four years of such work experience. These measures have made inspection a more attractive career choice and have helped strengthen the administrative capacity of the State Inspectorate in the areas of labour and occupational health and safety. Further strengthening of administrative capacity is planned in accordance with implementing regulations, and depending on the funds available from the State Budget.
3.19.3. Social dialogue

A) ACHIEVEMENTS IN 2008 Taking account of the efforts and practices of EU Member States concerning the establishment of joint committees of social partners for sectoral dialogue, it has been agreed with the representatives of social partners to establish Sectoral Councils which would include representatives of the most representative branch associations of trade unions and employers. With the aim of facilitating socially responsible development and increasing the efficiency and efficacy of social dialogue, the Economic and Social Council proposed that associations of trade unions and employers, on the basis of common interests, more intensively approach the setting-up
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of bipartite co-operational relations, both at the level of their federations and at the level of individual branches or activities, with a view to advancing their co-operation. The goals of such co-operation are to strengthen the process of collective bargaining and co-decision-making, to improve health and safety in the workplace, encourage peaceful settlement of collective and individual labour disputes, develop life-long learning projects and harmonise these with the labour market situation and requirements, consider the activities needed to develop specific branches and industries, and increase the general competitiveness of the economy. In association with the Ministry of Agriculture, Fisheries and Rural Development, the Croatian Employers Association Food Industry and Agriculture Section, and the Agriculture, Food Industry, Tobacco Industry and Water Management Union, consultations have been held with the goal of signing the first sectoral agreement, which will also serve as a model for preparing sectoral agreements in other industries. In the area of occupational health and safety, the Office for Social Partnership of the Republic of Croatia, acting as the Secretariat for the National Council for Occupational Health and Safety, takes part in the Councils activities. Among other things, on 28 April 2008 the Office for Social Partnership organised observation of the World Day for Safety and Health at Work and the Croatian Day for Safety and Health at Work. It also participated in the organisation of the 2nd Scientific and Expert Conference Protection at Work and Health Protection, which was held in September 2008 at Bjelolasica. Funds have been allocated in the 20092011 budget of the Office for current expenses and promotional activities. With the goal of strengthening social dialogue and partnership, in 2008 the Office for Social Partnership implemented the following projects: I The two-year MATRA project (Mediation in the settlement of individual labour disputes) finished in February 2008 with a conference. Training for mediators continued, this time at the level of individual counties. This project was implemented during 2008 and will continue in 2009. Individual labour dispute mediator training in the Osijek-Baranja, Split-Dalmatia, Meimurje and Primorje-Gorski Kotar counties was held during May, June and July 2008. Work has also continued on co-ordinating the practical aspects of implementing the mediation system in conjunction with national-level trade union and employers associations. In connection with this, the relevant co-ordinating committees are currently being established within trade union confederations and the Croatian Employers Association, and within their branches. II Strengthening of social dialogue and partnership at the local government level, implemented in association with county Economic and Social Councils, was completed at the end of February 2008, while further co-ordinating activities are continuing. III It is planned to begin preparations for a project on arbitration in collective and individual labour disputes in the fourth quarter of 2008. In the area of determining the representativeness of social partners participating in tripartite bodies at the national level and in the area of collective bargaining, inter-union consultations have been intensified, with the goal of jointly preparing the legal framework for determining representativeness criteria. As regards strengthening administrative capacities, a public announcement of vacancies was issued in the Office for Social Partnership in May 2008, on the basis of which two people have been employed in the field of labour and social legislation. B) KEY PRIORITIES In 2009, the Office for Social Partnership of the Croatian Government will continue activities started in 2008 focused on strengthening tripartite and especially bipartite social dialogue. To this end, training will continue for mediators in individual labour disputes at county level, and a project on arbitration in collective and individual labour disputes will be launched.
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As part of the capacity building programme for social partners, activities aimed at promoting and improving the existing system of collective bargaining at sectoral and corporate levels will continue to be organised. Training for social partners is planned to achieve this goal, using assistance from EU funds and programmes (Taiex, IPA). It is planned that two additional civil servants will be recruited in the Office for Social Partnership of the Croatian Government in 2009.
3.19.4. Employment and the European Social Fund

A) ACHIEVEMENTS IN 2008 Pursuant to the Accession Partnership, the Croatian Government, the Ministry of the Economy, Labour and Entrepreneurship and the European Commissions Directorate General for Employment, Social Affairs and Equal Opportunities have prepared the Memorandum on Joint Assessment of Employment Policy Priorities (JAP). The Memorandum analyses the economic and labour market situation in Croatia and Croatian employment policies and, on the basis of this analysis, identifies employment challenges and priorities for action in Croatia. At its session of 24 April 2008, the Croatian Government issued a Conclusion to adopt the Memorandum on Joint Assessment of Employment Policy Priorities (JAP), and on 28 May 2008 the JAP was signed in Brussels by EU Commissioner for Employment, Social Affairs and Equal Opportunities Vladimir Spidla and Vice-President of the Croatian Government and Minister of the Economy, Labour and Entrepreneurship Damir Polanec. The Ministry of the Economy, Labour and Entrepreneurship, as the body responsible for co-ordinating implementation of the JAP, appointed an inter-departmental working group to draw up a plan for the implementation of measures and co-ordination of the activities under the JAP. The working group will draw up a proposal for the National Implementation Plan for Employment (20092010). The first meeting of the working group was held on 5 September 2008. The National Implementation Plan for Employment 20092010 will actually launch a new cycle of active employment measures in Croatia. There is also the obligation to monitor how the JAP is implemented and, in connection with this, the first thematic follow-up seminar on the JAP will be held in December 2008, and the first JAP implementation report will be presented to the European Commission 12 months after its signing (in May 2009).
1. MEASURES WITHIN THE RESPONSIBILITY OF THE CROATIAN EMPLOYMENT SERVICE ACCORDING TO THE ANNUAL EMPLOYMENT PROMOTION PLAN FOR 2008 Implementation criteria: The measures are aimed at stimulating the employment of persons from the CES unemployment register on the open labour market, under the condition that employment incentives are available to employers meeting the criteria relating to the number of employees and total annual turnover as follows: a small employer is an employer employing fewer than 50 workers on an average annual basis and having an annual turnover of less than HRK 16 million; a medium-sized employer is an employer employing fewer than 250 workers on an average annual basis and having an annual turnover of less than HRK 60 million; a large employer is an employer employing more than 250 workers on an average annual basis and having an annual turnover of more than HRK 60 million.
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The Annual Employment Promotion Plan is based on Articles 27 to 29 of the Act on Employment Mediation and Unemployment Rights (OG 32/02, 86/02, 114/03, 151/03). Article 27 defines the adoption procedure and content of active employment policy. Article 28 defines the content and main goals of employment promotion measures as a constituent part of the Annual Plan. Article 29 defines the conditions and methods of using funds for the implementation of measures in the Annual Employment Promotion Plan which are within the responsibility of the Croatian Employment Service. The State Aid Act (OG 140/05) and the Regulation on state aid (OG 121/03) prescribe the method and amount of state aid for employment and professional training. The Act and the Regulation on state aid are both aligned with the European Commission Regulation on state aid for employment. Employers may be granted state aid for the creation of new jobs for hard-to-employ unemployed persons (particularly for vulnerable groups in the labour market). Eligibility is determined by comparing the average number of additional recruitments over the previous 12 months. The condition of creating new jobs need not be fulfilled if an existing post has become vacant as the result of voluntary departure, retirement, voluntary reduction of working time or dismissal for incompetence or misconduct, unless the post remains vacant as a result of redundancy. The level of all grants relating to the employment of hard-to-employ workers must not exceed 50% of the annual gross wage of the persons employed, who must remain in employment for at least one year without interruption, unless dismissed for incompetence or misconduct. The monthly subsidy is calculated using the base for calculating compulsory insurance contributions for 2007, as prescribed in the Order (OG 126/06), and is linked to the level of professional qualifications of the persons targeted and the status of the employer in terms of the number of permanent employees and total annual turnover as follows: small employers may be subsidised by up to 50% of the base prescribed for the professional qualification level; medium-sized employers may be subsidised by up to 40% of the base prescribed for the professional qualification level; large employers may be subsidised by up to 20% of the base prescribed for the professional qualification level.
Measures considered as state aid for employment 1. Co-financing of employment of young persons with no work experience (Measure 1) (Guideline 1. Active and preventative measures for the unemployed and inactive) 2. Co-financing of employment of long-term unemployed persons (Measure 2) (Guideline 1. Active and preventative measures for the unemployed and inactive) 3. Co-financing of employment of older unemployed persons (Measure 3) (Guideline 1. Active and preventative measures for the unemployed and inactive) 4. Co-financing of employment of special groups of unemployed people (Measure 4) (Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) Measure considered as state aid for professional training 5. Co-financing of training for a known employer (Measure 5) (Guideline 3. Address change and promote adaptability and mobility in the labour market) Measures not considered as state aid 6. Co-financing of training for an unknown employer (Measure 6) (Guideline 4. Promote the development of human capital and lifelong learning) 7. Public works (Measure 7)
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(Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) 8. Individual public works projects for specific groups of unemployed persons (Measure 8) (Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) Measure 1 Co-financing of employment of young persons with no work experience (Guideline 1. Active and preventative measures for the unemployed and inactive) Target groups: Unemployed persons under 25 years of age persons with no profession/trade (basic level of elementary education completed or not); persons with auxiliary professions/trades (those who have completed elementary education and undergone professional training); vocational professions/trades; persons with secondary qualifications, higher education or university degrees; persons who have been registered for a minimum of 6 months in the register of the Croatian Employment Service, or who applied for registration in the unemployment register within 30 days of completing regular education or within 30 days of graduating; persons with no work experience in their profession/trade or elsewhere.
Unemployed persons under 29 years of age persons with secondary qualifications, higher education or university degrees; persons who have been registered for a minimum of 6 months in the register of the Croatian Employment Service, or who applied for registration in the unemployment register within 30 days of completing regular secondary education, or within 30 days of graduation for persons with higher education or university degrees; persons with no work experience or those who have no more than 6 months of work experience outside their profession/trade; co-financing of employment is focused on traineeship in the applicants profession/trade.
Duration of subsidy: for persons with no profession/trade 18 months; for persons who have completed vocational education and those with secondary qualifications 12 months; for persons with higher education or university degrees 12 months (or 18 months).
Measure 2 Co-financing of employment of long-term unemployed persons (Guideline 1. Active and preventative measures for the unemployed and inactive) The special target group of Measure 2 includes: unemployed persons who have been in the CES register for at least 6 out of the preceding 8 months and who are under 25 years of age, regardless of years of work experience and level of education. Duration of subsidy: for persons with no profession/trade 15 months;
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for persons who have completed vocational education and those with secondary qualifications 12 months; for persons with a higher education or university degree - 10 months.
Measure 3 Co-financing of employment of women over 45 years of age and men over 50 years of age (Guideline 1. Active and preventative measures for the unemployed and inactive) Target groups: Women over 45 years of age and men over 50 years of age who: have been registered with the Croatian Employment Service for at least 6 months; regardless of years of work experience and level of education. Women over 45 years of age and men over 50 years of age who have been made redundant: regardless of how long they have been on the unemployment register and regardless of their educational level; who have a signed Career Plan.
Women over 45 years of age and men over 50 years of age who have been made redundant and are still completing their notice period: - the subsidy is to be used during the notice period before registration in the unemployment register; regardless of the level of education. Duration of subsidy: 18 months Measure 4 Co-financing of employment of special groups of unemployed people (Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) Target groups: unemployed veterans of the Homeland War, children and spouses of veterans killed or missing in the Homeland War, persons with a lower employability factor as assessed by occupational guidance specialists, unemployed single parents of minors, unemployed women who have exercised the right to maternity leave for the third or each subsequent child prior to becoming unemployed, parents of 4 or more minors; persons in the CES unemployment register for a minimum of 6 months; persons with disabilities, rehabilitated addicts, female victims of violence, victims of human trafficking, asylees and ex-convicts; without a prescribed period of registration in the unemployment register; persons with disabilities, rehabilitated addicts, female victims of violence, victims of human trafficking, asylees and ex-convicts who have found a job after 1 January 2008 under an employment contract providing for a trial period not longer than 3 months, and whose work efficiency and performance are monitored by their employer; persons employed from the unemployment register on the basis of a TR announcement, chosen and selected by the CES.
The first target group within Measure 4 specifically covers unemployed single parents and unemployed women who have exercised the right to maternity leave for the third or each subsequent child prior to becoming unemployed. The results of implementation show that employers have most frequently used subsidies for parents of 4 or more minors.
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Duration of subsidy: - regardless of the level of education 18 months Level of subsidy for Measures 1 4 for persons with no profession/trade, the subsidy is established using a base amount of HRK 2,298.00 (Article 4 of the Order); for persons who have completed vocational education and those with secondary qualifications, the subsidy is established using a base amount of HRK 4,267.00 (Article 6 of the Order); for persons with higher education or university degrees, the subsidy is established using a base amount of HRK 7,221.50 (Article 7 of the Order). Employment subsidy rates for Measures 1 4 50% of the prescribed base small employer 40% of the prescribed base medium-sized employer 20% of the prescribed base large employer
Measure 5 Co-financing of training for a known employer (Guideline 4. Promote the development of human capital and lifelong learning) 1. General training (professional training) 2. Special training (acquisition of additional profession/occupation-related knowledge and skills) Target groups: Newly-employed workers participants in training programmes all unemployed persons, regardless of qualifications and years of service registered at least 90 days with the Croatian Employment Service, with a signed Career Plan.
Employed workers participants in training programmes selected by the employer.
Special criteria for large employers: employed workers, regardless of qualifications, with at least 3 years of service under an open-ended employment contract.
Measure 6 Co-financing of training for an unknown employer (Guideline 4. Promote the development of human capital and lifelong learning) Target groups: all unemployed persons over 25 years of age registered in the unemployment register for at least 12 months, regardless of the level of education and work experience; all persons under 25 years of age registered in the unemployment register longer than 6 months, or those who applied for registration within 90 days of completing their education; all persons under 45 years of age who are willing to take seasonal jobs, regardless of time spent on the unemployment register, qualifications or work experience;
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all persons in the unemployment register who are willing to accept employment in shipbuilding and construction (occupations associated with the construction industry, electrical machinery, metalwork using new technologies, assembly works);
rehabilitated addicts, persons with disabilities, female victims of violence, victims of human trafficking, asylees, ex-convicts without a prescribed period of registration in the unemployment register.
Duration of subsidy: the average length of training programmes is six months, but it should be finished by 30 November 2008.
Level of subsidy: co-financing covers 100% of training costs and the material costs of educational institutions; the CES pays the participant a grant to the amount of the minimum unemployment benefit, transportation costs and accident insurance. Measure 7 Public works (Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) Target groups: unemployed persons of lower educational levels (persons with no profession/trade, persons with auxiliary professions/trades and secondary qualifications) registered in the unemployment register for at least 12 months; unemployed young persons under 25 years of age who did not continue their education after elementary school or those who have not completed secondary school, and therefore have no profession/trade, recipients of unemployment benefit, beneficiaries of rights arising from the Social Welfare Act, victims of human trafficking, asylum seekers, rehabilitated addicts, ex-convicts, parents of 4 or more minors, registered in the unemployment register for at least 6 months. Duration of subsidy: a public works programme may be approved for a period that does not go beyond 30 November 2008. Individual public works projects for specific groups of unemployed persons
Measure 8
(Guideline 7. Promote the integration of and combat discrimination against people at a disadvantage in the labour market) Target groups: unemployed persons volunteering for humanitarian relief activities (graduate social workers, social pedagogues, special education teachers and others) in order to acquire or refresh their expert knowledge and to obtain volunteering experience, provided that they have been registered in the unemployment register for at least 6 months; unemployed persons with professions/trades acquired as part of university education programmes, with no work experience, younger than 29 years of age, volunteering for humanitarian relief activities; unemployed rehabilitated addicts, persons with disabilities, female victims of violence, victims of human trafficking, those who have served a prison term, provided that they have been registered in the unemployment register for at least 6 months. Duration of subsidy: a public works programme may be approved for an average duration of 12 months.
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OVERVIEW OF ALL MEASURES PROPOSED, SHOWING THE TOTAL NUMBER OF PERSONS AND REQUIRED FUNDS IN 2008
Measure
Number of persons
Funds required (HRK)
Co-financing employment of young persons with no work experience Co-financing employment of long-term unemployed persons Co-financing employment of older persons Co-financing employment of special groups of unemployed persons Co-financing training for a known employer Co-financing training for an unknown employer Public works Public works individual projects TOTAL
1,081 1,248 753 499 1,029 3,400 759 150 8,919
28,135,831.00 30,278,524.00 26,715,201.00 17,047,962.00 9,905,317.00 30,566,939.00 8,464,064.00 4,886,162.00 156,000,000.00
Overview of the number of requests received and granted, contracts signed, persons employed and persons included in training through the active policy measures of the Annual Employment Promotion Plan for 2008, ending 30 September 2008
Measure
Employer
Small
Number of requests received

796 82 13 891 1,046 68 13 1,127 569 27 3 599
Number of requests granted

608 71 11 690 810 59 12 881 462 22 3 487
Number of contracts signed

520 57 10 587 741 56 11 808 419 18 1 438
Total number of persons employed

529 63 17 609 750 80 15 845 419 19 1 439
Co-financing employment of young persons with no work experience
Medium Large Total Small
Co-financing employment of long-term unemployed persons
Co-financing employment of women over 45 and men over 50 years of age
Medium Large Total
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Measure
Employer
Small

272 18 9 299 47 35 22 104 185 9 2 196 151 5 1 157 11 11 3,384

219 16 7 242 42 33 12 87 165 9 2 176 149 5 1 155 8 8 2,726

199 16 7 222 38 31 11 80 139 9 1 149 146 5 1 152 5 5 2,441

198 20 8 226 161 247 265 673 980 56 10 1,046 633 48 5 686 5 5 4,529
Co-financing employment of special groups of unemployed persons
Co-financing training for a known employer
Co-financing training for an unknown employer
Medium Large Total Small Medium
Public works Large Total Public works individual projects Grand total Small Total
FUNDS FOR IMPLEMENTATION The State Budget of the Republic of Croatia funds allocated to the Croatian Employment Service; budget item 1671 Active employment policies: A689023 NAPZ, to the amount of HRK 156,000,000.00. Implementation period during 2008 employers received payments of granted sums immediately after signing contracts the final date for contracting, in view of State Budget payment procedures and flows, was 30 November 2008, unless the amount had previously been contracted and paid.
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OVERVIEW OF THE NUMBER OF PERSONS EMPLOYED OR INCLUDED IN TRAINING, AND MONIES PAID AS OF 30 SEPTEMBER 2008
Measure
Co-financing employment of young persons with no work experience Co-financing employment of long-term unemployed persons Co-financing employment of older persons Co-financing employment of special groups of unemployed persons Co-financing training for a known employer Co-financing training for an unknown employer Public works Public works individual projects TOTAL
Number of persons
609 845 439 226 673 1,046 686 5 4,529
Funds required (HRK)

15,960,599 20,666,257 15,975528 7,679,410 2,380,508 6,888,936 6,837,168 85,806 76,474,212
ACTION PLAN FOR ROMA 2008 Within the Annual Employment Promotion Plan, measures have also been implemented for the employment and training of unemployed members of the Roma minority, based on the National Programme for Roma/Action Plan for the Decade of Roma Inclusion 20052015.
Overview of the number of requests received and granted, contracts signed, persons employed and persons involved in training through measures of the National Programme for Roma/Action Plan for the Decade of Roma Inclusion, as of 30 September 2008
Measure
Employer

Small 16 1 1 18 13 0 0 13

13 1 1 15 11 0 0 11

12 1 1 14 10 0 0 10

12 7 1 20 14 0 0 14
Employment subsidies for Roma for a period of 24 months
Training for unknown employers
Medium Large Total
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Measure
Employer

0 0 0 0 36 2 0 38 69

0 0 0 0 35 2 0 37 63

0 0 0 0 34 1 0 35 59

0 0 0 0 189 14 0 203 237
Small Training for known employers Medium Large Total Small Medium Public works Large Total Grand total
By 30 September 2008, the amount of HRK 2,701,692 had been paid pursuant to commitments under the Programme for Roma, out of a total of HRK 4,034,170.00 allocated to the Croatian Employment Service for this purpose. B) KEY PRIORITIES Active employment policy measures, which fall within the competence of the Croatian Employment Service, will be contained in the National Implementation Plan 20092010, to be drawn up by a working group composed of social partners, in line with the priorities for action specified in the Joint Assessment of Employment Policy Priorities JAP. Funding for implementing these measures will be provided from State Budget funds allocated to the Croatian Employment Service, according to the funding methodology customarily used for all State Budget beneficiaries.
2. DEPARTMENT FOR PROJECT IMPLEMENTATION
A) ACHIEVEMENTS IN 2008 In June 2008, a new Ordinance on the internal organisation and job classification was issued in the Croatian Employment Service. Pursuant to the new Ordinance, two sections were established within the Department for Project Implementation: the Section for Project Documentation Preparation and Project Implementation, and the Section for Project Implementation Monitoring. The Department for Project Implementation currently employs eight staff members and the hiring of one more staff member is expected by the end of the year. In view of the need to develop capacity for analysing, implementing and assessing employment policies, in 2008 two projects were carried out at the Croatian Employment Service: the CARDS 2004 Grant Scheme and a project under the PHARE 2005 Programme. These projects were aimed at modernising and increasing the level of competence and expertise of the CESs staff at both the national and regional levels, in the context of creating adequate administrative capacity for implementing and monitoring measures under the European Social Fund. During 2008, the Croatian Employment Service was the beneficiary of the following EU projects:
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1. CARDS 2004 Local Partnerships for Employment Phase 2 Grant scheme The project started on 7 November 2005 and ended on 6 May 2007. It was implemented in four counties: Lika-Senj, Karlovac, Poega-Slavonia and Brod-Posavina. The purpose of the project was to achieve a better balance between vocational training and current and anticipated labour market needs, and to reduce unemployment significantly. As part of Component I of the Project on service delivery, analyses were made of local labour markets based on empirical surveys, and training was organised for staff employed in regional CES services on the principles, mechanisms, rules and procedures of the European Social Fund. This Project was implemented in close co-operation with the CARDS project on implementation of Regional Operational Programmes carried out by the Ministry of the Sea, Tourism, Transport and Development, and defined principles and preferred local co-operation models. According to the model established, within each Regional Partnership Council a thematic working group for human resources development was set up, representing the planned local employment partnership. The thematic working groups drew up regional human resources development strategies and, in accordance with strategic priorities, drew up individual human resources development projects for the purpose of awarding non-refundable grants through a grant scheme worth EUR 650,000 as Component II of the project. The tender was published on 2 November 2006 and was open until 2 January 2007. The general objective of the tender Local Partnerships for Employment Phase 2 was to promote access to employment (including self-employment) within local labour markets in eight Croatian counties. Financing agreements were signed for the following 10 projects: 1. Partnership for Scholarships The main applicant: Karlovac County Entrepreneurship Centre Ltd; Partners: CES Karlovac, Karlovac County, the Town of Karlovac and Moj posao web portal. 2. Next Step Social Co-operative The main applicant: Korak Womens Group, Karlovac; Partners: CES Karlovac and Sveti Antun Home for the Elderly and Infirm, Karlovac. 3. Info Point for Entrepreneurs and Unemployed The main applicant: the Town of Senj; Partners: the Town of Senj Entrepreneurship Centre and the Craftsmens Association of the Town of Senj. 4. SPONA The main applicant: Pakrac Entrepreneurship Centre; Partners: Croatian Institute for Local Self-government and the Town of Pakrac. 5. Training in CNC Metal Processing The main applicant: the Town of Nova Gradika; Partners: Nova Gradika Industrial School, CES Slavonski Brod. 6. YIPPEE (Integration of Young People from Pleternica to Boost the Economy and Reduce Unemployment) The main applicant: the Town of Pleternica; Partners: CES Poega and the Craftsmens Association of Poega. 7. Lifelong Learning in the Area of Insurance and Management The main applicant: IVORA, IT School, Slavonski Brod; Partners: CES Slavonski Brod, the Croatian Chamber of Commerce and Generali osiguranje (Generali Insurance). 8. Ricochet The main applicant: PRONI Centre for Social Education; Partners: CES Vukovar, CES Vinkovci, the Vinkovci Chamber of Trades and Crafts, Vinkovci Technical College. 9. With Knowledge to Work The main applicant: Organisation for Civil Initiatives; Partners: Zvonimir Association, the Town of Drni. 10. Developing a Support System for the ibenik-Knin County Labour Market The main applicant: the Chamber of Trades and Crafts of ibenik-Knin County; Partners: CES ibenik, Libar Open Universities in ibenik and Knin. The implementation of projects under the CARDS 2004 Grant Scheme ended on 30 June 2008. All projects were successully completed and final reports on implementation of project activities will be submitted by the end of 2008.
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3. PHARE 2005 active employment measures for groups threatened by social exclusion The goal of the project is to strengthen the economic and social cohesion of the most vulnerable groups in Croatian society by increasing their employment opportunities through the use of active employment policy measures tailored to suit their needs. This project is expected to deliver: thorough evaluation of existing measures to stimulate employment; conception of a new cycle of measures that will only include previous measures found to be effective; improvement in the level of staff expertise in creating and implementing an active employment policy; raising employment levels of groups threatened by social exclusion.
The following activities were carried out during 2008: COMPONENT 1 Evaluation of measures Work Group 1 (WG1) was formed, consisting of representatives of four selected regional services (Zagreb, akovec, Osijek and ibenik) and social partners; members of the Work Group prepared a research plan for evaluating measures (agreement was reached on methodology and research tools); after carrying out research with the participation of clients benefiting from the measures implemented by the Croatian Employment Service, Work Group 1 produced the first draft of the Evaluation Research in conjunction with Technical Assistance; the main results of the Evaluation Research were presented to representatives of all CES regional services and their stakeholders in regional workshops; the results of the research were presented to labour market experts outside the CES and to the Steering Committee of the project; after receiving feedback, the final version of the Evaluation Research was produced.
COMPONENT 2 Writing recommendations Work Group 2 (WG2) was formed, consisting of representatives of four selected regional services (Zagreb, akovec, Osijek and ibenik) and social partners; the Summary of Co-operation between the Croatian Employment Service and local stakeholders was produced; on the basis of the evaluation report, Work Group 2 produced the first draft of recommendations for new, active labour market policy measures, in conjunction with Technical Assistance; after receiving feedback from regional workshops at which the first draft of the recommendations was presented, along with the Summary of Co-operation, the final version of the recommendations was produced. COMPONENT 3 Capacity strengthening training was held for CES employees on managing grants; training was held for CES employees on managing the project cycle and designing and planning active labour market policy measures (Module 1); training was held for CES employees on evaluating and monitoring active labour market policy measures (Module 2); training was held for CES advisors on working with the most vulnerable groups; a draft proposal on setting up a system for monitoring active labour market policy measures is being prepared.
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COMPONENT 4 Grant management (to the amount of EUR 1,000,000) eleven projects have been agreed upon, concerned with the employment of the most vulnerable groups in the Croatian labour market; a Compendium of Results of the agreed projects is in preparation.
4. Instrument for pre-accession assistance (ipa) The Department for Project Implementation has prepared project documentation for eight projects within the framework of the Instrument for Pre-accession Assistance (IPA). As part of IPA Component I Transition Assistance and Institution Building, project documentation has been prepared for the project entitled Croatian Employment Service Labour Market Academy. Human Resources Development is the fourth IPA component, and consists of six projects for which project documentation has also been prepared: 1. Local partnerships for employment Phase 3 2. Improving lifelong career guidance 3. Improvement of CES services for clients 4. Youth in the labour market 5. Fostering effective inclusion of disabled persons in the labour market 6. Women in the labour market As part of the IPA 2007 Technical Assistance Programme, documentation has been prepared for the project entitled Preparing the Croatian Employment Service for EURES. B) KEY PRIORITIES Regarding the administrative capacity building of the Croatian Employment Service (CES), in 2009 the vacancies defined by the amended Ordinance on the internal organisation and job classification with job complexity coefficients will be filled in the Department for Project Implementation, as required. This will be done in both the Central Service and regional services. The implementation of projects under the IPA Programme is planned for 2009, in particular, Local Partnerships for Employment Phase 3, Fostering Effective Inclusion of Persons with Disabilities in the Labour Market and Youth in the Labour Market. In the period between 2009 and 2012, the Croatian Employment Service will participate in the implementation of projects under the IPA Programme, for which project documentation was prepared during 2008 in line with the Operational Programme for Human Resources Development.
3. DEPARTMENT FOR FINANCING AND CONTRACTING EUROPEAN UNION PROJECTS
1. Activities undertaken in 2008 During 2008, the Operational Structure for Implementation of IPA Component IV was established. The European Commissions Directorate General for Employment, Social Affairs and Equal Opportunities carried out a revision of all institutions involved in the Operational Structure. The process of transferring management powers (accreditation) from the European Commission to the
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Operational Structure for Implementation of IPA Component IV is in the final stage. The adoption of the European Commissions decision on management power transfer and the signing of a Financing Agreement are expected to occur by the end of the year. Within the framework of IPA Programme Component IV, the basic functions of the Department for Financing and Contracting European Union Projects are as follows: preparing and implementing tenders; concluding contracts on grants and the supply of services and goods; making payments to contractors; managing the system for financial monitoring of project implementation and financial flows; organising training on project preparation and implementation; and co-operation with the Ministry of the Economy, Labour and Entrepreneurship, the Delegation of the European Commission in the Republic of Croatia, and other institutions regarding the activities from its scope of work. In view of the results of the 2008 Workload Analysis, 17 staff members have been hired at the Department for Contracting and Financing European Union Projects, and in this way the 2008 Recruitment Plan has been fully complied with. The Department is responsible for financing and contracting projects within Priority Axis 1, Measure 2.1 under Priority Axis 2 and Priority Axis 4 of IPA Programme Component IV. The implementing subjects for these projects are the Croatian Employment Service, the Ministry of Health and Social Welfare and the Ministry of the Economy, Labour and Entrepreneurship, as follows: Priority Axis 1: Enhancing access to employment and sustainable inclusion in the labour market Measure 1.1: Supporting the design and implementation of active and preventative labour market policy. 1. Local employment partnerships - phase 3 Measure 1.2: Supporting the effectiveness and quality of Croatias public employment services 2. Improving lifelong career guidance 3. Improvement of CES services for clients Priority Axis 2: Reinforcing social inclusion of people at a disadvantage Measure 2.1: Supporting access to employment by disadvantaged groups 4. Fostering effective inclusion of disabled persons in the labour market 5. Establishing a support network for social integration and employment of vulnerable and marginalised groups 6. Women in the labour market 7. Youth in the labour market Priority Axis 4: Technical assistance 8. Operational Programme management and capacity building By September, tenders for the purchase of services for the projects Local partnerships for employment Phase 3 and Fostering effective inclusion of disabled persons in the labour market had been announced on the Departments website. By the end of the year, it is planned to announce tenders for the award of contracts as part of the projects Youth in the labour market, Improving lifelong career guidance and Improvement of CES services for clients, and to invite tenders for the purchase of services for the projects Local partnerships for employment phase 3 and Fostering effective inclusion of disabled persons in the labour market. B) KEY PRIORITIES In 2009, it is planned to complete tender procedures for the award of contracts under all projects falling within the competence of the Department for Financing and Contracting European Union Projects, and to begin implementation of contracts under the projects Local partnerships for employment phase 3, Improvement of CES services for clients, Fostering effective inclusion
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of disabled persons in the labour market, Youth in the labour market and Operational Programme management and capacity building. In line with the activities planned for 2009, the following funds have been provided in the 2009 budget of the Croatian Employment Service:
FUNDS PLANNED FOR 2009 (HRK) PRIORITY AXIS EUROPEAN COMMISSION FUNDS (IPA)
11,796,650 4,528,800 5,576,085 21,901,535
NATIONAL CO-FINANCING
2,899,750 799,200 984,015 4,682,965
TOTAL
14,696,400 5,328,000 6,560,100 26,584,500
Priority Axis 1 Priority Axis 2 (Measure 2.1) Priority Axis 4 TOTAL
The contracting, financing and implementing of contracts under IPA Programme Component IV are planned for the period 20092012.
EUROPEAN SOCIAL FUND Pursuant to the Framework Agreement signed on 27 August 2007 and the Operational Programme for Human Resources Development approved by the Croatian Government in its conclusion of 27 September 2007, the operational structure for implementing IPA Component IV was established. The operational structure consists of five institutions. Pursuant to the Croatian Governments Regulation on the scope and content of the responsibilities and authorisation of the bodies responsible for management of the Instrument for Pre-Accession Assistance (OG 34/08) of March 2008, the management of Component IV Human Resources Development was entrusted to the Ministry of the Economy, Labour and Entrepreneurship (MELE), which is at the same time the line ministry for Priority Axes I and IV of the Operational Programme for Human Resources Development. Under the Regulation on the internal organisation of the above-mentioned Ministry, adopted by the Croatian Government on 27 March 2008, a new Directorate for International Co-operation in the Field of Labour and Social Security was established. This will perform the tasks of the body responsible for the Operational Programme and the body responsible for priorities/measures. In accordance with the new Regulation on the internal organisation of the Ministry, two departments have been established within this Directorate. These are the Department for International Co-operation and European Integration (5 civil servants) and the Department for the Preparation and Implementation of European Union Programmes and Projects (14 civil servants), which will carry out management and implementation tasks for IPA Programme Component IV Human Resources Development. This Department currently employs nine civil servants. However, due to problems related to lack of premises, which will be solved by the end of March 2009, it will not be possible to issue a new announcement of vacancies at the beginning of 2009.
3.19.5. Social inclusion

A) ACHIEVEMENTS IN 2008 An important activity involving co-operation with the European Commission in the area of employment and social inclusion under the European Unions Pre-accession Partnership for Croatia was the preparation of the Joint Inclusion Memorandum (JIM), which was signed on 5 March 2007.
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The Joint Inclusion Memorandum is basically intended to encourage all stakeholders state administration bodies, local and regional self-government units, social partners, the civil society, scientific and professional institutions, social welfare institutions, the media, and other parties to take part in the active fight against poverty and social exclusion. With the aim of monitoring implementation of the Joint Inclusion Memorandum, the Ministry of Health and Social Welfare will submit annual informative reports on its implementation to the Croatian Government. On 28 July 2008, the Croatian Government held a telephone session at which it decided to accept the Implementation Report on the Joint Inclusion Memorandum between the Croatian Government and the European Commission for the period March 2007June 2008. In accordance with the signed Joint Inclusion Memorandum, the Croatian Government agreed to submit a report on the implementation of the JIM to the European Commission and partners by the summer of 2008. The Report contains priorities and measures from Chapters 4 and 8 of the JIM, as well as future strategic measures to be taken in the area of social inclusion and combating poverty during the period 2008 to 2010, and also contains indicators delivered to the Ministry of Health and Social Welfare, as the co-ordinating body, by all implementers of the measures concerned. The Ministry of Health and Social Welfare, as the body responsible for co-ordinating implementation of the Joint Inclusion Memorandum, appointed a working group to draw up a plan for the implementation of measures and co-ordination of activities under the Joint Memorandum. It also appointed the JIM Implementation Commission, which is charged with monitoring the achievement of goals, tasks and activities contained in the implementation plan, identifying problems which occur during the process of implementation, and proposing measures for eliminating the risks and difficulties identified. The working group has drawn up a proposal for the National Implementation Plan for Social Inclusion (20072008). On 11 March 2008, a second conference was held with the goal of monitoring the process of realising the measures in the National Implementation Plan. B) KEY PRIORITIES By the summer of 2009, the Croatian Government will submit its second report on the implementation of the JIM to the European Commission. One of the measures planned under the National Implementation Plan for Social Inclusion (20072008), based on a priority of the Joint Inclusion Memorandum of Social Inclusion, is to expand the network of social services, develop the system of non-institutional services, and improve access to social services by children, older persons and persons with disabilities. The measure primarily aims at promoting the implementation of the Deinstitutionalisation Plan for children and adults with disabilities, among others. The Deinstitutionalisation Plan is divided into four phases. Phase 1 (20072008) comprises activities on preventing institutionalisation and supporting families so as to prevent the separation of family members; mapping an alternative network of county services; analysing the individual needs of beneficiaries and preparing them to leave institutions; plans for transforming social welfare homes; and drafting and adopting legal regulations important to this process. Since the Deinstitutionalisation Plan is divided into four phases, the remaining three phases will be carried out during the period 2009 to 2018 and beyond, as follows: Phase 2 is planned for the period 20092012. Analysis of the individual needs of beneficiaries and preparing them to leave institutions will continue, methodological centres and support services will be set up, housing will be provided and conditions for life outside institutions created, etc. Phase 3 from 2013 to 2017. Activities aimed at creating conditions in the local community (housing, support system) for life outside institutions will continue. Phase 4 from 2018 onwards. A period of assessing the quality of services and the financial efficiency of the system.
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3.19.6. Social security

PENSIONERS Within the framework of the compulsory pension insurance scheme based on intergenerational solidarity, amendments to the Pension Insurance Act had already been made in 2007. These amendments entered into force on 1 January 2008, and provided for an increase in early retirement and disability pensions, and also minimum pensions, by changing the methods for their calculation. This was done in order to improve the material position of pensioners and to improve the ratio between the average pension and the average salary. From the beginning of 2008, the Act on Supplements to Pensions Awarded under the Pension Insurance Act has been in force, thus significantly improving the material status of so-called new pensioners. In addition, the level of pensions awarded for equal lengths of pensionable periods has been standardised for all those who became eligible for pensions according to the regulations in force both before and after the pension reform was initiated. Furthermore, special regulations (the Act on Amendments to the Trades and Crafts Act and the Contributions Act) created certain preconditions for increasing the inclusion of younger pensioners in paid employment, i.e. extending their working lives. In the area of pension insurance based on individual capitalised savings, in 2007 certain legislative amendments were implemented with the aim of transposing the acquis communautaire in relation to pension fund business operations, regulating more precisely supplementary pension systems (voluntary closed pension funds), and removing all forms of discrimination against EU citizens. In 2008, the Pension Insurance Act was once again amended for the purposes of alignment with the acquis communautaire to enable part-time workers to have the same access to pension insurance rights as full-time workers (alignment with Council Directive 97/81/EC of 15 December 1997 on the framework agreement on part-time work concluded by UNICE, CEEP and the ETUC). HEALTH SYSTEM The Republic of Croatia will continue implementing the National Health Strategy 20062011 (OG 72/06), whose basic goal is to improve the health care system by 2011 so that it can meet the requirements for high-quality medical care based on the principles of evidence-based medicine. This includes prevention of diseases, prevention of occupational diseases, health education, early detection of the risk of disease, medical treatment and patient rehabilitation. On the basis of the National Strategy, in 2008 amendments were made to the Compulsory Health Insurance Act, the Pharmacy Act and the Occupational Health and Safety Insurance Act, and the Personal Identification Number Act was adopted. So far, the Republic of Croatia has made arrangements for the use of the European Health Insurance Card with three EU Member States (Slovenia, the Czech Republic and Hungary). The European Health Insurance Card replaces existing forms and entitles insured persons from these countries to receive direct health care at health establishments and private clinics which have a contract with the Croatian Institute for Health Insurance, to the extent defined in the respective bilateral agreement. PERSONS WITH DISABILITIES The Ordinance on the accessibility sign has been issued (OG 78/08). On the basis of the National Strategy of Uniform Policies for Persons with Disabilities 20072015, which aims to promote independence, freedom of choice and quality of life for persons with disabilities by respecting the basic principles and strategic goals embodied in international documents, the Ministry of the Family, Veterans Affairs and Intergenerational Solidarity drew up a consolidated 2007 Implementation Report on the National Strategy of Uniform Policies for Persons with Disabilities 20072015, and the Croatian Government accepted this Report at its session of 30 June 2008.
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The competent authorities for the measures of the National Strategy are the Government Commission for Persons with Disabilities, the Ministry of Finance, the Ministry of Culture, the Ministry of the Economy, Labour and Entrepreneurship, the Ministry of the Sea, Transport and Infrastructure, the Ministry of Justice, the Ministry of Science, Education and Sports, the Ministry of Health and Social Welfare, the Ministry of Environmental Protection, Physical Planning and Construction, the Agency for Education, the Ministry of Foreign Affairs and European Integration, the Office for NGOs, the Croatian Employment Service, the Croatian Institute for Health Insurance, the Croatian Pension Insurance Institute, the Croatian Public Health Institute, and the Central Bureau of Statistics. In all these bodies, officers (about 80) have been appointed with the task of co-ordinating the implementation of measures. It should be noted that the implementation process is also being facilitated by the media and scientific institutions, e.g. the University of Zagreb Faculty of Education and Rehabilitation, the Faculty of Law Study Centre for Social Work, Zagreb, the Faculty of Political Sciences, the Croatian Journalists Association (about 10 persons), as well as local government and self-government units, through 21 county departments for health, labour and social welfare, and 126 administrative departments for social activities, working on improving the quality of life of persons with disabilities. The Ministry of the Family, Veterans Affairs and Intergenerational Solidarity signed co-operation agreements with representatives of 28 Croatian towns, 1 municipality and 5 counties regarding projects for ensuring access to public facilities by individuals with disabilities, and allocated HRK 7,389,207.46 for the implementation of these projects in the period 20052008. To enable people with disabilities to exercise their rights more effectively, the Croatian Parliament adopted the Act on the Ombudsman for Persons with Disabilities (OG 107/07), which entered into force on 1 January 2008. On the basis of this Act, in May 2008, the Croatian Parliament appointed the Ombudsman for Persons with Disabilities. A total of HRK 2,500,000.00 was provided in the 2008 State Budget for the work of the Office of the Ombudsman for Persons with Disabilities, and it is planned to employ nine staff members in the Office. B) KEY PRIORITIES Developments in the pension insurance system will be monitored further and measures taken with a view to improving the fiscal and social sustainability of the system and halting adverse trends in accordance with the countrys economic capacities. As part of these measures, discussions will be held on how to provide sustainable funding for minimum pensions and whether it will be possible to grant these pensions on the basis of revised income and means tests. In this connection, the criteria for determining the minimum pension will be defined and built into the legal framework. Since 2009 will be the year in which pension benefits will be calculated on the basis of wages received during the entire working life for the first time, longer working lives and later retirement are expected. In accordance with demographic trends, the need to raise the age limit for the acquisition of the right to an old-age pension will be considered. Trends in the ratio between the average pension and the average salary will be regularly observed and appropriate measures taken aimed at further raising average pension benefits in accordance with the countrys economic capacities, thus improving the standard of living of Croatian pensioners. In addition, trends will be monitored in the pension insurance scheme based on individual capitalised savings, as will the application of laws governing this area. The purpose of this is to assess whether it will be necessary to upgrade the scheme and adapt it to new social and economic developments in the country. Within the open co-ordination model (to be joined by Croatia upon accession), and in line with the Lisbon Strategy, preparations will be made for further reporting on the status of the pension system and trends in this system according to defined methodology. In the area of social protection, the Republic of Croatia continues implementing the National Health Strategy 20062011 (OG 72/06), the strategic goals of which are the reform of the health care system, reform of the health care financing system and reform of the public health system.
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3.19.7. Anti-discrimination and equal opportunities

ANTI-DISCRIMINATION
A) ACHIEVEMENTS IN 2008 When it comes to human rights protection and promotion, it should be mentioned that in November 2007 the Croatian Government adopted the National Programme for the Protection and Promotion of Human Rights 20082011, and in September 2008 the National Anti-discrimination Plan 20082009 and the Action Plan for the Implementation of the National Plan. In addition, in July 2008, a single Anti-discrimination Act was adopted, which defines and sanctions all types of discrimination. With the adoption of this Act, the requirements laid down in Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin, Directive 2004/113/EC implementing the principle of equal treatment between men and women in the access to and supply of goods and services, and Directive 97/80/EC on the burden of proof in cases of discrimination based on sex were fully implemented. Furthermore, this Act extended the jurisdiction of the Ombudsman as an independent umbrella body responsible for equality, and created the normative preconditions for the strengthening of the Office as an umbrella, independent anti-discrimination body. In this way, the normative framework was created for the protection of human rights and suppression of discrimination. This Act provides for the protection and promotion of equality, and guarantees protection from discrimination on the grounds of race or ethnic affiliation or colour, gender, language, religion, political or other beliefs, national or social origin, property, trade union membership, education, social status, marital or family status, age, health condition, disability, genetic heritage, native identity, expression or sexual orientation. The provisions of Article 8 of the Anti-discrimination Act sanction discrimination not only in the areas of education, science and sports, social security, health protection, the judiciary and administration, housing, public information and the media, access to goods and services and their provision, membership of and activities in trade unions, civil society organisations, political parties or any other organisations, and participation in cultural and artistic creation, but also in the area of work and working conditions, including access to self-employment activities and occupations, including selection criteria, recruiting and promotion conditions, and access to all types of vocational guidance, vocational training, professional development and retraining. The forms of discrimination defined in the Act are in accordance with the forms of discrimination cited in the relevant directives (direct and indirect discrimination, harassment, encouragement to discrimination and sexual harassment), to which segregation has also been added. The Anti-discrimination Act will enter into force on 1 January 2009. B) KEY PRIORITIES Under the Action Plan for the Implementation of the National Anti-discrimination Plan 20082009, the following activities are planned for 2009: holding expert meetings and seminars on eliminating stereotypes and prejudices against national minorities in the context of the Constitutional Act on the Rights of National Minorities and the process of accession to the European Union; informing the public about the documents on the protection and methods for enforcing the individual rights of the most vulnerable social groups; organising a round table on the suppression of discrimination; organising a round table on the protection of human rights in relation to discrimination; organising two training workshops on the provisions of the Anti-discrimination Act;
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organising seminars on the influence of discrimination on human rights. The following activities are planned within the framework of implementation of the Anti-discrimination Act: public presentation of the Act (leaflets, brochures, round tables, media presentations and campaigns, workshops, internet presentations, promotional videos, etc.)
As regards professional training for experts in judicial bodies, the Judicial Academy has not organised any specialist training for judicial officers which would be exclusively focused on Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services. The Programme Council of the Judicial Academy will include in its 2009 Annual Programme all the obligations incumbent on it under national strategies and action plans relating to training for judicial officials and employees. EQUAL OPPORTUNITIES
A) ACHIEVEMENTS IN 2008 With a view to promoting the principle of gender equality, in July 2008 the Croatian Parliament adopted the Gender Equality Act. The Act provides for the establishment of an independent body responsible for suppressing discrimination in the area of gender equality on the basis of the obligations arising from the acquis communautaire, laid down in Directive 2002/73/EC amending Council Directive 76/207/EEC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions, Directive 2006/54/EC on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (supplementing and replacing Directives 76/207/EEC, 86/378/EEC, 75/117/EEC, 97/80/EEC), and Directive 2004/113/EC implementing the principle of equal treatment between men and women in the access to and supply of goods and services. The arrangements contained in the new Act are such that the regulations governing the scope of work of the Ombudsman for Gender Equality have been completely aligned with the acquis, as the activities of the office now include all the functions of an independent body for gender equality in line with the requirements of the said directives. In the area of pension insurance, the Act on Amendments to the Act on Entitlement to Pension Insurance of Active Military Personnel, Police Officers and Authorised Officials was adopted by the Croatian Parliament in March 2008. This Act provides for special arrangements for the exercise of compulsory pension insurance rights under the compulsory pension insurance (inter-generational solidarity) scheme, in that it prescribes the same age and length of service requirements for entitlement to old-age pensions and early retirement pensions for men and women. In this way, full alignment has been achieved with the acquis communautaire in this area, i.e. with Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security. To align national legislation with Council Directive 96/34/EC of 3 June 1996 on the framework agreement on parental leave, the Act on Maternity and Parental Benefits (OG 85/08) was adopted, and will enter into force on 1 January 2009. The Act on Maternity and Parental Benefits lays down the basic rights of employed, self-employed and unemployed mothers/parents, including the right to maternity leave and benefits prescribed by the Labour Act and the Act on Maternity Leave for Self-Employed and Unemployed Mothers, and completely new procedures for using these rights and the right to adoption leave. In addition, the relevant measures from the National Population Policy and arrangements from European Union regulations have been fully incorporated into this Act. In the area of pension insurance, the Act on Amendments to the Act on Entitlement to Pension Insurance of Active Military Personnel, Police Officers and Authorised Officials has been adopted (OG 41/08). This Act provides for special arrangements for the exercise of compulsory pension insurance rights under the compulsory pension insurance (inter-generational solidarity) scheme, in that it prescribes the same age and length of service requirements for entitlement to old-age pensions and early retirement pensions for men and women. In this way, full alignment has been achieved with the acquis communautaire in this area.
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3.20. ENTERPRISE AND INDUSTRIAL POLICY 3.20.1. Enterprise

A) ACHIEVEMENTS IN 2008 Based on the financial reports of entrepreneurs for the period January June 2008, the following operating results were achieved in small enterprises:
Size
Number of entrepreneurs
Structure as a %
Income from sales abroad
Structure as a %
Total income
Structure as a %
Average number of employees based on the situation at the end of the quarter 438,406 185,382 326,482 950,270
Structure as a %
Value of achieved investments in noncurrent assets
Structure as a %
Micro and small Medium Large All sizes
80,987 1,629 488 83,104
97.45 1.96 0.59 100.00
8.79 9.26 23.99 42.04
20.90 22.03 57.07 100.00
109.89 63.79 149.31 322.99
34.02 19.75 46.23 100.00
46.13 19.51 34.36 100.00
11.59 4.62 16.63 32.84
35.30 14.07 50.63 100.00
Source: Financial Agency amounts in HRK million
The number of crafts in September 2008 was 102,774 (source: Crafts Register of the Republic of Croatia), and the number of persons employed in the craft sector was 161,580 (source: Croatian Pension Insurance Institute). The Government of the Republic of Croatia adopted the Programme of Incentives for Small and Medium-sized Enterprises for the period 20082012, which continues to create favourable conditions for the growth and development of entrepreneurship. The key objectives of the Programme are: strengthening the competitiveness of enterprises, uniform regional development, enhancing the quality of entrepreneurial infrastructure, reducing administrative obstacles, further strengthening the entrepreneurial climate in society, and the advancement of Internet business operations and e-business services. Programme guidelines for promoting small and medium-sized enterprises in the mid-term period 20082012 are based on the good progress that has been achieved in developing an entrepreneurial environment and successfully implementing a system of incentives. Croatia has been particularly well evaluated with regard to the implementation of the European Charter for Small Enterprises. Given these good results and the achieved level of SME development in terms of sector structure, business type and sources for growth, it has been deemed that additional economic measures and instruments are required. This particularly refers to: access to sources of financing in the context of a relatively well developed, healthy and solvent banking sector; the inclusion of SMEs in other financial market forms; the use of the Internet for e-commerce and e-business; sectors with significant growth opportunities, including entrepreneurship oriented towards new technologies; and linking up with research and development enterprises and the academic community. However, relatively low productivity has been recorded in the small and medium-sized enterprise sector, while the quality of products is not sufficient for EU and wider competitiveness. In addition, the commercialisation of innovation is rather difficult, and orientation towards exporting is relatively low. There are also significant differences in entrepreneurial activities, and the concentration of enterprises in larger regional centres, and areas gravitating towards them, is quite pronounced.
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Implementation of the Government Programme of Incentives for Small and Medium-Sized Enterprises for the period 20082012 is defined in the Operational Plan of Incentives for SMEs, which is being fully implemented. The Operational Plan specifies projects and measures aimed at strengthening competitiveness by introducing new technologies, entrepreneurial marketing activities, a quality assurance system, the promotion of innovation, education for entrepreneurs in entrepreneurship, the development of traditional and arts-based craft businesses, incentives for women and younger people in entrepreneurship, and activities aimed at strengthening the entrepreneurial environment and entrepreneurial culture. The Operational Plan of Incentives for SMEs for 200822 was adopted by the Conclusion of the Government of the Republic of Croatia of 2 May 2008, and its implementation is underway. Pursuant to the key objectives for the development of small and medium-sized enterprises, the Operational Plan specifies incentive measures and the beneficiaries of funds and aid allocation. State aid referred to in the Operational Plan is of low value. In order to achieve balanced regional development and to define the criteria for implementing the measures that are components of the Operational Plan, wherever justified and possible, the bodies in charge of implementation measures will introduce selective evaluation, granting additional points or other incentive mechanisms for projects and activities carried out in areas of special state concern (highland/mountain regions, islands, etc.).
OPERATIONAL PLAN OF INCENTIVES FOR SME IN 2008
COMPETITIVENESS AND INNOVATIONS Croatian Export Offensive (HIO) EDUCATION FOR ENTREPRENEURSHIP PROMOTING REGIONAL COMPETITIVENESS PROMOTING CRAFTS DEVELOPMENT
Enterprise Promotion
Crafts Register
Croatian Agency for small business (HAMAG)
ACTIVITIES
The response of entrepreneurs to public calls for applications for 13 SME incentive projects surpassed all expectations. An overall number of 11,322 requests were submitted, a 62% increase compared with 2007, when 6,970 requests were submitted. The entrepreneurs were mostly interested in the Strengthening Small Business Competitiveness project, for which an overall number of 5,842 requests were received, and also the Entrepreneurship for Women and Target Groups project, for which a total number of 2,452 requests were received. All applications were processed and commissions convened for the majority of projects.
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Passed as part of the Small Business Development Promotion Act (OG 29/02), its amendments (OG 63/07) and the State Aid Act (OG 140/05)
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The following activities for promoting small and medium-sized enterprises should be highlighted: After completing the Feasibility Study in 2008, activities started aimed at establishing a Regional Centre for Life-long Entrepreneurial Education for South East European countries. A pilot project entitled Childrens entrepreneurship week is held in Bjelovar, Pula, Knin, Virovitica and Zagreb. The aim of the programme is to develop skills and knowledge about entrepreneurship through educational games and to encourage entrepreneurial spirit in children in primary school. Recognising the importance and necessity of education and training in entrepreneurship in the form of lifelong learning, the Ministry of the Economy, Labour and Entrepreneurship, as part of the Education in Entrepreneurship Project (part of the Operational Plan of Incentives for SMEs for 2008), gives entrepreneurs the opportunity to obtain support for the co-financing of a specialist course of study entitled Strategic Entrepreneurship, which they can attend at the Faculty of Economics and Business in Zagreb or the Faculty of Economics and Business in Osijek. The Unity through Knowledge Fund has issued a call for proposals for its Research in Industry (3C) grants. The grants will be used to co-finance salaries for talented young scientists and professionals at post-doctorate level who want to participate in innovative projects in Croatian industry. The grants are aimed at Croatian companies that wish to attract young PhDs to their research and development projects. At BICRO d.o.o., an Agreement was signed to finance the establishment of the Science and Technology Park Rijeka (STeP Ri) as part of the new university campus in Trsat. The aim of the SteP Ri project is to stimulate the development, protection and commercialisation of scientific and technological innovation at the University of Rijeka, and to provide support to successful scientists, innovators and students. Users of the Park will be able to use the specialised facilities, so-called high-tech incubators, including biotechnological and other laboratories. The Park will have joint facilities the purpose of which is to promote a culture of science and innovation. A business angels network project, which is called CRANE (Croatian Angels Network), started in co-operation with BICRO the Business Innovation Centre of Croatia, Ruer Innovations and the Croatian Bank for Reconstruction and Development, under the auspices of the Ministry of the Economy, Labour and Entrepreneurship. The prime mover of the project is the Trade and Investment Promotion Agency in co-operation with Poteza Ventures, an association of the web start-up company Initium, the Croatian Venture Capital Association and business angels, i.e. successful entrepreneurs. Micro-crediting projects and the Regional Guarantee Instruments pilot project continued in 2008. These projects, aimed at facilitating the financing of SMEs, are implemented at county level. Regional Guarantee Funds have been set up and Regional Development Agencies have been included in implementation activities. The drafting of the Development Strategy for Womens Entrepreneurship until 2010 has commenced. The project manager is the MELE, and the following bodies are participating in its drafting: the Ministry of Family, War Veterans and Intergenerational Solidarity, the Association of Women Entrepreneurs and Women Managers KRUG, the CCE, HOK, HUP and the Government Office for Gender Equality. The Republic of Croatia began participating in the CIP Programme (Competitiveness and Innovation Framework) during October 2007, becoming a full member in April 2008. In September 2008, a Conference on the Entrepreneurship and Innovation Programme was organised. After becoming a full member of the CIP, Croatia took the opportunity to participate in the EEN (Enterprise Europe Network). The project is managed by the Croatian Chamber of Economy in co-operation with BICRO, HIT, the County Chambers of Osijek, Rijeka, Split and Varadin, the PORIN Regional Development Agency in Rijeka, the Office for Technology Transfer in Split, Varadin Technology Park, and the Technology and Development Centre in Osijek. BICRO is the co-competent authority for EIC/ IRC (Euro Info Centre/Innovation Relay Centre) project activities. The MELE is the co-ordinator for the EIP (Entrepreneurship and Innovation Programme), and the Central State Administrative Office for e-Croatia co-ordinates the CIP-ICT Programme. The Croatian SME Forum has been established and consists of representatives, stakeholders and entrepreneurs from all over Croatia. The Forum deals with all issues in the development of SMEs, and in 2008 4 meetings and discussions were held on topics of interest
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for small businesses. The Forum is one of the results of the implementation of the Phare 2005 project: Capacity Building of the SME Support Structure and Alignment of Policy and Actions to the SME Charter and acquis communautaire (SME Policy Enhancement and Delivery SMEPED). B) KEY PRIORITIES In 2009, the system of incentives to small and medium-sized enterprises will be implemented in line with the Operational Plan according to the programme development goals as follows:
Area
Implementation measures
National Entrepreneurship Education Programme project in formal and informal education
Lifelong learning in entrepreneurship
Electronic business training Monitoring Education of exporters Applying new technologies and technological processes Product environmental protection Innovation and new products Introducing EU standards Association of economic operators (CLUSTERS)
Competitiveness and innovation
Croatian Export Offensive, the HIO Project Connecting SMEs and R&D Promotion of energy entrepreneurship Financial instruments for developing entrepreneurial competitiveness Marketing and advertising Co-ordination of activities aimed at expanding e-commerce and e-business Founding technology parks Crediting Risk fund
Improving financing in entrepreneurship Business angels Guarantees Promoting the development of the Croatian Agency for Small Businesses Improving the quality and development of business infrastructure Promoting the establishment of regional development agencies Training and consultant network development Support for the development of enterprise centres, technology parks and incubators Financial instruments for the regional development of entrepreneurship Promotion of crafts and co-operatives Social cohesion projects Promoting regional competitiveness Promotion of entrepreneurship in target groups Promotion of womens entrepreneurship Building economic zones
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Improving competitive capability the goal is to set priorities in the promotion of fast-growing activities, create development conditions for the more productive operations of entrepreneurs, increase the share of small and medium-sized enterprises and crafts that are based on high technologies, increase overall investment in small businesses, increase exports and build export clusters, promote lifelong learning in entrepreneurship and vocational training corresponding to the needs of the economy, and promote flexible forms of employment. Uniform regional development priority objectives are directed towards increasing the number of small and medium-sized entrepreneurs expressed by the average and regional TEA index (Total Entrepreneurial Activity) in favour of entrepreneurship as a choice, building economic zones, increasing the qualitative level of clusters and improving their market sustainability, increasing favourable financing of enterprises at regional level, and implementing measures for higher employment. Improving the quality of business infrastructure the aim is to achieve qualitative changes in business infrastructure and professional support for entrepreneurship through incentive measures, and to encourage centres of excellence and academic enterprises to link with small businesses. Entrepreneurial business infrastructure, comprising entrepreneurial zones, regional development agencies, entrepreneurial centres, entrepreneurial incubators and technology parks is well developed. The network of institutions covers technology and technology-innovation centres, parks and incubators, and centres of excellence. The activities of the Croatian Agency for Small Businesses will expand through the operational implementation of incentive measures, including a number of measures aimed at improving the quality of consultative services. The ongoing consultants network project will contribute to the development of the consultancy services market. In this process, it is necessary to create the preconditions for the development of a certified consultants market with specialists in certain areas/industries. Creating the model for a networked communication system between regional development agencies and centres, HAMAG and entrepreneurs, including the provision of e-services and improved co-operation with related agencies, represents a condition for standardising the quality of professional and consultative assistance to entrepreneurs. Reducing administrative obstacles e-projects will continue, while activities providing for the comprehensive removal of administrative obstacles at all stages of entrepreneurial projects and businesses will be advanced in accordance with the principles of the European Charter for Small Enterprises. The supervision and monitoring of the state aid system, supported by information systems and programmes, will enable the linking of bodies responsible for aid to small businesses, improve co-ordination, reduce entrepreneurs costs in accessing state and public administration services, and allow greater transparency of information. Strengthening the entrepreneurial climate in society the entrepreneurial climate in Croatia is improving all the time and there are more and more entrepreneurs who are starting a business on account of favourable opportunities rather than out of necessity. Certain analyses of entrepreneurship show that there is no shortage of entrepreneurial ideas and interest in Croatia, or of the belief that new business ideas can serve both public and private interests. Measures will include the promotion of entrepreneurship and the development of the entrepreneurial climate through co-financing sponsorship activities, awards and recognitions, and small business promotion projects. Public promotion of entrepreneurship through different media, the organisation of round-table discussions, meetings and presentations, and participation in conferences and fairs, etc will continue, and activities where participants deal with issues concerning socially-responsible entrepreneurship will be reinforced. Internetisation and electronic business the further development of electronic business operations in Croatia, as one of the factors for improving the competitiveness of the Croatian economy, has been defined in the Strategy for the Development of Electronic Business in the Republic of Croatia for the period 20072010. The Strategy is oriented towards developing infrastructure to ensure the safety of electronic transactions in the economic sector, having a positive impact on the speeding-up of business processes, and bringing about cost reductions. Implementation measures from the Strategy include incentives for small and medium-sized enterprises, from consultancy services and training to co-financing public web portals with the information necessary for electronic business operations. Measures also include support for the training of electronic business consultants as part of HAMAGs activities. EU projects for SMEs The pre-accession assistance programmes (CARDS, PHARE, IPA) envisage support funds for small and medium-sized enterprises (see Annex B).
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3.20.2. Industrial policy

A) ACHIEVEMENTS IN 2008 On 4 October 2007, the Government of the Republic of Croatia adopted a document entitled Industrial Policy of the Republic of Croatia in Preparation for Accession to the EU. The document defines the fundamental principles and common goals of the industrial policy of the Republic of Croatia in the period 20082013. Following the opinion of the European Commission, on 18 April 2008 the Government of the Republic of Croatia adopted the revised text Industrial Policy of the Republic of Croatia in Preparation for Accession to the EU. In the follow-up to the document Industrial Policy of the Republic of Croatia in Preparation for Accession to the EU, the drafting of lower level strategic documents began: Development Strategy for the Processing Industry and development strategies for individual industrial sectors. On 31 October 2008, the Government adopted the Innovation Support Programme for Shipbuilding. The adoption of this Programme created the preconditions required to allocate grants to shipbuilding in accordance with EU practice. B) KEY PRIORITIES The implementation of the Industrial Strategy, with the emphasis on particular sectors, and solving the problems of restructuring those sectors which generate losses in line with the adopted comprehensive Industrial Strategy as an umbrella document. The development of documents elaborating the implementation of the Industrial Strategy is in progress. 1. Preparation of a Development Strategy for the Processing Industry, an integral part of which will be a competitiveness analysis of particular industrial sectors. 2. Preparation of development strategies for particular sectors of the processing industry. 3. Implementation of sector development programmes, research and innovation for industry needs. Pursuant to the Industrial Strategy, the Ministry of the Economy, Labour and Entrepreneurship is responsible for implementation.
3.20.3. Industrial sectors
A) ACHIEVEMENTS IN 2008 The Government of the Republic of Croatia adopted development documents that will regulate the implementation of industrial policy by individual sector in more detail, and which are in accordance with the Industrial Policy umbrella document, which has already been adopted by the Croatian Government. 1. The Strategy for the Development of the Croatian Textile and Clothing Industry for the period 20082015, which the Croatian Government adopted on 25 October 2007. 2. Strategic Determinants for the Development of the Leather and Leather Products Manufacturing Industry for the period 20072015, which the Croatian Government adopted on 21 May 2008. 3. Strategic Determinants for the Development of the Chemical Industry in the Republic of Croatia for the period 20072015, which the Croatian Government adopted on 21 May 2008. The Operational Support Programme for the textile industry and leather and leather products manufacturing industry has been drawn up.
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B) KEY PRIORITIES The processing industry plays a significant part in the overall Croatian economy (20% of GDP and 26% of overall employment), and the drafting of the proposed Development Strategy for the Processing Industry is underway. The planned period for the adoption of the Strategy is the first quarter of 2009. It is planned to draft strategic development documents for the sectors of the processing industry in accordance with the Industrial Strategy.
3.20.3.1. Steel
A) ACHIEVEMENTS IN 2008 In line with its obligations under Article 70 of the SAA and Protocol 2 of the Agreement, on 28 February 2007, the Government of the Republic of Croatia adopted the Programme for the Restructuring of the Steel Industry in the Republic of Croatia for the period 20072011 (National Restructuring Programme). The National Restructuring Programme is primarily aimed at ensuring the long-term viability of steel mills, and increasing their profitability and competitiveness on both the national and international market without state aid. It was assessed that restructuring can be most effectively implemented through the investment of private capital. Consequently, both steelworks have been privatised. The new owner of the eljezara Split steelworks is Zlomrex S.A., Poraj, Poland, while Valjaonica cijevi Sisak was acquired by Commercial Metals International AG, Baar, Switzerland. Valjaonica cijevi Sisak continues to operate as CMC Sisak d.o.o. Both steelworks drafted new Business Plans for the period 20072011. In accordance with Protocol 2 of the SAA, the Business Plans demonstrate the long-term viability of the steelworks under normal market conditions at the end of the restructuring period. The Programme for the Restructuring of the Steel Industry in the Republic of Croatia for the period 20072011 was amended pursuant to the new Business Plans. The Croatian Government adopted the revised Restructuring Programme at its session held on 30 June 2008. The Programme was officially submitted to the European Commission on 4 July 2008. In the Croatia 2008 Progress Report, the Commission of the European Communities stated that in the case of the steel industry good progress has been achieved in the privatisation process of the two steel mills, and that provided that some minor adjustments are made, the National Restructuring Plan of the Steel Industry is acceptable in terms of Protocol 2 to the Stabilisation and Association Agreement. The Republic of Croatia implemented the required adjustments to the Programme and submitted them to the European Commission in September 2008. B) KEY PRIORITIES Continued implementation of the steel industry restructuring programme pursuant to the approved Programme for Restructuring of the Steel Industry in the Republic of Croatia for the period 20072011.
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3.20.3.2. Shipbuilding
A) ACHIEVEMENTS IN 2008 With a view to speeding up the process of privatisation of shipyards under majority state ownership, at its session on 21 May 2008 the Croatian Government adopted the Decision on the privatisation of shipyards. The Decision covers the privatisation of the following shipyards: 3. Maj, Brodosplit, Brodotrogir, Kraljevica, and Uljanik. Pursuant to the document entitled Industrial Policy of the Republic of Croatia in Preparation for Accession to the EU, the Ministry of the Economy, Labour and Entrepreneurship prepared the Programme of Support for Innovation in the Shipbuilding Industry. The Programme was approved by the Croatian Competition Agency on 27 June 2008, and the Government adopted it on 31 October 2008. The Programme complies with the obligations arising from the SAA, and is aimed at having a long-term positive effect on the shipbuilding industry and fostering innovation. See Chapter 3.8. Competition;3.8.2.3. Shipbuilding B) KEY PRIORITIES The streamlining of business operations in shipyards, including the elimination of shortcomings in the business process management, is intended to be achieved through the privatisation of shipyards. Privatisation is planned to be completed in 2009 in line with the strategic commitment of the Croatian Government. Privatisation is expected to improve the efficiency, business viability and competitiveness of Croatian shipbuilding in line with the rules of competition. 3.3.3.3. Aluminium Production TLM Tvornica lakih metala ibenik The Aluminium Production Company TLM d.d. ibenik was privatised in 2007. After the tender for the sale of 1,475,683 shares in the Company was finalised, accounting for 80.20% of the companys equity, the Croatian Government accepted the best bid from a Croatian consortium for the purchase and management of Tvornica lakih metala d.d. ibenik, and a Share Sale Agreement was concluded. TLM d.d. submitted the Restructuring and Development Programme that is currently being harmonised to the Ministry of the Economy, Labour and Entrepreneurship so as to demonstrate the long-term viability of the Company.
3.20.3.4. The wood processing industry
A) ACHIEVEMENTS IN 2008 The Operational Programme for the Development of Industrial Wood Processing in the Republic of Croatia for the period 20062010 was adopted by the Government of the Republic of Croatia at its session on 12 July 2006. Pursuant to the Operational Programme, on 5 May 2008 a tender for the award of state aid for promoting the development and sustainability of industrial wood processing in the Republic of Croatia in 2008 was announced, totalling HRK 46 million. Agreements are being signed and the Ministry of Regional Development, Forestry and Water Management is paying out the earmarked grant money to companies engaged in wood processing and use in Croatia that have met the requirements laid down in the public tender. The Operational Programme comprises development priorities that are achieved through the implementation measures and are defined by the groups of activities and relevant financial resources necessary to achieve these priorities in the Programme period: improvements to existing products,, processes and services
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research and marketing development of product quality and business processes rational use of wood raw materials investment in environmental protection efficient use of wood in final products wood sector branding new product development development and application of new materials technological development upgrading and technology transfer
B) KEY PRIORITIES In the fourth quarter of 2008, the Ministry of Regional Development, Forestry and Water Management will have sent the final proposal of the Act on the Processing and Use of Wood and Wood Products for adoption procedure, and it is expected that the Croatian Parliament will have passed the Act by the end of 2008. Pursuant to the Act, it is planned to adopt the Technical regulation for furniture and furniture parts by the end of the second quarter of 2009 at the latest. The Technical regulation for wood products will be passed subsequently under the same Act. By the end of 2009, pursuant to the Act, it is planned to pass all the ordinances necessary for the implementation of the Act. Furthermore, 2009 is the year when a design strategy for the furniture industry will be proposed, as the proposed National Design Strategy of 2007 was not adopted by the Croatian Government. Activities are planned relating to the further implementation of the Operational Programme for the Development of Industrial Wood Processing in the Republic of Croatia for the period 20062010.
3.20.4. Tourism
A) ACHIEVEMENTS IN 2008 With the Act on Amendments to the Act on the Organisation and Scope of Central State Administration Bodies (OG 5/08), which was adopted in January 2008, a separate Ministry of Tourism was established. In 2008, the sector policy measures defined in the Programme of the Government of the Republic of Croatia for the 20082011 mandate were implemented, including the measures defined in the Programme of Preparatory and Implementation Activities for the Tourism Year 2008. The implementation of a number of measures, programmes and activities aimed at achieving the set development goals has yielded good results that are reflected in a stable market position and an ongoing trend of growth in tourism trade and revenues. Although it unfolded in a climate of crisis, the tourist year 2008 will mark yet another successful year for Croatian tourism, which can be seen from the official data available so far. During the first ten months of 2008, more than 10.9 million tourists visited the Republic of Croatia, which resulted in a total of 56.3 million overnight stays, representing a growth of 1% in terms of arrivals and 2% in terms of overnight stays compared to the same
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period in 2007. Tourism revenues in the first half of 2008 totalled EUR 2.2 billion or 16% more compared to the same period in 2007. The achieved rise in tourism turnover and revenues in this year is the result of: good preparations and co-ordinated activities during the implementation of preparatory measures for the 2008 tourist season in the public and private sectors; organised, targeted promotion in all significant and tourist-generating markets; raising the standard of accommodation and other tourism capacities and supply; the affirmation of Croatia on the international tourism market as a safe and hospitable tourist destination with a high quality recognisable tourist product; raising the standard of transport infrastructure; the positive impact of legislation in the field of tourism.
With regard to the legal framework enabling the functioning of tourism and in relation to the commitment to aligning national legislation with the acquis in the part pertaining to the freedom to provide services, based on the previously passed Hospitality and Catering Industry Act (OG 138/06) and the Act on the Provision of Tourism Services (OG 68/07), all subordinate legislation (ordinances) for 2008 for the implementation of the above acts was passed as planned under the responsibility of the Minister of Tourism. In November 2008, proposals for three acts regulating the tourist board system were sent for legislative procedure (see 3.3 The right of establishment and freedom to provide services). In the NPIEU 2008, as part of the activities planned for 2009, it was planned to send the Golf Act for adoption. In the meantime, it was established that the issue of building golf courses should be resolved as a priority so as to create the legal preconditions for a faster and more efficient inclusion of golf in the Croatian tourist offer. As a result, the proposed Act was sent for adoption procedure in November of this year. Activities for preparing the planned in-depth analysis of the state of the tourism and hospitality sectors commenced in the reporting period, as did the drawing-up of a new strategy and master plan for the development of Croatian tourism. In addition, the Nautical Tourism Development Strategy was submitted for adoption procedure (the proposal was prepared jointly by two ministries the Ministry of the Sea, Transport and Infrastructure and the Ministry of Tourism. In 2008, activities continued in drafting a satellite account of Croatian tourism (the preparation of which started in 2007). In addition, activities were initiated and/or continued aimed at improving existing tourist resources and raising the competitiveness of Croatian tourism through: the development of small and medium-sized enterprises in the tourism sector; the development of rural tourism in rural areas; the development of tourist resources and facilities in areas with underdeveloped tourism; improving the quality of the hospitality industry; raising the overall level of services through training and improving resources in the hospitality and tourism sectors, etc.
Measures that will be implemented in order to achieve the above goals include incentive programmes implemented by the Ministry of Tourism, in line with positive regulations in the field of state aid. B) KEY PRIORITIES Following the implementation measures defined in the Programme of the Government of the Republic of Croatia for the 20082011 mandate, the following are the priorities for 2009:
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completing an in-depth analysis of the situation in the tourism and catering sector; drafting a new strategy and master plan for Croatian tourism; completing the preparation and application of the tourism satellite account; passing subordinate legislation for the implementation of the law regulating the system of tourist boards and the Golf Act; implementing support programmes for the sector with a view to improving the tourist offer and the competitiveness of Croatian tourism.
It should be noted that, given the current situation in the global environment, both financial and economic, an analysis of the situation on tourist-generating markets was carried out indicating the need to undertake additional promotional and other activities in preparation for what will be, by all accounts, a very demanding tourist year in 2009. Consequently, the situation on the market will be continuously monitored so as to enable suitable measures to be taken directed at lessening the impact of the anticipated recession on this sector. Therefore, the key priorities in 2009 will be oriented in this direction, as a consequence of which previously defined priorities may be redefined.
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3.21. TRANS-EUROPEAN NETWORKS 3.21.1. Transport networks

A) ACHIEVEMENTS IN 2008 With regard to fulfilling the closing benchmarks for Chapter 21 - Trans-European Networks, the Republic of Croatia adopted and submitted to the European Commission the document Future Trans-European Transport Network (TEN-T) in the Republic of Croatia and priority projects of European interest within this TEN-T network. The document contains information on the condition of the transport network, the envisaged projects, and the planned transport volume within the timeline of 2020. Based on this information, the European Commission proposed an EU Draft of the Common Position to the Council, and an Evaluation of the fulfilment of the benchmarks concerned. The implementation of the Transport Development Strategy of the Republic of Croatia and other specific development strategies, plans and programmes has led to further progress in the area of Trans-European transport networks. Thus, a number of sections of the road network were opened to traffic at the end of 2007 and in 2008. In the period from 1 January 2008 to 1 October 2008, in respect of the A6 motorway, additional construction of the second roadway on the Bosiljevo - Rijeka section, additional construction of the second roadway on the Vrbovsko - Delnice section, and the 35.5 km sections Delnice - Kupjak and Kupjak - Vrbovsko were completed. From 1 October 2008 to 31 December 2008, the construction of the estanovac - Zagvozd - Rava section at a length of 40 km is planned for completion on the A1 motorway. Also planned on the A1 is the construction of the expressway from Ploe Interchange 1 to the Port of Ploe at a length of 9 km. On the A4 Gorian Zagreb motorway, the construction of a 1 km border section with a bridge across the River Mura is planned in the same period. In total, 50 km was constructed in the period from 1 October 2008 to 31 December 2008. With the aim of aligning the national legislation with the acquis communautaire in the field of Trans-European network safety and interoperability, the Croatian Parliament adopted the Act on the Amendments to the Public Roads Act in December 2008, transposing into Croatian legislation the requirements of Directive 2004/52/EC on the interoperability of electronic road toll systems in the Community and Directive 2004/54/EC on minimum safety requirements for tunnels in the Trans-European Road Network. In March 2008, the National Programme for Railway Infrastructure 20082012 (OG 31/08) was adopted, setting out plans for investment in the construction, modernisation and maintenance of the railway network. The River Transport Development Strategy for the period 20082018 was also adopted. For the purpose of strengthening administrative capacities and in accordance with the regulations on the implementation of the Instrument for Pre-Accession Assistance (IPA) for the IPA 3a (Transport) management component, a special administrative body was established within the Directorate for Strategic Infrastructural Projects. This special department (Department for EU Transport Infrastructure Programmes) was set up through the Regulation on the internal structure of the Ministry of the Sea, Transport and Infrastructure (OG 41/08), and staff recruitment is underway. B) KEY PRIORITIES The adoption of a new or a revision of the existing Transport Development Strategy of the Republic of Croatia is planned in the final quarter of 2009. In the period from 1 January 2009 to 30 June 2009, the construction of the 33 km akovo - Osijek section is planned on the A5 Beli Manastir Osijek - Svilaj motorway.
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On the A2 Macelj - Zagreb motorway, the construction of a border section is planned at a length of 1km. The construction of the 12 km second tubes of the Mala Kapela and Sv. Rok tunnels is planned on the Zagreb - Dubrovnik motorway. In total, the construction of 46 km of motorways is planned in the period from 1 January 2009 to 30 June 2009.
3.21.2 Energy networks

Natural gas In September 2007, after the ministers of Albania, Montenegro and Croatia signed a Ministerial Declaration concerning the IonianAdriatic Gas Pipeline, indicating that the given pipeline will be connected to the Trans Adriatic Pipeline by which the Swiss company EGL (Elektrizitts-Gesellschaft Laufenburg) intends to connect the Greek, Albanian and Italian gas transmission system with the Middle-East, Caspian and Russian sites of natural gas, the Republic of Croatia proposed an initiative in respect of establishing an Interstate Committee in order to speed up the project. As regards the development of the gas network in the area of Croatia, this is developing in accordance with the deadlines and plans for the period 20082011, which primarily applies to the construction of the network in the littoral part of Croatia. In the course of 2008, activities continued in the construction of an LNG terminal in the area of the north Adriatic. Further development of the project has been led by the Adria LNG company, which was established by a consortium of investors. Two locations for the construction of the terminal have been proposed. Oil At the beginning of 2008, oil companies from Romania, Serbia and Croatia signed an agreement on setting up a Project Development company based in London to work on the promotion of a project in respect of the Constanza (Romania) - Trieste (Italy) Pan-European Oil Pipeline. An Investment Conference is planned for 2009. Electric energy In September 2008, construction work on the 2x400 kV Ernestinovo (Croatia) - Pcs (Hungary) overhead power-transmission line began in the Republic of Croatia. B) KEY PRIORITIES Priority will be given in 2009 to the construction of new gas supply lines. The further development of natural gas supply capacities is planned by means of increasing the pipeline capacity of the gas supply line from the Russian Federation across Slovenia by 500 million cubic metres (in 2010). Also planned is the construction in 2012 of a supply line across Hungary linked to the Nabucco or South Stream projects, and the construction in 2010 of additional storage facilities to serve Croatian needs.
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3.22. REGIONAL POLICY AND CO-ORDINATION OF STRUCTURAL INSTRUMENTS

Activities in this Chapter are progressing both in the context of preparation for the IPA programme and through actual negotiations in Chapter 22. In the following period, the competent institutions will continue implementing activities focused on strengthening the existing system of EU funds management and on its adjustment to the criteria for using structural instruments. The dynamics of this adjustment have been determined by the Action Plan, created in co-operation with the European Commission services and the Negotiating Position of the Republic of Croatia. Key developments in the coming period have been planned in the field of further administrative capacity building of the authorities competent for management, and user capacities. In the course of 2009, the Republic of Croatia will also develop a programme framework for the use of structural funds, and will also draw up the institutional implementation framework, as well as an information system plan for monitoring the implementation of structural instruments. ACHIEVEMENTS IN 2008 Within the negotiation process for Chapter 22, in March 2008 the Republic of Croatia delivered the Action Plan for the Fulfilment of the Cohesion Policy Requirements (benchmark for opening negotiations on Chapter 22). On 4 June 2008, the EU Presidency invited the Republic of Croatia to submit its Negotiating Position. The Negotiating Position was delivered to the EU Presidency and the Secretariat General of the European Commission on 25 June 2008. Legal framework The Republic of Croatia continued its activities in the field of regional development by preparing the Draft of the Regional Development Act and the Draft of the Regional Development Strategy, in accordance with the comments of the Directorate General for Regional Policy (DG REGIO), and based on the results of two studies on the development needs of NUTS II Regions in the Republic of Croatia, as well as on proposals of development measures for the areas assisted. With regard to the budget, a new Budget Act (OG 87/08) was adopted on 15 July 2008, providing for the possibility of multi-year budget planning and budgetary flexibility according to EU practice (transfer of funds for capital projects from one fiscal year to another). Concerning gender equality, the Gender Equality Act (OG 82/08) was adopted on 15 July 2008. Legal alignment in other areas relevant for Chapter 22 (environmental protection, competition protection, etc.) is encompassed in the respective chapters of the NPAEU document. Institutional framework and capacity building measures of bodies authorised to manage EU programmes Through a Decision of the Croatian Government, an institutional and programme framework was created for using EU structural instruments (OG 77/08). With this Decision, authorities competent to conduct activities stipulated in EU regulations have been established with regard to horizontal activities of EU funds management and related to activities of implementing Operational Programmes following Croatias accession to the EU. The institutional framework for EU structural funds management was expanded in June 2008 through the establishment of the Agency for Transport Infrastructure, by the Regulation of the Government of the Republic of Croatia (OG 77/08), and through the founding of the Agency for the Revision of the European Union Programme Implementation System (OG 73/08). By the end of 2008, the National Regional Development Agency will be established by the Ministry of Regional Development, Forestry and Water Management. Most of the institutions indicated in the Decision are in the process of accreditation by the European Commission for IPA programme management. In this context, the institutions in question are building capacities and abilities for the later management of EU structural funds. The accreditation process for components I, II, III and IV of the IPA programme is almost complete and it is expected that
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by the end of 2008 the authority of the European Commission will be transferred to the Croatian authorities for IPA funds management and for the IPA programme components. For the management of component V funds, the Republic of Croatia submitted on 7 November 2008 a request to the European Commission for the transfer of management authority. The accreditation process for the IPA programme is crucial for the institutional organisation of the authorities competent for EU funds management in the Republic of Croatia. In the course of preparation for accreditation and in several audit missions by European Commission auditors, the competent authorities of the Republic of Croatia have established the internal structures necessary for the proper management of EU funds and have determined their operation by internal ordinances and inter-institutional agreements. Human resources necessary for fulfilling the tasks of IPA programme management have been secured, and the training of authorised civil servants has been ensured. The capacities of the bodies authorised for the IPA programme and structural instruments management following accession to the EU have been systematically strengthened through a range of seminars and workshops. The seminars cover all aspects of managing EU programmes and projects, and are organised by the competent authorities and financed primarily from technical assistance funds within EU projects. For the purpose of co-ordinating training activities regarding preparation for the structural instruments, the Central State Office for Development Strategy and Co-ordination of EU Funds (CODEF) prepared a Training Strategy for EU Structural Instruments and a training plan for the first year of implementation (2008). Co-ordination of training activities will continue in the future on the basis of these documents. Programming The preparation of programme documents for all IPA programme components was successfully completed with the adoption of Operational Programmes for certain (sub) components, and with the adoption of a plan of projects for the fiscal year 2007 within component I of the IPA programme. The component I projects plan for 2007 was adopted by the EU in December 2007, while the plan for the fiscal year 2008 should be adopted by the end of 2008. Operational programmes for other IPA programme components were also adopted by the European Commission in the course of 2007 and 2008. Tender documentation for the projects indicated in the Operational Programmes and plans for certain fiscal years for IPA programme component I are ongoing. In the course of preparing programme documents and while drawing up project documentation, competent authorities have acquired certain experience and an awareness of the significance of intersectoral co-ordination and partner consultations as key programming principles in the system of EU structural instruments. Financial management and control The National Fund has co-operated with all competent authorities within the IPA implementation structure in preparing procedures necessary for financial management and control, within preparations for IPA accreditation. The CRO4EU information system for monitoring and storing financial management and accounting records for pre-accession funds has been organised. Located in the Ministry of Finance and the Central Finance and Contracting Agency, the system should entirely replace the existing system based on filling in printed forms for monitoring. All bodies involved in the implementation of pre-accession programmes have appointed and trained irregularity officers. The AFCOS network was established by a Government Decision (OG 92/08), encompassing representatives from all institutions authorised to fight corruption and fraud. Network co-ordination is conducted by the Department for Irregularity and Fraud Prevention within the Ministry of Finance. In July, the Government also passed the Action Plan for strengthening the AFCOS system with the aim of protecting EU financial interests. Along with the AFCOS network, authorities involved in the irregularity reporting mechanism also constitute part of the system (the internal audit system in competent authorities for managing EU programmes within the context of EU funds).
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The Agency for the Revision of the European Union Programme Implementation System was founded in June 2008, taking over the competence and responsibility of the existing Independent Service for IPA Programme Audit and Verification of SAPARD Implementation within the Ministry of Finance. Monitoring and evaluation of EU programmes The monitoring and evaluation of structural instruments will continue based on the IPA programme monitoring and evaluation practice and mechanisms. The monitoring of IPA programme implementation has been institutionally organised through supervisory committees authorised for certain IPA programme (sub)components and an umbrella supervisory board for the IPA programme. Relevant participants for certain supervisory committees have been established both in the Republic of Croatia and in the EU, including partner authorities. Internal procedures have also been determined. Until financial agreements for certain (sub)components are signed, supervisory committee meetings will be conducted unofficially, twice a year. The IPA umbrella supervisory committee will meet once a year. The Management Information System (MIS) was created in the course of 2008 for the purpose of monitoring IPA programme implementation, similar to the systems of EU structural instrument users. The system is under the ownership of the Ministry of Finance, where it was designed in co-operation with CODEF and the Central Financing and Contracting Agency (CFCA), with EU technical assistance and the assistance of external associates. With regard to the evaluation process, the ex ante evaluation of projected effects was prepared for certain IPA Operational Programmes in the course of the programming process. The evaluation was prepared by external experts financed from EU technical assistance, with help from the competent authorities in Croatia. The interim evaluation for certain Operational Programmes will be prepared once the implementation of certain programmes begins, through a part of the funds ensured in the actual programmes. The interim evaluations for their programmes will also be organised by the competent authorities for certain Operational Programmes. For projects within IPA programme component I, CODEF will organise evaluation in the capacity of a competent authority for component I, aided by the EU technical assistance and its external experts. KEY PRIORITIES
Legal framework In the field of regional development, the proposal of the Regional Development Act and the proposal of the Regional Development Strategy will be submitted for adoption by the Government of the Republic of Croatia in the third quarter of 2009. Activities pertaining to the field of the acquis relevant for this chapter (public procurement, state subsidies, environmental protection, etc.) are described within the respective chapters. Institutional framework and capacity building of the bodies responsible for EU programmes management Bodies authorised for managing structural instruments will continue building their capacities in 2009 by managing actual IPA Operational Programmes in components III and IV and by implementing the projects encompassed by them. In the course of 2009, the preparation of tender documentation will continue for projects under components III and IV as well as tendering and contracting activities, according to procurement plans established with the Delegation of the European Commission. Activities pertaining to the accreditation of implementation structures will also continue by resolving issues pertaining to the results obtained by the European Commission auditors for IPA components III and IV, to be completed by the end of the third quarter of 2009. In the first quarter of 2009, the Republic of Croatia will establish a detailed system of structural instruments management, including the managing authorities and the intermediate bodies, as well as possible implementation structures on the sub-national level
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(regional, NUTS II). This system to the level of organisational units will be officially validated in the second quarter of 2009 by a suitable act of the Croatian Government. By the end of the first quarter of 2009, organisational development strategies will be prepared for the key institutions indicated in the institutional framework for structural instruments management, as the baseline for capacity building administrative activities, with the aim of acquiring sufficient capacities for structural funds management. Within the strategies mentioned, the competence of certain bodies and the relations among them will be determined, along with appropriate internal organisation, the needs for additional recruitment and personnel training, and to this end the necessary financial resources. Assistance in preparing the strategies mentioned will be ensured through the PHARE 2006 contract Development of Institutional Capacities for EU Structural Funds Management institutional capacity building component. The strategy preparation will be coordinated by CODEF and the Ministry of Finance. By the end of the third quarter of 2009, capacity building of the National Regional Development Agency will be conducted by the Ministry of Regional Development, Forestry and Water Management. The Agency will also be responsible for certain tasks of EU structural instruments management intended for regional development and cross-border co-operation. CODEF will continue co-ordinating training activities related to the EU structural instruments, in co-operation with other relevant stakeholders (Ministry of Finance, CFCA, Central State Office for Administration, relevant sectoral bodies). CODEF will ensure coordination of training activities based on the Training Strategy for the EU Structural Instruments and annual training plans, by monitoring their implementation by all relevant bodies. In this sense, in the first quarter of 2009 CODEF will submit the Training Plan for Structural Instruments for 2009 to the Croatian Government for adoption. The capacity building of competent authorities for IPA programme management will continue in 2009 as needed. These activities will be financed directly through resources from certain Operational Programmes for the IPA Programme, intended as assistance in programme management. The capacity building of competent authorities for structural instruments will be ensured in the course of 2009 and through EU technical assistance projects. In this context, some of the more significant projects are the following: CARDS 2004 Support for the Further Approximation of Croatian Legislation with the Environmental Acquis for the needs of the Ministry of Environmental Protection, Physical Planning and Construction (MEPPC); CARDS 2004 Regional Development Capacity Building Facility for the needs of the Ministry of Regional Development, Forestry and Water Management (MRDFWM); the PHARE 2006 project Support for the Establishment and Accreditation of Future Implementing Bodies for the Regional Competitiveness Operational Programme (IPA IIIc) for the needs of the Croatian Agency for Small Business (HAMAG), the Business Innovation Centre of Croatia (BICRO) and MRDFWM; PHARE 2006 Development of Institutional Capacity and Project Pipeline for EU Structural Funds Post-Accession Institutional Building Component for all competent authorities; PHARE 2006 Development of Institutional Capacity and Project Pipeline for EU Structural Funds Post-Accession Project Pipeline for IPA / EU Structural Funds for all competent authorities; ISPA 2005: IPA Project Pipeline Preparation for the Environment; ISPA 2005: IPA Project Pipeline Preparation for Transport; Adequate operations and measures of Operational Programmes for certain IPA programme (sub)components, for the Operating structure within a certain programme; Bilateral assistance project of the Kingdom of Denmark Development of a Training System for the implementation of EU Cohesion Policies.
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Programming In the course of 2009, the competent authorities will, with the assistance of intersectoral working groups and in co-operation with CODEF, create Operational Programmes documents for the use of structural instruments. CODEF will prepare an umbrella programme document National Strategic Reference Framework (NSRF) for the purpose of using EU structural instruments, also in co-operation with the competent authorities. A detailed draft of NSRF will be prepared in the second quarter of 2009 and will be submitted to the European Commission for consultation, along with the plan for finalising the NSRF and the preparation and finalisation of the related Operational Programmes. The first draft of certain Operational Programmes planned within the NSRF will be prepared by the end of the fourth quarter of 2009. In the context of programming, the preparation of project proposals is also a significant aspect, based on which resources allocated for certain programme documents, or Operational Programmes, will be used. Thus, capacity building for the preparation and implementation of projects will be continuous, in accordance with the needs of certain institutions or Operational Programmes. Technical assistance for this purpose will be ensured for all relevant authorities in the course of 2009 by CODEF, through the PHARE 2006 Development of Institutional Capacity and Project Pipeline for EU Structural Funds, post-accession Project Pipeline Preparation Component. Activities of informing potential users about the possible use of structural instruments will also contribute to the preparation of the project proposals stock which will be defined and financed from the same PHARE 2006 project. Financial management and control Financial management and control are being implemented according to the Public Internal Financial Control Act (PIFC Act), the Ordinance on financial management and control, and the Manual on financial management and control. The PIFC system is being implemented and developed in accordance with the indicated acts. The Directorate for the Harmonisation of Internal Audit and Financial Control, as the central harmonisation unit within the Ministry of Finance, conducts co-ordination activities for setting up and developing financial management and control, as well as for internal audit. The goal is to secure sufficient administrative capacities in the course of 2009 at the state administration level, as well as in local and regional self-government authorities. The PHARE 2006 project Development of Institutional Capacities for the EU Structural Funds Management institutional capacity building component will provide technical assistance for further capacity building for the external audit of EU funds, while the capacity building of internal auditors will be ensured through the project European Funds Audit organised by the Ministry of Finance. Since all competent authorities have already appointed authorised irregularity officers, in the course of 2009 the regular (quarterly) delivery of reports on irregularities are expected. In the second quarter of 2009, AFCOS will update the existing manual for managing irregularities, with more focus on structural instruments, and will organise training for irregularity officers. The Agency for the Revision of the European Union Programme Implementation System founded in June 2008 will conduct the following activities in the course of 2009: monitoring regular audit activities of operations, through an adequate random selection method in order to control eligible costs; issuing annual opinions on the efficiency of the management and control system; and submitting the annual control report to the European Commission. Monitoring and evaluation of EU programmes In the course of 2009, the existing management information system for IPA programme monitoring will be upgraded in order to adapt it to the needs of monitoring programmes financed from structural instruments. Technical assistance will be available for this purpose through the PHARE 2006 project Development of Institutional Capacities for EU Structural Funds Management institutional capacity building component. By the end of the second quarter of 2009, the Republic of Croatia will present an appropriate plan and deadlines for finalising the system set-up.
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By the end of the second quarter of 2009, CODEF, with the assistance of competent authorities, will draw up the Strategy of Evaluation Implementation for Structural Instruments. The competence and principles of evaluating the effect of implementing programme documents financed from structural instruments will be determined by this strategy. Preparations for the ex ante evaluation of programme documents for structural instruments will begin in the first quarter of 2009, for which technical assistance will be ensured through the PHARE 2006 project Development of Institutional Capacities for the EU Structural Funds Management institutional capacity building component. Activities related to the evaluation will be co-ordinated by CODEF.
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3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 3.23.1. Judicial reform

A) ACHIEVEMENTS IN 2008 For the purpose of further improvements to the implementation of the judicial reform, the Croatian Government adopted a revised Action Plan of the Judicial Reform Strategy on 25 June 2008. The Action Plan consists of 170 concrete measures whose objective is to put further effort into establishing the prerequisites for an independent, impartial, professional and efficient judiciary. Independence of the judiciary The Act on Amendments to the Courts Act was passed in September 2008 (OG 113/08). The purpose of adopting the amendments was the further development of the procedure of appointing judges and ensuring the impartial, transparent and uniform operation of judicial councils. The Act prescribes the obligation to adopt the Rules of Procedure for the work of judicial councils in the procedure of appointing judges. The Rules of Procedure will be drafted on the basis of the Guidelines for the Appointment and Advancement of Judges which will be completed by the end of 2008. The Act on Trainees in Judicial Bodies and the Judicial Exam was passed in July 2008 (OG 84/08). It regulates the conditions for selecting trainees for courts and state attorney offices, the duration of the traineeship, entry into traineeship and professional programmes, the objectives and manner of conducting the traineeship, as well as the practical training for trainee attorneys, public notaries and lawyers with a university degree in law in state administration bodies and bodies of local and regional self-government. In 2008, the State Judiciary Council appointed 38 judges and relieved 53 judges of duty. Ten disciplinary procedures were initiated, out of which three have been completed (whereby a fine in an amount of one third of a monthly salary was imposed for a period of 6 months in one of the procedures, while the disciplinary measures of reprimand and dismissal were pronounced in the other two procedures). Impartiality Amendments to the Court Rules of Procedure (2008) have consolidated and reorganised the work of courts by establishing new departments to deal with cases of organised crime and corruption at the county courts of Zagreb, Split, Rijeka and Osijek, which will make a considerable difference compared to the current situation. In addition, special investigation departments dealing with cases of the criminal acts referred to in Article 21 of the USKOK Act are being established at the investigation centres of the said county courts. Given the specific nature of the cases that will be prosecuted by the specialised departments, a provision has been incorporated in the Court Rules of Procedure prescribing that the cases referred to in Article 21 of the USKOK Act may be dealt with only by judges and court clerks who have passed a detailed security check. Special monitoring of the work in such cases by department heads, presidents of court and the president of the Croatian Supreme Court is also being introduced. The establishment of the new departments presupposes the formation of new court registries, special record books, record keeping and methods of monitoring the work on cases of corruption and organised crime. In this way, the monitoring of work and the work reporting mechanisms have been improved. It is very important to note that investigation judges, or the chairs of panels of judges, are now obliged to notify presidents of court of the date of the first hearing within seven working days of receiving a case of corruption and organised crime and, subsequently, to keep the presidents of court regularly informed of the case status once a month.
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Efficiency of the judiciary Accelerating proceedings The Act on Amendments to the Civil Procedure Act (OG 84/08), passed on 2 July 2008, introduces amendments that will accelerate first-instance proceedings and increase the efficiency of first-instance courts in observing the principle of cost-effectiveness of court proceedings. The most significant changes relate to the introduction of preliminary proceedings in small claims procedures, at the same time raising the limit of the value of the claim in small claims procedures, improving the practice of summons delivery, and allowing mediation to be available over the entire course of the proceedings. The changes introduced in second-instance proceedings allow for a wider range of actions by second-instance courts in appeal proceedings and bring in measures to avoid the unnecessary annulment of court judgments. The range of grounds for a review has been expanded and the possibility of pronouncing an extraordinary review has been regulated. The Act on Amendments to the Execution Act (OG 67/08) additionally accelerates execution proceedings and facilitates the actions of execution courts in such proceedings (by simplifying the practice of serving summons both in court execution proceedings and in the execution proceedings carried out by public notaries; by extending the list of state bodies whose duty it is to provide information on the assets of the execution debtor; by preventing the abuse of the institute of notification of assets, given that the execution creditor is required to obtain information on the assets of the execution debtor from the competent bodies, i.e. the Croatian Pension Insurance Institute, the Ministry of the Interior, the Financial Agency (FINA) and the cadastre, even before a proposal to submit the notification of assets has been filed; by limiting the possibility of delaying execution and by establishing a shorter time period for suspending execution). The possibility to entrust movables seized in execution proceedings to persons outside the seat of the court competent for the proceedings in question has been envisaged and the ambiguities concerning execution on motor vehicles through public notaries have been clarified. A working group has been established to make a strategic study for more efficient execution on movables and for the introduction of bailiffs in execution proceedings. The group will work on improvements to the institute of execution in Croatia in co-operation with French legal experts in execution matters. Measures aimed at accelerating the criminal procedure are included in the Proposal of the new Criminal Procedure Act which is currently under parliamentary procedure. According to the Proposal, investigation by judges will be abolished and investigation by investigation officers will be introduced. In addition, the criminal investigator, who will take orders from the state attorney, will be introduced, as will the investigating judge as a new body in preliminary procedure decision-making. New forms of accelerated proceedings are being launched, as well as the resolving of simple cases by mediation, settlement and exemption from criminal prosecution provided that the victim has been indemnified. The procedure of preparation for the main hearing has been simplified, while measures of securing the attendance of defendants, as well as measures of procedural discipline, have been regulated. In the framework of the project of modernising and providing support to the efficient work of the Croatian Administrative Court, which is implemented in co-operation with German, Austrian and Croatian experts, the second quarter of 2008 saw the acceptance of a strategic study on drafting a new Administrative Disputes Act. The adoption of the study was followed by the establishment of a working group to be in charge of drafting the new Administrative Disputes Act. Court network rationalisation On 9 July 2008, the Croatian Parliament passed a new Act on the Jurisdictions and Seats of Courts (OG 85/08) which reduces the number of municipal courts from 108 to 67 (thus ceasing the work of 41 municipal courts). The rationalisation of the court system will take place in several stages. Functional rationalisation, i.e. the merging of courts as of 1 January 2009, will mark the beginning of the balanced assignment of cases and specialisation of judges. The physical rationalisation of the court system will require great material assets. This is why the above-mentioned Act envisages 31 December 2019 as the final deadline for the implementation of the rationalisation of court network. Until that date, the courts that will be merged with other courts will function as separate services. The physical merging of the first seven courts will begin in the course of 2009.
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October 2008 saw the adoption of the Ordinance on setting the deadlines for providing working conditions, premises, technical and other conditions in the seats of the courts created as a result of mergers. The preparation of the entire subordinate legislation, as well as the appointment of acting presidents of the merged courts, is underway. For the purpose of rationalising the system of state attorney offices and the system of misdemeanour courts, the Act on the Jurisdictions and Seats of State Attorney Offices was passed on 5 December 2008. By the end of 2008, a Proposal of the Act on the Jurisdictions and Seats of Misdemeanour Courts will be submitted for parliamentary procedure. Both networks will correspond to the territorial jurisdictions of municipal courts. Progress in reducing the total backlog of cases at courts On 30 September 2008, the number of unresolved cases amounted to 941,827. Croatias efforts are now directed to the group of so-called old cases, that is, cases that have been unresolved for over three years. In terms of the type of cases that are over three years old, the majority are civil and misdemeanour cases. On 30 September 2008, there was a total of 129,163 old cases, out of which 5,635 were old criminal cases and 123,528 old civil cases. Measures of the Supreme Court of Croatia to reduce the backlog of cases The Supreme Court has been systematically monitoring the resolving of cases concerning claims for the right to a trial within a reasonable time at all county courts and at the Supreme Court itself. It has been producing relevant statistical reports on a regular basis. In 2008, a total of 5,031 new lawsuits were filed following claims for the right to a trial within a reasonable time (of that number,3,566 were civil cases). From the beginning of the year until 30 September 2008, a total of 3,787 such cases were resolved (910 cases were dismissed, 399 cases were rejected, while 2,487 cases were found to be well-grounded). On the basis of well-grounded claims for compensation for the infringement of the right to a trial within a reasonable time, compensation to a total amount of EUR 3.673,012 was awarded. On 30 June 2008, the number of unresolved cases of claims for the right to a trial amounted to a total of 3,857. By 30 September 2008, the Supreme Court delegated a total of 7,794 cases to courts with a lighter workload (of that number, 6,182 civil cases and 674 criminal cases). From the beginning of the year until 30 September, 40% of civil cases and 23% of criminal cases assigned to such courts with a lighter workload were resolved. By 30 June 2008, 53.9% of civil and 34.9% of the assigned criminal cases had been resolved. Courts from which the largest number of cases were delegated to other courts are the Municipal Civil Court of Zagreb (3,023 cases delegated to other courts), the County Court of Split (1,550 cases delegated), the Commercial Court of Zagreb (847 cases delegated) and the Municipal Criminal Court of Zagreb (550 cases delegated). Efficiency of the High Misdemeanour Court In the period from January to July 2008, the High Misdemeanour Court received 18% fewer cases (i.e. a total of 35,277 cases) compared to the same period in 2007 when it received 41,736 cases. In addition, from January to July 2008, 32,616 cases were resolved, while the same period in 2007 saw the resolution of 24,498 cases. A reason for the reduction in the inflow of cases lies in the passing of the new Misdemeanours Act on 3 October 2007 which entered into force on 1 January 2008. On 1 September 2008, the High Misdemeanour Court started implementing additional measures laid down in its Action Plan for Resolving Old Misdemeanour Cases which, together with the measures that had already been taken, should result in a further reduction in the backlog of cases. It is expected that through the consistent implementation of the said measures, by the end of 2011 there will be a satisfactory level of promptness in the work of the High Misdemeanour Court of the Republic of Croatia. In the framework of the said measures, simple cases (such as misdemeanour orders, suppletive imprisonment cases) will be the first to be singled out and assigned to judges and court advisors whereupon they will be resolved following an accelerated procedure
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with the full application of the Misdemeanours Act. The criteria of the number and assignment of cases to be resolved in this manner will be prescribed by the president of the court in the Implementation Instruction in the form of a court administration act. In the elaboration of these measures, and taking as the starting point the situation on 31 July 2008, when it was established that the largest number of 101,584 current cases were traffic-related cases, i.e. 60,339 cases, of which 28,283 cases were misdemeanour orders issued by the police, it was decided that the primary objective would be to resolve all these cases by the end of 2009, that is, to ensure that the traffic department acts perfectly promptly in these cases. In addition to selecting cases that need to be assigned first due to the gravity of the offence in question or the nature of the matter (e.g. offences prescribed by the Act on the Protection against Domestic Violence, the Labour Act, the Occupational Safety and Health Act or other offences), 2008 saw the continuation of the practice of singling out cases in which severe sentences were pronounced, such as prison sentences or considerable fines (particularly in the sector of the economy). Development of alternative dispute resolution The Act on Amendments to the Civil Procedure Act, which entered into force on 1 October 2008, allows for disputes to be resolved by mediation for the entire duration of a civil procedure. In July 2008, the Croatian Ministry of Justice and the Croatian Mediation Association (CMA) signed a Joint Co-operation Agreement. Furthermore, February 2008 saw the commencement of the PHARE 2005 Project Enhancement of Mediation as an Alternative to Court-based Dispute Settlement, the overall aim of which is to ensure easier access to justice by developing an alternative method of dispute resolution, while its purpose is to upgrade the alternative dispute resolution method in Croatia, adapt it to best EU practice and develop an alternative dispute resolution system at courts and outside courts to be used by both legal and natural persons. The Project will be carried out in four components, including the following: Legal Framework, Mediation Structure and System, Training of Mediators, and Preparation of Mediation Information and Publications. The establishment of regional mediation centres at the commercial courts of Osijek, Varadin, Bjelovar, Rijeka and Pazin, and the launching of pilot mediation projects at these courts in May and June 2008 were a significant step in the development of alternative dispute resolution methods, which represent one of the fundamental points of the Judicial Reform Strategy and the Strategy for the Development of Alternative Dispute Resolution. In May 2008, a pilot mediation project began at the Municipal Court of Karlovac, too. Strengthening institutional and administrative capacities Following the adoption of the Regulation on the internal organisation of the Ministry of Justice (OG 77/08) on 30 June 2008, the Directorate for Strategic Development was formed. Its task is to monitor and further direct the process of judicial reform and the fight against corruption. In the said Directorate, the Sector for the Development of the Judiciary was also formed with the task of strengthening the capacity necessary to supervise and implement the judicial reform. In addition, the new Directorate for the European Union and Human Rights was formed with the task of ensuring the best and most professional co-ordination possible with respect to all activities connected to negotiations with the EU in the area of the judiciary and home affairs. Currently, the process of strengthening the human resources of other organisational units of the Ministry of Justice is underway. Within the Sector for Judicial Administration (which is active within the Directorate for Organisation and Human Resources of the Ministry of Justice), there is the Department for the Rationalisation of the Network of Courts and State Attorney Offices, whose task will be to perform the job of rationalising the court network. Currently, the Judicial Inspection Service is in the process of recruiting further staff, which should be completed in the course of 2009. Introduction of modern information technologies in the judicial system development and introduction of the Integrated Case Management System ICMS (e-FILE)
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Changing the organisational conditions for the functioning of the IT system On the basis of the Regulation on the internal organisation of the Ministry of Justice of 30 June 2008, with a view to improving efficiency, the Sector for IT was transformed into the Directorate for IT. Along with its unit in the Ministry itself, the Directorate has regional units in Osijek, Varadin, Rijeka, Split, Slavonski Brod and Zadar. This will ensure better utilisation of IT staff, since they will deal only with IT affairs and, regardless of the court to which they are assigned, act as support for all courts within the area of responsibility of the regional unit concerned. Pilot online company registration The development of the pilot project for the online registration of companies through public notaries and hitro.hr offices in the jurisdiction of the Commercial Court in Varadin has now been completed, and by the end of 2008 online registration should include the areas of Osijek, Split and Zadar. In the course of 2009, online registration of companies through public notaries and hitro.hr offices will also spread to other commercial courts in the Republic of Croatia. e-FILE With regard to the operation of the e-FILE project, since May 2007 all incoming cases at the Municipal Court of Pula and the Commercial Court of Split on the date of connecting to the e-FILE system have been managed by this system. The Commercial Court of Zagreb has been managing cases in the e-FILE system since 8 July 2008. On 15 October 2008, a total of around 17,000 cases were entered as e-files. Three courts have been connected to a test e-FILE system for the purpose of training and system testing, as well as in preparation for the production phase: The Municipal Criminal Court of Zagreb where all users have been trained and connected to the e-FILE test system; The Municipal Civil Court of Zagreb where all users have been trained (except for about 100 new users), and where around 40 users have been connected to the test system; The County Court of Zagreb, with 10 users applying the test system and where training is in course; each group (of 10 users) that completes the training is immediately connected to the test system. In the development of the system, specific application functionalities are being upgraded and tested at two courts where it is considered that these applications are necessary for their work. These courts are: the Supreme Court, where 6 advanced users check and test newly developed specific functionalities, and the High Commercial Court, where a working group is engaged in the development of specific functionalities, code lists, etc. Following the testing and installation of the applications at the County Court of Zagreb, users at the County Court of Pula will be trained and the Court will be connected first to the test and then to the operation of the system. Computerisation of land registry books On 30 October 2008, 98.95% of land registry books were digitised at all municipal courts in Croatia, while 48.10% of the digitised land registry data in the jurisdictions of all courts in Croatia were verified. Land registry data are transparent, that is, accessible to all users over the Internet, as is the e-registry of land registry departments. The time needed for entry in the land register dropped from an average of 800 days to 73 days (in the period from 2004 to 2008), while the time needed for mortgage registration dropped from an average of 23 days to 7 days. A registered land certificate may be issued on the same day.
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Professionalism 1. Institutional development of the Judicial Academy The Advisory Council and the Programme Council The Advisory Council (AC) of the Judicial Academy has continued with its regular meetings held at least quarterly, and even more frequently from summer 2008 as necessary. At the meeting of the AC on 11 September 2008, which was the third one that year, the previously discussed and amended Multi-annual Strategy of Professional Training of the Judicial Academy was adopted, which will be further elaborated through the implementation of the measures that it envisages and that are, to a great extent, already ongoing. At its meeting on 12 november 2008 the Advisory Council adopted the Rules of Procedure of the Programme Council. The proposal of the Rules of Procedure of the Programme Council, prepared by JA, was also adopted by AC, with minor changes that were included into the proposal. Following the instructions given by the Advisory Council (AC) the Academy prepared a proposal for the composition of a working group to be in charge of further work on developing teaching materials for the purpose of organising training in the field of human rights and European Union law (following the introductory EU law training that has been organised since 2007), which was established on 24 October 2008. By the end of 2009, the Judicial Academy will prepare a proposal of the Ordinance on access to professional training programmes offered by the JA in order to ensure equal access to professional training to all target groups of the Academy. The Judicial Academy Programme Council meets at least four times a year. At its two working meetings held in June and September 2008, preparations were made for the drawing-up of the curriculum of the Academy for 2009. The latter was adopted on 12 November 2008. Regional Centres The work of the Regional Centres (RC) and their independent participation in the professional training process has been strengthened. The Centres have been equipped, while the supply of additional professional literature for which judges and state attorneys themselves have expressed a need is underway. From the beginning of August 2008, administrators have been employed on the basis of temporary service contracts in the Regional Centres of Rijeka, Split, Varadin and Osijek. They are in charge of the logistics associated with the organisation of training activities and the printing of teaching materials. With their employment, the travel costs of Academy staff have been reduced and the Academys capacities, as well as those of the Regional Centres, have been better utilised. IT equipment, furniture and professional literature have been provided for all the Regional Centres (through EC donations), except for the Regional Centre of Varadin where training equipment is either transported from Zagreb or borrowed from the County Court of Varadin. The adoption of the Academys framework rules concerning the activities of regional co-ordinators and their competence in the Regional Centres still lies ahead of the JA. Human resources and budget On 8 May 2008, the Croatian Government appointed the Academys Director (a lawyer with work experience at court) who manages the institution full time. The Academy currently employs fifteen staff members at its headquarters in Zagreb and four administrators in the Regional Centres. Nine staff members, out of a total of 19 employees, are employed on temporary service contracts. As of July 2008, a court advisor of the County Court of Zagreb has been assigned to the Academy and from 1 September 2008 a judge of the Municipal Civil Court of Zagreb has also been assigned to the Academy. State attorneys and county court judges have also expressed interest in temporary assignment to the Academy.
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On 11 October 2008, a public announcement for nine vacancies at the Academy was published, whereby the number of staff members employed on temporary service contracts would be reduced and the Academys administrative capacities would be strengthened. For the purpose of providing further support to the Academy, the JAs 2008 budget was increased to EUR 721,126 (an increase of approximately 28.84% compared to the previous budget). The Academys 2009 budget proposal amounts to EUR 1,136,197 and, for the first time, it will contain a special budget item for international co-operation. Multi-annual Strategy of Professional Training The Multi-annual Strategy of Professional Training with concrete implementing measures aims to improve professional training on the one, and to foster the institutional development of the Academy on the other hand. In addition to analysing the current situation and identifying the goals and objectives, this document lays down measures to achieve the set goals, the basic principles for the Strategys implementation, as well as the implementing measures for the improvement of professional training and the Academys institutional development. Most of the measures are already underway, while the remaining measures will be implemented according to the established timeline. 2. Curriculum of the Judicial Academy The Judicial Academys professional training activities in 2008 were carried out according to the Professional Training Programme for 2008 which was adopted on 29 October 2007 as the first integral annual programme of the JA. Training in the field of procedural instruments use covered the following topics: "Civil procedure costs and determining the value of a dispute" "Techniques of drafting first-instance judgments in civil cases" "Preparing and conducting the main hearing in civil cases" "Carrying out expert assessment and setting tasks for experts in a civil procedure" "The principle of cost-effectiveness of litigation proceedings and presenting evidence by applying the Convention for the Protection of Human Rights and Fundamental Freedoms" "The protection of witnesses in the criminal procedure and assistance to victims" "Illegal evidence in the criminal procedure" "Pretrial detention legal grounds and procedure" "Extradition and international co-operation in criminal cases" "Carrying out expert assessment in the criminal procedure".
EU law Two two-day seminars on EU law were organised for the Academys trainers (in December 2007 and April 2008). The purpose was to provide intensive and more detailed training in selected fields of EU law. The trainers were taught how to correctly read and apply EU directives and regulations and were given a detailed presentation on the institute of preliminary reference and its formulation. The introductory training on EU law will enable the trainers to successfully train other judges and state attorneys in the Academys Regional Centres as of 2009. Judicial co-operation in civil matters
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A workshop on International Legal Assistance in Civil and Commercial Matters had been planned for 2008, with a focus on the Hague Conventions of 1965 and 1970 for which relevant training materials had been produced. The workshop was cancelled until after the ratification of the Hague Convention of 1970. The following topics were included in the training in the field of judicial co-operation in criminal matters in 2008: "The Act on Liability of Legal Persons for Criminal Offences." "The video conference in international legal assistance" (after the ratification of the Second Additional Protocol to the European Convention on Mutual Assistance in Criminal Matters as of 1 July 2007. The manual entitled "An Outline for the Practical Use of the Video Conference for the Crossborder Hearing of Witnesses" was produced and will be printed and delivered by the Judicial Academy to all county courts in Croatia). "The seizure of proceeds of crime" and "Preventing and combating money laundering". (In the framework of these topics, workshop participants learnt about the provisions of the Warsaw Convention on Laundering, Search, Seizure and Confiscation of Proceeds from Crime and on the Financing of Terrorism.) "Extradition and international legal assistance in criminal cases" (based on the Act on International Legal Assistance in Criminal Matters). "Judicial cooperation in criminal matters in the European Union". (The training materials on this topic were developed during the implementation of the CARDS 2003 Project "Education and Training of State Attorneys" as a result of the joint work of French, Spanish and Croatian experts. The participants were familiarised with the European Arrest Warrant and the work of Joint Investigation Teams pursuant to Council Framework Decision 2002/465/JHA. Workshops on this topic will be organised in all five Regional Centres at the end of 2008 and at the beginning of 2009.) Training of trainers Sixteen trainings and workshops were held on the following topics: trainings The goals of learning and teaching, Group dynamics, An introduction to modern teaching techniques and workshops Indemnification for damage arising from labour relations mobbing, How to teach European law and Enforcement on real estate for settlement of pecuniary claims for a total of 185 participants. Foreign language training The Judicial Academy participates as one of the consortium members in the implementation of the TEMPUS Project Foreign Languages in the Field of Law. As of October 2008, the JA has been providing its support to the Project by, among other things, offering necessary premises in its Regional Centres and, by the end of the year, it will finance the participation of judges, state attorneys, advisors and trainees in the specialist foreign language seminars organised in the framework of the Project. In the previous academic year, participants belonging to the Academys target groups paid their own fees. This Project, which ends in late 2009, also provides training for a group of foreign language teachers from Zagreb, Split, Rijeka and Osijek, enabling them to teach specialist foreign language courses (focusing on legal terminology). 2009 curriculum In the process of developing the Academys curriculum for 2009, attention will be given to all the JAs commitments to professional training for judicial officials and employees stemming from national strategies and international projects in which the JA is involved through training components. In 2009, in addition to standard workshops on the topics that will be decided by the Programme Council (such as repeating the workshops on corruption and ethics that are continually included in the Academys curricula), priority will be given to the implementation of the pilot project of initial professional training of court and state attorney trainees, discussions and conventions on new acts passed in accordance with EU standards, and training on EU law and its application. The preparation of basic modules for the professional training of advisors and young judges and state attorneys (with up to five years of professional experience) is also underway.
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3. Reform of the system of traineeship and initial professional training The new Act on Trainees in Judicial Bodies and the Judicial Exam was passed on 9 July 2008 (OG 84/08) and will enter into force on 1 January 2009. The new act introduces uniform, transparent and objective criteria for the selection of trainees. The main role in the new system of initial training will be played by the Judicial Academy, which will conduct two-month theoretical training. Implementation of the PHARE 2005 project entitled Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys, which provides for expert and organisational support to the reform of the system of traineeship and initial training, began in February 2008. The training of trainers who will be involved in the pilot project of training trainees from February 2009 began on 16 September 2008, while the training of mentors of the future trainees began on 11 November 2008. In addition, working groups have been established to draft the subordinate legislation, that is, the ordinances prescribed by the Act on Trainees in Judicial Bodies and the Judicial Exam. The preparation of the draft ordinances has been envisaged for the end of November 2008, while the ordinances will enter into force on 15 January 2009. 4. Co-operation with law schools, the Attorneys Academy and the Croatian Public Notaries Academy The Judicial Academy has made arrangements to sign agreements on co-operation with all the faculties of law in the Republic of Croatia, although informal co-operation is already in place and is being developed through the participation of university research staff in the design of educational materials, as well as in conferences organised by the Judicial Academy. Having in mind the new Act on Trainees in Judicial Bodies and the Judicial Exam, the JA will strengthen its co-operation with the law schools, so that law students can be acquainted as much as possible with the opportunities provided by the new Act. On 10 October 2008, the Academy signed the Framework Agreements on Co-operation with the Attorneys Academy and the Croatian Public Notaries Academy. The Agreements will institutionalise the co-operation of the JA with these recently established institutions that are in charge of the professional training of attorneys and public notaries. 5. International co-operation European Judicial Training Network (EJTN): The Judicial Academy has been participating in the Exchange Programme for Judicial Officials organised by the European Judicial Training Network (EJTN). In 2008, the Academy hosted ten judicial officials from the EU Member States and candidate countries, while nine Croatian judges and state attorneys visited EU countries. The JAs Director has been actively participating in the EJTN General Assembly meetings. Academy of European Law (ERA): The JA regularly informs members of its target groups about ERA activities and provides financial support so that they may attend ERA seminars and conferences. The Judicial Academy is interested in signing the Official Agreement of Accession to the Academy of European Law, and has included the respective expenses (EUR 50,000 in three annual instalments) in its budget proposal for the next three years. Budget of the Ministry of Justice The budget of the Ministry of Justice in 2008 amounted to EUR 370,579,525. For 2009, the proposed budget of the Ministry is EUR 404,718,355..
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B) KEY PRIORITIES School for Judges and State Attorneys For the purpose of selecting the best and the most suitable candidates for the positions of judge and state attorney by applying objective and transparent criteria for entering the judicial profession, the Ministry of Justice has started work on a Strategy for the Establishment of the School for Judges and State Attorneys as an upgrading of the system of traineeship and the judicial exam. By the end of 2008, the Strategy will be submitted to the Croatian Government for adoption. Making a strategic study for more efficient execution on movables and the introduction of bailiffs in execution proceedings In 2009, efforts will be made to introduce significant improvements to the institute of execution in Croatia in co-operation with French legal experts for execution matters on the basis of the strategic study for more efficient execution on movables and the introduction of bailiffs in execution proceedings. Legislative activities In 2009, a proposal of the Administrative Disputes Act will be submitted will be submitted for parliamentary procedure. By the end of the second quarter of 2009, amendments to the following will have been passed: The Courts Act The State Judiciary Council Act The Act on the State Attorneys Office The Act on Trainees in Judicial Bodies and the Judicial Exam The Public Notaries Act The Act on the Legal Profession
With a view to implementing the Act on the Jurisdictions and Seats of Misdemeanour Courts, the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of misdemeanour courts. Pursuant to the Proposal of the Act on the Jurisdictions and Seats of State Attorney Offices, in 2009 the Ministry of Justice will adopt the Ordinance on the schedule and deadlines for the physical merger of municipal state attorney offices and establish conditions for their work. Development of alternative dispute resolution The Action Plan of the Judicial Reform Strategy foresees measures to further develop mediation as an important segment in the modernisation and improvement of the efficiency of the Croatian judicial system. In 2009, the implementation of the set components of the PHARE 2005 Project Enhancement of Mediation as an Alternative to Court-based Dispute Settlement will continue as follows: to draw up draft amendments to the Mediation Act, to draft a Proposal of the Code of Ethics for Mediators, to establish standard provisions on mediation for commercial and civil contracts,; to set up a structure and system for mediation both inside and outside the court, and to put into operation pilot mediation centres in courts, achieving the full operability of the regional centres for mediation outside the court with a register of mediators; to develop and implement a plan and programme of training for mediators and trainers, to conduct basic, advanced and informative seminars, to compile folders with all materials for training and with other relevant materials and to make them available to all participants; to prepare and share information and publications on mediation with the public.
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The e-FILE Project It is planned that by the end of December 2008, all courts mentioned in relation to eFILE will be running in this regard. Thus, on 1 January 2009, 9 courts from all levels will function in the eFILE system. In the course of 2009 and 2010, through the PHARE 2006 Project Support to Court Administration and Case Management Improvement ICMS, the eFILE system will be introduced at 60 other courts (i.e. all commercial and county courts, as well as large municipal courts). The project, amongst other things, covers the training of all users, the drawing up of a matrix for each court and the installation of the application. The schedule of connecting courts in 2009 will depend on the contractual obligations of the consultant with whom the project is agreed, but it can be presumed that 15 courts on the list will be connected to the system. I In the course of 2009, the Ministry of Justice plans to use its own funds and efforts to connect an additional 5 municipal courts which are not on the list of the PHARE project. In 2009, 20 courts will be in the e-FILE system. Regarding the plan for 2010, according to the PHARE 2006 project, it is foreseen that e-FILE will be introduced at 45 more courts, and the Ministry of Justice will ensure the introduction of e-FILE at 5 more municipal courts, so that the total number of courts to join the e-FILE system in 2010 will be 50. Thus, at the end of 2010, there will be 79 courts connected to e-FILE: the Supreme Court, the High Commercial Court, all county courts (22), all 13 commercial courts, and 42 municipal courts. Plan of work of the Judicial Academy for 2009 The following activities have been planned for 2009: To provide for the urgent recruitment of new staff for the Academy according to the systematisation of planned work posts. To make all regional centres of the Judicial Academy fully functional: to acquire IT equipment and literature for the Varadin Regional Centre; to buy new books for the library fund in the Judicial Academy and for the regional centres; to intensify the work of libraries in the centres and the development of infrastructure to enable access to the Internet in the centres; and to ensure the availability of data concerning the library fund and publications in electronic format. To determine the duties and tasks of the co-ordinator for professional training in the regional centres, and for judges and state attorneys, and the manner of providing remuneration. To create conditions by the end of 2009 for the drawing up of a framework three-year programme of work of the Judicial Academy. To set up a system of initial training for trainee judges and state attorneys, and advisors: training of mentors for trainee judges and state attorneys, implementation of a pilot project within PHARE 2005 Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys and completion of this project. To improve the plan of professional training by setting out modules targeted specifically at judges and state attorneys with up to 5 years of service (standard programmes). To intensify the activities of professional training in the field of EU law and international human rights law. To develop and implement training programmes for court administration and for the management of state attorney offices. To intensify co-operation with the faculties of law, the Croatian Bar Association and the Academy of Public Notaries under the agreements on co-operation signed in 2008. To proceed with foreign language courses for judges and state attorneys. To continue to train workshop leaders in the field of teaching and communication through workshops and individual expert counselling, with special emphasis on the more intensive involvement of state attorneys and judges of the Supreme Court of the Republic of Croatia.
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To continue to participate in the work of the Lisbon Network and the European Judicial Training Network. To develop bilateral co-operation with partner institutions in the European Union and the region To further improve the website of the Judicial Academy and the visual concept of the training materials of the Judicial Academy by introducing a standard form for training packages for workshop leaders and participants.
To develop the information-documentation activity. To introduce electronic case management in the Judicial Academy.
3.23.2. Anti-corruption Measures

A) ACHIEVEMENTS IN 2008 With a view to achieving further progress in the suppression of corruption, in June 2008 the Republic of Croatia established a new strategic framework for anti-corruption activities. On 19 June 2008, the Croatian Parliament adopted the Anti-corruption Strategy, after which the Government of the Republic of Croatia, on 25 June 2008, adopted the Action Plan of the Strategy. Within each of the areas of action, the Action Plan defines in detail anti-corruption measures, competent authorities, deadlines, and funds required for implementation. The goals of the anti-corruption policy, pursuant to the Strategy, will be implemented through active measures aimed at: 1) strengthening the legal and institutional framework; 2) preventing corruption; 3) criminal prosecution and sanctioning of corruption; 4) international co-operation; 5) raising public awareness of the harmfulness of corruption. Through concerted action in all areas, the intention is to fully affirm the principle of a zero-tolerance approach to corruption. Representatives of civil society were actively involved in drawing up proposals for strategic documents by participating in a round table conference on the topic Co-operating towards an Efficient Action Plan of the Anti-Corruption Strategy held on 13 May 2008, organised by the Government Office for Co-operation with NGOs, the Ministry of Justice and the Council for Civil Society Development. Legal framework Amendments have been initiated with the goal of strengthening the legal framework of the so-called anti-mafia action. The Final Proposal of the Criminal Procedure Act was submitted for parliamentary procedure in November 2008. In relation to anticorruption, reform of the preliminary procedure, the introduction of new forms of swifter procedure and the improvement of procedural rules governing measures for efficient action should be highlighted. In addition, the system of special investigation activities which are of particular significance in detecting and prosecuting crimes of corruption will be improved. The successive application of particular sections of the new Criminal Procedure Act is envisaged, and provisions relating to criminal offences within the jurisdiction of USKOK will enter into force six months after the passing of the Act. Amendments to the Criminal Code are underway, through which the existing system of seizure of proceeds of crime will be extended to cover, along with the criminal offences of organised crime, the criminal offences of corruption. At the same time, amendments to the Criminal Code will strengthen the protection of injured parties and those who in good faith report corruption (whistleblowers). To this end, it has been proposed that the protection of witnesses in criminal proceedings be extended to include potential witnesses. In addition, plans are being made to further strengthen, in terms of criminal law, the position of persons with the status of protected or vulnerable witness, and the criminal-law protection would be extended to include all proceedings which are declared confidential.
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Institutional framework In order to strengthen the co-ordination of all bodies responsible for the implementation of anti-corruption measures, the Government of the Republic of Croatia adopted a Decision on 10 April 2008 establishing a Co-ordinating Committee for the Monitoring of the Implementation of Anti-Corruption Measures. The Co-ordinating Committees work is chaired by the Minister of Justice, as the national co-ordinator, with other high-ranking representatives of the implementing bodies among its members. The Co-ordinating Committee meets on a monthly basis, thus keeping abreast of the actual status of implementation, and taking the appropriate steps to ensure its effectiveness. Pursuant to the decision of the Government of the Republic of Croatia establishing the Committee, state bodies involved in the work of the Committee have designated an internal organisational unit to work on the activities of suppressing corruption, and have nominated a contact person for reporting on their implementation. Administrative and expert support for the work of the Co-ordinating Committee has been assured (June 2008) by organising and staffing the Anti-Corruption Sector within the Ministry of Justice. Supervision of the implementation process is ensured through the operation of the National Council for Monitoring the Implementation of the National Programme for the Suppression of Corruption, which was constituted at the Croatian Parliament in May 2008. With the aim of affirming pro-active approaches, the National Council has prepared draft amendments to the Decision on the National Council and the Ordinance on the work of the National Council, which should be adopted in the fourth quarter of 2008. With the aim of strengthening expert and technical support for the work of the Council, office space has been found and funds assured, while four new employees have been recruited in the expert service of the Council. Following the parliamentary elections, in July 2008 new members of the Commission for Conflict of Interest in the Exercise of Public Office at the Croatian Parliament were appointed. Following the resignation of the chairperson of the Commission, a new chairperson was appointed in October 2008 from the ranks of distinguished public figures in order to ensure the uninterrupted continuation of the Commissions work. The prevention of corruption In May 2008, the Act on Amendments to the Act on the Prevention of Conflict of Interest in Performing Public Functions was passed with a view to strengthening the supervisory role of the Commission for Conflict of Interest in the Exercise of Public Office, defining more precisely the obligations of public officials, increasing and improving the implementation of sanctions, and restricting the membership of public officials in supervisory boards. The Commission for Conflict of Interest in the Exercise of Public Office has collected from public officials new declarations of assets and the duties they carry out, and published the details on the website www.sukobinteresa.hr. In order to increase the Commissions effectiveness, it has been strengthened in terms of expertise and administrative capacity by ensuring the necessary funds, office space and the recruitment of four new employees in its expert service. The regulatory rules concerning conflicts of interest were completed in July 2008 with the passing of the Act on Local and Regional Self-Government Officers and Employees which defines the duties of employees at local and regional levels for the purpose of preventing conflicts of interest. Pursuant to the Act on Financing Political Parties, Independent Lists and Candidates, all parliamentary parties and independent candidates submitted final accounts and financial reports for 2007 to the State Audit Office and the Ministry of Finances Tax Administration. Following auditing, the State Audit Office presented its Report on Supervising the Finances of Parties for 2007 to the Croatian Parliament. Following a parliamentary debate, the Report was made public. In September 2008, a Multidisciplinary Working Group was formed, with the aim of preparing a full analysis of the Act on Financing Political Parties, Independent Lists and Candidates, which will include recommendations for improving the system of financing political parties.
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In terms of realising the right of access to information, in April 2008 the Croatian Parliament accepted the Report on the Implementation of the Access to Information Act, which contains statistical data on requests for access to information, an analysis of requests submitted to institutions, an analysis of the supervision of the implementation of the Act, and of the activities of the Central State Office for Public Administration (CSOPA) in implementing the Act, as well as an assessment of the current status. In the area of integrity and the Civil Service Code of Conduct, amendments to the Civil Service Act (February 2008) strengthened the system of sanctions applicable for violations of official duty exhibiting characteristics of corruption. In addition, the institutional framework has been upgraded with the introduction of ethics commissioners into state administration bodies, courts and state attorney offices and by appointing co-ordinators responsible for anti-corruption policy issues in the state administration offices at the county level. The Ethics Department of the CSOPA and various individual bodies of the state administration have introduced open telephone lines and e-mail addresses for reporting unethical or potentially corrupt conduct by civil servants, and the bodies which may act on such reports have been designated. In 2008, the Ethics Department received 84 complaints of unethical conduct by civil servants, of which 41 complaints were received over the open telephone. Investigations were launched in 70 cases. No complaint has so far proven to be justified. Professional training of civil servants has been continually carried out, especially in terms of modules significant for the suppression of corruption (ethical conduct, right of access to information, public procurement). The legal framework for public finances has been improved with the passing of the Act on the Personal Identification Number in May 2008. This Act will enable changes in the assets of citizens and legal persons to be monitored more easily and efficiently, allowing comparisons to be made with the declared receipts and income, and the amount of tax paid. In this context, the introduction of the personal identification number will facilitate the verification of data in implementing the system of declaration of assets. The Act on the Prevention of Money Laundering and Financing of Terrorism, passed in July 2008, contains a series of measures aimed at suppressing corruption. The system for monitoring the use of budget funds has been improved with the adoption of the Ordinance on budget supervision in July 2008. The Budget Act imposed on the Republic of Croatia the obligation to guarantee the protection of the financial interests of the European Union and established the implementing institutional framework. In the area of public procurement, amendments to the Public Procurement Act were passed in October 2008, which, amongst other things, significantly increases the transparency of public procurement for defence purposes and strengthens anti-corruption protection in the process of entering into contracts on public procurement. The Concessions Act was also passed in October 2008, which increases transparency in the system of concessions, guarantees effective legal protection, and improves the supervision and collection of revenues from concessions. The legal framework for public-private partnerships was laid with the passing of the Act on Public-Private Partnerships in October 2008. Within the system of legal protection in public procurement, the promptness and efficiency of proceedings have been additionally enhanced by reducing the average length of proceedings before the State Commission for Supervision of Public Procurement Procedures. The transparency of the work of the State Commission has been increased by facilitating web access to decisions passed by the State Commission, and by publishing brochures on legal protection in the public procurement system. The system for protecting injured parties and those who in good faith report corruption (whistleblowers) was extended through amendments to the Act on Civil Servants (February 2008) by a number of measures for protecting civil servants who in good faith report corruption guaranteeing them anonymity, protecting them from unfair dismissal, and sanctioning the withdrawal or restriction of the rights of civil servants who report acts of corruption. At the same time, amendments to the Criminal Code will improve the protection of witnesses and people who in good faith report corruption (whistleblowers). In the field of the judiciary, a number of measures have been taken that are laid down for 2008 in the Action Plan of the Judicial Reform Strategy. In order to improve the existing system of training for judicial trainees and to prevent corruption and nepotism at the stage of selecting trainees for work at courts and state attorney offices and at the stage of taking the bar exam, the new Act on Trainees in Judicial Bodies and the Judicial Exam was passed in July 2008. The Act on Amendments to the Courts Act has also con-
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tributed to achieving transparency in the process of appointing judges. Furthermore, with a view to speeding up the civil procedure, amendments to the Civil Procedure Act were passed in July 2008. Criminal prosecution and the sanctioning of corruption Measures have been taken to establish a vertical institutional line of so-called anti-mafia action, including the National Police Office for the Suppression of Corruption and Organised Crime, USKOK and court departments specialising exclusively in organised crime and corruption. The task of the Police Office is to monitor and study occurrences of corruption and organised crime, so that the Offices police teams can act preventively in particularly sensitive areas, on the basis on the results of analysis. At the same time, the Office will also enable more complex criminal investigations to be conducted in a multidisciplinary manner in co-operation with USKOK when dealing with high-level corruption cases. The Office is structured so as to have four branches for suppressing corruption and organised crime, located in Zagreb, Split, Rijeka and Osijek. In order to achieve the desired speed of action at all levels, changes to the Court Rulebook adopted in October 2008 provide for the formation of special court departments at county and municipal courts in Zagreb, Split, Osijek and Rijeka to deal exclusively with cases falling within the competence of USKOK. In addition, further conditions are envisaged to guarantee the promptness and impartiality of court procedure obligatory security checks on judges in USKOK departments, precisely defined deadlines for carrying out certain actions within proceedings, confidentiality of files, statistical monitoring of corruption cases, etc. With the aim of giving priority to criminal cases involving corruption offences, the Court Rulebook was amended in September 2008 and a database on the status of corruption cases before the courts was set up within the Supreme Court of the Republic of Croatia. USKOKs activities focus on acting in a series of medium or high-level criminal corruption cases (INDEKS, DOZVOLA, ZAGREBAKE CESTE, MAESTRO, DIJAGNOZA I and II, GRUNTOVEC, and others). USKOKs pro-active approach has been strengthened, leading to the detection and processing of new cases of corruption, or to the extension of investigations in existing cases (MAESTRO, PET ZVJEDICA, GRUNTOVEC, etc.). The amendments to the Court Rulebook have ensured accelerated action in corruption cases, that is, in the commencement of main hearings. Between 1 November 2007 and 1 November 2008, USKOK received reports on 855 persons in relation to corruption offences. Requests for investigation were filed against 226 persons. Altogether, 75 persons were indicted. Sixty-three judgments were delivered, of which 53 were convictions. Appeals were filed in cases which were rejected or that ended with an acquittal. Interdepartmental co-operation has been strengthened with the signing of an agreement between the General Police Directorate and USKOK on mutual exchange of information. In addition, similar agreements are being implemented between the Ministry of the Interior and USKOK, and between the Tax Administration and USKOK. International co-operation In September 2008, the Republic of Croatia ratified the Agreement with Eurojust (OG IA 07/08), which will help advance judicial cooperation between Croatia and the EU Member States in the fight against serious forms of international crime. With the aim of strengthening judicial co-operation with other countries in the region, the Agreement between the Republic of Croatia and the Republic of Austria on Supplements to the European Convention on Mutual Assistance in Criminal Matters was ratified, and the Convention has been supplemented with an Additional Protocol. With their participation in regional activities (Regional Anti-Corruption Initiative) and conferences, representatives of the Republic of Croatia have been involved in international exchanges of experiences, in the creation of methods of supervision, and in the implementation of anti-corruption measures.
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Raising public awareness of the harmfulness of corruption In order to involve civil society organisations in the drafting of strategic documents, a round table conference was held in May 2008 on the topic Co-operating Towards an Efficient Action Plan for the Anti-Corruption Strategy, organised by the Government Office for Co-operation with NGOs, the Ministry of Justice and the Council for Civil Society Development. A Department for General Programming and Strategies was formed within the Government Office for Co-operation with NGOs, which, among other things, is responsible for the implementation of the measures from the Action Plan which fall within its competence. In the area of financing civil society organisation projects and programmes, extra attention has been paid to projects topically linked with corruption, so that the following projects were funded: 1) An unholy alliance of political power, public administration and private enterprises An anti-corruption campaign (Centre for the Development of Democracy, Split, EUR 5,633); 2) We want information The public has the right to know (Transparency International Croatia, EUR 4,225); and 3) Against corruption (Association for Democratic Society, Zagreb, EUR 5,633). B) KEY PRIORITIES In the course of 2009, it is planned to proceed with the implementation of measures set out in the Action Plan of the Anti-corruption Strategy, in line with the set deadlines. With a view to raising public awareness and encouraging potential whistleblowers to co-operate and report corruption, promotional leaflets will be made. Training programmes will also be conducted to inform police officers about measures for the protection of whistleblowers. On the basis of an implementation analysis of the Act on Financing Political Parties that will be made by a multidisciplinary working group, the application of the Act to date will be assessed and potential amendments suggested with a view to achieving greater efficiency in its implementation. The Ministry of Justice will continue to establish an effective institutional mechanism of inter-agency co-operation in the fight against corruption. In 2009, it is planned to advance the said co-operation within IPA 2007. It is also planned to complete the process of verifying land registry data, to establish electronic registries in land registry courts, and to put into operation the Land Database and the EOP Land Book. The process of introducing the e-FILE system in courts and the training of judges and state attorneys will continue. The following measures will be taken to improve the right of access to information: Further amendments to the Access to Information Act will specify more precisely the procedure (particularly competence) concerning appeals against a decision rejecting a request for access to information. An inter-departmental working group will be formed to analyse the justifiability or non-justifiability of the legal options to withhold information. Public campaigns will be organised to raise public awareness of the right of access to information.
Passing the new Administrative Procedure Act and the new Administrative Disputes Act with a view to modernising the entire system and improving both its efficiency and transparency will enable citizens to exercise their rights more easily and thus reduce the risk of corruptive conduct in the state administration. In the area of public procurement, and in order to strengthen the integrity of all those involved in public procurement, a number of training programmes and projects will be conducted. With a view to strengthening transparency, the website of the State Commission for Supervision of Public Procurement Procedures will be improved.
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In order to facilitate implementation of the system for resolving conflicts of interest, guidelines on prohibitions for public officials and the relation between the prohibitions and the criminal offences of corruption will be drafted and published. A brochure will also be prepared to inform the public about unacceptable forms of conduct in the performance of public office. With a view to creating conditions for the prevention of corruption at all levels of science, education and sports, it is planned: to pass the Act on Primary Education and the Act on Secondary Education; to introduce objective criteria for testing and evaluating students achievements through national examinations and the national matura examination; to prevent corruption in the procedure of approving, selecting and distributing free primary and secondary school textbooks through amendments to the Act on Primary and Secondary School Textbooks and other relevant legislation; to ensure the opening of examinations at higher education institutions to the public and to improve the system of evaluating universities and their study programmes through the adoption of relevant legislation in the higher education system; to establish and prescribe the competence of the Sports Inspectorate through the adoption of the Sports Inspection Act, whereby the Inspectorate will be expected to work on the prevention of abuse and corruption in sports and to ensure transparent financing of sports. In the area of suppressing corruption in the healthcare system, the legal and institutional framework will be improved with the adoption of new regulations. In addition, an analysis will be made of the public procurement system of hospitals with a view to strengthening transparency. International co-operation will be improved through the further conclusion of co-operation agreements between the Republic of Croatia and other countries. In accordance with the ratified agreement with Eurojust, Croatia will send its liaison officer and state attorney to the headquarters of Eurojust. In 2009, there will be continued implementation of training in ethics for civil, regional and local officials and employees. In order to ensure the continued involvement of civil society in monitoring the implementation of anti-corruption measures, in the last quarter of 2009 the Government Office for Co-operation with NGOs will organised round tables with all competent authorities for anti-corruption measures on monitoring the implementation of the Anti-corruption Strategy and the accompanying Action Plan. The training of journalists on corruption-related issues will also continue.
3.23.3. Fundamental rights

Personal Data Protection
A) ACHIEVEMENTS IN 2008 The drafting of a new Act on Amendments to the Personal Data Protection Act began in the first quarter of 2008 in co-operation with the Central State Office for Public Administration. At a session held on 28 March 2008, the Croatian Parliament passed the Act on Amendments to the Personal Data Protection Act which was published in the Official Gazette of the Republic of Croatia (OG 41/08). This Act ensures further alignment 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 by explicitly mentioning
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the identification number in the definition of the personal data as one of the features on the basis of which a person may be identified, which is in accordance with the definition of personal data provided by the Directive. In addition, it has been proposed that the position of personal data protection officer be defined, and the possibility established of being appointed by personal data filing system controller with a view to strengthening internal control over the legality of personal data processing and to provide additional protection of personal data within institutions themselves. In Croatia, in practice, persons responsible for control of personal data processing have already been appointed in large firms, such as, for instance, T-com, Getro, etc. Further alignment has been made with Article 26 of Directive 95/46/EC concerning the transfer of personal data from Croatia. The new Act on Amendments to the Personal Data Protection Act establishes the circumstances in which the transfer of personal data is required: - For the performance of a contract between the personal data filing system controller and the data subject or for the implementation of precontractual measures taken in response to the data subjects request; or - For the conclusion or performance of a contract concluded in the interest of the data subject between the personal data filing system controller and a third party; or - For the protection of important public interest or for the establishment, exercise or defence of legal claims; or - When the transfer is made from a publicly available register which is kept according to laws or regulations. The Act on Amendments to the Personal Data Protection Act lays down exemptions from the obligation to deliver records of personal data filing systems to the Central Register in cases of the personal data filing systems that are kept pursuant to regulations in the field of labour law, personal data filing system controllers who employ up to five persons, and personal data filing system controllers who have appointed a personal data protection officer, provided that the filing system data are not transferred from Croatia. Finally, the Act on Amendments to the Personal Data Protection Act also prescribes sanctions for the personal data filing system controllers who allow access to the personal data contrary to the provisions of this Act. Supervisory activities In the course of 2008 (up to 30 September 2008), the Croatian Personal Data Protection Agency had conducted a total of 81 inspections of personal data processing activities according to the Plan that had been set up for 2008. The inspections involved the following sectors: state administration, local government and self-government, the economic sector, commerce, culture, finances, education, healthcare and social welfare, telecommunications, etc. It is worth noting that in 2008 supervision was conducted for the first time in the telecommunications sector, which required special, additional preparation of the Agencys staff. In the last quarter of 2008, the Agency carried out supervision of the personal data processing activities for the purpose of state border crossing, i.e. the supervision of personal data processing in the National Border Management Information System (NBMIS), which also required additional preparation and training of the Agencys staff. In this context, Taiex organised a study visit to the SIRENE Office in Vienna in order to prepare the Agencys staff and improve their knowledge of best practice regarding personal data processing upon state border crossings in other countries (in this case Austria). With regard to the 2008 Inspections Plan and the inspections carried out in the course of 2008, it should be said that the inspections were conducted in all the selected sectors. Alongside these inspections, there were joint supervisory activities carried out over the legality of personal data processing pursuant to the Personal Data Protection Act, as well as inspections of the IT security of the personal data kept by all personal data filing system controllers. It should be noted that such an approach to supervision is highly demanding and complex.
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Central Register and IT There are 8,022 records at the Central Register. Upon setting up a digital registry, additional training of the registrys staff, particularly with regard to handling scanners, has proven to be necessary. Human resources The Personal Data Protection Agency currently employs 25 staff members, while the number of employees should increase to 27 by the end of the year. Project Within the Instrument for Pre-Accession Assistance (IPA) 2007, the Personal Data Protection Agency submitted a project under the title Capacity Building of the Personal Data Protection Agency which was approved by the EC as the primary provider of funds. The project is expected to start at the end of 2008, and its completion is expected in the second quarter of 2011. It consists of two components, and its total value amounts to EUR 2,080,000. A sum of EUR 1,350,000 has been earmarked for alignment with Directive 95/46/EC, the training of trainers who will then be in charge of training civil servants responsible for personal data protection and training in IT security matters. Promotion campaigns have also been planned to raise awareness of the need to protect personal data. A sum of EUR 730,000 will be provided for the supply of equipment, including hardware (i.e. the training centre equipment, the modernisation of users PCs, as well as equipment required for the achievement of a satisfactory level of IT system reliability and security) and several software solutions, the purpose of which is to improve the Agencys IT infrastructure itself, business processes and, ultimately, the implementation of the international IT security standard ISO/IEC 27001. The EU contributes to the project with a grant of EUR 1,897,500, while the remaining sum of EUR 182,500 should be provided by the Agency from budget funds. In the course of 2008, complete project documentation was prepared, including the Project Fiche, the Twinning Fiche, the Technical Specification and a Market Study. The Tender dossier for the provision of the equipment is currently under preparation. The Project Implementation Unit (PIU) has been strengthened with the arrival of a new member, a risk analysis has been conducted, as has an assessment of the current situation. Based on the above, it may be said that the Agency is ready for the project implementation phase. With the implementation of this project under the IPA programme, the Agency should be able to fully align the Personal Data Protection Act with Directive 95/46/EC, strengthen its consultative and supervisory powers, reach the highest level of staff capability, provide the IT infrastructure and implement the international IT security standard. Raising public awareness of the need for personal data protection The Personal Data Protection Agency has been continually working on raising awareness of the fundamental personal data protection rights among personal data filing system controllers, civil servants and the general public through seminars and conferences, as well as through the celebration of a Personal Data Protection Day. In April 2008, the Agency participated in the Conference on Privacy in Opatija. The company under the name of Case organised lectures on personal data protection, as well as workshops on fulfilling the obligation to deliver records of personal data filing systems as follows: In Pula on 10 June 2008
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In Pazin on 11 June 2008. Pula - 2 October 2008: At the 36th session of the Croatian Library Association, a lecture on the protection of personal data was held.
Celebrating the Personal Data Protection Day On the occasion of the Personal Data Protection Day on 28 January 2008, the Personal Data Protection Agency, in co-operation with the Consumers Protection Association, organised a round table entitled Personal Data Protection in Croatia. In addition, the Agency marked the EU Personal Data Protection Day by talking to citizens in the City Centre One shopping area on 26 January 2008 when it also distributed brochures and carried out an anonymous survey. B) KEY PRIORITIES With a view to strengthening its administrative capacities, the Agency plans to recruit two more employees in 2009; In the course of 2009, the Agency plans to continue the already initiated activities of state border control at international border crossings where the National Border Management Information System will be applied (NBMIS); The continuation of the already initiated activities in the telecommunications sector concerning the period of keeping and processing the personal data of service users and IT security; The continuation of control of personal data processing by video cameras control of video systems (CCTV) in the public and private sectors (primary and secondary schools, universities, kindergartens, companies); Proceeding with activities in the healthcare and social welfare sectors; Proceeding with the activities of processing biometric personal data (in the public and private sectors); Inspections following requests for the protection of rights (citizens' complaints and information from the media);
Inspections have, naturally, been planned for the entire territory of the Republic of Croatia. In the course of 2009, the Agency will keep raising awareness of the need to protect personal data, focusing on the education of the general public. In addition, education and training will cover a large number of sectors of the economy, and local, state and public administration. In this respect, the following activities have been prepared: Opening two new links on the website of the Agency intended for the general public, as well as pupils and students in particular Deadline: December 2008; Publishing one to two popular brochures intended for the general public and dealing with personal data protection and protection against potential identity thefts Deadline: end of March 2009; The organisation of at least six forums for citizens in large Croatian towns; The organisation of twelve seminars for personal data filing system controllers in major Croatian towns; The organisation of short radio broadcasts at least once a month dealing with the issues of personal data protection; The organisation of at least three round tables in 2009 with the participation of the Agency's representatives and other experts discussing topical issues (such as video surveillance, biometrics in personal data protection, etc.); Opening a link on IT security in the field of personal data protection on the Agency's website Deadline: February 2009.
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3.24. JUSTICE, FREEDOM AND SECURITY 3.24.1. Asylum

Legislative measures For the purpose of applying the Asylum Act (Official Gazette 79/07), which entered into force on 1 January 2008, the following implementing regulations were adopted: Ordinance on the forms and data collections in asylum procedures (Official Gazette 36/08); Ordinance on free legal aid (Official Gazette 36/08); Ordinance on the accommodation of asylum seekers, asylees, aliens under subsidiary protection and aliens under temporary protection (Official Gazette 36/08); Ordinance on the amount of financial assistance for asylum seekers, asylees, aliens under temporary protection and aliens under subsidiary protection (Official Gazette 39/08); Ordinance on the contents of the medical examination of asylum seekers, asylees, aliens under temporary protection and aliens under subsidiary protection (Official Gazette 39/08); Rules of Procedure of the Asylum Commission (Official Gazette 76/08); Ordinance on the manner of implementing programmes and knowledge tests for asylum seekers, asylees, aliens under temporary protection and aliens under subsidiary protection, for the purpose of gaining access to the education system of the Republic of Croatia (Official Gazette 89/08); Decision on the accommodation costs in the Reception Centre for asylum seekers (Official Gazette 49/08); and House Rules of reception centres for asylum seekers, adopted on 24 April 2008.
With the passing of the new Asylum Act and related implementing regulations, Croatian legislation is now aligned with EU legislation in the area of asylum. Strengthening administrative capacity Asylum officers, and in particular decision-makers, receive continuous training in the application of international and national standards of humanitarian and refugee law. The Ministry of the Interior has enjoyed successful co-operation in the area with the nongovernment sector and with international organisations. The CARDS 2004 Twinning Project Asylum Reform II has been successfully implemented since August 2007. The partners to the Ministry of the Interior in this Project are the Immigration and Naturalisation Service (IND) of the Kingdom of the Netherlands and the Office of Immigration and Nationality (OIN) of the Republic of Hungary. The Project has three components: capacity building in the area of asylum, alignment of legislation, and improvement of the asylum procedure. Within component 3 (capacity building in the area of asylum), training is also provided for staff of the Ministry of the Interior (MI) involved in asylum procedures. In addition to the staff of the Reception Centre for Asylum Seekers and the Asylum Section, depending on the topics, the seminars and workshops are also attended by employees of other organisational units of the Ministry of the Interior, other state administration bodies, and NGOs which conduct certain asylum-related activities.
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A training manual is also being prepared for the purpose of training new employees, as is a manual for the reception of asylum seekers, recommendations for decision-makers and a manual for the integration of asylees. Special emphasis in the Project is placed on preparation for the implementation of regulations pertaining to EURODAC and DubliNet. The Implementation Plan for EURODAC and Dublin is in its final stage and the drafting of an operating guide for the implementation of the Dublin regulations has begun. Through the investment component of the Project, part of the equipment (from LOT 1 and LOT 3 tender documentation devices for optical fingerprint acquisition and communication equipment) necessary for the introduction of the EURODAC and DubliNet systems has been procured. The said equipment was delivered to the Ministry of the Interior in December 2007, and was installed and tested in January 2008 at three locations (Reception Centre for Asylum Seekers, Reception Centre for Aliens in Jeevo, and the seat of the Ministry of the Interior). The remaining equipment (LOT 2), for which it was impossible to conclude a contract within the CARDS Project, was procured by the Ministry with resources from the State Budget. This equipment is currently being installed. The Asylum Commission (second-instance body in the asylum procedure) began work on 30 April 2008. Within the framework of the CARDS Project Asylum Reform II, the members of the Commission receive training, and a special Project component is aimed at analysing the work of the Commission and issuing recommendations for its future work. The members of the Commission also participate in training organised as part of other projects or by NGOs or international organisations. Activities connected with the reception and accommodation of asylum seekers are conducted at the Reception Centre for Asylum Seekers in Kutina, where the number of staff is gradually growing in relation to the number of accommodated asylum seekers. There are 17 MI members of staff and 5 Croatian Red Cross officers working at the Reception centre, while a vacancy is currently being advertised for another MI employee (social worker). In accordance with the new systematisation of work posts, the number of work posts was increased in the course of 2008 by: two decision-makers; two employees for EURODAC and Dublin; and one employee for integration.
The Ministry of the Interior, in co-operation with the NGO Croatian Law Centre, and with financial support from the Ministry of Foreign Affairs of the Kingdom of the Netherlands (MATRA), began to implement the Project Strengthening Croatian Civil Society in the Area of Migration and Asylum as Preparation for the Accession of the Republic of Croatia to the European Union (Border Monitoring). The activities of the main module of the Project (Monitoring the Conduct of Police Officers of the Ministry of the Interior of the Republic of Croatia (MI) in the Area of Illegal Migration and Asylum) are conducted by representatives of the Ministry of the Interior from the Border Directorate, the Reception Centre for Aliens, and the Department for Aliens and Asylum, as well as representatives of Police Administrations from Zagreb, Primorje-Gorski Kotar and Varadin. In the course of 2008, an Agreement on Co-operation was signed between the Ministry of the Interior and the Croatian Law Centre, and preparatory activities began for the realisation of this 30-month Project. The goal of the activity is border monitoring, i.e. a series of activities related to monitoring the conduct of the police and other officers of the Ministry of the Interior in the implementation of regulations governing border monitoring, migration and asylum, and the practices applied to illegal migrants and possible asylum seekers, and monitoring the opportunities to access the asylum procedure, with a view to protecting human rights. (More on the content of the Project and further details can be found under the heading 3.23.2 Migration.) B) KEY PRIORITIES For the purpose of implementing the Asylum Act, the Ministry of Science, Education and Sports must adopt a curriculum for the subject Croatian language, history and culture for asylum seekers and asylees. With regard to strengthening administrative capacity, the following activities are planned: completing all activities, and meeting all the criteria in the CARDS 2004 Twinning Project Asylum Reform II;
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creating the necessary technical conditions for the implementation of the EURODAC and Dublin regulations by linking the procured IT and communication equipment;
filling the vacancies in the Section for Asylum by recruiting new employees; strengthening co-operation with other bodies and providing training for staff in the area of the integration of aliens who have been granted asylum or subsidiary protection;
providing training for members of the Asylum Commission and staff of the Ministry of the Interior working on asylum-related activities.
The Ministry of the Interior will work on creating all the material and administrative conditions for the introduction of the EURODAC and DUBLIN II systems and for the full implementation of regulations governing the said systems. Such steps should result in these systems being in full operation by the time the Republic of Croatia accedes to the European Union.
3.24.2. Migration
A) ACHIEVEMENTS IN 2008 The Aliens Act (Official Gazette 79/07) has been in force since 1 January 2008. On the basis of the Aliens Act, the following implementing regulations for the area of migration have been adopted: Ordinance on the status and work of aliens in the Republic of Croatia (Official Gazette 36/08); Ordinance on travel documents for aliens, visas, and the treatment of aliens (Official Gazette 36/08 and 42/08); Ordinance on the conditions for granting consent (Official Gazette 26/08); Ordinance on the manner of establishing conditions for entry and residence in the Republic of Croatia for nationals of the European Economic Area and members of their families, and family members of Croatian nationals (Official Gazette 62/08), which will enter into force on the day of the accession of the Republic of Croatia to the European Union; Decision on determining the annual quota of work permits for the recruitment of aliens for 2008 (Official Gazette 130/07); Decision on the amendments to the Decision on determining the annual quota of work permits for the recruitment of aliens for 2008 (Official Gazette 106/08); Decision on the manner of calculating the costs of forced removal (Official Gazette 86/08); Rules for residence at the Reception Centre for Aliens, issued by the Minister of the Interior on 11 June 2008.
In the course of implementing the new Aliens Act to date, certain deficiencies have been noted. For this reason, the Act on Amendments to the Aliens Act is currently under legislative procedure (the amendments do not concern alignment with the acquis, but more precise definitions of certain institutes and the enhancement of procedures). The passing of the Act on Amendments to the Aliens Act is expected by the end of 2008. In order to ensure co-ordinated and efficient implementation of the Migration Policy, on 15 May 2008 the Government of the Republic of Croatia adopted the Action Plan for the Implementation of the Migration Policy of the Republic of Croatia, which sets out in detail the activities of particular bodies involved in the implementation of the Migration Policy, deadlines for the implementation of particular measures, the necessary funds, and the manner of co-ordination and monitoring the implementation of particular measures. The Draft Action Plan was drawn up as part of the CARDS 2004 Project Asylum Reform II.
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On 30 September 2008, the Government of the Republic of Croatia issued the Decision on the appointment of the chairman and members of the Joint Commission for the Co-ordination of the Implementation of the Action Plan for the Implementation of the Migration Policy of the Republic of Croatia. The Republic of Croatia has signed 24 agreements on the readmission of persons, of which 19 agreements are with EU Member States. 18 agreements have been aligned with the EU form for agreements, while 6 agreements have not yet been aligned. In Bratislava on 23 June 2008, a new aligned text of the Agreement between the Government of the Republic of Croatia and the Government of the Slovak Republic was signed, including the EU form for readmission agreements, concerning readmission of persons whose residence is illegal. In two rounds of negotiations (3 and 4 June and 9 September 2009), the delegations of the Republic of Croatia and the Republic of Serbia aligned the texts of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Serbia on the Readmission of Persons whose Entry or Residence is Illegal and the accompanying Protocol. The texts are expected to be initialled shortly. The Agreement between the Government of the Republic of Croatia and the Government of the Republic of Montenegro on the Readmission of Persons whose Entry or Residence is Illegal was signed on 24 September 2008. By the end of 2008, negotiations with Bosnia and Herzegovina are expected to begin regarding the new amended text of the Agreement on Readmission, aligned with the EU form. Agreements with Ukraine, Moldova and Cyprus are in their final stages of harmonisation. Institutional and administrative capacities In 2008, the administrative capacities of the MI were strengthened through the provision of training for its staff, upgrades to the IT equipment of the Section for Status Matters of Aliens at the seat of the Ministry of the Interior, and by filling the increased number of systematised work posts in the Section for Status Matters of Aliens with three additional members of staff. There are currently 330 filled work posts of police officers for illegal migration, while 9 more vacancies remain. For the purpose of becoming better acquainted with legal regulations and the acquis in the area of migration, training has been provided for police officers for illegal migrations working in police administrations and police stations. With regard to granting consent for issuing business permits, an instructive meeting was held for representatives of state administration bodies in the counties which make decisions on granting consent for issuing business permits. The following projects were launched in 2008: 1. The Project Strengthening Croatian Civil Society in the Area of Migration and Asylum as Preparation for the Accession of the Republic of Croatia to the European Union, main module: Monitoring the Conduct of Police Officers of the Ministry of the Interior of the Republic of Croatia in the Area of Illegal Migration and Asylum. The Ministry of the Interior of the Republic of Croatia and the Croatian Law Centre continued their successful co-operation for the purpose of promoting and further improving the standards of protection of human rights and fundamental freedoms and transparency in the work of the police. They agreed to jointly design and implement this specially targeted and managed project under the said title, which was established as the main module in the broader project thanks to approved financing as part of the MATRA programme, but which is wholly independent of the other participants in the broader project. The duration of the project is 30 months. The project began on 1 June 2008. The mode of co-operation and of the implementation of the main module was regulated by the Agreement of Co-operation between the Ministry of the Interior and the Croatian Law Centre, and by the Protocol on Project Implementation. In the course of preparations for the project implementation, an advisory committee was constituted, which will be responsible for project management. A smaller part of the project is aimed at building the
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capacities of NGOs in the Republic of Croatia dealing with the protection of human rights. This part of the project will be run by the Croatian Law Centre in co-operation with the Croatian Red Cross and the Croatian Helsinki Committee for Human Rights. 2. The Regional Project Support Programme for the Setting up of Transnational Referral Mechanisms for the Protection of Victims of Trafficking in Persons in South-eastern Europe. The International Centre for Migration Policy Development (ICMPD) from Vienna is implementing a regional project entitled Support Programme for the Setting up of Transnational Referral Mechanisms for the Protection of Victims of Trafficking in Persons in South Eastern Europe. The Project is run as part of regular activities of the National Programme for the Suppression of Trafficking in Persons of the Government of the Republic of Croatia in co-operation with the Office for Human Rights and other competent state institutions, particularly the MI, the State Attorneys Office, the Ministry of Health and Social Welfare and civil society organisations. 3. PHARE 2005 PPF Support to the MI in Preparing Project/Tender Documentation for Transit Reception Centres for Aliens. The aim of the Project is to conduct a feasibility study for the construction of two new transit reception centres for illegal migrants and a Unit (Facility) for the accommodation of minors at the Reception Centre for Aliens in Jeevo. It is also necessary, within the framework of this Project, to outline the organisation and the necessary human resources for transit centres and the unit for minors, and to estimate reception capacity and material, technical and financial costs of the construction and starting up of the new facilities. The locations chosen for the construction of the transit reception centres are Tovarnik and Trilj. The construction of the transit centres and unit for minors is envisaged in the following Government documents: Action Plan for the Integrated Border Management, and in the Schengen Action Plan, which set the final deadline for construction in 2011. 4. The AENEAS 2005 Project Development of Communication and Information Exchange Systems on Illegal Migration in the Western Balkan Region. The goal of the project is to enhance communication and information exchange between the border police of the countries of South-eastern Europe on the flows of illegal migration. The Project beneficiaries are the border police services of Croatia, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia and Albania. The Project began in December 2006, with a duration of 18 months. As the final result of the Project, a Memorandum of Understanding was concluded, establishing an information exchange system on illegal migrations and a regional early-warning system. The Memorandum was signed in Skoplje on 20 November 2008 between the MI of the Republic of Albania, the Border Police of the Ministry of Bosnia and Herzegovina, the General Police Directorate of the MI of the Republic of Croatia, the MI of the Republic of Macedonia, the Ministry of the Interior and Public Administration of Montenegro, and the MI of Serbia. B) KEY PRIORITIES In 2009, it is planned to continue implementing the measures of the Migration Policy of the Republic of Croatia for 2007/08 whose implementation is continuous, i.e. which cannot be fully implemented in the short-term, in line with the Action Plan for the Implementation of the Migration Policy of the Republic of Croatia. Administrative capacities will continue to be strengthened by providing training to existing staff and by recruiting new employees. Continuous training will be provided for police officers in 2009 in matters of illegal migration, and to staff working on matters relating to legal migration in police administrations, i.e. police stations. Special emphasis will be put on the application of legal regulations, informing staff about new legal provisions and the acquis in the area of migration. Through the Project Strengthening Croatian Civil Society in the Area of Migration and Asylum as a Preparation for the Accession of the Republic of Croatia to the European Union, in the main module Monitoring the Conduct of Police Officers of the Ministry of the Interior of the Republic of Croatia in the Area of Illegal Migration and Asylum, the MI and the Croatian Law Centre will provide
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training for monitors involved in the Project. Monitors will be selected from the ranks of lawyers and will be given special training on the standards of international protection of human rights and on the legal framework for police practice towards illegal immigrants. In this way, public awareness of the problem of illegal migrations will be raised. Upon the completion of the PHARE 2005 Project PPF Support to the MI in Preparing Project/Tender Documentation for Transit Reception Centres for Aliens, it is planned to set up two transit reception centres and a unit for the accommodation of minors without escort at the Reception Centre for Aliens. It is planned to do this in three stages. The first stage, which will take place in 2009, will involve the preparation of project documentation, which will be financed to a total of HRK 550,000 from the State Budget.
3.24.3. Visas
Legislative measures The new Aliens Act entered into force on 1 January 2008, which meant further alignment with the acquis in the area of visa policy. The Ministry of Foreign Affairs and European Integration has been designated as the central state body for visa policy and visas, the legislative framework has been set up for the Croatian Visa Database, the types and features of visas have been redefined, and visa stickers have been introduced. Pursuant to the provisions of Article 15 of the Aliens Act, on the proposal of the ministry competent for foreign affairs, the Government of the Republic of Croatia adopted at its session on 4 April 2008 the new Regulation on the visa regime (Official Gazette 41/08), which entered into force on 1 May 2008. This subordinate legal act regulates the visa regime and subsistence funds required for aliens during their stay in the Republic of Croatia and for their return to their country of origin or journey to a third country. Taking into account the latest amendments of the EU visa regime (Council Regulation (EC) No 1932 of 21 December 2006), a visa regime for nationals of Bolivia was introduced, and special categories of nationals of the United Kingdom of Great Britain and Northern Ireland who are not nationals of that country in terms of Community rights were also introduced into the visa regime. Following additional suggestions by the Russian party, consultations were extended and negotiations on 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 were completed in September 2008. Preparations for the signing of the Agreement are underway, and the signing is expected to take place in the first quarter of 2009. The new regulation will introduce a classical visa regime. The Government of the Republic of Croatia will receive for adoption a Proposal of the Decision on the extension of the temporary suspension of the visa regime for nationals of the Republic of Serbia and nationals of the Republic of Montenegro, which is to be applied from 1 January to 31 December 2009. A decision has been made to refrain from concluding new bilateral agreements on the suspension of visas with states on the EU negative list. With regard to the holders of diplomatic and official passports from such states, Annex 2 to the Common Consular Instructions on Visas for Diplomatic Missions and Consular Posts (Provisions on the movement of holders of diplomatic, official and service-related passports and holders of laissez passers issued by some international inter-governmental organisations to their employees) is taken into consideration when deciding on whether a visa is not required, unless this is a matter of exceptional and special interest to the Republic of Croatia. In accordance with the said position, on 19 September 2008 an Agreement on Abolishing the Visa Regime for Holders of Diplomatic and Official Passports was signed between the Government of the Republic of Croatia and the Government of the Republic of Kazakhstan.
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On the basis of the provision of Article 211 of the Act, the Minister of Foreign Affairs and European Integration issued three implementing regulations, with the consent of the Minister of the Interior, which entered into force on 1 June 2008: Ordinance on visas (Official Gazette 49/08) regulating the procedure of issuing visas in diplomatic missions/consular posts of the Republic of Croatia abroad; Ordinance on visa forms (Official Gazette 49/08), which sets out the application forms for issuing visas, sticker visas, and visa entry forms. In accordance with the provisions of the Ordinance, the new visa application form has been used in diplomatic missions/consular posts since 30 June 2008 and the visa entry form since 1 August 2008. The visa form will start to be used in diplomatic missions/consular posts at the beginning of 2009. The new sticker visa includes additional protective features, in line with the technical specifications laid down in the Annex to the Ordinance, which is confidential and is not published in the Official Gazette. The form complies with ICAO standards and relevant regulations of the acquis. The Ordinance on the Croatian Visa Database (Official Gazette 49/08), which regulates the contents and function of and authorisation for using the Croatian Visa Database, along with the conditions and procedures for exchanging data among competent bodies in charge of visas in order to facilitate the processing of visa applications and making decisions regarding applications. The Act on Amendments to the Administrative Fees Act (Official Gazette 60/08), which entered into force on 27 June 2008 and which completed the first phase of alignment of fees charged for visa applications with the acquis. A single fee (EUR 35) has been introduced for applications for all kinds of visas, and possible exemptions have also been aligned with the acquis. A Proposal of the Act on Amendments to the Aliens Act, expected to be passed at the beginning of 2009, is under legislative procedure. In the area of visas, proposals such as introducing the requirement of travel insurance and the taking of biometrical data from applicants are being considered. IT system In February 2008, the Ministry of Foreign Affairs and European Integration adopted the Revised Plan for Full Computer Linking of Diplomatic Missions and Consular Posts of the Republic of Croatia Abroad. The IKOS system is in full operation in 71 of 72 (73) Croatian diplomatic missions and consular posts. The last remaining location that needs to be connected to the system is the Embassy of the Republic of Croatia in Tripoli. This had to be delayed due to objective difficulties. The system has undergone minimum technical adjustments pertaining to the printing of the new sticker visa and additional information. The Ministry of Foreign Affairs and European Integration has made arrangements with the Ministry of the Interior for the implementation of IT infrastructure for the setting up of the Croatian Visa Database and work has begun on developing the necessary software. As part of the activities of the Interdepartmental Working Group for the Establishment and Development of the Croatian Visa Information System and the Preparation for Joining the Visa Information System of the European Union (set up by the Decision of the Government of the Republic of Croatia of 2 November 2007), the Project Support to the Setting up and Development of the Croatian Visa Information System and the Preparation for Joining the Visa Information System of the European Union was proposed and approved within the PHARE assistance programme 2006. Institutional capacity On 9 July 2008, the Minister of Foreign Affairs and European Integration and the Minister of the Interior issued an Implementation Plan for the Preparation of the Services of Foreign and Internal Affairs for the Alignment of the Visa Regime, which includes an assessment of the financial impact on the State Budget.
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As regards the conclusion 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, the said Plan revises all elements of the necessary preparation of the services of foreign and internal affairs in order to ensure their efficient application and implementation in the future. In addition, consultations have continued with the Russian party regarding the issue of embassy buildings. The Ministry of Foreign Affairs and European Integration issued a new Regulation on the internal organisation of the Ministry of Foreign Affairs and European Integration and of diplomatic missions and consular posts of the Republic of Croatia abroad (Official Gazette 64/08). On 17 July 2008, a new Ordinance on the internal order of the Ministry of Foreign Affairs and European Integration and of diplomatic missions and consular posts of the Republic of Croatia abroad was also issued. As part of the preparations for assuming the role of the central state body for visa-related matters, it is planned to raise the number of staff in the Visa Department to ten (10). As part of their additional training, Visa Department staff attended a seminar on the efficient application of the Common Consular Instructions on Visas (CCI), which was organised by TAIEX in Brussels in December 2007. Also within the TAIEX programme, on 13 and 14 March 2008, on the initiative of the Ministry of Foreign Affairs and European Integration, a seminar was held in Zagreb with experts from the Republic of Austria and the Republic of Slovenia for the purpose of analysing the level of alignment of Croatian legislation with the acquis in the area of visas and the entry and sojourn of foreign nationals on the territory of the Republic of Croatia. By continuing alignment with EU standards in the procedure of issuing visas, bearing in mind the EU Catalogue of Recommendations for the Correct Application of the Schengen Acquis and Best Practice, Issuing of Visas (7 February 2003), the relevant MFAEI services produced an analysis of the current situation in the organisation of admission areas and work with clients, and the meeting of security standards in diplomatic missions and consular posts. Implementing biometric identifiers in travel documents In June 2008, the Croatian Government issued a Conclusion tasking the Ministry of the Interior to co-operate with the Ministry of Foreign Affairs and European Integration in preparing a proposal for the project of implementing biometric e-passports for Croatian nationals. Through a Decision by the Minister of the Interior of 17 July 2008, a working group was formed to devise a project of implementing biometric e-passports for Croatian nationals. The members of the working group include, beside representatives of the Ministry of the Interior, representatives of the Ministry of Foreign Affairs and European Integration. The working group has drafted a project proposal for the implementation of biometric e-passports for Croatian nationals, including an implementation timetable and an estimate of the necessary financial resources. This proposal has been sent to the Croatian Government for adoption. Within the TAIEX programme, study trips have been organised to EU Member States (Austria, Germany, the Netherlands) for the purpose of becoming acquainted with the normative and technical solutions implemented in EU Member States which issue biometric passports. The first study visit took place from 1 to 3 September 2008 in the Republic of Austria. A visit of Dutch experts to Croatia was also organised, during which they provided relevant information to the members of the working group for the implementation of biometric e-passports. Croatian experts also visited the Netherlands. B) KEY PRIORITIES
Legislative measures The Proposal of the Act on Amendments to the Aliens Act, which introduces the institute of travel insurance and defines the legal person in charge of collecting biometric data from applicants, is under legislative procedure. The legislative procedure is due to be completed soon and it is expected that the Act will be passed at the beginning of 2009.
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Upon the passing of the Act, it will be necessary to introduce amendments to the implementing regulations adopted on the basis of the Aliens Act (the Ordinance on visas, and the Ordinance on the Croatian Visa Database). These activities are planned for the second quarter of 2009. Pursuant to the Plan of Full Alignment of the Croatian Visa Regime with the EU Visa Regime, it is planned to conduct bilateral consultations and reach an agreement on regulating the regime of the mutual rights of travel of nationals with the countries on the EU negative list which do not require an entry visa for the Republic of Croatia. It is expected that the Agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on the mutual rights of travel will enter into force at the end of 2009. In line with the implementation of the Plan of Full Alignment of the Croatian Visa Regime, the Regulation on the visa regime will be appropriately amended. IT System According to the Ordinance on the Croatian Visa Database (Official Gazette 49/08), bodies in charge of visas will begin to collect and enter data into the CVD by no later than 1 June 2009. The IKOS system continues to be systematically upgraded and developed with a view to establishing an IT connection between all competent bodies involved in the procedure of issuing visas and bodies competent for the control of border crossings. An Interdepartmental Working Group for the Establishment and Development of the Croatian Visa Information System and the Preparation for Joining the Visa Information System of the European Union continues to work intensively on the development of new software so that it may be ready by the above deadline. Within the activities of the Interdepartmental Working Group, the Project Support to the Setting up and Development of the Croatian Visa Information System and the Preparation for Joining the Visa Information System of the European Union will be implemented. The Interdepartmental Working Group and project teams in the competent bodies continue to work intensively on the development and setting up of the Croatian Visa IT System and on preparations for joining the EU Visa Information System. In the mid-term period, and in line with the alignment of the Croatian visa regime, work will continue on the project of developing and setting up the Croatian Visa Information System and on preparations for connection to the EU Visa Information System. Institutional capacity In 2009, the Ministry of Foreign Affairs and European Integration will completely take over the role of the central state body competent for matters of visa policy and visas, which includes active participation in the procedure of issuing visas. As regards the conclusion of the agreement with the Russian Federation, the appropriate preparations will be conducted by the services of foreign and internal affairs so that it may be efficiently applied and implemented upon its entry into force. The above activities include: Organising the premises of the Consular Department of the Embassy of the Republic of Croatia in Moscow; Increasing the number of consular officers in the Embassy; Procuring the necessary IT and other equipment.
For the purpose of the uniform and consistent application of the package of legal regulations pertaining to aliens, in the course of the second quarter of 2009 appropriate training will start for consular officers in diplomatic missions/consular posts, all with a view to setting up a single and consistent visa issuing system at diplomatic missions/consular posts and at border crossing points.
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In addition, with a view to easier adjustment to EU standards regarding visa policy, additional training in the visa acquis is planned for consular officers. The said training will continue to be provided in the mid-term as a continuous measure. In the first quarter of 2009, it is planned to provide special training for consular officers from diplomatic missions and consular posts in order to familiarise them with the new regulations pertaining to aliens and to ensure that they are applied in practice appropriately and efficiently. Training in the detection and recognition of forgeries continues as a continuous measure provided for civil servants posted to diplomatic missions/consular posts. In 2009, implementation will begin of the Plan of Further Alignment with EU Standards in Diplomatic Missions/Consular Posts, relating to the organisation of the admission area and work with clients, and with regard to meeting security standards. Implementing biometric identifiers in travel documents In order to achieve the alignment of Croatian travel documents with Council Regulation No 2252/2004 of 13 December 2004 on standards for security features and biometrics in passports and travel documents issued by Member States, it is necessary to ensure all the necessary material and technical conditions for implementing the project of introducing biometric passports for Croatian nationals. The Act on Travel Documents of Croatian Nationals will be amended in order to create the legal basis for issuing biometric e-passports.
3.24.4. Border Management and Schengen

Strategic documents In line with the Decision of the Croatian Government, the annual updating of strategic documents of the border police - the Integrated Border Management Strategy and its Action Plan, and the Schengen Action Plan is underway. Following this, they will be sent to the Croatian Government for adoption. Legislative framework In 2008, the following subordinate legislation was adopted: Ordinance on amendments to the Ordinance on the procedure for carrying out state border surveillance (OG 25/08) of 27 February 2008; Ordinance on the contents and users of the National Information System for State Border Management (OG 36/08) of 29 March 2008; Ordinance on the maintenance of operating border police filing systems within the framework of the National Information System for State Border Management (OG 36/08) of 29 March 2008. Pursuant to Article 107, paragraph 1, items 1, 2 and 3 of the Weapons Act (OG 63/07), the Ordinance on the format of documents, and the forms and methods to be used to keep weapons and ammunition records (OG 33/08) was adopted on 17 March 2008.
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With a view to further alignment with the acquis, on 5 December 2008 the Croatian Parliament passed the Act on Amendments to the State Border Protection Act. Cross-border co-operation On 6 June 2008, the following protocols, relating to the implementation of the Agreement on Co-operation on State Border Control between the Government of the Republic of Croatia and the Ministers Council of Bosnia and Herzegovina (which was signed on 29 March 2007 and ratified in October 2007), were signed and started to be applied: Protocol on the seconding of liaison officers; Protocol on mixed patrols on shared state borders; Protocol on official transit across state territory by another contractual party for the purpose of action in their own state territory; and Protocol on setting up joint working groups for combating crime.
The protocols on mixed patrols on shared state borders and on official transit across state territory by another contractual party for the purpose of action in their own state territory are already applied in the field. On the basis of the Agreement on Cross-border Traffic and Co-operation with Bosnia and Herzegovina, permits for one-off state border crossings at minor border crossing points were introduced from 1 January 2008, and it is expected that cross-border passes and agricultural inserts for inhabitants of border areas will begin to be issued by the end of 2008. With a view to establishing formal co-operation with the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union (FRONTEX), on 15 April 2008 a Working Arrangement was signed for the establishment of operative co-operation between the Agency and the Ministry of the Interior of the Republic of Croatia. Since the signing of the Working Arrangement, representatives of the Border Directorate have participated in several activities in the organisation of FRONTEX, including: the participation of 25 border police officers in the implementation of border control during the 2008 European Football Championship in Austria; acting as observers in the FRONTEX Risk Analysis Unit (FRAN), while in 2009 FRONTEX plans to provide training for employees of the Analytics Section in the delivery and exchange of information through FRAN (FRONTEX Risk Analysis Network), which should be followed by the inclusion of the Republic of Croatia in the FRONBAC analytics community (Frontex Border Analytics Community), i.e. the system of mutual information exchange. Inclusion should be preceded by training; activities jointly conducted by FRONTEX and EUROPOL in the Republic of Croatia through a Task Force unit with a view to suppressing organised crime and strengthening border management; activities pertaining to the training of border police. The first such activity was participation in the Project Training in the detection of stolen vehicles. With a view to strengthening bilateral co-operation with neighbouring countries, the Government of the Republic of Croatia and the Government of the Republic of Hungary signed an Agreement on Co-operation in the Fight against Cross-border Organised Crime on 3 October 2008. This Agreement was a precondition for the Republic of Croatia to request access to the Agreement between the Government of the Republic of Slovenia, the Government of the Republic of Austria and the Government of the Republic of Hungary on the Dolga Vas Co-operation Centre for Security and to participate in the work of the said Centre. The text of the Agreement of Cross-border Police Co-operation with the Italian Republic has been finalised and is expected to be signed shortly.
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In accordance with the Integrated Border Management Action Plan and the Agreement on Co-operation on State Border Control between the Government of the Republic of Croatia and the Ministers Council of Bosnia and Herzegovina, 10 border crossing points on each side have been connected with direct telephone lines. Interagency co-operation Co-ordination between the relevant services involved in integrated border management has been permanently conducted through the work of the Interdepartmental Working Group, within which three expert working teams are engaged on the direct realisation of activities in the Integrated Border Management Action Plan. The Report on the Implementation of the Integrated Border Management Strategy and its Action Plan were adopted by way of the Conclusion of the Government of the Republic of Croatia of 12 June 2008. The Annex to the Agreement on the Integrated Border Management of the Republic of Croatia on data exchange between the agencies has been drafted, including an appendix listing the data to be exchanged. The Annex is currently being signed by the agencies involved in integrated border management according to the Agreement of Co-operation in Integrated Border Management. For the purpose of implementing the activities set out in the Integrated Border Management Action Plan, in the course of 2008 shared use of the telecommunication cables and equipment of the Republic of Croatia and the Customs Service leading to border crossing points (by which the MI saves nearly HRK 50,000 a month) was set up. The Croatian Government has established an interdepartmental working group that has drafted a Proposal of Rationalisation and Recategorisation of Border Crossing Points and a Proposal of the new Regulation on border crossing points. The Proposal, which envisages a reduction from 189 to 172 border crossing points, has already passed through a procedure of interagency scrutiny. On the basis of the Proposal of the said Regulation, it is envisaged to close down 1 air traffic border crossing point and 16 maritime traffic border crossing points. The Proposal of the Regulation has been submitted to the MFAEI for the purpose of initiating bilateral talks on border crossing points. Following the entry into force of the Coastal Guard Act and the related subordinate legislation, the Central Co-ordination for the Monitoring and Protection of the Rights and Interest of the Republic of Croatia at Sea was established. Representatives of the Ministry of the Interior participate in this body. In contrast, the Government Co-ordination for the Performance of Activities of Surveillance and Protection of Inland Sea Waters, Territorial Waters and the Ecological Fisheries Protection Zone of the Republic of Croatia ceased its activities. Interagency co-operation is also conducted in the segment of activities pertaining to air traffic through the National Commission for the Protection of Air Traffic instituted by the Government of the Republic of Croatia. Strengthening administrative capacity There are currently (1 September 2008) 5,028 police officers deployed in the border police (on 1 October 2007 there were 4,584), and 1,200 have begun their training, of which 700 should be deployed in the border police upon completing the training. Systematic training of the border police has continued. In the course of 2008, 720 police officers completed specialised training for border police, and additional professional training was also conducted (training for police officers - multipliers in the use of technical devices, training for RTG operators, integrated border management, basic training in the recognition of forged documents, etc.). Connection has been made between border crossing points and the Interpol system I-24/7, i.e. Interpol databases. At 10 border crossing points, indirect access to MIND databases (Mobile Interpol Network Database) has been established, while direct access to other Interpol databases (persons, vehicles, works of art) has been established through ASF2 (Automated Search Facility) at 19 border crossing points. In addition, the Mobile Unit for State Border Surveillance and the Mobile Traffic Police Unit are connected to Interpol databases, the IT system of the MI of the Republic of Croatia, and the National Information System for State Border Management through the mobile connection system.
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The CARDS 2003 Project National Border Information System NBMIS phase 2 has been successfully completed. Through this Project, together with the CARDS 2002 Project phase 1, the said system was installed at nine border crossing points on the future external border of the EU. Through the IPA 2007 Project NBMIS phase 3, which is due to start at the beginning of 2009, this system will be installed at an additional 25 border crossing points on the future external border, which will cover approximately 90% of total passenger traffic across the external border of the EU. With a view to increasing the mobility and efficiency of the border police in conducting state border surveillance, in the course of 2008 a substantial quantity of technical equipment was procured with State Budget funds and through EU assistance programmes and various donations. In addition to the said equipment, 13 police vessels were acquired. As for telecommunications connections, the Republic of Croatia has introduced a new TETRA digital radio system over its entire territory at a cost of approximately HRK 30 million from State Budget funds. The Ministry of the Interior and the Faculty of Electrical Engineering and Computing in Zagreb (FER) concluded an Agreement on Cooperation in the Development and Implementation of the System of Electronic Registration Plates for Vessels ERP2. According to the Agreement, FER will design a pilot technical system to facilitate the surveillance of traffic in the maritime zone (with 10 maritime police vessels included) from the Maritime Police surveillance centre in Split. B) KEY PRIORITIES in the first quarter of 2009, to draft and adopt the Ordinance on the amendments to the Ordinance on the procedure for carrying out state border surveillance; to ensure even better co-ordination between competent services by improving the implementation of the Integrated Border Management Strategy; to continue improving co-ordination between competent services for acting on the sea territory of the Republic of Croatia within the Central Co-ordination for the Monitoring and Protection of the Rights and Interest of the Republic of Croatia at Sea; in the area of air traffic, to continue interagency co-operation through the National Commission for the Protection of Air Traffic, instituted by the Government of the Republic of Croatia; to improve infrastructure at border crossing points in co-operation with the Ministry of Finance, to continue to conduct activities with a view to constructing and reconstructing the existing infrastructure at border crossing points with Serbia, Bosnia and Herzegovina and Montenegro; with a view to creating all the conditions for the secure protection of the future external borders of the EU, to accept the organisational and human resources concept developed through the Twinning PHARE 2005 Project Preparation for the Schengen Acquis Implementation, and to continue recruitment of border police officers; to continue providing professional specialist training for border police officers and to organise, by means of multipliers, other forms of professional training, especially in the areas of European and national legislation, the detection of forged documents and the smuggling of vehicles; to continue connecting and equipping border crossing points with the National Information System for Border Management through the implementation of phase III, using funds from IPA 2007 (25 border crossing points on the future external border) and the State Budget; to strengthen technical capacity for the efficient surveillance of the state border by procuring technical equipment and developing techniques for the border police in line with established standards, drawing on funds from the State Budget and EU assistance programmes; to prepare the necessary documentation for the construction of facilities for the work and accommodation of the border police;
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regarding international co-operation, to conduct activities pertaining to the further conclusion of bilateral and multilateral agreements and protocols aimed at strengthening co-operation with neighbouring countries (joining the work of the Dolga Vas Co-operation Centre for Security, at present concluded between Slovenia, Austria and Hungary, signing an agreement on crossborder police co-operation with Italy, concluding an agreement on cross-border police co-operation with Serbia, etc.).
3.24.5 Police Co-operation and the Fight against Organised Crime

3.24.5.1. Police co-operation
A) ACHIEVEMENTS IN 2008 At the end of 2007 and in the course of 2008, the following international treaties and agreements were signed: the Agreement on Police Co-Operation between the Government of the Republic of Croatia and the Government of the French Republic, signed on 10 October 2007 in Paris; the Agreement on Police Co-Operation between the Government of the Republic of Croatia and the Government of the Republic of Austria, signed on 14 November 2007 in Vienna (entered into force on 1 October 2008); a Working Arrangement for the Establishment of Operative Co-operation between the Ministry of the Interior of the Republic of Croatia and the European Agency for the Management of Operational Co-operation at the External Borders of the Member States of the European Union (FRONTEX), signed on 15 April 2008 in Zagreb; and the Agreement between the Government of the Republic of Croatia and the Government of the Republic of Hungary on Co-operation in the Fight against Cross-border Crime, signed on 3 October 2008 in Heviz. The Republic of Croatia has signed 27 bilateral agreements on police co-operation to date: 8 agreements at the level of the Ministry of the Interior, and 2 multilateral agreements. The Ministry of the Interior has continued its active participation in the work of international organisations and initiatives (AdriaticIonian Initiative, SECI, SEPCA Southeast Europe Police Chiefs Association, Salzburg Forum, etc.). International legal assistance and co-operation is continuing at the Office for the Suppression of Corruption and Organised Crime through the Department for International Co-operation and Joint Investigations, set up pursuant to the Amendments to the USKOK Act (Official Gazette 16/07). Europol In line with the adopted Ordinance on police liaison officers (OG 14/07), the Republic of Croatia designated and assigned a police officer to the seat of Europol on 1 March 2008. In the said period, all the legal conditions were created for the Republic of Croatia to accede to the Furtum and Smoke analytical work files. The Agreement on the accession to the said Europol analytical work files entered into force on 17 October 2008. In 2008, an invitation was received for accession to SOYA, the third analytical work file, which is currently being realised. Co-operation with Europol has intensified significantly, especially after the assignment of a police liaison officer. According to the plan of assigning police liaison officers to work abroad, in line with operative estimates and financial possibilities, it is planned to assign up to 10 police officers to work abroad in the period 2008-2012. Programmes aimed at raising awareness of the role and functioning of Europol have continued, while the Europol Section has been fully set up with complete administrative capacity.
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Interpol The following activities were accomplished in 2008: the I 24/7 system's user base continued to be expanded, currently with approximately 630 users, with an increasing trend in the number of users; after setting up mobile access to the I 24/7 system in 2007 (the Republic of Croatia was the first country in the world to carry out this project), activities continued pertaining to its application and in training new officers to use the system; active participation in the work of the Interpol European Committee continued; Interpol Zagreb representatives actively participated in the work of the Interpol Working Group for Redefining the Status of International APBs and Green Notices issued by the Interpol General Secretariat; on 2 June 2008, Interpol Zagreb, in co-ordination with the Border Directorate and with technical assistance from the competent directorate for technical support, began applying the MIND system (Mobile Interpol Network Database), which facilitates swift checks of the SLTD database of the Interpol General Secretariat, which has greatly contributed to finding lost persons and travel documents. NATIONAL SIRENE Office The Project summary of the Twinning Light PHARE 2006 Project Preparation for the Setting up of the National SIRENE Office has been submitted. The Project is expected to be completed in the course of 2009. Criminal intelligence system and information exchange with other agencies The CARDS 2003 Project Criminal Intelligence System was completed in March 2008. By the end of the Project, all planned obligations had been completed. These pertain mainly to the creation of the criminal intelligence database and pertinent technical support (hardware and software), which has been put into service. In addition, the training cycle planned within the Project has been completed, which notably included the training of Croatian experts who are to act as multipliers, which is of crucial importance for the sustainability of the professional training component pertaining to activities of criminal intelligence analytics. One of the most important advances in this area is the adoption of the National Criminal Intelligence Model by the Directorate collegiate body which provides the basis for the development of the criminal intelligence system in the Republic of Croatia. On the basis of the said National Criminal Intelligence Model, methodological guidelines were drafted, adopted and have been applied since 1 October 2008. In these guidelines, the General Police Director gives clear directions for the development of the criminal intelligence system in the Republic of Croatia based on a proactive approach and the Intelligence Led Policing (ILP) principle. As regards interagency co-operation and information exchange, it should be noted that the Protocol on Co-operation and Information Exchange between the MI and the Ministry of Finance (Tax Administration, Customs Administration, Foreign Currency Inspectorate, Office for the Prevention of Money Laundering and Financial Police) has been adopted. The Protocol provides a solid basis for interagency co-operation and information exchange for the purpose of the joint fight against organised crime. The Department of Criminal Intelligence Affairs is currently being set up. It will be competent primarily for work with informants and secret informers, but also for devising and improving methods and means for collecting data pertaining to complex and organised crime. Crime prevention including relations between the police and citizens The Action Strategy called Community Policing is the new strategic approach of the Ministry of the Interior and includes a process of change in the work of the police, namely reforms carried out through four basic projects: Reform of the Operational and Preventive Work of Police in Uniform;
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Advancement and Development of Crime Prevention; Organisation of Prevention in the Community. These two latter projects are connected and complementary, i.e. activities within both projects are in line with the objective of devising a single approach to crime prevention at both national and local levels;
Public Relations Reform. This continues the activities aimed at making the police more accessible to the community, i.e. citizens and the public in general.
In the implementation of the Reform of the Operational and Preventive Work of Police in Uniform Project, two new work posts were set up (a contact police officer and a police officer for prevention) and the manner and methodology of work in the sector were modified. Since the beginning of the Project in March 2003 and until October 2008, a total of 19 courses for contact policemen were held, which were attended by 1,059 police officers at the Police Academy in Zagreb. On the territory of all 20 police administrations (PA) and 139 police stations, there are now 691 contact policemen and 52 police officers for prevention. In May 2008, the new Instruction on the Organisation and Manner of Work in the Sector was issued. The Instruction defines the types of activities in the sector, including contact activity as one of the basic tasks of police in uniform. In addition, within this Project and in the course of 2008, the MI continued implementing the Police Bicycle Patrol Project on the territory of the Zadar PA (4 police cyclists in Zadar), Varadin PA (2 police cyclists in Varadin) and Koprivnica-Krievci PA (5 police cyclists in Koprivnica). Within the framework of the Advancement and Development of Crime Prevention Project, various forms of crime prevention have been implemented on the territory of all police administrations, and in the course of 2006 and 2007 Information Centres for Prevention were opened on the territories of the Zagreb, Varadin, Bjelovar-Bilogora and Karlovac Police Administrations, based on the model of the German police, and with financial and material support from the Federal MI of the Federal Republic of Germany. Within this Project, various forms of professional training have been provided for police officers in activities of crime prevention, achieved through international co-operation with the Federal Republic of Germany, the United Kingdom of Great Britain and Northern Ireland, and Sweden. In 2008, within the Organisation of Prevention in the Community Project, Prevention Councils continued to be set up, with 72 Councils established to date. Within this Project, co-operation with UNDP (United Nations Development Programme) was arranged and initiated, and on 3 May 2007 a Memorandum of Understanding was signed between the MI and UNDP on support to the Programme of Planning and Development of Police in the Community. Projects dealing with security issues at the local level using a participative approach have been implemented within this Programme in four regions: Vukovar, Bjelovar, Varadin and akovec. Also in co-operation with UNDP, from September 2007 to June 2008 a joint preventive action entitled Fewer Weapons Fewer Tragedies was carried out. The aim of the action was to raise public awareness of tragedies caused by the unprofessional and careless handling of weapons, and to encourage citizens to hand in prohibited types of weapons and explosive substances voluntarily, especially those remaining from the Homeland War. During the action, citizens handed in 1,001 weapons in the category of permitted weapons, and a total of 644,442 pieces of ammunition, while 720.62 kg of various explosives were confiscated. Considering the particularly successful co-operation achieved to date, it has been agreed to continue and expand the co-operation between the Ministry of the Interior, the Ministry of Defence and UNDP through a new, more comprehensive programme entitled Destruction for Development, which is to be implemented from 2008 to 2011 through numerous activities in the following fields: Institutional support for the development of community policing in the Republic of Croatia; Training in key competencies of police work in the community; Strengthening the presence and visibility of police in the community; Projects for the development of security in the community;
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Raising public awareness of actions of collecting weapons and the prevention of violence; Institutional support, training and police visibility in cases of domestic violence and support to witnesses and victims; Evaluation and public opinion surveys; Technical support to the Ministry of Defence.
In May 2008, a session of the Community Policing Committee was held within the framework of the Southeast Europe Police Chiefs Association (MI has presided over the Committee since 2005), which was attended by representatives of all ten SEPCA member states. On this occasion, the organisation of the Third Regional Forum Police in the Community entitled Social Differences and Community Policing in Sofia, Bulgaria, was arranged and defined, with the support of the Swiss Agency for Development and Cooperation (SDC), the European Commission, TAIEX and OECD. The Forum is envisaged as a continuation of the Second Regional Forum Police in the Community of the countries of Southeast Europe, held in Valbandon in June 2007. On the basis of the said arrangement, the Third Regional Forum was held in Sofia from 29 September to 1 October 2008. It should be noted that the Project International Co-operation of Police in Uniform during the Tourist Season in the Republic of Croatia has been implemented since 2006 within the Community Policing Strategy. In relation to this, in 2008 Memoranda of Understanding were signed with the police forces of the Republic of Hungary, the Republic of Austria, the Czech Republic and the Slovak Republic, while a Joint Statement of Co-operation with the Police of the French Republic was signed through diplomatic channels. Security in the area of sport In line with the Council Decision of 4 December 2006 concerning an updated handbook with recommendations for international police co-operation and measures to prevent and control violence and disturbances in connection with football matches at an international level in which at least one Member State is involved (OJ C 322/01 of 29 December 2006), the Section for the Prevention of Violence in Sports Competitions, as Croatias national NFIP (National Football Information Point), continued to carry out international police co-operation in 2008 with all EU Member States, which were advised of its existence and activities through Interpols communication channels. In addition, a direct electronic exchange of operational police information on all international sports competitions was established. For this purpose, a special e-mail address, sport@mup.hr, was set up. Information of a personal nature, in accordance with international and national legal regulations governing the protection of personal information, is exchanged via Interpols communication channels. In 2008, employees of the Section were present at nearly all international football matches abroad in which Croatian teams were competing, with the aim of providing assistance to foreign police forces in the identification of dangerous supporters and the prevention of potential conflicts among supporters, in line with the recommendations of the Council of Europe. Considering that the Act on Amendments to the Act on the Prevention of Violence in Sports Competitions, which entered into force on 7 July 2006, gives the police the authority to set up and keep a record of offenders and incidents at sports events, in 2008 the latest information continued to be added to the said record on a regular basis. Additional activities were also carried out to strengthen the line of work in all police administrations related to problems of violence at sports events by means of specialisation in this area and engagement in international sports competitions abroad where Croatian sportspersons and teams compete. Such efforts involve the Croatian police team sent to foreign countries at the request of the home police force for the purpose of assisting in carrying out security measures during sports events and to provide co-operation in communicating with Croatian supporters. The importance of the Section for the Prevention of Violence at Sports Events was seen in the implementation of security measures during the 2008 European Football Championship, which took place in Austria and Switzerland. In accordance with the Joint Declarations of Co-operation in Security Matters during the 2008 UEFA European Football Championship signed between the Federal MI of the Republic of Austria and the MI of the Republic of Croatia, and between the head of the Federal Department of Justice and
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the Police of the Swiss Confederation and the Minister of the Interior of the Republic of Croatia, on 3 June 2008 a police team/delegation of 31 police officers was sent to the Republic of Austria and the Swiss Confederation, and on 5 June one police officer was sent to the Swiss Confederation in order to provide assistance to the Austrian and Swiss police in their work and in communicating with Croatian supporters, and vice versa. In addition to the said team, on 26 May 2008 a Croatian border police team and 24 police officers were sent to the Republic of Austria to conduct activities of border and passport control at the re-established border crossing points on the border of the Republic of Austria and inside its territory, i.e. at airports. The team conducted the said activities independently of the first police team, while their activities were co-ordinated by the Austrian police in co-operation with FRONTEX. In accordance with the signed Declaration, personal information on 398 Croatian supporters, recorded as offenders at sports events in line with Croatian legislation, was sent to the Austrian and Swiss police through protected Interpol communication channels for the purpose of carrying out security measures during the 2008 UEFA European Football Championship. European Police College (CEPOL) Current co-operation with CEPOL matches the opportunities available to candidate countries in accordance with the Decision adopting CEPOLs external relations policy (12/2008/GB), issued by the CEPOL Governing Board on 20 May 2008, and according to which candidate countries may participate in the External Relations Working Group (ERWG). In the course of 2008, police officers attended two ERWG meetings at the Conference Crime, Police and the Judiciary in the 21st Century, and at the regional CEPOL conference. Protection of public figures In accordance with the Council Decision of 28 November 2002 setting up a European Network for the Protection of Public Figures (OJ L 333 of 10 December 2002), the Republic of Croatia designated the Directorate for Special Security Tasks within the MI as the Croatian national contact point for the European Network for the Protection of Public Figures. B) KEY PRIORITIES Formal negotiations have been completed and international agreements on police co-operation in the suppression of crime are to be signed with the Federal Republic of Germany and the State of Israel. It is expected that the Agreement on Co-operation will soon be signed between the MI of the Republic of Croatia and the MI of the Russian Federation. Preparations are underway for the conclusion of international agreements with the Kingdom of Spain, the USA, Poland, Slovakia, Malta, Serbia, and a number of other countries, with a view to modernising the existing international agreements on police co-operation. Europol It is planned to continue intensifying operational and training co-operation between the Republic of Croatia and Europol. In line with operational needs and possibilities, it is planned to continue accessing certain analytical work files. Interpol The following activities are planned for 2009: continued training of police officers from the Interpol Section and the Interpol TCC in matters pertaining to extradition; the automated entry of international APBs and Interpol notices in the MI's IT system, and continued expansion of the use of the I 24/7 system at border crossing points;
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implementation of the MIND project; training of users (police officers) of the I 24/7 system; expansion of the mobile user base of the I 24/7 system; strengthening capacities of the Interpol Telecommunication Centre in the Department for International Police Co-operation.
NATIONAL SIRENE office In 2009, it is planned to implement the Twinning Light PHARE 2006 Project which is aimed at establishing a national SIRENE office. The aim of the Project is to draft a proposal for the functioning of the Office with regard to its legislative basis and in terms of human resources, and to raise awareness of the role and importance of the SIRENE office. Miscellaneous In 2009, the MI of the Republic of Croatia will participate in the regional project of setting up International Law Enforcement Coordination Units, aimed at establishing national focal points for international police co-operation in 6 countries of SE Europe. Criminal intelligence system and information exchange with other agencies In 2009, the Criminal Analytics Department of the Ministry of the Interior of the Republic of Croatia will continue to implement the criminal intelligence system and will conduct additional training activities in the implementation of the adopted methodological guidelines in order to master and implement the proactive model of Intelligence Led Policing (ILP). The Criminal Analytics Department of the Criminal Police Directorate plans to provide continuous training for all participants and users of the criminal intelligence systems in both the MI and other agencies which act as partners in co-operation, exchange of information and in the fight against all forms of crime. Continuous training of all participants and users of the criminal intelligence system is necessary in order to achieve one of the main goals of the project, which is system sustainability. Achieving this goal has been facilitated by the procurement of equipment and software, the gaining of new insights, and by setting up and implementing in Croatia the criminal intelligence system in the course of the projects Criminal Intelligence System, phases 1 and 2, financed from the CARDS 2002 and 2003 programme. The implementation of the ILP-based criminal intelligence model of police work will continue, as will the reorganisation of the work of the police as an important precondition for setting up a comprehensive criminal intelligence system. The Criminal Intelligence Department is currently being set up, and will be responsible for work with informants and secret informers, and for devising and improving methods and means of collecting information pertaining to complex and organised crime. Crime prevention including relations between the police and citizens As part of the Project Reform of the Operational Preventive Work of Police in Uniform, it is planned for contact police officers to be involved in the preventive campaign run by the MI and the UNDP for the confiscation of illegal arms entitled Destruction for Development. Within the Projects Advancement and Development of Crime Prevention and Organisation of Prevention in the Community, continued preventive activities are planned, along with the setting up of Information Prevention Centres and Prevention Councils in towns where there is a real need for their operation. Through the Public Relations Reform Project, activities will continue to establish closer relations among the police, citizens, and media representatives, in order to improve communication between the police and the public, and to enhance the publics trust in the police.
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By implementing the Community Policing Strategy, intensive work will continue in conducting preventive programmes and projects, and in providing international assistance within SEPCA to countries in the region in terms of the development and implementation of the community policing model. Security in the area of sports In line with the provisions of the Act on the Prevention of Violence in Sports Competitions, the Ministry of the Interior, namely the police, will continue keeping and updating the database of offenders and incidents during sports competitions and improving police work in the area. It is planned to send Croatian spotters (police experts familiar with supporters and the supporters scene) to sports events in other countries where Croatian teams, either clubs or the national team, compete, at the formal request of foreign police departments. Further activities aimed at connecting working procedures in all police administrations will be carried out, and the additional training and professional development of police officers in particular lines of work are planned in all police administrations in the Republic of Croatia. European Police College (CEPOL) In line with Council Decision (2005/681/JHA) of 20 September 2005 establishing the European Police College (CEPOL) and repealing Decision 2000/820 JHA (OJ L 256 01/10/2005, p. 63), the Republic of Croatia plans to initiate a procedure to conclude an Agreement on Co-operation with the European Police College (CEPOL). Protection of public figures The Directorate for Special Security Tasks of the Ministry of the Interior of the Republic of Croatia, as the Croatian national contact point, is expecting an invitation to participate in the work of the European Network for the Protection of Public Figures. The establishment and application of EU standards in areas of systematic crime prevention within the framework of the police organisation and at local authority level, including enhancing trust, communication and co-operation between the police and citizens; ensuring more security in sports, particularly in relation to the fight against disorder and violence in sports competitions; training of police officials through participation in the work of the European Police College (CEPOL); protection of public figures through participation in the work of the European Network for the Protection of Public Figures.
3.24.5.2 Organised Crime
A) ACHIEVEMENTS IN 2008 The Criminal Police of the Ministry of the Interior of the Republic of Croatia has been reorganised. Based on a SWOT analysis prepared by Dutch experts, partners in the completed MATRA-FLEX Criminal Police Reorganisation Project, and the resulting recommendations on the need for an overall reorganisation of the Criminal Police, the National Police Office for the Suppression of Corruption and Organised Crime was set up in the course of 2008 within the Criminal Police Directorate of the General Police Directorate. The said National Office was established in an attempt to respond adequately to the current trends in organised crime and corruption, and comprises the central headquarters and 4 regional centres. The new model of organisation of the Criminal Police is compat-
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ible with the organisation of the Office for the Suppression of Corruption and Organised Crime (USKOK), while the basic operating principles of the National Office are adaptability and flexibility. In 2008, the Commission for Monitoring the Implementation of the Programme of Special Action Measures for Combating Organised Crime and the Co-operation of the Republic of Croatia with the European Commission in the Implementation of the National Plan for Combating Organised Crime prepared a report on the implementation of the National Plan for Combating Organised Crime for the evaluation period from 1 January 2007 to 31 December 2007 with a review of the implemented activities for the said period. The Ministry of the Interior of the Republic of Croatia, as the national co-ordinator for the co-operation of the Republic of Croatia with the European Commission in the implementation of the Programme of Special Action Measures against Organised Crime, submitted on behalf of the Commission the following documents: A Report on the implementation of the National Plan for Combating Organised Crime for the evaluation period from 1 January 2007 to 31 December 2007; An in-depth Organised Crime Threat Assessment (OCTA) in the Republic of Croatia for the coming period, which had been drawn up by the Criminal Police Directorate of the MI in co-operation with other competent state bodies and institutions of the Republic of Croatia. Based on the Organised Crime Threat Assessment in the Republic of Croatia, which is in line with Europols model for drawing up OCTAs, the Ministry of the Interior (MI), in co-operation with USKOK, drew up and began to implement the Plan of Priorities in the Suppression of Organised Crime in the Republic of Croatia. In 2008, the MI played an active role in carrying out all the activities within the SEE-OCTA project. The Croatian Parliament passed the Act on the Ratification of the Additional Protocol to the Convention on Cybercrime Concerning the Criminalisation of Acts of a Racist and Xenophobic Nature Committed through Computer Systems (Official Gazette International Agreements 4/08). In February 2008, the new Code of Ethics of State Attorneys was adopted. The Act on Amendments to the Act on the State Attorneys Office prescribes the obligation to adhere to the principles of the Code of Ethics. Actions contrary to the basic principles of the Code of Ethics which threaten the reputation of the State Attorneys Office are subject to disciplinary action. As a precondition for establishing a joint database on organised crime and its actors, for the purposes of USKOK and under the CARDS 2002 Project USKOK Capacity Building, IT equipment and software (e-Register and e-File applications) were put into full operation. Video-conference links were set up between the Office in Zagreb and the Sections in Osijek, Rijeka and Split. On 19 September 2008, the Croatian Parliament passed the Act on the Ratification of the Agreement on Co-operation between the Republic of Croatia and EUROJUST. In the course of 2007 and 2008, international co-operation with EUROJUST continued, and legal assistance was provided to judicial bodies of EU Member States in several cases. In line with the Act on Amendments to the Act on the State Attorneys Office (OG 16/07), the Department for International Legal Assistance and Co-operation was set up within the State Attorneys Office of the Republic of Croatia for the purpose of directing international co-operation and providing legal assistance, and for the purposes of work in the bodies of the Council of Europe, regional associations and state attorney networks. For the more efficient combating of organised crime and corruption, the Draft Act on the Amendments to the Criminal Code proposes amendments to the provisions on the confiscation of proceeds of crime in Article 82 of the Criminal Code in the manner that the extended confiscation of proceeds of crime covers all criminal offences referred to in Article 21 of the USKOK Act, presupposing that the total assets of the perpetrator have been acquired as proceeds of crime, unless the perpetrator proves their lawful origin; confiscation of such proceeds of crime is also provided for even when it appears, on any legal basis, that the proceeds of crime are in the possession of a marital or extramarital partner, cousin, etc. The normative framework for combating organised crime in terms of the criminal offence referred to in Article 175 (trafficking in persons) has been improved: a new qualified form has been introduced in the case where the offence is committed by an official person, and trafficking in children for illegal adoption is also criminalised.
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In the case of the criminal offence referred to in Article 279 of the Criminal Code, apart from the altered name (now money laundering), an amendment of the contents of paragraph 1 has been proposed, by which the object of the offence would be extended to proceeds of crime, which would rectify the current flaw and adopt the recommendations made by MONEYVAL in its 3rd round of evaluation of the Republic of Croatia. The proposed amendments to the Criminal Code are aimed at suppressing the undue influence of criminals engaged in organised crime on witnesses and other persons that might co-operate with the bodies in charge of criminal prosecution, and for this purpose the provisions of Articles 304 and 305a have been improved accordingly. The Office for the Suppression of Corruption and Organised Crime (USKOK) has received intensive international legal assistance in matters within its competence. This co-operation is based on the Act on International Legal Assistance in Criminal Matters, as well as on signed protocols and memoranda of co-operation. International legal assistance and co-operation is achieved through the Department for International Legal Assistance and Joint Investigations. Under the signed Protocol on Co-operation and the Establishment of the Interdepartmental Working Group for the Prevention of Money Laundering and Financing of Terrorism, which entered into force on 1 March 2007, the work of the Interdepartmental Working Group continued in 2008, and there were several regular and ad hoc meetings for the purpose of facilitating faster, better and more co-ordinated co-operation in the exchange of information, which is a precondition for the prevention and suppression of money laundering/financing of terrorism, as part of the overall fight against organised crime at strategic and operative levels. In June 2008, implementation commenced of the EU CARDS 2006 Regional Project Support to the Prosecutors Network in SouthEastern Europe - PROSECO, financed by the European Commission and Council of Europe to the amount of EUR 1,666,669.20; the expected duration of the project is until April 2010. The Project includes the countries of South-Eastern Europe: Albania, Bosnia and Herzegovina, Croatia, Montenegro, Serbia, Macedonia and UNMIK/Kosovo. The aim of the Project is to strengthen the capacities of state attorney offices in order to achieve more efficient co-operation, and enhance investigations and criminal prosecution of cross-border crime in line with the acquis and other international standards, as well as to further practical experience through support to the Prosecutors Network. The State Attorneys Office of the Republic of Croatia has appointed a deputy state attorney of the Republic of Croatia as the contact person and member of the Management Board of the said Project, whose first meeting was held at the Inception Conference in Rome on 26-27 June 2008. Within the framework of the Project, the 1st Regional Conference Financial Investigations and Confiscation of Proceeds of Crime was held in Cavtat on 25 and 26 September 2008, and was attended by representatives of state attorney offices, police and other state bodies involved in financial investigations for the purposes of confiscating proceeds of crime (present from the Republic of Croatia were representatives of the State Attorneys Office, USKOK, the General Police Directorate, the Customs Administration and the Financial Inspectorate). Recently, significant success has been achieved in the actions of suppressing various forms of organised crime, which the Croatian bodies have most often implemented in co-operation with the bodies of other states. B) KEY PRIORITIES full operation of the National Police Office for the Suppression of Corruption and Organised Crime; preparation of a new National Plan for Combating Organised Crime for the coming period in line with EU standards; on 15 July 2008, the Croatian Parliament passed the Act on Ratification of the Convention on the Laundering, Search, Seizure and Confiscation of the Proceeds of Crime and on the Financing of Terrorism (the so-called Warsaw Convention) which prescribes that, along with the Ministry of the Interior, the General Police Directorate, the Criminal Police Directorate, and the Department of Economic Crime and Corruption, the State Attorneys Office of the Republic of Croatia should also be identified as a central
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body for international co-operation and legal assistance. On the basis of the said Convention, intensive co-operation is planned in 2009 between the said state bodies in the given field; in the course of 2009, the State Attorneys Office of the Republic of Croatia will intensify its activity under the SEEPAG Agreement, as well as in the Prosecutors Network of the countries of the region of South-Eastern Europe; in 2009, the State Attorneys Office of the Republic of Croatia will intensify its activity under the PROSECO Regional Project "Support to the Prosecutors Network in South-Eastern Europe" by participating in regional meetings and conferences with the objective of strengthening regional ties and drafting amendments to the Memorandum of Understanding between the prosecutors of South-Eastern Europe for strengthening international co-operation in combating organised crime; in 2009, it is planned for the Department for International Co-operation and Joint Investigations of USKOK to participate in regional and international organisations and associations with the objective of information exchange at that level, and to provide regular legal assistance based on laws, bilateral agreements and conventions; in the course of 2009, no new memoranda of co-operation are planned, since future co-operation with the EU Member States should be based on the EUROJUST Agreement, while all other neighbouring countries are covered by the said Memoranda on Co-operation; the Department for International Legal Assistance and Co-operation of the State Attorneys Office of the Republic of Croatia will continue to direct international co-operation and legal assistance, performed through competent state attorney offices, and coordinate work in the bodies of the Council of Europe, regional associations and state attorney networks.
3.24.5.3 Trafficking in Persons
A) ACHIEVEMENTS IN 2008 In 2008, the measures and activities laid down in the Operational Plan for the Suppression of Trafficking in Persons for 2007 were implemented, involving state administration bodies, civil society organisations and international organisations included in the national system for the suppression of trafficking in persons. The National Committee for the Suppression of Trafficking in Persons drew up an Operational Plan for the Suppression of Trafficking in Persons for 2008, and implementing activities are underway. The CARDS 2004 Project Suppression of Trafficking in Persons was launched in April 2007, with the Ludwig Boltzmann Institute of Human Rights, Austria, as the Twining partner. The Project was implemented in co-operation with the Ministry of the Interior, the State Attorneys Office of the Republic of Croatia, the Ministry of Justice and the Ministry of Health and Social Welfare, and implementation was completed on 30 June 2008. Under the CARDS 2004 Project Suppression of Trafficking in Persons, the following activities were conducted in 2008: Analyses were made of the criminal legislation of the Republic of Croatia and the systems and measures related to the provision of help and protection offered to victims of trafficking in persons; Training workshops were held for target groups 10 regional training workshops for employees of the Ministry of the Interior, employees of the social welfare system, healthcare professionals and representatives of civil society organisations (a total of 314 experts were trained 160 police officers, 54 social workers, 30 healthcare professionals and 70 state attorneys); A Draft Manual was prepared related to training target groups in the subject of trafficking in persons; A public campaign on the suppression of trafficking in humans was organised, as part of which a promotional video clip, radio jingle and posters were produced. The public campaign was conducted in June 2008;
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Standard operating procedures were prepared for competent bodies in respect of trafficking in persons (Ministry of Health and Social Welfare, Ministry of the Interior, State Attorneys Office of the Republic of Croatia);
A quality assurance system was established for the implementation of the prepared standard operational procedures related to the suppression of trafficking in persons.
The Human Rights Office and competent bodies of state administration and civil society organisations participated in the implementation of two ICMPD Projects: Support Programme for the Setting up of Transnational Referral Mechanisms for the Protection of Victims of Trafficking in Persons in South Eastern Europe and Management of Data and Information Collection in the Field of Suppression of Trafficking in Persons. B) KEY PRIORITIES Preparation of the National Programme for the Suppression of Trafficking in Persons for the Period from 2009 to 2011; Implementation of measures and activities from the National Programme for the Suppression of Trafficking in Persons for the period from 2009 to 2011.
3.24.5.4 Money Counterfeiting
A) ACHIEVEMENTS IN 2008 On 20 March 2008, the Decision on the establishment of the National Counterfeit Centre (NCC), the National Analysis Centre (NAC) and the National Coin Analysis Centre (CNAC) was passed, and will enter into force on 1 March 2009 (Official Gazette 37/2008). On 23 May 2008, the Agreement on Co-operation on the Prevention of Counterfeiting and the Identification of Counterfeit Banknotes and Coins was signed between the Ministry of the Interior and the Croatian National Bank. Under this Agreement, MI is obliged to establish the Central Office for the Organisation and Conducting of Investigations on Counterfeiting Issues in accordance with the International Convention for the Suppression of Counterfeiting Currency (Geneva, 20 April 1929), while the Croatian National Bank is obliged to establish the NCC, NAC and CNAC in accordance with Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting, and Council Regulation (EC) No 1339/2001 of 28 June 2001 extending the effects of Regulation (EC) No 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency. An Agreement on Co-operation between the European Central Bank and Croatian National Bank (CNB) was signed on 9 May by the Governor of the CNB and on 27 May 2008 by the President of the ECB. On 19 May 2008, the Governor of the CNB signed a letter of acceptance of the Agreement on Co-operation between the Croatian National Bank and the European Commission/OLAF/ETSC, and on 24 May 2008 the letter of acceptance of the Agreement by the Director General of OLAF was received, by which the said agreement was bilaterally adopted. The Implementation Plan of the project of establishing national centres is currently being implemented, which includes the adaptation of office space, the procurement and installation of equipment, staff training and the preparation of internal operating procedures. With the reorganisation of the Criminal Police Directorate and the establishment of the National Police Office for the Suppression of Corruption and Organised Crime, the obligation to establish a Central Office for the Organisation and Conducting of Investigations on Counterfeiting Issues has been fulfilled. Namely, the formation of the said Office has established a central operating unit at the national level with several regional centres and an integrated central management which, in close co-operation with USKOK and other competent state bodies, proactively monitors and studies the most serious criminal offences at the national level in the domain of corruption and organised crime based on the model of Intelligence Led Policing. This Office is competent, both at the operative
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and strategic planning levels, for the detection and suppression of the most complex forms of organised crime and corruption, which include criminal offences related to money counterfeiting, securities counterfeiting and misuse of payment cards. A contact point for the suppression of money counterfeiting has been established within the Organised Crime Department at the headquarters of the National Police Office. B) KEY PRIORITIES A trial operation of the National Counterfeit Centre, the National Analysis Centre and the National Coin Analysis Centre in the Croatian National Bank is planned in the period January-February 2009, and full operation is planned from 1 March 2009.
3.24.5.5. Illegal Possession and Smuggling of Weapons
A) ACHIEVEMENTS IN 2008 In 2008, the Ministry of the Interior of the Republic of Croatia actively participated in the implementation of all activities planned under the EU CARDS 2004 Project Combating Trafficking in Weapons, Ammunition and Explosives within which, among other things, a draft of a uniform methodology of police conduct was prepared and all the necessary preconditions created for the development of the necessary infrastructure. Related to this, a pilot-project was implemented in the Primorje-Gorski Kotar Police Administration where, through a train the trainers programme, police experts were trained as multipliers to other police officers in the Republic of Croatia, and a draft was prepared of the standard operating procedure regarding police conduct in events where weapons or explosives are the means of perpetration or the subject of a criminal offence or misdemeanour. In addition, Draft Strategic Guidelines of the Ministry of the Interior of the Republic of Croatia in the Field of Suppression of Trafficking in Weapons, Ammunition and Explosives were prepared in accordance with EU standards, with particularly successful co-operation between the Ministry of the Interior of the Republic of Croatia and the Tax Administration of the Ministry of Finance and other competent state bodies. The National Police Office for the Suppression of Corruption and Organised Crime, established in the General Police Directorate within the Criminal Police Directorate, is competent for monitoring and implementing tasks pertaining to complex and organised crime at the national level, and which is also, at the national level, in charge of the suppression of smuggling and the illegal possession of weapons, as well as related operational surveillance, monitoring and co-ordination. B) KEY PRIORITIES Implementation of the recommendations of EU experts given within the EU CARDS 2004 Project "Combating Trafficking in Weapons, Ammunition and Explosives; Adoption, application and implementation of a uniform methodology of police conduct, i.e. standard operating procedures regarding police conduct in events where weapons or explosives are the means of perpetration or the subject of a criminal offence or misdemeanour, in accordance with EU standards; Adoption of the Draft Strategic Guidelines of the Ministry of the Interior of the Republic of Croatia in the Field of Suppression of Trafficking in Weapons, Ammunition and Explosives, and their application and implementation; The full functioning of an operational body competent for the suppression of smuggling and illegal possession of weapons at the national level, as well as related operational surveillance, monitoring and co-ordination.
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3.24.6. Terrorism
A) ACHIEVEMENTS IN 2008 In October 2007, the Act on the Ratification of the Council of Europe Convention for the Prevention of Terrorism was passed, and the Convention entered into force in the Republic of Croatia on 1 May 2008. The Act on the Ratification of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (OG IA 5/08) entered into force on 21 August 2008. The Croatian Parliament, at its session of 15 July 2008, passed the new Act on the Prevention of Money Laundering and Financing of Terrorism, which enters into force on 1 January 2009. In 2008, the Ministry of the Interior participated in the joint international exercise under the Proliferation Security Initiative. In the course of the exercise, the capacity of the Ministry of the Interior in relation to the prevention of the proliferation of weapons of mass destruction, and the manner of information exchange between agencies and ministries of the Republic of Croatia, and information exchange at the international level, especially with neighbouring countries, were tested and improved. Representatives of the Ministry of the Interior also actively participate in the working group for the prevention of money laundering and financing of terrorism within the Interagency Working Group for the Prevention of Money Laundering and Financing of Terrorism, as well as in the interdepartmental working group for the suppression of terrorism. Significant attention is being paid to strengthening national capacities for combating terrorism by providing professional training for police officers working on the tasks of combating terrorism. This training is delivered through courses and seminars organised by the Ministry of the Interior and various international bodies. Representatives of the Republic of Croatia also actively participate in international meetings on the subject of terrorism. The Twinning Light PHARE 2005 project entitled Training Police Officers of the Ministry of the Interior of the Republic of Croatia in the Area of Investigating Bomb Incidents and Techniques and Tactics of Handling Explosive Devices and Improvised Explosive Devices has been successfully implemented. More than 150 police officers and representatives of the Ministry of Defence were included in the Project aimed at training members of the Croatian police force and certain branches of the military in new methods of work. Some of the results of the Project were the preparation of a Manual of Procedures in Anti-Explosion Protection, a Technical Manual for Demining, and Operational Guidelines. With a view to strengthening administrative capacities, in 2008 implementation began of the continuous training of police officers dealing with terrorism through a seminar entitled The Role of the Criminal Police in Uncovering Criminal Offences of Terrorism and Criminal Offences Connected to Terrorism, on which occasion, along with the now standard course in procedures at the site of the explosion of explosive devices, a total of 50 police officers were trained. On 27 November 2008, the Government of the Republic of Croatia passed the National Strategy for the Prevention and Suppression of Terrorism. B) KEY PRIORITIES In the course of 2009, it is planned to start developing the Action Plan for the Prevention and Suppression of Terrorism. The continuous training of police and other state officers in the fight against terrorism will be implemented by organising seminars, courses and workshops, sending police officers on professional training courses abroad, and through co-operation, meetings and exchanges of experience with other services and institutions in Croatia and abroad, and through anti-terrorist exercises with international partners. The strengthening of national capacities by means of training and exchanging experiences in the same manner as that described in the paragraph relating to short-term priorities will continue through the constant building of international co-operation in the fight
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against international terrorism with EU institutions, OSCE, Interpol, Europol, neighbouring countries and all other relevant international organisations. In 2009, it is expected to implement new forms of additional professional training for police officers dealing with anti-explosion protection, both at the level of the Ministry of the Interior and of police administrations in the field of combating terrorism, especially with regard to the tactics of handling improvised explosive devices, carrying out preventive anti-explosion inspections, and other procedures. Accordingly, it is planned to procure the necessary materials and technical means for work at all levels of police organisation. The Act on Amendments to the Criminal Code has fully aligned the definition of terrorism with the European definition of terrorism, which means that now there is only one criminal offence of terrorism instead of the former two (anti-state and international terrorism).
3.24.7 Co-operation in the Area of Drugs

A) ACHIEVEMENTS IN 2008 For the purpose of implementing previously adopted documents such as the framework for the operation of the whole information system for drugs in line with EU standards, the Government of the Republic of Croatia adopted the Action Plan for the National Information System for Drugs in the Republic of Croatia for 2008-2009 at its session of 12 June 2008. The National Contact Point for the transfer and exchange of confiscated samples of narcotic drugs and psychotropic substances was formally established, as regulated by Council Decision 2001/419/JHA of 28 May 2001. As one of the main results of the projects referred to above, the first National Report of the Republic of Croatia on the Drug Situation for 2007 (with data from 2006) was prepared in line with the European guidelines, and was officially submitted to EMCDDA in January 2008. In 2008, consultations with the EC were carried out, with a view to aligning the text of the Agreement between the Republic of Croatia and the European Commission on the Participation of the Republic of Croatia in the Work of the EMCDDA. Apart from work on setting up and aligning the National Information System for Drugs, intensive work was conducted in developing other drug prevention areas. With regard to the civil sector, standards for therapeutic communities were drawn up, which should secure higher quality services, and whose aim is to include non-governmental organisations dealing with the rehabilitation of addicts in the health system. This would, in turn, obligate the state to further develop its co-operation with civil society. A comprehensive programme of social reintegration was drawn up, which would enable former addicts to obtain further education, find employment and reintegrate into the life of the community, with the support of competent bodies. A new model of strengthening institutional capacities and the legal control of precursors was also prepared, which, through the restructuring of the existing system, would ensure more efficient precursor control, and would help resolve problems in this field. In addition, activities targeted at enhancing horizontal and vertical co-operation between competent bodies were initiated, with special emphasis on the local community, representing the framework of action. As part of alignment with the acquis, amendments were made to the List of Narcotic Drugs, Psychotropic Substances, Plants which Can Be Used to Produce Narcotic Drugs and Substances which Can Be Used in the Production of Narcotic Drugs. Five new substances were added to the list in line with the requirements of EU Council Decisions (PMMA, 2- C-1, 2-C-T-2, 2-C T-7, TMA-2), and three substances were placed on the list pursuant to the professional risk assessment on a national basis: Salvia divinorum, Tabernate iboga, Ibogaine.
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Suppression of narcotic drugs supply With regard to the suppression of the supply of narcotic drugs, the Ministry of the Interior of the Republic of Croatia conducted a range of activities and measures. The measures taken derive from the tasks included in the National Strategy and Action Plan for Combating Narcotic Drugs Abuse in the Republic of Croatia, and specifically include a whole range of repressive measures and activities targeted at the suppression of the supply (availability) of narcotic drugs, i.e. the suppression of production, trade and trafficking of narcotic drugs, and the prevention of illegal trade and the use of precursors. The following results were achieved: in the first nine months of 2008, on the territory of the Republic of Croatia, a total of 6,091 criminal offences were recorded relating to the abuse and smuggling of narcotic drugs, and the said offences resulted in criminal charges brought against a total of 5,021 persons in the first nine months of 2008. In the first nine months of 2008, a total of 4,573 confiscations of all kinds of narcotic drugs were made, in the following quantities: heroine ................................................ 111kg 346 g hashish ................................................. 2 kg 984 g cannabis leaves of drug type ................. 68 kg 729 g cocain ................................................... 27 kg 955 g amphetamines ...................................... 7 kg 466 g heptanone ............................................ 5,363 tb. ecstasy .................................................. 6,792 tb. LSD ....................................................... 67 doses
B) KEY PRIORITIES Measures to be implemented in the course of 2009, according to the recommendations of the European Partnership and based on the acquis, are aimed at the following: recruitment of four new employees in the Office for Combating Narcotic Drugs Abuse of the Government of the Republic of Croatia; adoption of the Action Plan for Combating Narcotic Drugs Abuse in the Republic of Croatia 2009-2012; adoption of the Implementation Plan of the Action Plan for Combating Narcotic Drugs Abuse for 2009; accession to the Agreement between the Republic of Croatia and the European Commission for the Participation of the Republic of Croatia in the Work of EMCDDA; completing the horizontal IPA EMCDDA Project for Croatia and Turkey.
The following have been set by the Ministry of the Interior as priority activities for 2009: implementation of the IPA 2007 Project Strengthening the Capacities of the Ministry of the Interior of the Republic of Croatia to Combat Narcotic Drugs Trafficking and Abuse; strengthening the administrative and institutional capacities of the Forensic Science Centre for the purpose of implementing relevant documents of the acquis (planned as part of the above-mentioned project within IPA 2007); strengthening the administrative and institutional capacities of the Ministry of the Interior, especially the lines of work pertaining to the suppression of narcotic drugs abuse and trafficking (during the implementation and realisation of the IPA 2007 project Strengthening the Capacities of the Ministry of Interior of the Republic of Croatia to Combat Narcotic Drugs Trafficking and Abuse).
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3.24.8 Judicial Co-operation in Criminal and Civil Matters

3.24.8.1. Judicial co-operation in criminal matters
A) ACHIEVEMENTS IN 2008 The 1997 Additional Protocol to the Council of Europe Convention on the Transfer of Sentenced Persons of 1983 was signed and ratified by a decision of the Croatian Parliament on 9 July 2008 (OG IA 5/08). After an Agreement of Co-operation was signed between the Republic of Croatia and EUROJUST on 9 November 2007, the Act on the Ratification of the Co-operation Agreement between the Republic of Croatia and EUROJUST was passed by the Croatian Parliament on 19 November 2008 (OG IA 07/08), which completed the internal conditions for the entry into force of the Agreement envisaged by the Croatian legislation. With the Act on Amendments to the Courts Act (Official Gazette 113/08), the jurisdiction of county courts has been expanded, obliging all county courts to implement and provide support to witnesses and victims in court, by means of establishing a Department for the Provision of Support to Witnesses and Victims in Court Procedures, and to provide international legal assistance in criminal matters. Through the European Judicial Network (EJN), successful co-operation on specific issues has been established with EJN contact persons in several EU Member States, and notifications have been provided on the legal regulations, practice and structure of judicial bodies in the Republic of Croatia. By regularly attending plenary and working meetings of the EJN, contact persons from the Republic of Croatia deepen personal contacts, while mutual trust is enhanced and judicial co-operation among the EU Member States and with non-EU states is strengthened through the exchange of experiences on ways of solving problems. The Proposal of the Criminal Procedure Act is under legislative procedure in the Croatian Parliament, and it is envisaged that it will be passed by the end of 2008. The amendments to the Act complete alignment with Council Framework Decision 2002/465/JHA of 13 June 2002 on joint investigation teams, and Council Framework Decision 2004/68/JHA of 22 December 2003 on combating the sexual exploitation of children and child pornography. The proposal of amendments to the Criminal Code was adopted by the Government of the Republic of Croatia on 5 December 2008 and submitted for parliamentary procedure. The amendments to the Criminal Code complete alignment with Council Framework Decision 2002/475/JHA of 13 June 2002 on combating terrorism, Council Framework Decision 2005/212/JHA of 24 February 2005 on confiscation of crime-related proceeds, instrumentalities and property, the Convention implementing the Schengen Agreement, the Council of Europe Convention on the Prevention of Terrorism, and the Convention on the Protection of the European Communities Financial Interests. B) KEY PRIORITIES Certain provisions of the new Criminal Procedure Act which contribute to speeding up and improving the efficiency of proceedings and which do not require extensive adjustments are planned to be applied as of 1 January 2009. In the second quarter of 2009, the Act on Amendments to the Act on International Legal Assistance in Criminal Matters will be submitted for government procedure, with a view to aligning the national criminal legislation with the following legal institutes of the EU: Council Framework Decision 2002/584/JHA of 13 June 2002 on the European arrest warrant and the surrender procedures between Member States; Council Framework Decision 2003/577/JHA of 22 July 2003 on the execution in the European Union of orders freezing property or evidence;
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Council Framework Decision 2005/214/JHA of 24 February 2005 on the application of the principle of mutual recognition to financial penalties; and
Council Framework Decision 2006/783/JHA of 6 October 2006 on the application of the principle of mutual recognition to confiscation orders.
The Amendments to the Act on International Legal Assistance in Criminal Matters will implement the abandonment of the statute of limitations as a reason for rejecting requests by foreign judicial bodies for legal assistance in criminal matters, in line with the acquis. With regard to the status of victims in the criminal procedure, in the second quarter of 2009 Croatia plans to amend the Act on the Enforcement of Prison Terms and complete the alignment of the criminal legislation related to notifying victims about the assailants release from prison. In the second quarter of 2009, the amendments of the Criminal Code will complete alignment with Council Framework Decision 2008/675/JHA of 24 July 2008 on taking account of convictions in the Member States of the European Union in the course of new criminal proceedings. In the first quarter of 2009, the Ordinance on seconding liaison officers to EUROJUST will be adopted. Successful judicial co-operation with EU Member States on both specific matters and on providing information on legal regulations and practices in the Republic of Croatia will continue through EJN. Further efforts are planned in building a qualified and EJNcompatible national courts network to perform mutual legal assistance activities. As a result of the rationalisation of the court system in the Republic of Croatia, and pursuant to the provisions of the Act on the Jurisdictions and Seats of Courts (OG 85/08), necessary changes will be made to the process of setting up a system of (all or selected) county courts to be designated as central bodies for receiving and sending requests for legal assistance in criminal matters, and setting up a system of (all or selected) county courts to be designated as central bodies for issuing and receiving and executing European Arrest Warrants and warrants for freezing property or evidence. For this purpose, amendments will be made to the map showing the subject matter and local jurisdiction of judicial bodies in the Republic of Croatia competent for activities of international legal assistance in criminal matters, with a view to creating conditions for the Croatian judicial system to be able to directly communicate with the relevant judicial bodies in other countries (in or outside the EU). Strengthening administrative capacities of the Ministry of Justice in international legal assistance in criminal matters is planned by recruiting an appropriate number of staff, and providing training and specialisation in accordance with the need for efficient international co-operation, which is constantly growing, not only in terms of the number of actual cases, but also in terms of the degree of complexity of increasingly sophisticated cross-border crime. In co-operation with the Judicial Academy, training of judges, state attorneys and civil servants in the Ministry of Justice engaged in activities of international legal assistance in criminal matters will continue.
3.24.8.2. Judicial co-operation in civil matters
A) ACHIEVEMENTS IN 2008 The passing of the Act on Free Legal Aid (OG 62/08) completed alignment with Directive 2002/8/EC of 27 January 2003 to improve access to justice in cross-border disputes by establishing minimum common rules relating to legal aid for such disputes. With a view to aligning Croatian legislation with Regulation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims, the Republic of Croatia passed the Act on Amendments to the Execution Act (OG 67/08) on 30 May 2008.
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On 2 July 2008, the Republic of Croatia passed the Act on Amendments to the Civil Procedure Act (OG 84/08). This created the conditions for the direct implementation of the following regulations (upon the accession of the Republic Croatia to full membership of the European Union): Regulation (EC) No 1393/2007 of the European Parliament and of the Council of 13 November 2007 on the service in the Member States of judicial and extrajudicial documents in civil or commercial matters ("Service of Documents"), and repealing Council Regulation (EC) No 1348/2000; Council Regulation (EC) No 1206/2001 of 28 May 2001 on cooperation between the courts of the Member States in the taking of evidence in civil or commercial matters; Regulation (EC) No 1896/2006 of the European Parliament and of the Council of 12 December 2006 creating a European order for payment procedure (SL L EU no. L 399); Regulation (EC) No 861/2007 of the European Parliament and of the Council of 11 July 2007 establishing a European Small Claims Procedure. The European Convention on the Compensation of Victims of Violent Crimes of 24 November 1983 has been ratified (OG IA 4/2008). The Act on the Financial Compensation of Victims of Criminal Offences was passed (OG 80/08) and will enter into force on the day of the accession of the Republic of Croatia to the European Union. The Act regulates the right to financial compensation for victims of intentional criminal acts of violence, the requirements and the process for exercising the right to compensation, bodies which make decisions and participate in the decision-making process concerning the right to compensation, and the bodies and the procedure used in cross-border cases. This completed the alignment of Croatian legislation with the provisions of Council Directive 2004/80/EC of 29 April 2004 relating to compensation to crime victims; the rights of the victims of intentional crimes of violence are regulated in line with the principles of the European Convention on the Compensation of Victims of Violent Crimes. In 2008, the Act on the Ratification of the Council of Europe Convention on Contact Concerning Children was passed, and the procedure of signing the Hague Convention on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children was initiated. Amendments to pertinent acts are underway, which will create the conditions for the efficient implementation of the 1980 Hague Convention on the Civil Aspects of International Child Abduction, and thus ensure procedures within the deadlines envisaged by the Convention, by aligning national regulations with the requirements of the protection of human rights (the right to respect for private and family life, the right to a trial within a reasonable time) and fundamental freedoms. The new legal solution will protect the welfare of children in procedures concerning their illegal removal, and at the same time will more efficiently protect the best interests of children, which is the core principle of the UN Convention on the Rights of the Child. Furthermore, the Act on the Jurisdictions and Seats of Courts (OG 85/08) was passed, which rationalises the courts network. Since, pursuant to the existing Courts Act, municipal courts are in charge of providing international legal assistance in civil matters, the reduction in the number of courts from 108 to 67 will facilitate and accelerate the process of providing international legal assistance. B) KEY PRIORITIES Work will be continued on the Draft Proposal of the Act on the Ratification of the Convention on the Taking of Evidence Abroad in Civil or Commercial Matters, so that the Convention may be ratified in the second quarter of 2009. At the same time, this Convention is a requirement for the application of Council Regulation (EC) No 1348/2000 of 29 May 2000 on the service in Member States of judicial and extrajudicial documents in civil or commercial matters. In the course of 2009, the Republic of Croatia will complete the ratification of the Hague Convention on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children.
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The training of civil servants who will be engaged in activities of approving free legal aid is planned for December 2008 and January 2009. As a result of the rationalisation of the court system in the Republic of Croatia, and pursuant to the provisions of the Act on the Jurisdictions and Seats of Courts (Official Gazette 85/08 of 21 July 2008), necessary changes will be made to the process of setting up a system of county courts to be designated as central bodies for receiving and sending judicial and extrajudicial documents in civil and commercial matters. For this purpose, a map will be completed showing the subject matter and local jurisdiction of judicial bodies in the Republic of Croatia competent for activities of international legal assistance in civil matters, with a view to creating conditions for the Croatian judicial system to be able to directly communicate with the relevant judicial bodies in other countries (within or outside the EU). Further strengthening is also planned of the administrative capacities of the Ministry of Justice in the system of international legal assistance in civil matters, training and specialisation of staff, support for the setting up of a network of judges in Croatia, with special attention given to compatibility, for the purpose of joining the European Judicial Network for civil and commercial matters.
3.24.9. Customs Co-operation

A) ACHIEVEMENTS IN 2008 In line with the Action Plan for the Implementation of the Integrated Border Management Strategy of the Republic of Croatia, the Customs Administration conducted the tasks listed below. Flexible reactions to changes in the circulation of goods and other traffic as a result of decentralisation and the delegation of decision-making were set as goals in the chapter Management and Organisation. This was followed by the drafting of a proposal of the new Regulation on the internal organisation of the Ministry of Finance, Customs Administration. A Commission was established, and the adoption of the new organisational structure and systematisation of work posts in the Ministry of Finance, Customs Administration, is currently underway. The Instruction on the regular rotation of customs officers in customs houses was adopted, based on which rotations are applied. One of the goals in the chapter Procedures is to simplify the procedures in order to make them as quick and efficient as possible and to allow for their uniform application. To this end, the Manual for Procedures at Border Crossing Points was prepared, and is currently being updated. In addition, the Commission for Drafting the Manual on Blue Border Customs Surveillance was established. The second goal was the option to collect customs duties and perform full customs checks directly at border crossing points 24 hours a day, as necessary. Consequently, the direct collection of customs duties was introduced at all major border crossing points in the Republic of Croatia. In order to accomplish the goal of implementing the specialist training of customs officers for special authorities as given in the chapter Human Resources and Training, specialist training for customs officers was conducted, after which they were authorised to hold and carry weapons. In June 2008, the new Road Traffic Safety Act (OG 67/08) entered into force. With this Act, the customs service has for the first time obtained the authority to stop vehicles and give orders and commands by means of special devices installed on vehicles. When performing customs surveillance, authorised customs officers are entitled to stop and inspect vehicles in road traffic. This authority is particularly important for the suppression of trafficking and customs fraud by means of mobile units over the entire customs territory of the Republic of Croatia
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B) KEY PRIORITIES After the new Ordinance on the stopping of vehicles in road traffic enters into force, appropriate professional training needs to be organised and conducted for customs officers at the Central Office and at customs houses. These officers will be directly engaged in such activities within the Mobile Units Section and will put the new authority into practice; The prepared IT application for confiscated goods, which comprises data on all confiscation of goods carried out in the customs territory of the Republic of Croatia, needs to be upgraded in terms of enabling search by particular criteria and determining the level of access according to authority. This application will be used for statistical purposes and as the basis for international information exchange, investigations into major confiscations, and information via the mass media. Through annual training plans, specialist training sessions will be ensured for authorised customs officers, as will professional training for officers dealing with the fight against smuggling, and customs and excise duty fraud; Efforts will be ensured to reach the goals set by the IBM Action Plan in 2009.
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3.25. SCIENCE AND RESEARCH

Legislative measures The Ordinance on the method of determining requirements for approval of temporary residence to foreigners for the purpose of scientific research (OG 42/08) was adopted, providing for simpler involvement of foreign scientists in research projects. Implementation measures In its Conclusion of 18 April 2008, the Government of the Republic of Croatia accepted the Action Plan for Increasing the Level of Investment in Science and Research. The objectives of the Action Plan are derived from the EU Strategy to increase investment in research to a level of 3% of GDP by 2010 and from strategic national documents on the development of science and technology by 2010. Pursuant to the Decisions of the Government of the Republic of Croatia of 18 April 2008 and in accordance with the 20072010 Action Plan Science and Technology Policy of the Republic of Croatia, the following have been established: the Strategic Science and Technology Council (SVEZNATE), as the fundamental body competent for strategy and policy issues in the development of science, technology and innovation at national level, headed by the Prime Minister of the Republic of Croatia, four ministers and two representatives of the scientific and technology community the Council for the National Innovation System (VNIS), responsible for aligning measures aimed at the setting-up and implementation of the National Innovation System, and for monitoring and assessing the results of the implementation of science and technology policy. Documents of the Croatian Government, the Science and Technology Policy and the Action Plan for Increasing the Level of Investment in Science and Research, highlight the role of Croatian institutions, including the National Foundation for Science, Higher Education and Technological Development, which carry the administrative capacity for the implementation of strategic goals in the development of Croatian science. Among the instruments and actions planned to achieve these goals, particular emphasis is placed on the development of an evaluation and funding system for projects, correspondingly linked to scientific results, which will promote the individual responsibility of scientists, and which will attract a new generation of scientists. Another instrument is the strengthening of the National Foundation for Science, Higher Education and Technological Development as a promoter of excellence in the research area in Croatia. In 2008, preparations were carried out for the required regulatory modifications (amendments to the Act on the National Foundation for Science, Higher Education and Technological Development of the Republic of Croatia (NFS)), whereby the Foundation will be able to assume a central role in the system of public financing of science. In accordance with the Action Plan, public financing of scientific research should enable the establishment of healthy competitive relations between scientists, and should be based on the criteria of excellence and the individual responsibility of scientists. This implies the financing of high-quality projects reviewed by world-class experts in their fields. The National Foundation for Science already provides for the financing of its programmes in accordance with this system, but it is planned that it will assume a central role in the financing of such projects after it has been further strengthened and restructured. The National Foundation for Science, Higher Education and Technological Development of the Republic of Croatia has, in co-operation with the National Science Council, launched the Installation Grants Programme for young scientists. Its aim is to assist young Croatian and foreign scientists to launch independent research careers.
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In 2008, the National Foundation for Science, Higher Education and Technological Development awarded six three-year grants, one in each field of science (natural, biomedical, biotechnical, technical, and social sciences, and the humanities) to young Croatian or foreign scientists with a minimum of two years postdoctoral experience in Croatia or abroad. In addition to this programme, the NFS also finances one EMBO installation grant per year. In March 2008, contracts were awarded to scientific projects selected on the basis of reviews made in 2007. All data on approved projects and awarded funds are available to the public on the Ministrys website at http://zprojekti.mzos.hr. An ongoing call for new project proposals has been published on the website of the Ministry of Science, Education and Sports. As part of the Science and Technology Development Project sponsored by the World Bank, several joint projects with Croatian science and technology experts living abroad were financed by the Unity through Knowledge Fund, and several technology transfer projects were launched in collaboration with the companies Ruer Inovacije d.o.o., BICRO and HIT. The Unity through Knowledge Fund also launched an independent programme to finance projects carried out by young scientists. My first research is a grant aimed at providing outstanding young scientists and experts, both Croatian and foreign, with an opportunity to independently develop their innovative ideas. In 2008, 12 such projects were launched, with grants averaging EUR 50,000. This support encourages young scientists and experts to achieve proficiency in research, management and other skills, including networking, especially when co-operating with emigrants. The support is carried out through work placements in Croatian institutions and companies, or through residencies and visits to eminent research centres abroad. One of the objectives of the Technology Development Project is the restructuring of scientific and research institutes, accompanied by an institutional strengthening of BICRO and aided by the Unity through Knowledge Fund. Institutes participating in the project are the Ruer Bokovi Institute and the Naval Institute. The reform of these institutes has been carried out through the establishment of the company Ruer Inovacije d.o.o, which commercialises the intellectual property of the RBI, and through commercial research projects, and, at the same time, a parallel restructuring of the Naval Institute. For the purpose of strengthening administrative capacity for the implementation of projects under the IPA programme and monitoring the implementation of Action Plans, the EU Funds Management and Action Plans Department was set up as part of the MSES in April 2008. The Department is responsible for Component 3C of the IPA Programme Regional Development Regional Competitiveness, falling within the sectoral competence of the MSES. In the period concerned, the European Commission approved the Operational Programme for Regional Competitiveness (20072009), the Operational Agreement was signed by the bodies of the Operational structure for IPA Component 3C Regional Development Regional Competitiveness, and the National Verification Body (Ministry of Finance) awarded national accreditation to IPA Component 3C in April 2008. For the purpose of further integration into the European Research Area, measures aimed at enhancing the absorption capacity of Croatia for the Seventh Framework Programme for Research and Technological Development (FP7) continued. In September 2008, the Ministry of Science, Education and Sports adopted the Decision on co-financing the Seventh Framework Programme. Co-financing continued for the preparation of project proposals for positively evaluated project proposals, which was introduced by the Decision on co-financing the Sixth Framework Programme, but the funds were increased from HRK 19,000 to HRK 22,000 for projects under HRK 70,000 in which a Croatian institution has the status of a project partner and project co-ordinator. The same Decision introduced a new measure to encourage excellence in science, whereby Croatian partners who contract projects with a value exceeding EUR 100,000 are entitled to funds ranging from HRK 40,000 to 100,000. A clearer distinction was made between the implementation function and the supervisory function of the Seventh Framework Programme: six out of nine National Contact Points for the Seventh Framework Programme were transferred from the MSES to the Croatian Institute of Technology, Zagreb (HIT d.o.o.) in the first quarter of 2008. In this way, HIT assumed the main implementation
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function of the Seventh Framework Programme, whereas the MSES is primarily responsible for the supervision function and strategic planning of activities pursuant to the Act on Ratification of the Memorandum on the Participation of the Republic of Croatia in the Seventh Framework Programme (OG IA 10/07). HIT and the MSES continued with measures that include the organisation of workshops and seminars on the thematic priorities of the Seventh Framework Programme. The national network of institutional science managers (administrators for international research projects with a focus on the Seventh Framework Programme) was established, comprising the majority of universities and the Ruer Bokovi Institute. Co-operation was established between the network of science managers (National Contact Points for FP7) and HIT. The Action Plan to strengthen the absorption capacity of the Republic of Croatia for the Seventh Framework Programme 20092010 has been adopted, following its alignment with shareholders and the planned budgetary funds for 20092010. It is based on stronger promotion of the active involvement of legal and natural persons from the Republic of Croatia, strengthening the system of administrative support in the preparation and successful implementation of projects under the Seventh Framework Programme, stronger linking of PhD studies with the projects of the Seventh Framework Programme, a clearer definition of the role of young scientists in projects under the Seventh Framework Programme, and more active co-operation between Croatian emigrants and partners from Croatia in the projects. As part of the preparations for participation in the Communitys Nuclear Energy Programme EURATOM, a decision was adopted regarding the institutions where a National Contact Point will be established: the State Office for Nuclear Safety and the State Institute for Radiation Protection. Accordingly, these state organisations will perform the function of programme implementation, while the MSES will perform the supervisory function. In October, the MSES reiterated its interest to the European Commission in commencing with the procedure for concluding the Memorandum on Participation in the EURATOM Programme as soon as the European Commission provides the legal basis for initiating the procedure. For the purpose of information dissemination and establishing new partnerships with the European Commissions Joint Research Centre, a conference was organised on the recent achievements of the seven institutes in the European Commissions Joint Research Centre and related organisations in the Republic of Croatia in April 2008, through the co-operation of the European Commission, MSES and HIT. A plan of measures to intensify involvement in the activities of the EC Joint Research Centre, especially in the area of involvement in projects participated in by Joint Research Centre institutes, is currently being prepared. In 2008, Croatia commenced with participation in the activities of the European Network of Mobility Centres in the European Research Area, which was renamed EURAXESS in 2008 by the European Commission. The Agency for Mobility and EU Programmes is the national point (bridge-head organisation) for researcher mobility. Implementation of the project to set up the National Point at the Agency commenced in June 2008. The project is financed from the Seventh Framework Programme and the State budget. Two out of three planned individuals assigned to the task have been recruited. As part of the project, preparations for the involvement of the Republic of Croatia in the European Researchers Mobility Portal were carried out. Initial steps have been taken in the establishment of a national network for the mobility of researchers, which will include universities and major scientific and research institutes that are interested in becoming members, and which are willing to comply with the membership requirements prescribed by the European Commission. The Agency for Mobility and EU programmes will co-ordinate the national network for mobility of researchers. The Action Plan for the mobility of researchers, based on the recommendations contained in the EU Mobility Action Plan and the principles of the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers, is currently being drafted. Croatia is now actively participating in EC Joint Technology Initiatives; participation in the Joint Technology Initiative for Innovative Medicine started in November 2008. The Ministry of Science, Education and Sports has appointed a representative of the Drugs and Medical Products Agency to represent the Republic of Croatia in the Joint Technology Initiative for Innovative Medicine.
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B) KEY PRIORITIES
Legislative measures It is planned to adopt a new Act on Quality Assurance in Science and Higher Education, which will strengthen the Agency for Science and Higher Education as the central body responsible for the accreditation of scientific organisations and the implementation of independent evaluation for the purpose of assessing the quality and efficiency of scientific organisations. It is also planned to adopt a new Act on the National Foundation for Science, Higher Education and Technological Development of the Republic of Croatia, whereby the Foundation will be able to assume a central role in the system of financing scientific projects. In addition, it is planned to adopt the Ordinance on the registry of scientific organisations and the registry of higher education institutions. Implementation measures In addition to the broad application of the Ordinance on the method of determining requirements for approval of temporary residence to foreigners for the purpose of scientific research (OG 42/08), further plans involve increasing the quota of work permits for foreign scientists who will become permanent residents in the Republic of Croatia. It is also planned to simplify the Ordinance on the registry of scientists with regard to the registration of foreigners. Croatian citizenship will no longer be required for registration, so foreigners will be able to assume the position of project leaders. In 2009, the Ministry of Science, Education and Sports Science Department, the body in charge of the management and implementation of IPA Component 3C Regional Development Regional Competitiveness, plans to start implementing Operation 2.2.1, Science and Innovation Investment Fund, under the Regional Competitiveness Operational Programme for 20072009, Priority Axis 2, Enhancing the competitiveness of the Croatian economy, Measure 2.2, Technology Transfer and Support Services for Knowledgebased Start-ups. Further strengthening is planned of the National Foundation for Science as the central institution in charge of the financing of competitive scientific projects. The Foundation will develop a system of financial instruments for various financing schemes, ranging from installation grants for young researchers and excellence grants to aid joint research networks. Reform of the PhD student (junior researcher) system is being prepared, with the aim of raising the efficiency of PhD education as the basis for research and development in the public sector and the economy, to be achieved through higher subsidies for scientific institutions and a higher level of mentor responsibility. Reform will involve three levels of further development for independent PhD students: junior researchers financed from the State budget (regulatory changes and a stronger system of responsibility are required), increasing the number of project-funded PhD students (a small number are already financed through Framework Programme projects, the National Foundation and the Unity through Knowledge Fund), and establishing PhD schools (planned for 2010). A re-invitation to tender is planned for the Installation Grants Programme for young scientists. Further plans include setting up an independent evaluation system for scientific institutions, complying with internationally accepted scientific standards, which will make the financing of the public science system even more stimulating, and which will create stronger ties with the economy. Regulatory changes are required to define responsibilities and strengthen the role of the Agency for Science and Higher Education in order to establish an independent evaluation system. A professional quality assurance system (accreditation, evaluation, periodical review) can only be implemented in science through the independent and professional activities of a special body in charge of such tasks. Regulatory changes aimed at strengthening the Agency, assuring its independence and granting the required authority, are therefore planned. Only once the independent evaluation system for scientific institutions is established will the Ministry which finances public scientific institutions have access to accurate data in order to enhance the system of institutional financing of public scientific institutions.
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Activities aimed at the development of the National Innovation System are planned through the Technology Development Project, which includes a technological check-up of all 26 public institutes, followed by a proposed restructuring strategy in terms of networking, commercialisation or merging with universities. The Plan of measures to intensify the involvement of the Republic of Croatia in the activities of the Joint Research Centre (JRC) of the European Commission, especially in the area of involvement in joint projects, is to be adopted. The Action Plan for the mobility of researchers is to be finalised, taking into account the actual capacity for implementation of the recommendations contained in the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers. For the purpose of further integration of the Croatian science and technology system into the European Research Area, in particular with regard to measures which promote networking within the European Research Area, the Action Plan for the Seventh Framework Programme for Research and Technological Development will be implemented, and activities related to the mobility of researchers in the European Research Area will be carried out to their full extent. Key tasks and measures contained in the Action Plan to strengthen the absorption capacity of the Republic of Croatia for the Seventh Framework Programme for Research and Technological Development are the following: a) Strengthening human resources for the Seventh Framework Programme: further strengthening the administrative capacity of the Croatian Institute of Technology, including further education of the appointed National Contact Points, and increasing the number of National Contact Points for FP7 at HIT from the current 6 to 8 by the end of 2009; strengthening the network of science managers at higher education and scientific institutions, and the Offices for science/international scientific and research projects, including continuous education of science managers and increasing their number from the current 10 to 15 by the end of 2009; establishing formalised co-operation between the MSES and HIT and the ministries relevant for strengthening the absorption capacity for FP7, in particular the ministry responsible for the economy; encouraging the representatives of small and medium-sized enterprises and non-governmental organisations to participate in the projects of the Seventh Framework Programme; increasing the number of open days and workshops organised by universities and major scientific and research institutes (independently and in co-operation with the MSES and HIT) to reach a total of 30 events in 2009; successfully participating in and leading FP7 projects, performing assessments in the evaluation of scientists and the selection of scientific professionals, and enabling a corresponding reduction in the curricular load to encourage a larger number of researchers to propose FP7 projects; benefiting from the experiences of Croatian scientists living abroad through networking with their home institutions to achieve higher standards of quality in proposing and carrying out FP7 projects. b) Increasing material support to researchers implementing projects of the Seventh Framework Programme: ensuring that public scientific and research institutions adopt rules on space management, and periodically evaluate the efficiency of space usage and reallocate available space in line with scientific and expert productivity, whereby adequate workspace will be provided to scientists involved in FP7 projects; developing and implementing an efficient supervision system for the use of equipment, and promoting the setting-up of infrastructure centres which will be educated in terms of efficient equipment usage and which will organise an analytical service for the entire scientific community;
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earmarking budgetary funds for the implementation of the Decision on the co-financing of the Seventh Framework Programme adopted by the Ministry of Science, Education and Sports in September 2008, in particular ensuring sufficient funds to co-finance the preparation of project proposals for positively evaluated proposals and to promote scientific excellence;
removing any obstacles to the implementation of Seventh Framework Programme projects related to the compliance of customs and tax regulations with the rules of the Seventh Framework Programme (exemption from the application of VAT and income tax for guest students and scientists);
simplifying the process of short-term (temporary) employment of assistants in Seventh Framework Programme projects, fully financed from project funds (researchers, administrative and technical staff).
c) Stronger linking of PhD studies with the Seventh Framework Programme: when organising new PhD studies and reforming existing ones, verifying whether the studies can be integrated into international projects, e.g. on account of curricular overload, or the formal recognition of ECTS points; promoting PhD studies that finance student activities through Seventh Framework Programme projects, taking advantage of FP7 projects to attract and finance young scientists, and considering a legislative review and simplification of the process of young scientists recruitment in Seventh Framework Programme projects in cases when they are fully financed by the FP7 project; increasing the number of young scientists working towards their PhD paper or performing post-PhD research through a FP7 project. d) Involvement of the Republic of Croatia in the technology platforms and Joint Technology Initiatives of the European Union: a decision will be adopted on assistance for the involvement of the Republic of Croatia in several technology platforms and Joint Technology Initiatives of the European Union by the Ministry of Science, Education and Sports, in co-operation with the Croatian Institute of Technology. The selection will be made in line with the interest and capacities of Croatian industry, and funds available from the State budget and the economy; the Ministry of Science, Education and Sports will consider the possibility of participation in additional EC Joint Technology Initiatives. The level of success in the implementation of the Action Plan for the Seventh Framework Programme will be measured by a series of indicators, the key indicator being the ratio of investments to withdrawals (national contribution and agreed projects), in particular with regard to the contracted amounts in thematic collaborative research projects. Key activities in the field of mobility of researchers in the European Research Area include the following: continuing the implementation of Seventh Framework Programme projects aimed at setting up the National Contact Point for researcher mobility at the Agency for Mobility and EU Programmes, in particular with regard to the full involvement of the Republic of Croatia in the European Researchers Mobility Portal, and the involvement of additional universities and scientific and research institutes in the national network for mobility of researchers; adoption and implementation of the Action Plan for the mobility of researchers, in particular monitoring whether the recommendations contained in the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers are being implemented by scientific organisations. Final preparations for the participation of the Republic of Croatia in the Communitys Nuclear Energy Programme EURATOM will be carried out: National Contact Points will be appointed, one at the State Office for Nuclear Safety and another at the State Institute for Radiation Protection; education of the National Contact Points and dissemination of information on the EURATOM programme to potential project applicants will be carried out; the MSES will ensure the Memorandum of Accession to the EURATOM Programme
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is concluded as soon as the European Commission provides the necessary legal basis. The target date for accession to EURATOM is 1 January 2010. Since membership of the European Research Fund for Coal and Steel (ERFCS) is mandatory for all new member states following their accession to the EU, the MSES Commission for the European Research Fund for Coal and Steel will prepare a study of the absorption capacity of the Republic of Croatia, and propose measures to strengthen research capacity for Croatias involvement in the European Research Fund for Coal and Steel. Further plans include: implementation of the national Action Plan Science and Society 20082010, including the alignment of national policy in the field, and adoption and implementation of the plan of measures to intensify involvement in the activities of the EC Joint Research Centre, as participation in the activities implies the disbursement of a national contribution, which represents an item in the national contribution for the Seventh Framework Programme.
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3.26. EDUCATION AND CULTURE 3.26.1. Education and training

3.26.1.1 Community Programmes in the fields of Education and Youth Policy
A) ACHIEVEMENTS IN 2008 The Agency for Mobility and EU programmes, which is the national agency in charge of the management of the Community programmes, the Integrated Lifelong Learning Programme and the Youth in Action Programme, has commenced its activities with satisfactory funds and a sufficient number of employees. The Act Establishing the Agency for Mobility and EU Programmes entered into force in November 2007. The Governing Board of the Agency adopted the Statute of the Agency in December 2008, after receiving consent from the Ministry of Science, Education and Sports and the Ministry of Family, Veterans Affairs and Intergenerational Solidarity. The capacities of the Agency have been strengthened. The number of employees has increased to 14, and further recruitment is planned. Two employees were recruited by the Agency for Mobility and EU programmes to the Youth in Action Programme in 2008, financed from the budgetary funds of the Ministry of Family, Veterans Affairs and Intergenerational Solidarity. Funds for the remaining employees and operational costs of the Agency were earmarked in the budget of the Ministry of Science, Education and Sports. The European Commission approved the Agencys Plan of activities for the implementation of preparatory measures for the Lifelong Learning Programme and the Youth in Action Programme in early June 2008, which enabled the commencement of professional training in the management of decentralised Community programmes organised by the European Commission. Funds for the implementation of preparatory measures were foreseen in the project proposal to strengthen the capacity of national administrative structures through IPA 2007 Component 1, which will conduct the process of accreditation of the Agency for Mobility and EU Programmes with the European Commission. Budgetary funds were earmarked for the co-financing of the IPA project. For the purpose of strengthening the administrative capacity of the Agency for Mobility and EU Programmes for the Integrated Lifelong Learning Programme in 2008, and strengthening the absorption capacity of educational institutions which could potentially propose projects, the Ministry of Science, Education and Sports earmarked funds in the state budget for 2008 to finance the participation of Croatian institutions as silent partners in projects of the COMENIUS sub-programme, and to finance the Academic Mobility Programme, which is aimed at strengthening the absorption capacity of higher education institutions for the ERASUMS sub-programme. The Agency for Mobility and EU Programmes has been made responsible for disseminating information on the opportunity for Croatian citizens to apply for scholarships under the ERASMUS MUNDUS Balkan Co-operation Window programme, and the opportunity for Croatian higher education institutions to participate in mobility under the ERASMUS MUNDUS External Co-operation Window. The activities are financed by the IPA, and no additional budgetary funds were allocated. The Ministry of Family, Veterans Affairs and Intergenerational Solidarity has drafted a proposal for the National Youth Programme. The full involvement of the Republic of Croatia in the implementation of the Youth in Action Programme is one of the measures to promote the active participation of youth in society, and the competent authorities are the Agency for Mobility and EU Programmes and the MFVAIS. The proposal for the National Youth Programme covers a period of four years, with measures starting in 2009. Experts and representatives of youth organisations were involved in the drafting of the Programme.
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The fourth National Conference National Youth Programme Public Debate was held with the aim of presenting the contents of the Draft proposal of the National Youth Programme for the next implementing period, and conducting a public debate on the objectives and measures contained in the document. The conference was attended by the representatives of youth organisations, student organisations, junior branches of parliamentary parties, religious organisations, the Youth Council, the Youth Assembly, state administration and local self-government bodies, and family centres. The setting up of the Regional Youth Info Centre in Zagreb is currently underway, and support continues for the activities of existing Regional Info Centres in Split, Rijeka and Osijek, a smaller Youth Info Centre in Bjelovar and the Youth Centre in Pula. New members were appointed to the Youth Council for a period of three years. The Youth Council is an inter-departmental advisory and expert body of the Government of the Republic of Croatia, responsible for co-ordinating the implementation of the National Youth Action Programme alongside the Ministry of Family, Veterans Affairs and Intergenerational Solidarity. The draft Proposal of the National Strategy for the Prevention of Behavioural Disorders in Children and Youth 20082012 has been drawn up. Competitions were held for projects focusing on children and youth, Youth Clubs, and projects contributing to the fight against drugs and all forms of addiction. B) KEY PRIORITIES In early 2009, it is planned to start the implementation of the project under IPA 2007 Component 1 to conduct the process of accreditation of the Agency for Mobility and EU Programmes with the European Commission. By the end of 2009, it is planned to finalise the implementation of preparatory measures and the accreditation process, which will demonstrate the ability of the Agency for Mobility and EU Programmes to manage the Integrated Lifelong Learning Programme and the Youth in Action Programme. It is planned to conduct pilot programmes under the Integrated Lifelong Learning Programme and the Youth in Action Programme, and recruit new employees who will be adequately trained so that the Agency can start managing the Integrated Lifelong Learning Programme and the Youth in Action Programme as of 1 January 2010. The Ministry of Science, Education and Sports will conduct the procedure for concluding the Memorandum on the Participation of the Republic of Croatia in the Integrated Lifelong Learning Programme as soon as the European Commission establishes that the IPA 2007 Component 1 project to strengthen the national administrative structure for the Integrated Lifelong Learning Programme and the Youth in Action Programme is proceeding in a manner which will ensure that the Agency for Mobility and EU Programmes is accredited by the end of 2009. The target date for the start of participation is 1 January 2010. It is also planned to conclude the Memorandum on participation in the Community ERASMUS MUNDUS Programme. The Agency for Mobility and EU Programmes will be appointed the national contact point for the ERASMUS MUNDUS Programme. The target date for the start of participation is 1 January 2010. The amount of the national contribution for the Integrated Lifelong Learning Programme, the ERASMUS MUNDUS and the Youth in Action Programme will be earmarked in the proposal of the state budget for 2010. The Ministry of Family, Veterans Affairs and Intergenerational Solidarity is planning to undertake the following measures: to undertake the measures envisaged by the National Youth Programme; to undertake the measures envisaged by the National Strategy for the Prevention of Behavioural Disorders in Children and Youth 20082012; to define the criteria for the financing of regional, county and town Youth Info Centres, and support the participation of the Youth Info Centre Community in the European Youth Information and Counselling Agency (ERYICI); to hold regional conferences to present the guidelines of the national youth policy to the representatives of local and regional self-government; to analyse and promote the implementation of the Youth Council Act.
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3.26.1.2. Education of Migrant Workers Children
Legislative measures The Elementary and Secondary Education Act (OG 87/08) was adopted, transposing the provisions of Council Directive 77/486/EEC. The Act defines the rights and options in the education of the children of migrant workers who are nationals of EU Member States. Pursuant to the Act, the children of EU nationals are entitled to equal elementary and secondary education, and equal enrolment conditions as Croatian citizens. The Act provides for programmes to assist the children of migrant workers in learning the Croatian language and curriculum, as well as for the teaching of the mother tongue and culture of the country of origin of the child. These provisions will become applicable as of the day of Croatias accession to the EU. The draft Vocational Education Act was drawn up and accepted by the Government of the Republic of Croatia in December 2008. The Act appropriately transposes the provisions pertaining to the education of migrant workers children in vocational schools. B) KEY PRIORITIES In 2009, preparations will be carried out so that the relevant provisions of the Education Act can be implemented as of the day of Croatias accession to the EU. Pursuant to the Elementary and Secondary Education Act, the minister will adopt implementing regulations on the syllabus and method of performing direct educational work which is carried out through preparatory complementary classes, as well as measures related to the training of teachers who perform such direct educational work. The minister will adopt the implementing regulations concerned within a year of the date of entry into force of the Act.
3.26.1.3. Reform of the education and training system
Legislative measures In July 2008, the Elementary and Secondary Education Act (OG 87/08) entered into force. Under the new Act, the elementary and secondary education systems have been harmonised, thus constituting parts of a unified education system. The Act is based on two strategic development documents: the National Programme of Measures to Introduce Compulsory Secondary Education and the Education System Development Plan 20052010. The National Pedagogical Preschool Education Standard (OG 63/08) entered into force in June 2008, establishing the standards to be complied with by all kindergartens and other legal entities implementing preschool education programmes. The National Pedagogic Standard for Elementary Education (OG 63/08) entered into force in June 2008. Following the adoption of the Elementary and Secondary Education Act (OG 87/08), the drafting of new implementing regulations commenced. In August 2008, the Ordinance on the state school-leaving examination was adopted. In December 2008, the Government accepted the draft Vocational Education Act and submitted it to the Croatian Parliament. The key features of the Act are the modernisation and systematisation of the vocational component of the education system in accord-
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ance with the principles of openness, negotiability, partnership, competence, alignment of education with the demands of the labour market, and the needs and competences of individuals, in line with the development goals of the adopted Strategy. The National Pedagogic Standard for Secondary Education was passed in June 2008. In 2008, the following regulations were adopted in the field of higher education: the List of academic titles and academic degrees and abbreviations thereof (OG 45/08); the List of appropriate professional titles and abbreviations thereof (OG 45/08); the List of professional titles and abbreviations thereof (OG 45/08); the Ordinance on the content of diplomas and diploma supplements (OG 77/08); the Ordinance on amendments to the Ordinance on the standards and criteria for the establishment of higher education institutions (OG 58/08); the Ordinance on amendments to the Ordinance on employment mediation for regular students (OG 30/08).
Four implementing regulations ordinances arising from the Act on Adult Education (OG 17/07) were prepared (OG 129/08): the Ordinance on the content and manner of managing and keeping andragogic documents; the Ordinance on records in adult education; the Ordinance on public documents in adult education; the Ordinance on standards and norms and the method and procedure of verifying compliance with the conditions to be fulfilled by adult education institutions. The conditions for adult education have been standardised by the regulations concerned, thereby concluding the process of setting up a legal framework to regulate the adult education system and the adult education quality assurance system. Implementation measures The Education System Development Plan 20052010 is a strategic document for the development of the education system in the Republic of Croatia. It is aimed at promoting national development towards a knowledge-based society and economy in accordance with the Lisbon Strategy. In December 2008, the Implementation Action Plan for the Education System Development Plan 20052010 for the period 20092010 was adopted in co-operation with the Directorate for Preschool and Elementary Education, the Directorate for Secondary Education, the Directorate for Higher Education, and the Curriculum Directorate. The Action Plan foresees the introduction of a system of indicators to demonstrate and compare the conformity of the development of the education system in the Republic of Croatia with that in EU Member States. Success indicators for the reform process will be defined at the level of the entire education system. Activities aimed at the establishment of a quality assurance system were implemented at all educational levels. At the elementary level, this is implemented by the National Centre for the External Evaluation of Education. The National Council for Higher Education and the Agency for Science and Higher Education are responsible for the external quality assurance system for higher education, whereas higher education institutions are responsible for the internal quality assurance system. Work on the Croatian Qualifications Framework was carried out pursuant to the adopted Action Plan for 2008 (it was adopted by the National Commission for preparing the Croatian Qualifications Framework in March 2008). The Ministry of Science, Education and Sports (MSES) appointed the MSES Operating Committee for the activities of the Commission as the body which passes decisions based on working proposals put forward by the Operating Committee. It has drafted an Operational Implementation Plan of all the activities under the adopted action plans and a Logframe for the implementation of the project for drafting the Croatian Qualifications Framework. The Operating Committee drafted proposals for qualification elements and framework level descriptors. A
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website for communication with the public relating to activities concerning the Croatian Qualifications Framework (CQF) has become operational on the portal of the Government of the Republic of Croatia. Likewise, project documents were prepared for the development of the CQF through the IPA programme. The National Curriculum Commission for Preschool, Elementary and Secondary Education adopted the Strategy for Preparing and Developing the National Curriculum and the National Curriculum Framework. In December 2008, the Draft National Curriculum Framework for Preschool Education and Compulsory General Education in Elementary and Secondary Schools was prepared. The document was published on the MSES website and submitted for public debate. The National Curriculum Framework is the basic document concerning preschool, elementary and secondary education. It is a strategic document of the utmost importance, which has been passed for the first time in the Republic of Croatia. Its main feature is the application of the principle of competence in educational work, which implies the planning and programming of educational work in accordance with educational achievements, i.e. the skills and competences that children should acquire during the course of their education through elementary and secondary school programmes in various educational fields. The Directorate for the National Curriculum was established within the MSES. The Directorate monitors the implementation of the national curriculum, and plans short-term and long-term changes in the education system at the preschool, elementary and secondary levels based on evaluation of the components of the curriculum. The Directorate is composed of two departments (the National Curriculum Quality Assurance Department and the Department for Professional Development of Educational Workers), and has a total of 7 employees. Pursuant to a regulation of the Government of the Republic of Croatia, the Ministry was appointed as the responsible body for education within the operational structure for the implementation of IPA Programme Component IV, Human Resource Development. Preparations for accreditation have been conducted, including the building and alignment of capacities with the demands of IPA regulations (legal structural changes, the Regulation on establishment, the Ordinance on internal structure, a Manual, definitions of personnel duties, preparation of documents and personnel training). Within the implementation structure, the Ministry has a dual role, both as project beneficiary and as the line ministry. Project documents were prepared for 10 projects: two with the Ministry as the beneficiary (Development of the Croatian Qualifications Framework and Special Needs Education for Employment), two implemented by the Adult Education Agency (Strengthening the Capacities of the Agency and the Regional Network of Institutions for the Development of Basic Adult Competencies), and four implemented by the Vocational Education Agency (Strengthening the Capacities of the Agency, Implementing New Curricula, Establishing the Quality Assurance System, and Strengthening Institutional Capacity for the Development of Vocational Qualifications and Occupational Standards). The following measures were conducted in the field of preschool education reform: In line with the development goals set by the Education Sector Development Plan 20052010, which refer to an increase in the number of preschool-aged children enrolled in preschool programmes, the Ministry of Science, Education and Sports had carried out the following measures by 30 September 2008: in 2008, 30 new kindergartens were established with the financial support of the World Bank in municipalities and towns where no preschool programmes were previously available; the number of children in preschool was increased by approximately 1,600 in five counties (Dubrovnik-Neretva, Zadar, Lika-Senj, Poega-Slavonia, Osijek-Baranja), mostly comprising children in their pre-elementary year, through partnerships with local and regional self-government units; by 30 September 2008, 21 new kindergartens (18 of which were private) had been opened in the Republic of Croatia, and 296 new programmes established (early foreign language learning, sports programmes, drama, music, arts, etc, as well as special needs/gifted children programmes) in order to contribute to the diversity of approaches in the education of preschool children; kindergartens were appointed as centres of excellence for:
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the professional training of educators and expert assistants who will educate preschool children in accordance with the Maria Montessori methods;
a professional development centre was appointed for the professional training of all educators and physical education teachers who will carry out sports programmes for children;
the education for sustainable development programme; the early foreign language learning programme (French, English, German and Italian); the programme of research into preschool education; the stimulating environment and modified educator roles programme; programmes are carried out for sick children, i.e. for preschool children with health problems during their treatment in hospital; professional training for headmasters, educators and expert assistants was carried out continuously.
The following measures were conducted in the field of elementary education reform: in the academic year 2007/2008, external evaluation of achievements for fourth and eighth year pupils was carried out (in 844 elementary schools and 2,863 classes for the fourth year, and in 842 schools and 2,187 classes for the eighth year; the evaluation was conducted on 2 and 3 April 2008 for the fourth year, and for the eighth year on 6 May 2008 (Biology, Chemistry, Physics, History and Geography), and 8 May 2008 (Croatian language and the foreign language taught in the regular syllabus); the National Curriculum Commission drafted the components of the National Curriculum, thereby completing the preparation of the National Curriculum Framework; the Register of institutions, results of educational work, pupils and staff (electronic matrix) was established in accordance with the Ordinance on the common electronic register of elementary education institutions (ZEUS); professional training for headmasters, teachers and expert assistants was carried out continuously; the self-evaluation of schools is being carried out; following the adoption of the National Pedagogic Standard for Elementary Education (OG 63/08), its implementation commenced in accordance with feasibility coefficients (building and furnishing schools, elimination of architectural barriers, reducing the number of pupils in classes, single-shift classes, recruiting expert assistants, class assistants and aides, providing school equipment, professional training, etc); conditions are consistently being introduced for single-shift elementary schools in accordance with feasibility coefficients.
The following measures were conducted in the field of secondary education reform: the strengthening of the quality assurance system continued:
Conditions have been fulfilled for the development of a quality assurance system in the field of education. Its implementation is carried out through several basic projects at various levels and in various directions, starting from the internal structure of the Ministry itself, the strengthening of its administrative capacity, expert institutions (agencies), intensive preparations for conducting the state school-leaving examination and national examinations, the international evaluation of student achievements (PISA), and involvement in various EU pre-accession programmes. The implementation of national examinations is included in the quality assurance system. It is carried out in accordance with the plan of the State School-leaving Examination Project 2008 for the third year of grammar schools (96% of the total number of applicants sat the examination). A Decision was adopted on the adjustment of examination technologies for the trial state school-leaving examinations in the third year of grammar schools and secondary vocational schools in the academic year 2008/2009. The Ministry of Science, Education and Sports and the National Centre for the External Evaluation of Education launched an extensive educational campaign entitled Find out more about the State School-leaving Examination. The aim of the campaign is to inform and educate secondary school third-
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graders attending grammar, vocational and art schools on what the state school leaving examination is and what they can expect, since they will be the first year in the history of the Croatian education system to take the state school-leaving examination in the academic year 2009/2010. The booklet Find out more about the State School-leaving Examination was published in September 2008. The project Secondary School for All, which is implemented on the basis of the National Programme of Measures for the Implementation of Compulsory Secondary Education for the second academic year in a row, comprises direct and indirect measures for achieving the conditions for all students in the territory of the Republic of Croatia to complete their secondary education. The incentive of providing free accommodation resulted in a significant number of students enrolling in their chosen schools in accordance with their abilities and interests. Available indicators demonstrate that students in all counties use the free transportation provided, but also indicate that this incentive is used to a greater extent in counties where towns do not provide a wide range of educational/ vocational programmes or the offer of accommodation in student dormitories. Approximately 22,000 first-grade students were included in the free transportation incentive. The total number of enrolled first-grade students in the academic year 2007/2008 increased by 2.5 % in comparison with the year 2006/2007; the Ministry has allocated additional funds for accommodation in student dormitories in 2008; schools for students with special needs (disabled students) in the Republic of Croatia have been spatially adjusted.
The following measures were conducted in the field of vocational education: In July 2008, the Government of the Republic of Croatia adopted the Strategy for Vocational Education Development, and in October 2008, the proposal for the Implementation Action Plan for the Strategy was drafted. Its adoption is planned in December 2008. Intensive activities proceeded in accordance with the accepted strategic steps of the Vocational Education Agency, based on the results of the finalised CARDS 2002 and CARDS 2003 projects, which are continued in the adopted Strategy. The development goals of the Strategy include the development of occupational standards, qualifications and curricula, which implies investment in equipment and training for vocational schools and teachers. The following measures were conducted in the field of higher education: strengthening the Agency for Science and Higher Education (ASHE) in its role of external quality assurance in higher education institutions. Under the CARDS 2003 project Strengthening the Agency for Science and Higher Education in the function of quality assurance and setting up the supporting information system, ASHE organised a series of seminars and workshops aimed at assisting higher education institutions in setting up quality assurance units. Quality assurance units have been established in all universities and their component parts, and have commenced their activities. In accordance with the requirements of the Standards and Guidelines for Quality Assurance in the European Higher Education Area, which entrusts external quality assurance in higher education to agencies, and the Government Ordinance establishing the Agency for Science and Higher Education, the Agency developed a model for the external evaluation of the quality assurance system in co-operation with the consultants of the CARDS 2003 project. The external evaluation of quality is based on the self-analysis of higher education institutions, the results of internal evaluation, the independent work of the External Evaluation Committee, which consists of trained experts recruited from among staff, students and representatives of the economy, and the dissemination of the results/reports to the public. Evaluation of higher education institutions a pilot project for the independent external periodical review of the quality assurance system was conducted in three higher education institutions in the Republic of Croatia. External and Croatian experts in independent external periodical reviews participated in the pilot project. The quality assurance systems at the universities involved in the project are mostly in the initial phase of development, demonstrating a tendency towards the developed phase in some system elements. The construction of university campuses in Rijeka, Split, and Osijek continued, and the construction of the scientific and university campus at Borongaj entered its second phase.
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The introduction of e-indexes in a number of higher education institutions in the Republic of Croatia a pilot project for the introduction of e-indexes, or smart x-cards, included 15 higher education institutions in the academic year 2008/2009.
The integration of higher education with science and the economy, strengthening the flow of information on the demands of the labour market in the higher education sector seeing that the first generation of academic and vocational bachelor graduates left Croatian higher education institutions in the summer term of the academic year 2007/2008, in July 2008, the MSES organised a conference which was attended by the representatives of business, higher education institutions and students. The conference was focused on employment options for bachelor graduates, i.e. the accurate recognition of their competences, skills and their level of knowledge in the labour market. The MSES published a booklet on the Diploma Supplement to provide information to higher education institutions on its preparation, and to ensure that the labour market acknowledges the qualifications of bachelor graduates.
The development of study programmes based on learning outcomes the National Science Foundation held a public competition to encourage educational institutions to draft their institutional strategies so as to introduce learning outcomes, align regulations, prepare institutional guides for the definition of measurable learning outcomes, conduct training for lecturers and academic staff, and reform study programmes. In addition to this, the Agency for Science and Higher Education organised seminars and lectures under the CARDS project, focused, among other things, on the reform of study programmes, i.e. the definition of learning outcomes in study programmes.
The evaluation and accreditation of academic postgraduate (PhD) programmes was carried out. In 2008, 400 new employees were recruited to scientific-educational, educational or assistant positions in the higher education system.
The following measures were conducted in the field of adult education: Projects were implemented as part of the lifelong learning concept, new partnerships were achieved with the economy and social partners, and the Adult Education Agency strengthened its capacities and carried out training of its staff. The implementation of the CARDS 2004 programme project continued, comprising the updating of the relevant legislation, preparation of the database, preparation of the financing model, public promotion, and redefining the adult literacy project. The planned results will be the basis for further development of the adult education system and for IPA and structural fund projects. The quality assurance system in adult education is achieved through stronger co-operation between the MSES and the Adult Education Agency, and linking the planned results of the CARDS 2004 project with the needs of the economy and society. Activities have commenced in the drafting of a proposal to redefine a project carried out by the Government of the Republic of Croatia, entitled Towards Croatian literacy: the path to a better future a decade of literacy in Croatia 20032012. The redefinition is aimed at introducing new elements in planning, programming, monitoring and project evaluation in the context of changes in the project environment. Special measures for minorities were conducted with a view to improving the quality of the education of the Roma population at all educational levels. As a result of the measures under the National Roma Programme, children belonging to the Roma national minority are participating in all regular preschool educational programmes in larger numbers. Implementation of the Roma Education Fund project continued, led by the Roma education fund Budapest, the MSES, and the educational component of the Phare 2005 project, led by the Minorities Office. The project is participated in by the Minorities Department, which was established in 2008, and the Education Agency. Activities are carried out under the Phare 2005 project to increase the number of Roma children in preschool and elementary education, and to educate their parents on the importance of education.
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B) KEY PRIORITIES
Legislative measures It is planned to draft six new implementing regulations, some of which integrate elementary and secondary education, in accordance with the provisions of the Elementary and Secondary Education Act (OG 87/08) and the National Pedagogic Preschool Education Standard (OG 63/08). It is also planned to adopt regulations arising form the National Pedagogic Preschool Education Standard (e.g. the Ordinance on equipment in kindergartens) and the National Pedagogic Standard for Elementary Education. In the field of primary education, it is planned to adopt regulations on: the procedure for the assessment of the psychological and physical condition of children/pupils; the conditions and method of implementing experimental programmes in elementary schools; the conditions, work methods, funding criteria and schedule for practice classes; the method of carrying out preparatory complementary classes, and the training measures for teachers involved in direct educational work in such classes; the selection conditions and process for teachers working in Croatian schools abroad; the start and end of the academic year, the number of working days and breaks; the number of pupils in regular and combined classes or in educational groups in elementary schools; the method of education, monitoring and encouraging of gifted pupils; the conditions for completing elementary school education ahead of schedule; the method of proceeding for teachers, expert assistants and headmasters when carrying out measures to protect pupils rights and notifying any breach of those rights; the method of monitoring and evaluating pupils; the method of conducting educational treatment through extended expert procedures; the method of implementing external evaluation and applying the results of school evaluation; the method and procedure for establishing conditions for the start of the operation of schools; the scope of work of secretaries; the scope of work, number of employees and working hours for administrative, technical and ancillary positions; the compulsory weekly working hours for the direct and educational work of teachers in art schools and other activities arising from the syllabus and curriculum of art schools; the compulsory weekly working hours for teachers and expert assistants in elementary schools; the required education of teachers and expert assistants; 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 professional examination; the method and procedure for professional training and further education of teachers, expert assistants and headmasters; the conditions, methods and levels for promotions and remunerations;
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the method of acquiring, issuing and renewing the work licence and the rights and obligations of teachers, expert assistants and headmasters;
the content and form of pedagogic documents and records, including the form for the register of institutions which implement special needs programmes;
the procedure and method of input concerning data contained in the electronic matrix, as well as access to it and its use.
In the field of vocational education, it is planned to adopt implementing regulations arising form the new Vocational Education Act. In the field of higher education, it is planned to: adopt amendments to the Scientific Activity and Higher Education Act; draft and adopt the Universities Act; draft and adopt the Act on Quality Assurance in Science and Higher Education.
Implementation measures It is planned that educational system reform based on the new pedagogic standards, the National Qualifications Framework and changes to the curriculum will continue. In the field of preschool education, it is planned to: implement the National Pedagogic Preschool Education Standard (feasibility coefficient zero) and make adjustments regarding the size of kindergartens; draft the Action Plan for the Implementation of the National Pedagogic Standard in 2009 and 2010; draft the National Preschool Education Curriculum; further develop the quality assurance system; implement the self-evaluation system; conduct professional training for headmasters, educators and expert assistants.
In the field of elementary education, it is planned to: implement the National Pedagogic Elementary Education Standard (in accordance with the feasibility coefficient); further develop information and communication skills, competences in first and foreign languages, mathematical and science literacy, and technical, business, and social skills in elementary school education; develop instruments for TIMMS and PIRLS knowledge assessment to allow a comparison of Croatian learning outcomes with the European scale, and instruments to encourage the self-evaluation of elementary schools; further develop the quality assurance system; implement the self-evaluation system; conduct professional training for headmasters, teachers and expert assistants; collect and process data on the results of educational work, pupils and staff in the elementary education information system (electronic matrix); draft the National Elementary Education Curriculum;
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implement external evaluation; introduce the National Elementary Education Curriculum.
In the field of secondary education, it is planned to: adopt and implement the new Vocational Education Act, and conduct measures and activities under the Action Plan for the Implementation of the Strategy for Vocational Education Development (strengthen the alignment of education with the demands of the labour market, modernise the material and human resources in educational institutions, and strengthen partnerships); strengthen capacities and develop the education quality assurance system (monitor the implementation of measures under the National Programme of Measures for the Implementation of Compulsory Secondary Education, the national examinations, the implementation of the educational campaign for the State School-Leaving Examination, the results of external evaluation and self-evaluation, and carry out the State School-Leaving Examination); continue working on the Croatian Qualifications Framework pursuant to the adopted Action Plan disseminate information, implement the results achieved in 2008, prepare qualification models and standards, transpose into the legislative framework, continue with alignment; start implementing IPA programme projects in line with the Operational Programme for Human Resources Development.
In the field of higher education, it is planned to: prepare the Croatian Qualifications Framework, and implement the Action Plan for the Croatian Qualifications Framework; encourage a more efficient integration of the four universities which have not yet been integrated; continue with the evaluation of higher education institutions strengthen the Agency for Science and Higher Education; develop the quality assurance system; increase staff and student mobility; integrate higher education with science and the economy; implement the Implementation Action Plan for the Education System Development Plan, which includes the following objectives: stronger linking of higher education with the labour market, increasing the efficiency of the higher education system, strengthening resources in the higher education system, raising the quality of the higher education system, enabling wider access to higher education; continue the construction of university campuses in Rijeka, Split, Osijek, and Dubrovnik and the scientific and university campus in Zagreb; establish a binary higher education system (vocational and academic programmes); train human resources for the permanent monitoring and evaluation of scientific and expert work in line with global standards; develop vocational study programmes in smaller towns; increase the level of academic recognition of Croatian universities abroad; evaluate and carry out accreditation of postgraduate study programmes; continue the project for the evaluation of higher education institutions in a sample of ten institutions; strengthen the capacities of the MSES for the co-ordination of higher education system reform; develop the higher education data collection system for the purposes of the MSES; strengthen universities for the implementation of the lump-sum financing system;
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In the field of adult education, it is planned to: continue implementing the results of the CARDS 2004 Adult Education project and activities in line with the Strategy. The planned results will be the basis for the further development of the adult education system and for IPA and structural fund projects; strengthen the capacities of the Adult Education Agency; establish a database which will enable the more efficient development of the adult education system in line with the Strategy; prepare measures for the promotion of adult education; build capacity for the professional supervision of adult education; define new educational programmes in line with Croatian Qualifications Framework activities and work results; conclude partnerships at all levels aimed at the alignment of education with the demands of the labour market; implement regulations in the field of adult education (standardise the conditions for carrying out adult education programmes, standardise records and develop the database in accordance with the prescribed standards).
3.26.2. Culture
A) ACHIEVEMENTS IN 2008 The Cultural Contact Point Office (hereinafter referred to as the Cultural Contact Point CCP) at the Ministry of Culture is responsible for the implementation of the Culture Programme 20072013 pursuant to the Memorandum of Understanding between the Republic of Croatia and the European Union on the Participation of the Republic of Croatia in the Culture Programme 20072013, which was ratified on 15 June 2007 (OG IT 7/07). The activities of the Cultural Contact Point Office are financed by the Ministry of Culture and the European Commission on a yearly basis, pursuant to the annual call for co-financing published by the General Directorate for Education and Culture of the European Commission and the Executive Agency for Education, Audiovisual Policy and Culture (hereinafter referred to as the Executive Agency), which is the authority competent for the implementation of the Culture Programme 20072013. The Office submits an annual report on its work and the implementation of planned activities, along with a plan of activities for the following year, to the European Commission and the Executive Agency. The Cultural Contact Point participates in all meetings and conferences which are organised by or in co-operation with the European Commission, the Executive Agency and other Cultural Contact Points, and attends other conferences and seminars based on a recommendation by the General Directorate for Education and Culture and/or the Executive Agency. In 2008, the Croatian CCP participated in the regular annual meetings held in states presiding over the European Union (Avignon in France; Ljubljana in Slovenia), the compulsory meetings in Brussels in Belgium, the Culture Programme 20072013 open day, which was organised by the General Directorate for Education and Culture of the European Commission, the Executive Agency and the Hungarian Cultural Contact Points in Budapest, the conferences on 2008, Year of Intercultural Dialogue and Cultural Co-operation and International Relations, which were held in Ljubljana during Slovenias presidency of the European Union, and the conference on the European Culture Strategy held in Brussels. When the Republic of Macedonia joined the Culture Programme 20072013, the Croatian CCP held an open day on the Programme at the invitation of the Macedonian Ministry of Culture and the Macedonian Cultural Contact Point. The CCP Office regularly holds seminars and presentations on the Culture Programme 20072013, individual consultations with the beneficiaries of the Programme, and, when required, consultations with the beneficiaries of other EU initiatives available to the Croatian cultural sector. In 2008, seminars/open days were held in Korula, Zagreb, Dubrovnik, Osijek, Split, Zadar, Pula and Rijeka. All seminars and/or open days are
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organised in co-operation with the representatives of counties, towns, cultural institutions and organisations, and in co-operation with the regional development agencies. In addition to this, the Croatian Cultural Contact Point participated in a roundtable discussion which was organised by the Croatian Ethnology Society as part of the 10th Parallels in Croatian and Slovenian Ethnology. A workshop was held on the Culture Programme 20072013 at the meeting between the Croatian and Slovenian archive societies. The Culture Programme 20072013 website is updated on a daily basis, and a banner links it to culturenet.hr, the Croatian culture web portal. A bilingual database for proposing and searching through proposed project ideas has been published in Croatian and English, and will also function as a document archive for the Cultural Contact Point. A booklet on the Culture Programme 20072013, which contains information on the programme, project examples and information on the financing of cultural activities in the Republic of Croatia, was published and presented to the public at the Ministry of Culture in March 2008. The presentation was attended by the Minister of Culture, the Head of the Delegation of the European Commission to the Republic of Croatia, the media and Croatian representatives of projects carried out under the Programme. Through co-operation with the Delegation of the EC to the Republic of Croatia, additional copies of promotional material on the Culture Programme 20072013 were printed. The leaflets contain basic information on the Ministry of Culture, the Culture Programme 20072013 and culturenet, and are intended for all potential beneficiaries of the Culture Programme 20072013. A second booklet has been prepared for print and will be presented to the public during the joint presentation of the Office and Culture Programme 20072013 and the Government Office for Co-operation with NGOs, which is responsible for the implementation of the Europe for Citizens Programme in Croatia. The Cultural Contact Point was also involved in various roundtable discussions and panel discussions organised by Croatian cultural activists. B) KEY PRIORITIES The Croatian Cultural Contact Point will carry out all the activities envisaged in the work programme and responsibilities of the Cultural Contact Point prescribed by the EC, in accordance with the needs of the beneficiaries of the Programme, agreements and activities with other Offices in the member states of the Culture Programme 20072013, and in accordance with the recommendations of the General Directorate for Culture and Education of the EC and the Executive Agency. Co-operation will continue with other national co-ordinators of EU programmes in which the Republic of Croatia participates.
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3.27. ENVIRONMENT
This NPAEU 2009 proposal is in conformity with the obligations of the Republic of Croatia presented in the Plan for Setting up Necessary Administrative Capacities at National, Regional and Local Level and Required Financial Resources for Implementing the Environmental Acquis, drafted within the framework of negotiations for Chapter 27 Environment, and adopted by the Government of the Republic of Croatia on 29 February 2008. However, with regard to the announced state budget restrictions, the sections that envisage increased administrative capacities have been specially marked along with a note that planned employment will be realised to the extent provided for by the state budget for 2009.
3.27.1. Horizontal legislation

(Public access to environmental information and public participation; Environmental liability; Environmental Impact Assessment EIA; Strategic Environmental Assessment SEA; Reporting and Co-operation with the EEA; Climate Change; Civil Protection; INSPIRE.) A) ACHIEVEMENTS IN 2008 In accordance with the Environmental Protection Act (OG 110/07), the Government of the Republic of Croatia on 29 May 2008 adopted the Regulation on information and participation of the public and public concerned in environmental matters (OG 64/08), which completes the transposition of the provisions of Directive 2003/35/EC on public participation in respect of the drawing up of certain plans and programmes relating to the environment, while the provisions of Directive 2003/4/EC have already been transposed into the said Act. As part of the project financed by the Government of the Netherlands, Implementation of Environmental Acquis Requirements in respect of Access to Environmental Information and Public Participation in Environmental Approval Procedures, several seminars were held in four counties. The purpose of these seminars was to strengthen the capacities of employees at the national and regional level with regard to public access to environmental information and public participation in environmental matters. Within the scope of this project, manuals were prepared for the implementation of the provisions of Directive 2003/35/EC and Directive 2003/4/EC. These manuals are intended for civil service administrative officers at central, regional and local level who perform activities related to public information and participation in environmental matters, as well as for non-governmental organisations and the public concerned who wish to be informed about and participate in environmental decision-making. Under the Environmental Protection Act (OG 110/07), the Government of the Republic of Croatia in June 2008 adopted the Regulation on strategic environmental assessment of plans and programmes (OG 64/08), the Regulation on information and participation of the public and public concerned in environmental matters (OG 64/08) and the Ordinance on the Committee for Strategic Assessment (OG 70/08), with which the provisions of Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment were fully transposed into Croatian legislation. Under the Environmental Protection Act, the Government of the Republic of Croatia in June 2008 adopted the Regulation on environmental impact assessment (OG 64/08), which fully aligned environmental impact assessment procedures in Croatia with the provisions of Directive 85/337/EEC on the assessment of the effects of certain public and private projects on the environment. In November 2008, the Government of the Republic of Croatia adopted the Regulation on the method of determining environmental damage (OG 139/08). By the end of 2008, the Ordinance on measures for remedying environmental damage and restoration programmes will be adopted thus resulting in the full transposition into Croatian legislation of Directive 2004/35/EC on environmental liability with regard to the prevention and remedying of environmental damage.
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Climate change Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and Directive 2004/101/EC amending Directive 2003/87/EC to take into account the Kyoto Protocols project mechanisms have been fully transposed into Croatian legislation by the Regulation on greenhouse gas emission allowances and emission allowance trading, and the Regulation on the implementation of the Kyoto flexible mechanisms, which were adopted by the Croatian Government in December 2008. Public discussion is underway concerning the Proposal of the National Allocation Plan for Greenhouse Gas Emission Allowances in the Republic of Croatia for the Period 20102012, which will determine the total quantity of emissions to be distributed to installations performing the activities listed in Annex I to Directive 2003/87/EC, and then distribute the emission allowances to individual installations in accordance with the Annex. The adoption of the National Allocation Plan is planned for the first quarter of 2009. The Greenhouse Gas Emission Registry, managed by the Croatian Environment Agency, is being established as part of CARDS 2004 project activities. In July 2008, the installation of European Commission software was completed. The Registry was submitted to the ITL (International Transaction Log) at the UNFCCC Secretariat, thereby establishing the system. The Croatian Environment Agency (CEA) will continue to maintain the Registry in accordance with the protocol prescribed by the UNFCCC Secretariat and Regulation 2216/2004/EC for a standardised and secure system of emission registers adopted pursuant to Directive 2003/87/EC, and pursuant to Decision No 280/2004/EC and Commission Regulation 916/2007/EC amending Commission Regulation 2216/2004/EC. With regard to Croatias preparations for implementing Decision No 1753/2000/EC, establishing a scheme for monitoring the average specific emissions of CO2 from new passenger vehicles, the Road Traffic Safety Act (OG 67/08) was adopted to prescribe the method for implementing the Decision, to define the bodies authorised for its implementation and other requirements for establishing a scheme for monitoring the average specific emissions of CO2 from new passenger vehicles. The National Strategy for the Implementation of the UNFCCC and Kyoto Protocol in the Republic of Croatia, together with an Action Plan, has been drawn up. The objectives and measures listed in the Action Plan are an integral part of the National Air Quality Protection and Improvement Plan in the Republic of Croatia for the Period 20082011, which was adopted by the Government of the Republic of Croatia in May 2008 (OG 61/08). In May 2008, the National Inventory Report for 2008, covering the period 19902006, was submitted to the UNFCCC Secretariat. In August 2008, the Initial Report on Climate Change relating to fulfilling the requirements under the Kyoto Protocol was also submitted to the UNFCCC Secretariat. As part of the EC project Technical Assistance to Croatia in the Implementation of the Kyoto Protocol: Emission Trade and Other Cost Efficient Measures of Reduction in Emissions, additional analyses of measures to reduce greenhouse gas emissions have been undertaken with regard to increasing the use of solar energy and increasing energy efficiency in building construction. Both of these have great potential in Croatia but are currently underused. For this reason, the Ministry of Environmental Protection, Physical Planning and Construction, in co-operation with the Ministry of Economy, Labour and Entrepreneurship and the Croatian Chamber of Economy, organised a two-day seminar in July 2008 on the use of solar energy and energy efficiency in building construction. Civil protection In line with the Act on Amendments to the Rescue and Protection Act (OG 79/07) incorporating the provisions of Directive 96/82/ EC (Seveso II), the Ordinance on the methodology for drafting risk assessments and protection and rescue plans (OG 38/08) was adopted. The Memorandum of Understanding between the European Community and the Republic of Croatia on the participation of the Republic of Croatia in the Civil Protection Financial Instrument was signed. The Act on Ratification of the Memorandum of Understanding was enacted at the session of the Croatian Parliament held on 25 April 2008 (OG IT 3/08).
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For the purpose of administrative capacity building, the Regulation on the internal organisation of the National Protection and Rescue Directorate (OG 83/08) was adopted. Pursuant to the said Regulation, the Ordinance on the internal order was adopted in August 2008. In this Ordinance, the National Protection and Rescue Directorate (NPRD) plans 911 work posts. Since at this time the NPRD has 640 employees, the recruitment procedure for filling the remaining 271 vacancies will be carried out according to the prescribed employment plan to be adopted by the Central State Office for Public Administration. Croatian Environment Agency The priority of the Croatian Environment Agency is to establish, develop and manage the Environmental Information System (EIS). The Regulation on the Environmental Information System (OG 68/08) entered into force in June 2008. The Agency drafted the Environmental Information System (EIS) Development and Management Programme. Updating of the National List of Indicators as an instrument for monitoring the state of the environment and for implementing and realising the objectives of environmental protection policy is carried out on a continuous basis. Along with regular maintenance of existing databases on the functioning of the EIS, the Agency developed and made available to the public a number of new databases according to subject area, as well as a database of sustainable development and environmental protection documents. The Greenhouse Gas Emission Registry and the National System for Calculation and Reporting on Anthropogenic Emissions of Greenhouse Gases by Sources and Removal by Sinks will be established by the end of the year. In 2008, in line with the obligations towards the European Environment Agency (EEA) and other international institutions, and in accordance with the set timeframes, the Croatian Environment Agency submitted all requested data and reports (through EIONET the European Environment Information and Observation Network). The National Greenhouse Gas Emission Registry was established and submitted to the International Transaction Log (ITL). Activities on developing a greenhouse gas emission trading scheme, including the National Registry, are supported by the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis. In line with the obligations of the Republic of Croatia under the UN Framework Convention on Climate Change and relevant EU legislation, the Croatian Environment Agency submitted to the European Environment Agency (EEA) the National Inventory Report on Greenhouse Gas Emissions NIR 2008. As part of the drafting of the Initial Report of the Republic of Croatia for the Kyoto Protocol, a description of the National Greenhouse Gas Emission Registry was prepared. Its establishment and management is the task of the Agency. The necessary IT equipment was procured and registry software installed the Community Registry for the purpose of alignment with the European Registry. The obligations and timeframes set by the relevant provisions of the Kyoto Protocol were met with the installation of the software and the description prepared in the Report. The alignment of the Agencys official acts with the provisions of the Environmental Protection Act was carried out in the course of 2008. The Government of the Republic of Croatia on 4 September 2008 accepted the Agencys proposed amendments to its Statute. In addition to alignment with the provisions of the said Act, the Statute also establishes a new organisational structure of the Agency. The adoption of the Ordinance on the internal organisation of the Croatian Environment Agency, which is currently in progress, will result in creating the conditions for recruiting an additional 15 employees. The Agency is participating in the regional CARDS CLC project, financed by the EEA, for the purpose of updating the existing land cover database (Corine Land Cover), as well as participating in projects as part of the CARDS, PHARE, LIFE, and IPA programmes. Several smaller projects on the basis of bilateral co-operation between the Republic of Croatia and EU Member States (the Netherlands, Belgium and Sweden) were implemented and completed. INSPIRE Directive 2007/2/EC Regarding the INSPIRE Directive 2007/2/EC, pursuant to the State Survey and Real Estate Cadastre Act (OG 16/07), hereinafter: the Act, the establishment of the National Spatial Data Infrastructure (NSDI) in the Republic of Croatia was defined. The Act, namely the
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chapter on the NSDI, provides the basic principles for establishing the NSDI, i.e. definition, contents, definition of the tasks, subjects and bodies of the NSDI, data included in the NSDI, and timeframes for performing particular tasks related to the establishment of the NSDI. The chapter of the Act on the NSDI is aligned with the INSPIRE Directive (Directive 2007/2/EC), which does not mean that this Act fully transposes the INSPIRE Directive into Croatian legislation but that the basic framework and principles have been established. At the NSDI Council session held on 4 September 2008, the Councils Work Plan for 2008 was adopted. The activities listed in the Work Plan have so far been partially realised, and the rest will be realised by the end of 2008. These activities will be carried out by the NSDI Council and Committee in co-operation with the State Geodetic Directorate. The Act envisages three management levels (NSDI bodies): 1. the NSDI Council; 2. the NSDI Committee; 3. Working groups. The State Geodetic Directorate performs secretarial activities for the NSDI Council, the co-ordination of all NSDI bodies, and provides technical support. The NSDI Council was established by the Decision of the Government of the Republic of Croatia on 31 May 2007. The Council was reorganised by the Decision of the Government of the Republic of Croatia on 31 July 2008. The first constituting session of the Council was held on 4 September 2008, when the NSDI Committee and two working groups were established: the working group for technical standards; the working group for spatial data exchange policy.
The organisational unit within the State Geodetic Directorate that will provide technical support for the establishment of the NSDI, perform secretarial activities for the NSDI Council and co-ordinate the work of NSDI bodies was not established. Education through seminars on the establishment of the NSDI For the purpose of familiarising the entire geoinformatic community with the NSDI concept and preparations for the work of the Council and other NSDI bodies, the State Geodetic Directorate in 2007 organised two seminars, and in 2008 one seminar, with the participation of experts from countries which have achieved the most in terms of NSDI development. Seminar participants had the opportunity to be introduced to the spatial data infrastructure of Canada and Sweden in 2007, and Germany in 2008. Publication National Spatial Data Infrastructure in the Republic of Croatia In May 2008, the State Geodetic Directorate published National Spatial Data Infrastructure in the Republic of Croatia. 1,000 copies were printed in Croatian. The drafting of this publication was supported by the European Union as part of the Land Cadastre and Land Registry Reform Project. The intention was to introduce the basics of the NSDI to experts directly involved in developing the NSDI at national, regional, local or economic level, as well as to inform the general public, i.e. users. Participation at the 2nd INSPIRE Conference At the 2nd INSPIRE Conference held from 23 to 25 June 2008 in Maribor, the State Geodetic Directorate presented Croatian experiences in the area of experience and knowledge exchange in developing a national Spatial Data Infrastructure with a presentation and article entitled Sharing of experiences: A tool for building a national Spatial Data Infrastructure (SDI).
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Environmental Inspection (MEPPPC) With regard to the process of aligning national legislation with the environmental acquis for the efficient enforcement of adopted regulations, the Environmental Inspection in 2008 continued activities co-ordinating the inspection services competent for the supervision of individual environmental components by carrying out joint inspections based on the Agreement on Co-operation between Inspection Services in the Field of the Environment and implementation of the PHARE 2005 project Enhanced Environmental Inspection for Enforcement of New Environmental Legislation. In accordance with the above-mentioned obligations and in order to strengthen the capacities of the Environmental Inspection with regard to the enforcement of new environmental legislation, especially the enforcement of the IPPC Directive and SEVESO II Directive, in the course of 2008, the procedure of recruiting 7 new inspectors into the civil service was completed. The process of employing a further 2 inspectors is still in progress. It is expected that all 82 planned posts for environmental inspectors at the MEPPPCs Directorate for Inspection Affairs will be filled by the end of 2008. The ongoing capacity strengthening of environmental inspectors and the improvement of their professional knowledge and skills is carried out through their direct participation in programmes/projects within IMPEL (Implementation and Enforcement of Environmental Law), ECENA (Environmental Compliance and Enforcement Network for Accession), INECE (the International Network for Environmental Compliance and Enforcement) and REPIN (Regulatory Environmental Programme Implementation Network) and their participation in TAIEX activities, as well as their participating in programmes and workshops of other services. During 2008, the implementation of the ECENA Multi-annual Work Plan (MAWP) for 20072010, which was adopted at the First ECENA Plenary Meeting in Zagreb in January 2006, was continued. As part of MAWP activities, Environmental Inspection representatives participated in the ECENA Training of Trainers, which was concerned with the implementation of the Directive on landfills and the Directive on incineration of waste (Hungary, JuneJuly 2008). Environmental Inspection representatives participated in the work of the Third ECENA Plenary Meeting, which was held in September 2008 in Istanbul, Turkey. This provided the opportunity for the Environmental Inspection to share its experiences in applying EU environmental directives, and also experiences gained in participating in activities within the IMPEL network. In 2008, the Environmental Inspection continued activities related to the implementation of the PHARE 2006 Horizontal Multibeneficiary Programme on Environment and Enlargement activities relating to pre-accession assistance for four candidate countries (Bulgaria, Croatia, Romania and Turkey) as part of the project Developing Capacity in Implementation and Enforcement of Environmental Law through ECENA and IMPEL, (MCP phase II), Europeaid/124643/D/SER/Multi. Environmental Inspection representatives participated in the work of the IMPEL network through many different activities, including: the 31st IMPEL Plenary Meeting in Ljubljana (Slovenia), 2829 May 2008; the annual international conference on transboundary movement of waste, organised by the IMPEL network, TFS cluster (IMPEL Transfrontier Shipments of Waste Cluster), in Sofia (Bulgaria), 2325 April 2008; joint inspections and the exchange of inspectors as part of the IMPEL TFS Enforcement Actions project (enforcement actions in transfrontier shipments of waste) in Vienna, Linz and Suben (Austria), 1316 April 2008; a working meeting as part of the IMPEL TFS NCP Enforcement Exchange Day project in Faro, Portugal, 22 January 2008; a workshop as part of the IMPEL project Comparison programme for landfill inspection and monitoring in Vienna (Austria), 18 January 2008. On 14 January 2008, the MEPPPC Directorate for Inspection Affairs started implementation of the PHARE 2005 project Enhanced Environmental Inspection for Enforcement of New Environmental Legislation. The total value of the project is EUR 2,256,000 and the project is planned to last until November 2009. The project has two main components: a service component and an equipment component relating to the procurement of equipment for environmental inspectors.
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Service component Together with the main project beneficiary, the Environmental Inspection, representatives of inspection services that are signatories to the Agreement on Co-operation between Inspection Services in the Field of the Environment are also included in project activities. Representatives of various industry sectors, non-governmental organisations, and state and judicial bodies competent for the protection of individual environmental components and the efficient prosecution of offenders in cases of misdemeanours and criminal offences against the environment (courts, the state attorneys office, police, customs service, rescue and protection services, as well as expert witnesses, experts and Eco-headquarters) also participate in the project. After the adoption of the Inception Report on 23 June 2008, the implementation of all four project components was initiated. Four working groups were established (the Working group for co-ordinated inspections, the Working group for training and information dissemination, the Working group for the Pilot Team, and the Working group for information system development), in which representatives of all project stakeholders were appointed. The following proposals were drafted as a result of the joint work of the Project Team, Project Implementation Unit members and working group members: the Manual on Co-ordinated Inspections; the definition of skills and qualifications, training and education for inspectors involved in environmental inspection; Pilot team Procedures, Protocols and Norms Procedures and Good Practice in other Member States.
As part of the implementation of this project, in October 2008 the first workshop was held with the participation of representatives from the industry sector, regional and local government and self-government bodies. The topic was implementing environmental directives, with a special emphasis placed on the IPPC and SEVESO directives. In addition, the implementation of the Train the Trainers programme and the national training programme for inspectors of all signatories to the Agreement on Co-operation between Inspection Services in the Field of the Environment was initiated. This programme specifically refers to building up the administrative capacities of inspections in relation to the enforcement of EU environmental directives transposed into national legislation and the Recommendations of minimum criteria for environmental inspections (RMCEI). Equipment component Equipment from all 3 contracts (IT equipment, software and the videoconferencing system) was delivered and installed at the Directorate for Inspection Affairs. Regarding activities within Component I of the IPA 2008 programme and the realisation of the proposed project Enforcement of the new Environmental Protection Act harmonised with EU legislation in cases of criminal offences against the environment, the Environmental Inspection during June and July 2008 drafted a proposal for the Twinning Project Fiche, which was submitted to CODEF at the beginning of August 2008. During the reporting period, the Environmental Inspection implemented regular activities planned in accordance with the Annual Work Plan for 2008, as well as ad hoc inspections in extraordinary cases (accidents/incidents). Regular activities concerned the planned supervision of health institutions, concrete and asphalt production plants, future IPPC installations, the supervision of entities bound to adhere to the Regulation on substances that deplete the ozone layer, the Ordinance on monitoring pollutant emissions from stationary sources into the air with regard to controls on handling volatile organic compounds, and the enforcement of the Regulation on supervision of transboundary movement of waste. The priority in the regular annual supervision activities of the Environmental Inspection has been given to all waste landfills in Croatia, of which a large number are in the process of remediation. In co-operation with the inspection services of the Ministry of the Interior and the Ministry of Health and Social Welfare, as well as municipal and town representatives, the supervision of landfills was carried out as part of the implementation of fire protection measures in Croatia before and during the tourist season. The regular activities of the Environmental Inspection are also related to preparation for the tourist season. This comprises the supervision of tourist areas, including main roads, marinas, ports for nautical tourism, and rest areas on motorways and roads, etc.
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B) KEY PRIORITIES
Horizontal legislation Efforts will be made in the course of 2009 to train regional and local authorities in the field of implementing regulations related to public access to environmental information and public participation in environmental matters. Brochures and other educational materials will be published for this purpose. In order to ensure the implementation of the strategic environmental assessment procedure in line with the requirements of Directive 2001/42/EC and the good practice of EU Member States, it is planned to develop guidelines for implementing the procedure during 2009. These will be based on guidelines developed as part of the CARDS 2003 project Strategic Environmental Assessment. It is also planned to strengthen the capacities of stakeholders who are involved in the procedure by organising workshops and training. In order to ensure the implementation of the environmental impact assessment procedure in line with the requirements of Council Directive 85/337/EEC amended by Council Directive 97/11/EC and Directive 2003/35/EC of the European Parliament and of the Council, it is planned to develop guidelines for implementing the procedure and to strengthen the capacities of stakeholders who are involved in the procedure by organising workshops and training. The MEPPPC plans to recruit 2 new employees in addition to the 5 existing employees who work on activities related to environmental impact assessment. Climate change In continuation of activities implemented in relation to establishing the system for trading in greenhouse gas emission quotas for the period 20102012, and pursuant to the Regulation on emission quotas for greenhouse gases and on the method for trading in emission quotas, in 2009 the MEPPPC will start issuing emission permits to installations included in the National plan for distribution of greenhouse gas emission quotas. In relation to the extensive requirements of annual emission monitoring and reporting, and carrying out the control of reports in line with Directive 2003/87/EC and associated decisions, installations will receive the necessary information and training through seminars in order to be able to meet their obligations in a timely manner. A procedure, which will allow parties subject to the system for trading in greenhouse gas emission quotas to participate in Clean Development Mechanism (CDM) or Joint Implementation (JI) project activities within the framework of the Kyoto flexible mechanisms, will also be established and explained in seminars. In addition to the 3 existing employees who work on activities related to climate change, the MEPPPC plans to recruit 2 new employees who will work on issuing greenhouse gas emission permits. During 2009, the implementation of measures for reducing greenhouse gas emissions will continue in accordance with the Action Plan in order to meet the obligations arising from the Kyoto Protocol. Civil protection Pursuant to the Regulation on the internal organisation of the National Protection and Rescue Directorate and the adopted Ordinance on the internal order, employees will be hired for the purpose of implementing Directive 96/82/EC (Seveso II). Capacity building for intervention in the case of accidents in Croatia and abroad will also be carried out in accordance with the employment plan of the Central State Administration Office for Public Administration. It is expected that the NPRD will hire 90 new employees in the course of 2009. The Government of the Republic of Croatia adopted a decision on initiating the procedure for concluding the Memorandum of Understanding between the European Community and the Republic of Croatia on the participation of the Republic of Croatia in
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the Community Civil Protection Mechanism as a key priority in order to complete the process of inclusion in the Community Civil Protection Mechanism. INSPIRE Directive 2007/2/EC With regard to the INSPIRE Directive 2007/2/EC, pursuant to the State Survey and Real Estate Cadastre Act (OG 16/07), the NSDI Council adopts the annual work plan. The Work Plan for 2009 will be adopted in the first quarter of 2009 at the latest. The Work Plan will contain the activities planned for 2009. By the end of the second quarter of 2009, it is planned to establish a new organisational unit within the State Geodetic Directorate the NSDI Sector, which will have two departments and provide technical support for the establishment of the NSDI, perform secretarial activities for the NSDI Council and co-ordinate the work of NSDI bodies. In 2009, the NSDI Council and State Geodetic Directorate will continue establishing working groups that will address issues related to the establishment of the NSDI in Croatia and the transposition of the INSPIRE Directive into Croatian legislation. It is planned to establish the following three working groups: 1. a working group for linking the NSDI and e-Government programmes; 2. a working group for capacity building for the purpose of establishing the NSDI; 3. a working group for building the business model for establishing the NSDI. In 2009, it is planned to participate at the 3rd INSPIRE Conference and present the establishment of the NSDI in Croatia with several articles and presentations. Croatian Environment Agency Along with regular data collection, processing and entry, the Agency continues to meet its reporting obligations towards the Republic of Croatia and the European Environment Agency (EEA) in line with Croatias other international obligations. In 2009, updating of the existing databases and development of new environmental databases will enable work on the implementation and co-ordination of the national Environmental Information System (EIS) in accordance with the principles of SEIS (Shared Environmental Information System) as a comprehensive environmental information system at EU level. The work on background documents required for adopting the Decision on the establishment of Reference Centres is also continuing pursuant to the Environmental Protection Act. The National List of Indicators (NLI) will be revised and updated with new indicators. Regarding the Environmental Information System, the work on linking databases within the Agency will be continued. New databases will be included in the System, upgrading of existing databases will continue, while preparations for including other databases (outside the Agency) in EIS are in progress. Regarding the Greenhouse Gas Emission Registry, training of the Agencys personnel to manage the Registry will continue in 2009. The parties subject to the system for trading in greenhouse gas emission quotas for the period 20102012 and other stakeholders will be educated through seminars on the procedure for opening user accounts in the Registry, performing transactions and other actions in accordance with UNFCCC instructions and decisions and EU regulations. The Agency will start the preparation of the State of the Environment Report for the Republic of Croatia for the period 20062010. From the beginning of 2009, the Agency will introduce the ISO 9001 quality management system and the ISO 14001 environmental management system. In accordance with the new Statute of the Agency, it is planned during 2009 to continue the recruitment of new employees (18 in total) and to procure IT equipment that will allow the Agency to implement undertaken obligations in a better and higher quality manner. The improvement of the professional skills of the Agencys employees continues through participation in different seminars and workshops in Croatia and abroad as an integral part of activities as part of ongoing projects and co-operation with the EEA.
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Environmental Inspection (MEPPPC) Further administrative capacity building of the Environmental Inspection will continue by adjusting the organisation of the Directorate for Inspection Affairs in accordance with requirements related to the implementation of aligned legislation and by increasing the number of employees, particularly in the headquarters of regional inspection units. In 2009, it is planned to employ at least 4 new environmental inspectors. In the course of 2009, the administrative capacities of the Environmental Inspection will improve through continuous training as part of the implementation of the PHARE 2005 project Enhanced Environmental Inspection for Enforcement of New Environmental Legislation and through the active participation of environmental inspectors in the functioning of the 5 relevant networks. At the end of 2008 and in 2009, environmental inspectors will take part in the IMPEL project, Doing the right things III, Developing a guidance book for planning of environmental inspections, related to preparation procedures and the production of a manual for planning inspections in accordance with the RMCEI. As part of Cluster 3 of the ECENA network Protection of the Environment through the Enforcement of Criminal Law, co-operation with Interpol and the INECE network is planned for the purpose of training environmental inspectors, police bodies, customs staff and the staff of the State Attorneys Office in the successful reporting and collecting of evidence in cases of environmental crime.
3.27.2. Air quality

A) ACHIEVEMENTS IN 2008 In May 2008, the Croatian Parliament adopted the Act on Amendments to the Air Protection Act (OG 60/08), which entered into force on 5 June 2008. The Air Protection Act (OG 178/04) was amended in the part relating to aligning its provisions with the new Environmental Protection Act (OG 110/07) and providing the legislative framework for implementation of the Kyoto Protocol and the EU acquis in the field of climate change. In May 2008, the Croatian Parliament adopted the Act on the Ratification of the Protocol to Abate Acidification, Eutrophication and Ground-level Ozone to the 1979 Convention on Long-Range Transboundary Air Pollution (OG IT 4/08). In May 2008, the Croatian Government adopted the National Air Quality Protection and Improvement Plan for the period 20082011 (OG 61/08). The purpose of the Plan is to define and draw up objectives and measures for each impact sector with priorities, timeframes and authorities responsible for implementing measures with the principal goal of protecting and achieving a permanent improvement in air quality in the territory of Croatia, especially in areas where the air quality is secong or third category. The set objectives must be specific, measurable and realistically achievable within the given four-year period from 2008 to 2011 to which the Plan refers. In June 2008, the Croatian Government adopted the Regulation on demarcation of zones and agglomerations according to categories of air quality (OG 68/08), which entered into force on 20 June 2008. The adoption of this Regulation and the National Air Quality Protection and Improvement Plan in the Republic of Croatia for the period 20082011 completes the transposition of the acquis communautaire (adopted at the end of 2007) into Croatian legislation in the field of air quality management. In the meantime, the European Parliament and the Council adopted a new Directive on ambient air quality and cleaner air for Europe (Directive 2008/50/EC), which entered into force in May 2008 and which EU Member States have to transpose into their legislation by 11 June 2010. In order to prepare for transposition of the provisions of this Directive into Croatian legislation, during 2009 the MEPPPC plans to carry out an analysis of existing regulations and the level of their alignment with the provisions of the new Directive. Additionally, for the purpose of adequate implementation of this Directive, in 2009 the MEPPPC intends to draft plans for reducing
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air pollution by airborne particles, nitrogen oxides and ground-level ozone in zones and agglomerations where the level of pollutants exceeds the limit and target values prescribed pursuant to the new Directive. In accordance with the Ordinance on monitoring pollutant emissions from stationary sources into the air (OG 21/07), in September 2008 the MEPPPC prepared the Draft Proposal of the Plan for the reduction of emissions of SO2, NOx and particulate matter into the air for existing large combustion plants and gas turbines in the Republic of Croatia, which will be discussed with interested parties in November 2008. It is planned to submit the Proposal for adoption by the Government of the Republic of Croatia in December 2008. Pursuant to the Regulation on the quality of liquid oil fuels (OG 53/06), drafting of the Programme for Monitoring the Quality of Liquid Oil Fuels for 2009 is in progress and its adoption is planned in December 2008. The MEPPPC is the main beneficiary of the Phare 2006 project Establishment of the Air Quality Monitoring Network, within which the existing national air quality monitoring network (8 stations set up in urban and industrial areas) will be improved and an air quality management system will be established: the transfer and collection of data, data quality control, evaluation of data, data publishing and dissemination. The PHARE 2006 project will contribute to the adequate implementation of the requirements of EU directives and Croatian legislation in the air protection sector. By the end of 2009, 12 stations for measuring background pollution and stations for monitoring air quality in protected areas, national parks and nature parks, as well as a chemical and calibration laboratory will have been established. The complete establishment of the national air quality monitoring network and air quality management system is planned by the end of 2010. At the beginning of 2008, tender documentation for the procurement of goods was completed and submitted to the European Commission Delegation in April 2008. In August 2008, a public tender for the performance of construction and other works for the construction of 9 stations and connection to the electric energy grid for 11 locations was published, as was an international public tender as part of the Phare project for the procurement of air quality measurement and laboratory equipment. In co-operation with the Government of Flanders, the project Support for the Implementation of the Requirements of EU Directive 2001/81/EC on National Emission Ceilings for Certain Atmospheric Pollutants was completed in August 2008. It provided technical assistance for the transposition of provisions into national legislation and the enforcement of the requirements of Directive 2001/81/ EC on national emission ceilings for certain atmospheric pollutants. Preliminary annual forecasts of SO2, NOx, NH3 and NMVOC emissions for the period 2010 to 2020, and a proposal for the National Programme for Reduction of Pollutant Emissions covered by Directive 2001/81/EC were prepared as part of the project. The transposition of Directive 2001/81/EC on national emission ceilings for certain atmospheric pollutants into Croatian legislation was completed with the Regulation on emission quotas for certain pollutants in the Republic of Croatia. This Regulation was adopted by the Croatian Government at its session held on 27 November 2008. Pursuant to this Regulation, MEPPPC will draft the Proposal for the Programme for the Reduction of Pollutant Emissions in the Republic of Croatia for the period until the end of 2010 with emission forecasts for the period 20102020. It is planned that the Programme will be submitted for adoption by the Croatian Government by the end of 2009. Pursuant to the Act on the Ratification of the Stockholm Convention on Persistent Organic Pollutants (OG IT 2/07), Croatia is committed to adopt the National Plan for the Implementation of the Stockholm Convention (NP). The purpose of the NP is to ensure the timely preparation of Croatia for meeting its obligations arising from the Stockholm Convention on removing and/or reducing the use and release of persistent organic pollutants into the environment. The draft National Plan for the Implementation of the Stockholm Convention was prepared as part of the UNIDO (United Nations Industrial Development Organisation) project Enabling Activities to Facilitate Early Action on the Implementation of the Stockholm Convention on Persistent Organic Pollutants in the Republic of Croatia, which was implemented from 20022004 and financed by GEF (Global Environmental Facility) funds. Completion of the number of PCB transformers was carried out during 2005. At the beginning of 2008, the NP was revised in the part primarily relating to legislative and institutional changes and was adopted by the Croatian Government in December 2008.
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In line with the obligations of the Republic of Croatia under the 1979 UNECE Convention on Long-Range Transboundary Air Pollution, the Croatian Environment Agency drafted the Calculation of pollutant emissions in the Republic of Croatia for 2006, which was delivered to the Executive Body of the Convention. The Agency also drafted the annual Report on Monitoring Emissions of Pollutants into the Air from Stationary Sources in the Territory of the Republic of Croatia and the annual Report on Air Quality in the Republic of Croatia for 2007. The document Project National Reference Centre NRC Air/Climate Change was finalised and provided background documents for starting the process of establishing national reference centres (NRC) with a description of tasks and activities. Activities on establishing new databases (the Database on the air quality of the local network, the Database on paints, varnishes and vehicle refinishing products, and the Environmental Pollution Register) were initiated. During 2008, the Environmental Inspection, as part of its regular activities, carried out inspections in relation to the enforcement of regulations governing air protection, especially the enforcement of regulations on the use of substances that deplete the ozone layer, pollutant emissions from large combustion plants and other stationary sources into the air, and also the manner of handling volatile organic compounds. B) KEY PRIORITIES The following activities are planned for 2009: to continue the implementation of air quality assessment in established zones and agglomerations in the State territory; to adopt the Programme for Monitoring the Quality of Liquid Oil Fuels for 2010; to finalise setting up stations as part of the National Network for Permanent Air Quality Monitoring; to finalise the establishment of the Air Quality Information System; to adopt the Programme for the Reduction of Pollutant Emissions in the Republic of Croatia for the period until the end of 2010 with emission forecasts for the period 20102020; to adopt action plans for reducing air pollution by airborne particles, nitrogen oxides and ground-level ozone in zones and agglomerations of the Republic of Croatia where the level of pollutants exceeds the limit and target values. Five employees are currently working in the MEPPPCs Section for Air Protection, and in 2009 it is planned to hire one additional employee. The Croatian Environment Agency is continuing its activities of submitting data and drafting reports to the Republic of Croatia and the European Environment Agency (EEA), as well as producing selected indicators for the revision and updating of the National List of Indicators (NLI) for Air/Climate Change. The existing databases of the Air Quality Information System AQIS will be regularly updated and new databases will be developed. Activities related to the establishment of the NRC will continue. The Environmental Inspection will direct its activities towards controlling the enforcement of regulations in the field of air quality, upgrading working methods, and ensuring that there are inspectors specialised in the supervision of the use of substances depleting the ozone layer and emissions into the air from large industrial installations. As part of the PHARE 2006 Horizontal Multi-beneficiary Programme on the Environment and Enlargement project Developing Capacity in Implementation and Enforcement of Environmental Law through ECENA and IMPEL, the Environmental Inspection will participate in carrying out activities related to Study 2 Management of VOC in smaller premises (non IPPC).
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3.27.3. Waste management

A) ACHIEVEMENTS IN 2008 In 2008, the Act on Amendments to the Waste Act (OG 178/04, 111/06, 60/08) was adopted. Pursuant to the provisions of the Waste Act, the following subordinate regulations were adopted: Ordinance on construction waste management (OG 38/08); Ordinance on the management of sludge from wastewater treatment facilities when sludge is used in agriculture (OG 38/08); Ordinance on the management of waste from the titanium dioxide industry (OG 70/08); Amendments to the Ordinance on packaging and packaging waste (OG 97/05, 115/05, 81/08); Amendments to the Ordinance on waste oil management (OG 124/06 and 121/08); Amendments to the Ordinance on the management of waste electrical and electronic appliances and equipment (OG 74/07 and 133/08); Instruction on the procedures for managing waste containing asbestos (OG 89/08); Ordinance on the management of polychlorinated biphenyls and polychlorinated terphenyls (OG 105/08); Ordinance on waste from mining and mineral exploitation management (OG 128/08).
The drafts of the following subordinate regulations were prepared and will be adopted in the first quarter of 2009: Regulation on amendments to the Regulation on categories, types and classification of waste with a waste catalogue and list of hazardous waste; Regulation on amendments to the Regulation on the supervision of transboundary movement of waste.
The MEPPPCs Sector for Waste currently has 16 employees, and two new employees will be recruited by the end of 2008. With regard to the PHARE 2006 project, Development of a Hazardous Waste Management System Including the Identification and Management of Hot Spots in Croatia, a contract between the CFCU and the company selected in the tender that will implement the project was signed on 30 November 2008, and the start of project implementation is expected soon. As part of the pre-accession IPA programme, Component IIIB Regional Development Environmental Protection, three IPA applications for waste management centres were prepared and submitted to the European Commission (for Primorje-Gorski Kotar County, Istria County and Split-Dalmatia County) concerning which the EC delivered its comments. The project application for a WMC in Primorje-Gorski Kotar County was revised in the light of these comments and resubmitted to the EC in September 2008. The other two applications are in the process of being revised. In the reporting period, the Environmental Inspection implemented regular activities planned in accordance with the Annual Work Plan for 2008 in relation to the enforcement of regulations governing waste management, especially the enforcement of regulations relating to special categories of waste (waste generated by the health service, waste containing asbestos, electric and electronic waste, waste oils, end-of-life vehicles, etc.) At the request of the Inspection, the disposal of approximately 250 tons of hazardous waste left over after the shutdown of the waste incineration plant in Zagreb started. The disposal of the waste will be carried out in accordance with the Basel Convention. In co-operation with the Customs Service of the Ministry of Finance, during 2008 the Environmental Inspection carried out the supervision of the transboundary movement of waste and hazardous waste at road (14), sea (3) and railroad border crossings. At the railroad border crossing at Tovarnik, a co-ordinated inspection was carried out in co-operation with the competent bodies of the Republic of Serbia.
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In the Croatian Environment Agency, activities related to waste management are carried out in the Section for Waste. In addition to the regular updating and upgrading of databases and indicators for this subject area, the obligations of submitting data and drafting reports to the Republic of Croatia and EEA are regularly fulfilled. In the period from January to the end of September 2008, the Environmental Protection and Energy Efficiency Fund (EPEEF) invested a total of HRK 682 million in environmental protection programmes and projects. These funds were primarily invested in the area of remediation of municipal, illegal and hazardous waste landfills; stimulating the avoidance and reduction of waste generation; the recovery and use of recyclable waste material (packaging, tyres, oils, end-of-life vehicles, batteries and accumulators, electronic waste); and supporting cleaner production, etc. The Fund co-finances projects for the establishment of waste management centres. So far, the Fund has concluded eight contracts with counties on the co-financing of exploratory works and the preparation of project-technical documentation for the construction of county/regional waste management centres with a total participation of the Fund to the amount of HRK 27 million. B) KEY PRIORITIES In 2009, the Regulation on amendments to the Regulation on categories, types and classification of waste with a waste catalogue and list of hazardous waste, and the Regulation on amendments to the Regulation on supervision of transboundary movement of waste will be adopted. These regulations will complete alignment with Regulation (EC) No 1013/2006 and Council Decision 97/640/ EC. With the adoption of the said regulations, the area of waste management will be fully aligned with the acquis communautaire. The focus in 2009 will be on the implementation and monitoring of regulations. In the forthcoming period, the construction of county and regional waste management centres will continue with a view to their establishment by the end of 2018. The establishment of an integrated waste management system in Croatia is expected after the construction of the centres. Activities relating to public education and communication, establishing separate waste collection, and the prevention and reduction of waste generation in production processes will be carried out. In 2009, remediation activities concerning illegal landfills and remediation and closure activities concerning existing landfills will continue. These activities will be co-financed by the Environmental Protection and Energy Efficiency Fund (EPEEF) and by funds from local government and self-government units. In addition, the priorities prescribed by the Waste Management Strategy of the Republic of Croatia will be addressed: promotion of increasing separate waste collection; remediation of existing landfills; increasing the quality and range of data on quantities and flows of waste; construction of waste treatment facilities and plants.
Work on the projects proposed for the pre-accession IPA programme will continue in 2009. The project of constructing the first county waste management centre in Croatia at Bikarac in ibenik-Knin County is being cofinanced as part of the Instrument for Pre-accession Assistance ISPA 2005/2006. The project is being implemented through 6 individual contracts. To date, one technical assistance contract has been concluded and its implementation started. Ex-ante approval was received for the contract on construction works at Bikarac and for the public relations contract. The receiving of offers and tender procedures for signing the contracts are in progress. The process of obtaining ex-ante approval for the remaining contracts is in its final stage. The start of project implementation is expected in the first half of 2009. The implementation of the PHARE 2006 project Development of a Hazardous Waste Management System Including the Identification and Management of Hot Spots in Croatia will start at the beginning of 2009.
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The recruitment of five additional employees is planned in the Sector for Waste by the end of 2009 thus resulting in a total number of 23 employees in the Sector. The professional training and education of employees will continue. The Croatian Environment Agency is continuing activities concerned with submitting data and drafting reports to the Republic of Croatia and the European Environment Agency (EEA), as well as producing selected indicators for the revision and updating of the NLI for Waste. The existing databases of the Waste Management Information System WMIS will be regularly updated. New databases on special categories of waste will also be developed. The preparation of reports in accordance with international obligations and national legislation is planned for 2009. Activities related to establishing the Section as an NRC will be continued. In the forthcoming period, the Environmental Inspection will also direct its activities towards controlling the enforcement of regulations in the field of waste management, especially relating to the enforcement of regulations governing the management of special categories of waste (waste oils, electric and electronic waste, waste batteries and accumulators, end-of-life vehicles, and waste containing asbestos). As part of these activities, it will also carry out the supervision of persons authorised for waste management. Joint inspections of transboundary movement of waste will continuously be carried out and the Environmental Inspection will participate in TFS Enforcement Actions II project activities (enforcement actions in transfrontier shipments of waste) as part of the IMPEL network, which started implementation in November 2008. As part of the project Developing Capacity in the Implementation and Enforcement of Environmental Law through ECENA and IMPEL, which is part of the PHARE 2006 Horizontal Multi-beneficiary Programme on the Environment and Enlargement, the Environmental Inspection will participate in the activities of Study 1 Hazardous waste/clinical waste management and development of best practice guide and inspection guide, which will include all relevant inspections and issuers of permits. For its activities in the field of environmental protection, in accordance with the Financial Plan for 2009, the Environmental Protection and Energy Efficiency Fund plans to ensure funds to the total amount of HRK 420 million. In the forthcoming period, the Fund plans to invest particularly in waste management projects: the recovery of PET packaging, waste tyres, electronic waste, batteries, construction waste, hazardous waste, etc. The Fund will also continue to support and provide financing for preparations for the construction of waste management centres and at the same time invest in remediation of existing landfills.
3.27.4. Water quality

A) ACHIEVEMENTS IN 2008 In 2008, the Water Management Strategy (OG 91/08) was adopted, as well as the following subordinate acts: Ordinance on the procedure and performance of mandatory disclosure of information to the public and the participation of water users in developing water management plans (OG 70/08); Ordinance on limit values of hazardous and other substances in wastewaters (OG 94/08); Decision on determining the boundaries of river basins (OG 109/08); Regulation on hazardous substances in waters (OG 137/08).
The following acts will be adopted by the end of 2008: Implementation Plan for the Urban Waste Water Treatment Directive, and Implementation Plan for the Drinking Water Directive.
The Decision on eutrophication sensitive areas and nitrate vulnerable areas Decision and Map, which is an integral part of the said Decision, was planned for adoption by the end of the fourth quarter of 2008 but has still not been adopted. Pursuant to the new
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Waters Act, the Croatian Government will adopt a decision that will identify eutrophication sensitive areas and nitrate vulnerable areas within a period of one year on the basis of all the required data collected by the Ministry of Agriculture, Fisheries and Rural Development and their delivery to the Ministry of Regional Development, Forestry and Water Management in order to draft a new map. The Regulation on amendments to the Regulation on water classification was published on 26 November 2008 (OG 137/08). The alignment of this Regulation with EU water directives requires the development of biological methods for evaluating the environmental status of waters, which needs to be ensured in the future. This alignment is planned in a future subordinate act which will be adopted under the new Waters Act after ensuring the required monitoring and data for its drafting. The Proposal for the Waters Act and the Proposal for the Act on Water Management Financing were adopted by the Croatian Government at its session held on 27 November 2008 and were submitted for adoption to the Croatian Parliament. Their adoption is planned for the first quarter of 2009. The following drafts of implementing regulations were prepared, and will be adopted during the first quarter of 2009 in accordance with the new Waters Act after its entry into force: Regulation on the quality of inland bathing water; Ordinance on the quality of water suitable for freshwater fish life; Ordinance on the quality of water for shellfish.
Until 11 January 2008, the Directorate for Water Management and the Directorate for Water Policy and International Projects were an integral part of the Ministry of Agriculture, Forestry and Water Management. Until that date, the Directorate for Water Management employed three civil servants, and the Directorate for Water Policy and International Projects employed one civil servant. Under the Act on Amendments to the Act on the Structure and Scope of Central Bodies of State Administration (OG 5/08), the Ministry of Regional Development, Forestry and Water Management took over the activities of the Ministry of Agriculture, Forestry and Water Management in the area of water management. In accordance with the new structure, the Croatian Government adopted the Regulation on internal organisation of the Ministry of Regional Development, Forestry and Water Management (OG 34/08). Pursuant to the new Regulation, new organisational units were established in the Directorate for Water Management while the structure of the Directorate for Water Policy and International Projects remained unchanged. The Ordinance on the internal order of the Ministry of Regional Development, Forestry and Water Management plans the recruitment of 49 new civil servants in the Directorate for Water Management and 30 new civil servants in the Directorate for Water Policy and International Projects by the end of 2009. As part of the employment plan for 2008, it is planned to fill 80% of the total number of vacancies planned by the Ordinance. In accordance with the said plan, vacancy announcements (OG 80/08 and 83/08) to employ 25 civil servants in the Water Management Directorate and 24 civil servants in the Directorate for Water Policy and International Projects were published. The recruitment process is in its final stage and the employment of 7 selected candidates in the Directorate for Water Policy and International Projects and 14 selected candidates in the Directorate for Water Management is expected soon. The CARDS 2004 project Capacity Building and Development of Guidelines for the Implementation of the Water Framework Directive is a twinning project implemented in co-operation with the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety and the Dutch Government Office for Land and Water Management. The project is carried out in accordance with the implementation plan, and a series of workshops/seminars and working meetings were held. There was also a study visit to Germany connected with the implementation of the Water Framework Directive and Urban Waste Water Treatment Directive. The draft guidelines for producing river basin management plans were prepared. The project will contribute to institutional and administrative capacity strengthening as well as developing guidelines for implementing the Water Framework Directive. The total value of the project is EUR 1.2 million and the implementation period is September 2007September 2009.
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ISPA technical assistance for preparation of IPA projects in the environmental protection sector The project is concerned with the preparation of project documentation for water supply projects in Koprivnica-Krievci and BjelovarBilogora counties and project documentation for urban wastewater systems for the towns of akovo and Nova Gradika, both of which are in line with EU directives and regulations. The implementation of the contract on drafting project documentation for water supply projects started in September 2008, while the implementation of the contract on drafting project documentation for urban wastewater systems started in November 2008. The total value of the project is EUR 853,135. Karlovac Water and Wastewater Programme (ISPA) The main objective of the Karlovac Water and Wastewater Programme project is to protect and improve the water quality in the wider Karlovac area, and to ensure the drinking water supply is in line with EU standards, which includes the construction of a wastewater treatment facility with a capacity to deal with a population of up to 100,000, and upgrading the water supply and sewerage system of the town of Karlovac. The contract for the construction of a wastewater treatment facility started in December 2008. The contract for the supervision of construction works was signed in September 2008, and its implementation started in December 2008. The tender for the construction of the water supply network and wastewater sewerage system has been approved and the tender was announced in October 2008. The total value of the project is EUR 36,000,000, of which EUR 22,500,000 comes from ISPA funds. The implementation period is 20062010. With regard to IPA Component IIIB Regional Development Environmental Protection, in February 2008 applications for co-financing two infrastructural projects: Krka River Basin Water Infrastructure Improvements - Water Supply and Sewerage Improvements in Knin and Drni and the Water supply and Sewerage System with Wastewater Treatment Plant for Slavonski Brod were submitted to the European Commission. The revised application for the Water supply and Sewerage System with Wastewater Treatment Plant for Slavonski Brod project was submitted to the European Commission in November 2008. The Water Supply and Sewerage Improvements in Knin and Drni project was divided into two projects: the Water Supply and Sewerage Improvements in Kninproject as the major project and the Water Supply and Sewerage Improvements in Drni project as the minor project. The revised application for the Water Supply and Sewerage Improvements in Knin project will be submitted to the European Commission by the end of January 2009, and the application for the Water Supply and Sewerage Improvements in Drni project, together with tender documentation, to the European Commission Delegation by February 2009. In the Croatian Environment Agency, activities related to water quality are carried out in the Section for Inland Waters/the Sea. Obligations to submit data and draft reports to the Republic of Croatia and EEA are regularly fulfilled, while the establishment of the system for reporting on emissions into waters/the sea for the purpose of reporting to the EU is in progress, as are the activities of the NRC concerning emissions into waters. The project Calculation and mapping of critical loads for air pollutants to surface waters at selected locations in the Republic of Croatia (SIDA) has been completed. B) KEY PRIORITIES The following legislation will be adopted by the end of the first quarter of 2009: the Waters Act (submitted for parliamentary procedure); the Act on Water Management Financing; Regulation on the quality of inland bathing water; Ordinance on the quality of water suitable for freshwater fish life; Ordinance on the quality of water for shellfish.
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The employment plan for 2009 prescribes further administrative capacity strengthening, i.e. filling the remaining 35 vacancies in the Directorate for Water Management and 23 vacancies in the Directorate for Water Policy and International Projects planned by the Ordinance on the internal order. Under the new Waters Act, which was adopted by the Croatian Government and sent for parliamentary procedure, it is planned that the Ministry of Regional Development, Forestry and Water Management will take over 26 regional water inspectors. It is required to educate and train civil servants working on activities relating to Croatias accession to the European Union. Training and education will be carried out according to the Catalogue of training and education programmes of the Central State Office for Administration, which is based on the annual personal education and training plan for each civil servant. Within the Ministry of Regional Development, Forestry and Water Management, training and education will also be organised on the basis of collected Questionnaires for evaluating the education and training requirements of civil servants. When required, civil servants will attend courses, seminars and training organised by international institutions and organisations. The Croatian Environment Agency is continuing its activities concerned with submitting data and drafting reports to the Republic of Croatia and the European Environment Agency (EEA) as well as producing selected indicators for the revision and updating of the NLI for Inland Waters. The existing databases of the Information System on Water Quality and Diversity (Register of emissions into waters/the sea) will be regularly updated. Activities related to linking already existing databases as part of the establishment of the Information System on Water Quality and Diversity will continue. Work on establishing the NRC will also continue. The work on the projects proposed for the pre-accession IPA programme will continue in 2009.
3.27.5. Quality of the sea and marine environment

A) ACHIEVEMENTS IN 2008 The Croatian Government in June 2008 adopted the Regulation on beach water quality (OG 73/08), which prescribes sea bathing water quality standards on beaches according to limit values for microbiological indicators and other marine features. In order to achieve the prescribed standards, measures for managing sea bathing water are identified. The Regulation provides a legal framework for implementing the acquis communautaire in the area of water protection (Directive 2006/07/EC concerning the management of bathing water quality). The Croatian Government in July 2008 adopted the Contingency Plan for Accidental Marine Pollution (OG 92/08). This sustainable development and environmental protection document identifies procedures and measures for the anticipation, prevention, limitation, preparedness for and response to major marine pollution incidents and extraordinary natural events at sea for the purpose of marine environment protection. The Plan is aligned with international agreements in the field of marine environment protection to which the Republic of Croatia is a party. In the Croatian Environment Agency, activities related to the quality of the sea and marine environment are also carried out in the Section for Inland Waters/the Sea. The Database of indicators on sea quality, fisheries and mariculture is regularly updated. New databases have been developed and made available to the public via the GIS browser. B) KEY PRIORITIES The following activities are planned in 2009: continuation of monitoring sea water quality on beaches during the bathing season and preparing the yearly National Report, a brochure and map showing beach water quality in 2009, and producing a programme application as IT support for monitoring;
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continuation of financing part of the operation-readiness of sea-cleaning vessels as part of the implementation of the Contingency Plan for Accidental Marine Pollution.
In addition, activities for preparing alignment with the Marine Strategy Directive will be initiated. The Croatian Environment Agency is continuing activities concerned with submitting data and drafting reports to the Republic of Croatia and the European Environment Agency (EEA) as well as producing selected indicators for the revision and updating of the National List of Indicators (NLI) for sea quality, fisheries and mariculture. The work on producing the NLI for river and sea pollution from river and sea traffic will be started, as will work on establishing new reports (reporting in accordance with the Marine Strategy Directive). The co-ordination of reporting international sea level data will be expanded. The existing databases of the Sea Information System SIS will be regularly updated and their linking to other established sea-related databases will be continued, as will SIS expansion. The NRC for the sea and fisheries will be established.
3.27.6. Nature protection

A) ACHIEVEMENTS IN 2008 During 2008, the adoption of implementing regulations pursuant to the Nature Protection Act (OG 70/05) was continued for the purpose of aligning Croatian legislation with the acquis communautaire. The Ordinance on the method of preparing and implementing risk assessment studies with respect to the introduction, reintroduction and breeding of wild taxa (OG 35/08) was adopted and entered into force on 4 April 2008. The procedure for amending the Nature Protection Act (OG 70/05) is in progress and the adoption of the Act on Amendments to the Nature Protection Act is expected by the end of 2008. The State Institute for Nature Protection drafted the Report on the State of the Natural Environment for the period 20002008. The process of revision of the National Strategy and Action Plan for the Protection of Biological and Landscape Diversity (NSAP) was continued on the basis of this Report, and the final draft of the revised Strategy was submitted on 23 September 2008 for adoption by the Croatian Government and subsequently to the Croatian Parliament. The Brown Bear Management Plan for the Republic of Croatia entered into force on 1 February 2008. The proposals for revised Wolf and Lynx Management Plans have been prepared and consultations with stakeholders are in progress, inter alia, as part of the PHARE 2005 project Institutional Building and Implementation of NATURA 2000 in Croatia. In the course of 2008, the following 6 areas were protected for a period of three years pursuant to decisions on preventive protection: the rivers Mura and Drava in the category of regional parks; Crnika on the south-western coast of Pag Bay in the category of special geological and palaentological reserves; Soline in Biograd na Moru in the category of forest parks; the Bara caves and part of the canyon of the River Cetina in the category of important landscapes; and the cave in the Tounj quarry in the category of geomorphologic natural monuments.
Thus, as of 30 September 2008, a total of 461 areas were protected, including areas under preventive protection, i.e. 11.38% of the land area and 3.38% of the sea of Croatia.
In addition, activities for proclaiming the area of the rivers Mura and Drava as a Man and Biosphere Reserve (MaB) continued.
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With regard to administrative capacities, an announcement of vacancies for new employees in the Nature Protection Directorate of the Ministry of Culture (4 new employees) has been made, and the administrative capacity building of the State Institute for Nature Protection continued with the employment of 7 new employees in 2008 (6 employees with permanent employment status and one trainee for a defined time period). Consequently, the number of employees in SINP was increased to 30.
In the course of 2008, SINP changed its structure and is now organised in the following manner: the Directors Office; the Secretariat; the Expertise Division; the Department for Wild and Domesticated Taxa and Habitats with 8 sections: the Vertebrates Section, the Invertebrates Section, the Flora Section, the Fungi and Lichen Section, the Domesticated Taxa Section, the Habitats Section, the Karst and Subsurface Section, and the Sea Section; the Department for Nature Impact Assessment with 4 sections: the Ecological Network Section, the Sustainable Use of Natural Assets Section, the Introduction and Reintroduction Section, and the Nature Impact Assessment Section; the Department for Protected Areas with 4 sections: the Protected Areas Section, the Registered Natural Wealth Section, the Management Plans and Programmes Section, and the Geological Heritage Section; the Department for Landscapes with 2 sections: the Landscape Types Section, and the Landscapes of Exceptional Value Section.
The Implementation of the Environmental Acquis Relating to the Protection of Wild Species by Trade Regulation project is being implemented according to plan. In 2008, an analysis of national legislation which regulates transboundary movement and trade in protected species was carried out, and specific recommendations for amendments were given. In addition, a computer system for issuing CITES permits in the form prescribed by relevant EU regulations (CITES Regulation) was established and the basic appearance of the future national webpage intended for CITES implementation was defined as part of the project. Two workshops for the training of trainers were held for customs, border and police criminal investigation employees and also the Nature Protection Inspection where all nature protection inspectors completed the training and a total of 40 trainers were trained. The PHARE 2005 Institutional Building and Implementation of NATURA 2000 in Croatia project, implemented by the State Institute for Nature Protection (SINP), officially started in January 2008 and is being implemented according to plan. One of the principal objectives of this project is to establish a consultation process for the proposal for the NATURA 2000 network, which was prepared by Croatia, and to define the final proposal (which will include SPA and pSCI sites). As part of the project, the drafting of management plans is underway for two pilot sites: Lake Vransko and Jasen (important for bird protection), and the area of Gorski Kotar (a habitat of large wild animals). In the course of the project, a series of workshops was held for training the employees of the competent bodies in implementing procedures for evaluating the admissibility of plans, programmes and projects related to nature in line with national regulations and the environmental acquis. The end of the project is planned for February 2009. The Protected Area Management System (PAMS) Phase II Development of Protected Area Management System for county administrations project is in its final stage with regard to the procurement of web GIS services for nature protection institutions at the national and local level. The Norwegian Ministry of Foreign Affairs approved financial assistance as part of PAMS Phase III for 2009, with the purpose of improving the quality of data exchange between competent nature protection institutions, and integration with the National Spatial Data Infrastructure. The implementation of the Capacity building for county public institutions for the management of protected natural assets to align legislation with the acquis project started in June 2008. The project is financed by the Swedish SIS Fund through the Ministry of Foreign Affairs and European Integration of the Republic of Croatia. The project is implemented by the Ministry of Culture in cooperation with county public institutions for the management of protected natural assets.
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As part of this project, in addition to the education and training of employees in county public institutions, and with the aim of enabling the implementation of the EU Habitats Directive, it is also planned to prepare management plans for three localities in the Karlovac County ecological network: Polje Lug, Dreniko polje and Dretulja. In the course of 2008, implementation of the project Strategic Partnership for the Mediterranean Sea Large Marine Ecosystem Pilot-project for Marine Protected Areas in Croatia (MedPan) was started. The project is financed by the FFEM (Fonds Franais pour lEnvironnement Mondial) and other private and international foundations (WWP-MedPO, RAC/SPA). The project goal is to enhance the effective conservation of biodiversity in important coastal and marine areas through the creation of an ecologically coherent network of marine protected areas and the preparation of management plans for marine parks: NP Kornati, NP Mljet, NP Brijuni, Nature Park Telaica and Nature Park Lastovo. The project partners are the Ministry of Culture, the State Institute for Nature Protection, the public institutions of the listed national and nature parks and the non-governmental organisation Sunce. The planned project duration is 3 years. The implementation of the WWF Dinaric Arc Ecoregion project is also in progress. Its goal is to create favourable conditions for implementing the Programme of the Convention on Biological Diversity in the protected areas of the Dinaric arc countries. The project is a part of the Dinaric Arc Initiative and includes the area of the Dinarides in the territory of Slovenia, Croatia, Bosnia and Herzegovina, Montenegro and Albania. Basic data is gathered as part of the project and knowledge of the region is increased while simultaneously strengthening the capacities of governmental bodies in the said area. In October 2008, a project proposal was prepared under the title Identification and Establishment of Marine NATURA 2000 Sites as part of the IPA TAF 2007. The European Commission approved the project in November 2008. The principal purpose of the project is to identify marine sites which, due to a lack of scientific data, were not included in the existing national ecological network or the existing NATURA 2000 proposal, especially with regard to outer territorial waters and sea under national jurisdiction. The planned project duration is 18 months and it will be implemented by the State Institute for Nature Protection. The planned financing as part of the IPA programme is estimated at EUR 527,500. The planned results, inter alia, include the following: completing the proposal for marine NATURA 2000 sites in accordance with the criteria listed in Annex II to the Habitats Directive, collecting data on the distribution of species and habitats listed in the annexes to the Habitats Directive in 7 selected pilot sites, drafting a map of marine habitats for 7 selected pilot NATURA 2000 sites, establishing a monitoring system in 7 selected sites, and the active involvement of local stakeholders in the data collection process and preparation of the proposal for marine NATURA 2000 sites. Pursuant to the Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/08), the Ministry of Agriculture, Fisheries and Rural Development established the Directorate for Veterinary Inspection, which consists of two sectors and one independent unit. One state veterinary inspector for animal welfare is employed at the Directorates headquarters in Zagreb. It is planned to increase the number of veterinary inspectors within the Directorate itself in particular regional veterinary offices and departments for which purpose a public announcement for vacancies for 35 official veterinarians was published. The recruitment of one employee in the Directorate for Veterinary Science is in progress an expert associate for animal welfare who will be placed in the Department for Animal Welfare within the Directorate for Veterinary Science by the end of 2008. Nature Protection Inspection In June 2008, pursuant to the Regulation on amendments to the internal organisation of the Ministry of Culture (OG 70/08), the new Directorate for Inspection Affairs in Nature Protection was established. The Directorate consists of two departments: the Department for Inspection Affairs in Nature Protection and the Department for the Improvement of Inspection Services. The Directorate has a total of 11 nature protection inspectors of whom five are situated in Zagreb and six regionally. All inspectors have the same rights and authority to act throughout the entire territory of Croatia. The process of recruiting three new inspectors is underway for the purpose of strengthening the administrative capacities of the inspection service. The education and training of inspectors was continuously carried out in the course of 2008. Consequently, six nature protection inspectors have been trained to use the ARC GIS programme and, as a result, to use and apply the database on the ecological network of the Republic of Croatia (the training was carried out as part of the Protected Area Management System in Croatia Phase
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II Development of a Protected Area Management System for county administrations project). One nature protection inspector is actively involved in workshops intended for strengthening capacities for the implementation of the nature impact assessment as part of the PHARE 2005 project Institutional Building and Implementation of NATURA 2000 in Croatia. Two inspectors are actively participating in workshops as part of the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis in the part relating to capacity building of bodies relevant for alignment with the IPPC Directive, and one inspector is involved in the pilot project controlling potential IPPC installations. As part of the implementation of the Implementation of the Environmental Acquis Relating to the Protection of Wild Species through Trade Regulation project, all nature protection inspectors completed the training of trainers and received certificates confirming their ability to train other employees of relevant state administration bodies on issues relating to the implementation of the CITES Convention and relevant EU regulations. One inspector participated in a workshop organised as part of the FAO Capacity Building of Regulatory Agencies for Handling and Monitoring Genetically Modified Crops, Products and Processed Food project, which is implemented by the Ministry of Agriculture, Fisheries and Rural Development. In 2008, the Nature Protection Inspection participated in the work of the GreenForce network (a network of EU member states that includes representatives of bodies competent for nature protection and forestry) in the Netherlands at a workshop which initiated activities related to drafting an inspection manual (Towards common guidelines for GreenForce). During 2008, education and technical examinations were organised for supervisors in public institutions who will carry out activities for protecting, maintaining and promoting a protected area. Three training seminars were organised in which inspectors participated as lecturers and two examinations in which inspectors participated as examiners. For the needs of examinations, the Inspection drafted a manual and created a training programme and exercises. In 2008, a total of 132 supervisors from all public institutions were included in the education and examination programme. With this education and technical examination programme, the supervision service was strengthened with regard to the efficient enforcement of legal instruments and carrying out the inspections and application of sanctions for which it is authorised under the Nature Protection Act. B) KEY PRIORITIES Key priorities in 2009 relate to the further transposition and implementation of the relevant provisions of the acquis in the field of nature protection and conservation into national legislation, and the further strengthening of administrative capacities. In 2009, full alignment will be achieved with the so-called CITES regulation package, consisting of Council Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein, Council Regulation (EC) No 865/2006 laying down detailed rules concerning the implementation of Council Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein, and Commission Regulation (EC) No 811/2008 suspending the introduction into the Community of specimens of certain species of wild fauna and flora. Alignment will be implemented by the end of the second quarter of 2009 by amending the Ordinance on the transboundary movement and trade in protected species (OG 34/06) and the Ordinance on the conditions of keeping, methods of marking, and keeping of records of protected animals in captivity (OG 146/05), and will be carried out in line with the results of the Implementation of the Environmental Acquis Relating to the Protection of Wild Species by Trade Regulation project, which ends in December 2008. In addition, in 2009 it is planned to carry out partial alignment with Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora through the adoption of amendments to the Ordinance on nature impact assessment (OG 89/07), the Ordinance on proclaiming wild taxa as being protected and strictly protected (OG 7/06), and the Ordinance on sorts of habitat types, habitat maps, endangered and rare habitat types and on measures for conservation of habitat types (OG 7/06) by the end of the third quarter of 2009. With regard to full compliance with obligations arising from the Habitats Directive, in the course of 2009 work on defining the Croatian proposal for the EU NATURA 2000 ecological network will be intensified. The said proposal for the NATURA 2000 ecological network will be prepared based on the results of the PHARE 2005 project Institutional Building and Implementation of NATURA 2000 in Croatia which will end in February 2009. The proposal for the NATURA 2000 ecological network is a database that contains all the data prescribed by the Directive on localities (sites) which have been proposed (including SPA
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and pSCI sites). The Republic of Croatia is obliged to submit the said proposal (database) to the European Commission by the date of its accession to the EU. The Regulation on ecologically relevant Natura 2000 sites of international importance and the amended Regulation on proclamation of the ecological network (OG 109/07) will be drafted in accordance with the dynamics of preparing the above-mentioned proposal. One of the principal objectives of this project is to carry out the consultation process for the proposal for the NATURA 2000 network which was prepared by Croatia and to define the final proposal. During 2009, it is planned to intensify work on the draft proposal of the National Strategy on External Invasive Species. In the course of drafting this document, implementation of a complex consultation process is expected, which will include all interested state administration bodies (for instance, the MRDFWM, MAFRD, MSTI, MSES, etc) and numerous other stakeholders. In 2009, the implementation of priority activities planned by the revised National Strategy and Action Plan for the Protection of Biological and Landscape Diversity (NSAP) will start. Among the priority actions plans, it is especially important to implement those relating to: the inventory and mapping of endangered and rare habitat types listed in Annex I to the Habitats Directive, as well as taxa listed in Annexes II and IV to the Habitats Directive and Annex I to the Birds Directive, which are important to establishing the NATURA 2000 network; the identification of sites important for the conservation of habitat types listed in Annex I to the Habitats Directive and taxa listed in Annex II to the Habitats Directive and Annex I to the Birds Directive, as well as sites important for the conservation of habitat types and taxa which have been proposed by the Republic of Croatia to supplement Annexes I and II of the Habitats Directive. Activities aimed at proclaiming new protected areas, including the Neretva River Delta Nature Park, will continue, as will activities related to the establishment of visitor centres in protected areas (National Parks/Nature Parks), and the drafting of remaining national and nature park management plans. Further administrative capacity building of the Ministry of Cultures Nature Protection Directorate will be continued by hiring 4 new employees, and administrative strengthening of the State Institute for Nature Protection by hiring nine new employees. Administrative strengthening of the public institutions of national parks and nature parks will also continue. With the adoption of the Act on Amendments to the Nature Protection Act, activities relating to nature protection will be transferred to the competence of county administrative bodies. The hiring of new employees in county administrative bodies will be within the competence of the counties themselves. However, the Ministry plans to secure certain funds in the state budget for 2009 for the purpose of training employees of county administrative bodies, especially with regard to implementing the nature impact assessment procedure and the Regulation on the proclamation of the ecological network. During 2009, the Ministry of Culture will work on drafting a preparatory project (WB Project Preparation Advance - PPA) for the purpose of a World Bank loan to be used to implement the Croatia Ecological Network Investment Program (CENIP). The amount ensured by the World Bank for the preparatory project is estimated at EUR 350,000. Similarly, following approval for the implementation of the Identification and Establishment of Marine NATURA 2000 Sites project as part of IPA TAF 2007, activities related to preparing implementation of the project and the drafting of ToR will be carried out. Further administrative capacity building of the Directorate for Veterinary Inspection and Directorate for Veterinary Science will continue in 2009. By the end of 2009, it is planned to have a total of 267 veterinary inspectors and official veterinarians employed at the Directorate for Veterinary Inspection, which means that further recruitment will be continued in 2009. It is planned to hire one more employee at the Directorate for Veterinary Science in 2009 as an expert associate for animal welfare. This will mean that the Department for Animal Welfare Directorate for Veterinary Science of the Ministry of Agriculture, Fisheries and Rural Development will have a total number of 4 employees by the end of 2009. In addition, training relating to the protection of animals at zoos and the protection of animals used for experiments and other scientific purposes are planned in 2009. Training intended for inspectors and natural and legal persons who own zoos or perform animal testing will be organised in co-operation with TAIEX.
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The Croatian Environment Agency is continuing activities concerned with collecting data and calculating selected indicators for this subject area. The existing database of the Biodiversity Information System BIS will be regularly updated. Nature Protection Inspection During 2009, the Nature Protection Inspection will continue with administrative strengthening by employing 4 new inspectors. The newly employed nature protection inspectors will work outside the City of Zagreb, mostly in county centres, and will have the same rights and authority to act throughout the entire territory of Croatia. Training of nature protection inspectors as part of the PHARE 2005 project Enhanced Environmental Inspection for Enforcement of New Environmental Legislation, EuropeAid /123226/D/SER/ HR will also continue. Finalisation of the training is expected in July 2009. In addition, the Inspection will participate in the Reptile smuggling seminar organised by EU TWIX, TRAFFIC, Interpol, WWF Italy and Corpo Forestale dello Stato, which will be held in January 2009. The Inspection will take part in further activities of the GreenForce network in 2009, especially in continuing work related to the manual on inspections. It will also participate in expert meetings. In addition, the Inspection will continue activities related to organising training for supervision services and their inclusion in planned inspections of both protected natural assets and the ecological network. The Directorate for Inspection Affairs in Nature Protection submitted two projects for the IPA Programme - Component I, which will be reviewed this year and, if accepted, the Directorate will continue working on their further development and realisation.
3.27.7. Industrial pollution control and risk management

A) ACHIEVEMENTS IN 2008 At the end of September 2008, the Croatian Government adopted the Regulation on the procedure for determining integrated environmental protection requirements (OG 114/08) and the Regulation on the inclusion of organisations in the EMAS scheme (OG 114/08). Also in September 2008, the Ordinance on the register of permits for use and decisions on integrated environmental protection requirements (OG 113/08) was adopted. The listed regulations were adopted under the Environmental Protection Act (OG 110/07), thus completing the transposition of the provisions of the Directive concerning integrated pollution prevention and control (Directive 2008/1/EC - IPPC) and the EMAS Regulation. At the end of September 2008, the Croatian Government also adopted the Regulation on the prevention of major accidents involving dangerous substances (OG 114/08). In September 2008, the Ordinance on the registry of installations in which hazardous substances are present and the register of reported major accidents (OG 113/08) was also adopted. The said regulations were adopted under the Environmental Protection Act and complete the transposition of the provisions of the Directive on the control of major-accident hazards involving dangerous substances (Seveso II Directive 96/82/EC) and its amendments (Directive 2003/105/EC). Pursuant to the Environmental Protection Act (OG 110/07), the Ordinance on the environmental label (OG 70/08) was adopted in June 2008, which prescribes the basic requirements for the implementation of the EU eco-label award scheme. The new Environmental Protection Act prescribes the establishment of a single Environmental Pollution Registry, upon the basis of which the Ordinance on the Environmental Pollution Registry (OG 35/08) was adopted, thus ensuring the implementation of Regulation (EC) No 166/2006 of the European Parliament and of the Council concerning the establishment of a European Pollutant Release and Transfer Register, and also the implementation of the UN/ECE Protocol to the Aarhus Convention on Pollutant Release and Transfer Registers (PRTR Protocol).
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In May 2008, the Croatian Parliament ratified the Protocol on Pollutant Release and Transfer Registers (PRTR). With the ratification of the PRTR Protocol, Croatia will additionally strengthen public access to environmental information via the registers, i.e. a database on pollutant release and transfer at the national level. The Croatian Environment Agency is competent for the implementation of the PRTR Protocol in the Republic of Croatia. In the Croatian Environment Agency, one full-time employee, one part-time employee and one part-time employee for IT support are currently working on activities to establish databases pursuant to the registers in the PRTR Protocol. The final list of parties subject to the IPPC Directive was prepared by the Croatian Cleaner Production Centre. The list will be used for further assistance to the parties subject to the implementation of this Directive. The project has identified 281 locations of existing installations which will be required to meet integrated environmental protection requirements. Activities continued as part of the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis, which also contains the IPPC component. The project results in 2008 were 17 visits to industrial installations in which the evaluation of alignment with the best available techniques (BAT) was carried out as well as the pilot introduction of IPPC permits. In addition, methodological manuals for the implementation of the Directive were prepared. These relate to different aspects of BAT identification. The result of these visits and evaluations was that the applications for TE Sisak, the INA Sisak refinery, the Petrokemija plant in Kutina and Cement Plant Naice were completed. Three more visits to industrial installations will take place by the end of 2008. 13 BAT methodological manuals were drafted that will be used in the selection of best available techniques. 11 manuals containing so-called horizontal recommendations (BREFs), and two manuals containing vertical recommendations for particular industry sectors will soon be used to assist the authorised persons of the IPPC Directive and the parties subject to it. As part of the CARDS 2004 project, in 2008 three training sessions/workshops were organised, two of which were in Zagreb. An important role was also played by the workshop held at the Plomin thermal power plant in which more than 45 stakeholders from state administration bodies and industry participated. The workshop was practical in nature and was related to the preparation of documentation required for meeting integrated environmental protection requirements. As part of this project, a list of installations subject to the IPPC Directive was defined (a total of 290 installations). A workshop on the IPPC Directive with a focus on the food industry was organised in co-operation with a German partner. The workshop was held on 22 and 23 September in the Croatian Chamber of Economy and was attended by the representatives of various food industry sectors. On the German side, the workshop was delivered by the German Environment Agency. With regard to EMAS, promotional activities for the introduction of EMAS were completed in March 2008. These activities were carried out by the Croatian Cleaner Production Centre and participated in by over 50 economic entities, the Croatian Accreditation Agency, the Croatian Chamber of Economy, and the MEPPPC. The process of drafting the document Implementation of Priority Activities for the Application of the Directive on the control of major-accident hazards involving dangerous substances (Seveso II Directive 96/82/EC) is underway pursuant to the provisions of the Environmental Protection Act (OG 110/07). The Environmental Inspection is participating in the implementation of the first (IPPC) and second (Climate Change) component of the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis. During 2008, 7 representatives of the Environmental Inspection participated in the work of 2 two-day and 4 one-day workshops on the alignment of Croatian legislation with the requirements of the IPPC Directive. In addition to the above-mentioned training of inspectors, as part of the project the Environmental Inspection also participated in activities for BAT assessments for 17 potential IPPC installations and in initial inspections of 4 future IPPC installations for which pilot permits will be prepared. The Environmental Inspection has actively prepared itself for a leading role in co-ordinating the supervision of future IPPC and Seveso installations, and also implementing the Recommendation on establishing minimum criteria for environmental inspections in the work of other inspection bodies competent for the supervision of individual environmental components.
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In this reporting period, in accordance with the Agreement on Co-operation between Inspection Services in the Field of the Environment, environmental inspectors in co-operation with MRDFWM water inspectors, MHSW sanitary inspectors, MI fire protection and occupational safety inspectors, pressure vessel inspectors, and mining and electricity inspectors of the State Inspectorate, based on experiences gained in 2007, and in accordance with the agreed work plan, continued to carry out co-ordinated inspections of future IPPC installations. By the end of November 2008, they had performed co-ordinated inspections of all 18 planned future IPPC installations. Pursuant to the provisions of the Environmental Protection Act (OG 110/07), the report on performed co-ordinated supervisions will be published on the MEPPPC webpage. With regard to the transposition and implementation of the SEVESO II Directive and the Convention on the Transboundary Effects of Industrial Accidents, the Environmental Inspection participated in the following activities: Pilot Project for the Voluntary Exchange System for Seveso Refinery Inspectors, VESS January 2008; Training for the implementation of the LCP and Seveso II directives and application of E-PRTR (European Pollutant Release and Transfer Register), Bristol, Great Britain, March 2008; Bilateral co-operation with the Republic of Slovenia regarding data exchange and identification of hazardous activities within the cross-border area, April 2008, Varadin; Annual Work Meeting of the Technical Working Group 2 (TWG 2) of the European Commission on the implementation of the SEVESO II Directive Inspection of High Risk Installations, Rdesheim, Germany, May 2008; Annual meeting of environmental inspectors, Zagreb, May 2008 part of the meeting focused on the activities of the Environmental Inspection relating to the transposition and implementation of the SEVESO II Directive in the Republic of Croatia. B) KEY PRIORITIES After the adoption of regulations for the transposition of a part of the environmental acquis relating to industrial pollution and management of risks and accidents, key priorities for 2009 are further administrative capacity strengthening and building industrys capacities for implementing the IPPC Directive. In 2009, two workshops intended for strengthening the capacities of state administration bodies and industry for the implementation of the IPPC Directive will be organised as part of the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis. In addition, one more IPPC test permit will be drafted and four more BAT methodological manuals for the implementation of the IPPC Directive will be prepared. It is also planned to continue co-operation with Germany through twinning projects for different aspects of the IPPC Directive. Regarding EMAS, information and promotional activities for various industry sectors will be carried out. In 2009, activities regarding the alignment of existing installations with the requirements of the IPPC Directive, for which all legal preconditions have been realised, will be intensified and accelerated. These activities are determined by the implementation of the Regulation on the procedure for determining integrated environmental protection requirements (OG 114/08), which will enter into force on 31 March 2009. To this end, evaluations and approvals of studies on the method of alignment will be carried out. These are obliged to be submitted by the parties subject to the IPPC Directive to the competent body (the Ministry of Environmental Protection, Physical Planning and Construction), pursuant to the provisions of the Environmental Protection Act. Timeframes for the alignment of existing installations will be determined through the evaluation of the studies. After finalising the procedure for evaluating and approving the said studies, the parties subject to the implementation of the Directive will submit applications for the issuing of integrated environmental protection requirements (environmental permits). In the course of 2009, activities related to the implementation of the new Ordinance on the environmental label will be intensified. Currently there are 6 employees working in the MEPPPCs Department for Environmental Permits and Environmental Liability, and in 2009 it is planned to hire three more employees (including a Head of Department).
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In 2009, the Environmental Inspection plans to continue carrying out joint inspections of future IPPC installations in accordance with the Agreement on Co-operation between Inspection Services in the Field of the Environment. The strengthening of inspection services will continue as part of the CARDS 2004 project Further Support to the Approximation of Croatian Legislation with the Environmental Acquis, especially in relation to activities of Component 1 (Industrial pollution control). A five-day workshop concerning the submitting of applications for the IPPC permit was held in October 2008, and the next workshop is planned for February 2009. During 2009, it is planned to prepare a manual on inspection procedures for IPPC installations, which will include compliance assessment, appropriate use of analytical laboratories, reporting and publishing inspection results, and the drafting of technical specifications for the database on issued IPPC permits and inspection reports on performed inspections of IPPC installations. As part of the TWG 2 programme, the Environmental Inspection participated in a workshop concerning the application of the SEVESO II Directive in October 2008. The workshop focused on the human factor in the prevention of major accidents, and a visit to a high risk installation was carried out. In 2009, administrative capacity building of the Environmental Inspection relating to the supervision of installations in which hazardous substances are present will be carried out through the systematic training of inspectors as part of the implementation of the PHARE 2005 project Enhanced Environmental Inspection for Enforcement of New Environmental Legislation, and the active participation of environmental inspectors in the work of the relevant networks. MJVTWG 2 project activities concerning the inspection of SEVESO II installations will also continue in 2009 through the active involvement of the Environmental Inspection in the work of the Annual TWG 2 Work Meeting which will be held in Austria in June 2009.
3.27.8. Chemicals and GMOs

Chemicals The following acts were adopted in 2008: Act on Amendments to the Act on Biocidal Products (OG 35/08); Act on the Implementation of Regulation (EC) No 1907/2006 of the European Parliament and of the Council concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (OG 53/08); Act on Amendments to the Chemicals Act (OG 53/08).
The following subordinate regulations were adopted in 2008: Ordinance on the classification, labelling and packaging of dangerous chemicals (OG 23/08); Ordinance on existing substances (OG 61/08); Ordinance on good laboratory practice (OG 38/08); Ordinance on the list of active substances in biocidal products (OG 90/08); Ordinance on the list of existing active substances not permitted in biocidal products (OG 90/08); Ordinance on the list of existing active substances permitted in biocidal products (OG 90/08);
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Ordinance on the documentation for evaluation of an active substance in biocidal products, documentation for evaluation of biocidal products, procedures for the evaluation of biocidal products and their use, and on biocidal product types with their description and common principles for the evaluation of biocidal products (OG 90/08).
The National Strategy for Chemical Safety, the preparation of which was financed by the SIDA Fund (the Kingdom of Sweden), was accepted by the National Commission for Strategy Approval at its meeting held on 13 March 2008. On 20 June 2008, the Government of the Republic of Croatia submitted it to the Croatian Parliament for adoption. The Croatian Parliament adopted the National Strategy for Chemical Safety on 28 November 2008. GMOs Pursuant to the Act on Genetically Modified Organisms (OG 70/2005), the following subordinate regulations were adopted in 2008: Ordinance on the content and scope of risk assessment in relation to the placement on the market of genetically modified organisms or products which contain and/or consist of or derive from genetically modified organisms, methodology for the preparation of assessment, and requirements that have to be fulfilled by a legal person for the preparation of risk assessment (OG 39/08); Ordinance on the scope and content of the assessment report on the suitability of the placement on the market of GMOs or products containing and/or consisting of or originating from GMOs (OG 93/08); 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 (OG 92/08); Ordinance on the content of the notification and technical dossier for placing on the market GMOs or products containing and/ or consisting of or derived from GMOs, and on the conditions for labelling and packaging of GMOs (OG 107/08); Ordinance on the requirements for monitoring the effects of genetically modified organisms or products which contain and/or consist of or derive from genetically modified organisms, and their use (OG 110/08). In relation to administrative capacity strengthening, one senior sanitary inspector was employed in the Ministry of Health and Social Welfare in the Directorate for Sanitary Inspection in the Department for Dangerous Chemicals, and one senior sanitary inspector was employed in the Directorate for Sanitary Inspection in the Department for GMO Control. Representatives of the Sanitary Inspections Department for GMO Control are taking part in the implementation of the FAO project Capacity Building of Regulatory Agencies for Handling and Monitoring Genetically Modified Crops, Products and Processed Food, which is implemented by the Ministry of Agriculture, Fisheries and Rural Development through the Institute for Seeds and Seedlings. From 813 September 2008, the Institute for Seeds and Seedlings in Osijek hosted a workshop with 45 participants from different regulatory agencies who directly participated in the risk analysis process. The workshop provided clear guidelines on key aspects of biosafety and the inspection and monitoring of biotechnological products. The objective of the workshop was to strengthen the knowledge and experience of employees in regulatory agencies and other participants on basic biosafety principles and frameworks. In the course of 2008, the Ministry of Cultures Nature Protection Directorate carried out all necessary preparations and drafted a proposal for the project Building Capacity for Effective Participation in the Biosafety Clearing House (BCH) for the purpose of receiving financial assistance from UNEP-GEF to the amount of USD 50,000 (UNEP-GEF Project for Building Capacity for Effective Participation in the Biosafety Clearing House). A Memorandum of Understanding (MoU) between UNEP and the Ministry of Culture was signed in June 2008, which also marked the official start of the project. The project will be completed by the end of December 2008. As part of the project, a series of five workshops will be organised for representatives of state administration bodies competent for GMO issues and their inspection services, customs and border police employees, scientists and media representatives. Representatives of the Ministry of Culture actively participated in the following conferences and workshops on the subject of biosafety: the Fourth Meeting of the Parties to the Cartagena Protocol on Biosafety (Bonn, May 2008), the First Global Conference on GMO Analysis (Como, June 2008), the Regional workshop on how to establish and implement a risk management system for GM crops
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(Prague, September 2008) and two workshops as part of the FAO project Capacity Building of Regulatory Agencies for Handling and Monitoring Genetically Modified Crops, Products and Processed Food, which is implemented by the Ministry of Agriculture, Fisheries and Rural Development. B) KEY PRIORITIES
Chemicals During 2009 the following legislative activities are planned: Ordinance on amendments to the Ordinance on the classification, labelling and packaging of dangerous chemicals (alignment with Council Regulation (EC) No 440/2008 of 30 May 2008 laying down test methods pursuant to the REACH Regulation and Directive 2008/58/EC of 21 August 2008 amending for the 30th time Council Directive 67/548/EEC on the classification, packaging and labelling of dangerous substances); Ordinance on the safety data sheet (alignment with Annex II to Regulation (EC) No 1907/2006 (REACH Regulation); Ordinance on the export and import of dangerous chemicals (alignment with Regulation (EC) No 689/2008 of the European Parliament and of the Council of 17 June 2008 concerning the export and import of dangerous chemicals); List of biocidal products (implementation of Article 18 of Directive 98/8/EC on biocidal products); Ordinance on amendments to the Ordinance on the list of existing active substances permitted in biocidal products (alignment with Directive 2008/86/EC, Directive 2008/85/EC, Directive 2008/81/EC, Directive 2008/80/EC, Directive 2008/79/EC, Directive 2008/78/EC, Directive 2008/77/EC and Directive 2008/75/EC); Ordinance on amendments to the Ordinance on the list of existing active substances not permitted in biocidal products (alignment with Commission Decisions 2008/681/EC and 2008/809/EC). In 2009, adoption of the National Programme of Good Laboratory Practice is planned pursuant to the Ordinance on good laboratory practice (OG 38/08). GMOs During 2009, the following legislative activities are planned: 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 2008/730/EC and Commission Decision 2008/837/EC); the Act on Amendments to the Act on Genetically Modified Organisms (alignment with Regulation (EC) 1946/2003 on transboundary movement of GMOs, Commission Recommendation 2004/787/EC on sampling and detection of GMOs, Commission Recommendation 2003/556/EC on guidelines for the development of national strategies and best practices to ensure the coexistence of genetically modified crops with conventional and organic farming).
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3.27.9. Noise protection

A) ACHIEVEMENTS IN 2008 Pursuant to the adopted Ordinance on requirements regarding the premises, equipment and personnel of legal persons performing expert tasks in noise protection, the Ordinance on expert examinations in the field of noise protection, and the Ordinance on activities with respect to which it is necessary to establish the implementation of noise protection measures (OG 91/07), preparations were completed for starting the authorisation of legal persons performing expert noise protection tasks and, inter alia, activities related to the preparation of noise maps and action plans. Administrative capacity building of the Ministry of Health and Social Welfare, Directorate for Sanitary Inspection, was carried out by employing one expert associate in the Department for Sanitary Inspection. The Croatian Environment Agency is carrying out activities related to the field of noise protection in the Section for Sectoral Impacts. A Database on noise maps has been developed and activities for processing and formatting existing data for their display via the GIS browser on the webpage have been initiated. B) KEY PRIORITIES During 2009, the following legislative activities are planned: the Noise Protection Act (alignment with Directive 2002/49/EC and Commission Recommendation 2003/613/EC); Ordinance on amendments to the Ordinance on the method of preparation and content of noise maps and action plans (alignment with Directive 2002/49/EC and Commission Recommendation 2003/613/EC).
3.27.10. Forestry
A) ACHIEVEMENTS IN 2008 During 2008, the Ordinance on amendments to the Ordinance on the manner of data collection, keeping the register, and the requirements for using data on forest fires (OG 74/08) was adopted under the Forests Act (OG 140/05 and 82/06). The register of forest fires is in its final stage of preparation. To this end, hardware for a single information system and preparation of the register of forest fires was procured. During 2008, two new employees were employed in the Sector for Forest Protection and International Co-operation. Regarding the activities of the Croatian Environment Agency, the National List of Indicators was prepared. Supplementing and processing of data for 2005, 2006 and 2007 started in order to obtain results for measuring forest damage levels in the form of an index. B) KEY PRIORITIES In 2009, software for the Single Information System and establishment of the register of forest fires will be upgraded. It is planned to recruit 3 new employees in the Ministry of Regional Development, Forestry and Water Management (MRDFWM), of which 1 will be in the Sector for Forest Protection and International Co-operation and 2 in the Sector for Forestry Inspection. The Croatian Environment Agency will continue co-operation with the MRDFWM concerning access to the Register of Fire-Affected Areas.
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3.28. CONSUMER AND HEALTH PROTECTION 3.28.1. Consumer protection

A) ACHIEVEMENTS IN 2008 During 2008, Croatia engaged in activities aimed at strengthening the consumer protection system. This consisted of additional legislative alignment with the acquis in the area of consumer protection, development of institutional frameworks and campaigns designed to raise public awareness of consumer protection in Croatia. Pursuant to the Consumer Protection Act adopted in July 2007, in April 2008 the Croatian Government passed the following subordinate legislation: Regulation on the nomination of legal persons having a vested interest in collective consumer protection (OG 41/08) and Regulation on the nomination of legal persons having a vested interest in collective consumer protection (OG 41/08). In March 2008, the Minister of the Economy, Labour and Entrepreneurship issued the Decision introducing a common method of calculating the effective annual interest rate on consumer loans (OG 27/08), and in April of the same year the Ordinance on the evaluation of the professional competence of persons to work at consumer counselling centres (OG 46/08). Both of the mentioned Regulations are intended to designate legal persons authorised to take appropriate action concerning collective consumer protection. These are: the Croatian Chamber of Economy, the Croatian Chamber of Crafts and Trades, the Croatian Employers Association, the Croatian Bankers Association, the Croatian Insurance Office, Potroa (Consumer) the Croatian Union of Consumer Associations, and the Union of the Consumer Associations of Croatia. The Ordinance on the evaluation of the professional competence of persons to work at consumer counselling centres defines the training programme and evaluation procedure for persons assigned to work at consumer counselling centres. The certificates enabling these persons to work in the said capacity are issued by the Ministry of the Economy, Labour and Entrepreneurship as the ministry responsible for consumer protection affairs. Pursuant to the Consumer Protection Act, the Croatian Government has appointed the National Consumer Protection Council as its advisory body for a fouryear term. Under the earlier Consumer Protection Act of 2003, the National Consumer Protection Council was an advisory body of the Minister of the Economy, Labour and Entrepreneurship. However, in accordance with the recommendations of the consultants of the CARDS 2002 project Capacity Building in the Area of Consumer Protection, and given that the multidisciplinary nature of the area of consumer protection goes beyond the scope of the Ministry of the Economy, Labour and Entrepreneurship, a proposal was accepted to make the National Consumer Protection Council an advisory body of the Government. The National Council is composed of the representatives of government agencies in charge of consumer protection, commercial and other interested associations of traders, consumer associations, and independent experts specialised in consumer protection, and its main task as an important body in the area of consumer protection is to develop and promote consumer protection policies. The Decision establishing the National Consumer Protection Council was taken by the Government on 14 February 2008 and published in the Official Gazette No. 21/08. In accordance with Commission Recommendation 2001/310/EC of 4 April 2001 on the principles for out-of-court bodies involved in the consensual resolution of consumer disputes, the Consumer Protection Act (OG 79/07,125/07) introduces a system of out-ofcourt resolution of consumer disputes before Courts of Honour at the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts, and the Conciliation Centre of the Croatian Employers Union. Croatian citizens are thus given a chance to opt for an easier and more economical way of resolving consumer disputes in cases where it is not possible to resolve them directly with the trader. Funds required for covering the costs of resolving out-of-court disputes before the Courts of Honour and Conciliation Centres are provided from the State Budget and were allocated in September 2008 by virtue of an agreement reached between the Ministry
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of the Economy, Labour and Entrepreneurship on the one hand and the Croatian Chamber of Economy, the Croatian Chamber of Trades and Crafts, and the Croatian Employers Union on the other. In October this year, new judges of the first-instance and secondinstance councils of the Courts of Honour of the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts were appointed from among traders, consumers and independent experts, mostly lawyers. Since the councils of the Courts of Honour now also have representatives of consumer associations as members, in the coming period activities are expected to be focused on the ongoing provision of consumer information and education concerning the use of instruments for the out-of-court resolution of disputes with traders. Training courses for the new judges of the Courts of Honour were held, given the exceptional importance of educating mediators in order to ensure high mediation standards. In the forthcoming period, further education of judges of Courts of Honour and mediators of Conciliation Centres is planned with a view to promoting good business practices, and strengthening business morality and consumer protection in Croatia. Pursuant to the General Product Safety Act (OG 158/03, 107/07), the Minister of the Economy, Labour and Entrepreneurship published a list of standards on general product safety in the Official Gazette 73/08 in order to facilitate market surveillance with regard to product safety. Regarding preconditions to be created for the direct application of Regulation (EC) No. 2006/2004 of the European Parliament and of the Council of 27 October 2004 on co-operation between national authorities responsible for the enforcement of consumer protection, during this period officers of the Consumer Protection Department attended workshops on co-operation among national bodies, organised by the German Society for Technical Co-operation (GTZ), and had a meeting in Brussels with European Commission experts. Under the new Regulation on the internal organisation of the Ministry of the Economy, Labour and Entrepreneurship (OG 41/08) adopted in April 2008, the Consumer Protection Department has been extended by one more section and now consists of the following four sections: the Section for the Development and Monitoring of the Consumer Protection System, the Section for Consumer Protection Information and Education, the Section for Alignment of Consumer Protection Legislation, and the Section for EU Programmes and Projects in the Area of Consumer Protection. Administrative capacity building in the Consumer Protection Department was quite intensive through training courses and workshops organised as part of the Twinning CARDS 2004 project Further Capacity Building in the Area of Consumer Protection by the Academy of European Law, and the German Society of Technical Co-operation (GTZ), as well as in the domain of the activities of the Open Regional Fund for South East Europe, plus a number of workshops and seminars arranged by the European Commission for the employees of state administration bodies responsible for drawing up consumer protection policies. In addition to the aforementioned, the employees of the Consumer Protection Department receive ongoing education and training at the Centre for Vocational Training and Professional Improvement of the Central State Office for Administration of the Republic of Croatia. In July 2008, the Ministry of the Economy, Labour and Entrepreneurship announced vacancies to strengthen the Consumer Protection Department. In this way, efforts are being made to lay a suitable institutional foundation for ongoing administrative capacity building and improvement, so as to be able to keep abreast of all developments in the part of the acquis relating to consumer protection. During 2008, the non-governmental sector competent for consumer protection was very active through its two Unions of Consumer Associations as umbrella organisations. With a view to acquiring new knowledge in specific areas such as consumer counselling, consumer complaint statistics etc, the representatives of consumer associations attended a series of training and education events as part of the Twinning CARDS 2004 project Further Capacity Building in the Area of Consumer Protection.
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The consumer counselling centres in Zagreb, Osijek, Split and Pula, which are being established as part of the consumer protection associations and financed solely from the State Budget to an amount totalling HRK 1,631,000 (EUR 228,612), provided 6,175 pieces of advice over the first six months of 2008, which shows that consumers are increasingly perceiving these centres as places which can help them exercise their basic consumer rights more quickly and with greater efficiency. With a view to raising consumer awareness and improving consumer education and information, on 19 July 2008 the Ministry of the Economy, Labour and Entrepreneurship announced a public competition for the award of financial support to consumer protection associations for the implementation of the following projects: Consumer Information and Education to the amount of HRK 400,000 (EUR 56,066) and Capacity Building of Consumer Protection Associations to the amount of HRK 200,000 (EUR 28,033). The newly adopted Act on Amendments to the Civil Obligations Act (OG 41/2008) amends, inter alia, the provisions of the Civil Obligations Act concerning the liability of the seller for material defects in goods, and provisions concerning guarantees on goods against defects. In addition, it aims to align the relevant legislation with Directive 1999/44/EC of the European Parliament and of the Council of 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees. In accordance with the said Directive, the Act provides for the sellers liability even for minor defects in goods; the concept of the producer is defined within the meaning of the provisions on liability for material defects and the guarantee on sold goods against any defects; the customers right is laid down to have the contract rescinded or the price proportionately reduced if the repair of a defect would be associated with considerable inconvenience for the customer; earlier provisions on guarantees on goods against any defects have been amended and now the guarantee can be given by both the seller and the producer and is binding regardless of the form in which it is given (warranty, verbal assurance, associated advertising), with the customer being entitled to a guarantee issued in writing or another durable medium accessible to him/her. Likewise, the Act removes certain minor discrepancies between the Civil Obligations Act and Council Directive 90/314/EEC of 13 June 1990 on package travel, package holidays and package tours and Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products, amended by Directive 1999/34/EC of the European Parliament and of the Council of 10 May 1999. B) KEY PRIORITIES For additional alignment with the acquis in the area of consumer protection, in the first quarter of 2009 the following proposals will be submitted for Government procedure: The Act on Amendments to the Consumer Protection Act, the Act on Amendments to the General Product Safety Act, and the Regulation on Amendments to the Regulation on the exchange of information concerning products posing a risk to the health and safety of consumers. As the area of misleading and comparative advertising in relations between suppliers is still unaligned, in the first quarter of next year the Act on Impermissible Advertising implementing Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising, amended by Directive 97/55/EEC concerning comparative advertising will also be presented to the Croatian Government for further procedure. In addition, in the second quarter of next year the Government will be presented with the Consumer Credit Act proposed by the Ministry of Finance, whereby the new Directive on consumer credits, adopted in May this year, will be incorporated into Croatian legislation. Apart from the legislative framework, administrative capacity building of the Consumer Protection Department through the Ministry of the Economy, Labour and Entrepreneurship will be continued in terms of improved expertise and knowledge of the acquis related to consumer protection, and through various forms of co-operation with other domestic and foreign consumer protection bodies and the non-governmental sector active in this area. Furthermore, actions are planned aimed at strengthening and unifying the non-governmental sector in this area so as to have a more competent partner with a clear consumer protection programme and action plan in the consumer protection area, with the aim of strengthening the co-operation and partnership between the governmental and non-governmental sectors involved in consumer protection.
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The short-term priority in the area of consumer protection is the continued promotion of the system of out-of-court resolution of consumer disputes before the conciliation centres of the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts, and the Croatian Employers Union, or the Courts of Honour established as part of the Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts. Funds have been earmarked for this work in the State Budget for the purpose of enabling consumers to have their disputes resolved more economically and with greater efficiency. In early 2009, work will begin on the drafting of a new National Programme for Consumer Protection covering a fouryear period. The Programme will provide more detailed guidelines for the implementation of consumer protection policies in the Republic of Croatia, define priorities in the area of consumer protection and lay down the activities of parties involved in carrying out these policies. Market surveillance
A) ACHIEVEMENTS IN 2008 The new Consumer Protection Act (OG 79/07) contains more administrative measures than the earlier Act, which enables the economic inspectors of the State Inspectorate to act in the area of consumer protection with greater efficiency and transparency. Furthermore, in accordance with the Regulation on the internal organisation of the State Inspectorate (OG 66/05, 42/06 and 127/07), the scope of the Consumer Protection Department has been partially expanded by the introduction of two new sections: the Section for Supervision of the Sale of Products and Provision of Services, and the Section for Exchange of Product Information (RAPEX) and the Central Consumer Protection Information System (CPCIS).
Pursuant to the Regulation, the Ordinance on the internal organisation of the State Inspectorate was adopted and entered into force on 29 February 2008, followed by a new Ordinance on the internal organisation of the State Inspectorate, which entered into force on 12 November 2008. In the second half of 2008, vacancies were filled for the heads of both Sections and two assistants in the Section for Exchange of Product Information (RAPEX) and the Central Consumer Protection Information System (CPCIS). The RAPEX and CPCIS Section will carry out the tasks of rapid exchange of information on measures and action taken with respect to products (other than food, articles in contact with food, pharmaceutical and medicinal products, animal feed and used products) posing a serious risk to consumer health and safety. In future, once Croatia becomes part of RAPEX, the Section will receive the European Commissions official communications through contact points and then check and ascertain whether a certain product has been placed on the Croatian market, collect the relevant information, undertake an additional risk assessment if required; consider the need to apply appropriate measures, assist in clarifying the obligations and requirements regarding official reporting on dangerous products, help establish a network of contact points at various levels and ensure that information exchange procedures function correctly within the country, and officially keep the Commission informed as part of RAPEX on the voluntary measures taken by manufacturers and distributors with a view to avoiding the risks posed by a product. A contact point for RAPEX will be put in place at the State Inspectorate in accordance with the Regulation on the exchange of information concerning products posing a risk to the health and safety of consumers (OG 138/06). The Section already performs duties within the scope of the State Inspectorate using the Central Consumer Protection Information System, with the aim of speeding up the flow of information on violations of consumer rights and taking timely measures to eliminate them. The system also allows the collection, processing and analysis of consumer complaints. 58 employees (largely the heads of filing services at the State Inspectorates regional branches, the heads of the departments for supervision of the distribution of goods and services, and the heads of sections within such departments of all regional branches) from
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the head office of the State Inspectorate and its regional branches have attended training courses in the use of the CPCIS system. CPCIS Operating Instructions are available to all users. The CPCIS application has been available to consumers since 17 March 2008 on the web pages of the Ministry of the Economy, Labour and Entrepreneurship and the State Inspectorate. Consumer claims, depending on their type, are directly forwarded by the system to the competent authorities. The CPCIS has opened the way to a higher level of co-operation between the Ministry of the Economy, Labour and Entrepreneurship as the chief agent of legislative initiatives in the area of consumer protection, the State Inspectorate as the responsible implementing body and the consumer counselling centres established by consumer protection associations. This system is important because, among other things, an analysis of filed complaints may provide an insight into typical market irregularities requiring a proper response and demanding the attention of economic inspectors. On the other hand, knowing how the Ministry of the Economy, Labour and Entrepreneurship and the consumer counselling centres have reacted will help to ensure that all inspectors apply the same standards countrywide. The benefits the system offers to individual consumers include the electronic availability of information about their rights and about the legislative framework regulating the area of consumer protection, as well as the possibility of filing online complaints and receiving answers via a secret PIN. From the beginning of the use of the CPCIS to 20 November 2008, a total of 378 inspections were carried out in response to consumer complaints received via the CPCIS and a total of 44 infringements of the Consumer Protection Act were found, meaning that in 11.64% of cases consumer claims were justified, i.e., their rights had been violated. It is therefore clear that the system in question facilitates the protection of consumer rights. The State Inspectorate is one of the beneficiaries of the CARDS 2004 project Further Capacity Building in the Area of Consumer Protection, the responsible authority for which is the Ministry of the Economy, Labour and Entrepreneurship. The project commenced in September 2007 and has been implemented for two years now. As part of the project, the economic inspectors of the State Inspectorate have attended training courses in the following fields: unfair contractual terms; indication of the prices of products and services; sale of products and services; liability for damage caused by dangerous products; and unfair, misleading and aggressive business practices. Possible alternative resolutions of disputes were presented, as were statistical methods of data collection concerning product safety. An overview was given of the market surveillance systems in France and Germany in the context of the protection of the economic interests of consumers. B) KEY PRIORITIES Through the CARDS 2004 project Further Capacity Building in the Area of Consumer Protection, further work is planned on the improvement of the CPCIS, along with training and assistance in establishing RAPEX contact points. RAPEX training sessions will include train-the-trainer courses for economic inspectors who, after completing the courses, will hold training courses at regional branches of the State Inspectorate; training will include methods of establishing co-ordination between state administration bodies and, as the final result, drawing up guidelines for economic inspectors. The project also provides for a short-term RAPEX internship in Germany for two representatives of the State Inspectorate, who would participate in practical work at the Federal Institute for Occupational Health and Safety in Dortmund as the German RAPEX contact point. As part of the activities envisaged by the project, assistance and advice are expected regarding the establishment of the Single Liaison Office for the implementation of Regulation No. 2006/2004/EC on consumer protection co-operation, which will be directly applicable upon accession to the EU. Since Croatia can participate in RAPEX only after becoming a Member State, the goal until then is to establish co-ordination of contact places with the contact point at the national level. Along with continued development of the information system, work will continue on the creation of a database within the State Inspectorate and the systematic training of economic inspectors in the field of consumer protection.
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3.28.2. Health Protection

Public health programmes On 28 February 2007, the Croatian Government adopted a Conclusion defining the Community priority programmes for which Croatia will initiate accession procedures. To this end, a procedure has been initiated to conclude the Memorandum of Understanding with the European Community on participation in the Community Public Health Programme. On 30 September 2008, a Memorandum of Understanding was signed between the Republic of Croatia and the European Community on Croatias participation in the Second Programme of Community Action in the Field of Health (2008-2013). For the implementation of these projects at the Ministry of Health and Social Welfare (MHSW), the required administrative capacities will be provided. Malignant diseases In line with the Council Recommendation of 2 December 2003 (2003/878/EC) advising that early cancer detection should be carried out only as part of organised screening programmes, and that for early breast cancer detection mammography screening for breast cancer in women aged 50 to 69 is recommended, the MHSW proposed and the Government adopted at its 173rd session of 29 June 2006 the National Programme for the Early Detection of Breast Cancer. The Programme commenced in October-November 2006 with the aim of reducing the breast cancer mortality rate by 25% within five years of the start of the Programmes implementation. The target group were women aged 50 to 69, who would be screened every other year. All women were eligible, both with and without health insurance. The implementation of the National Programme for the Early Detection of Breast Cancer started in the second half of 2006 and has proceeded successfully. From its start to the end of September 2008, a total of 588,069 women (born between 1937-1955) were invited for mammography screening. For the marking of mammographic findings, the BIRADS classification is used in categories from 0 to 5. The number of suspect mammographic findings until now, which includes BIRADS categories 4 and 5, is 2,611, and the number of carcinomas detected so far is 945. The total response rate is 56.3%. By the end of 2008, 112,000 more women (born between 1956 and 1958) will be invited for mammography screening, which will bring the total number of women screened in 2008 to 222,276. The National Programme for the Early Detection of Colon Cancer was adopted by the Croatian Government on 4 October 2007, and had commenced by the end of 2007 with the inclusion of two age groups (those born in 1933 and 1937). 93,312 sets of tests were sent to home addresses, but, regrettably, the response rate was only 25%. This percentage, however, is expected to rise considerably when younger citizens receive the tests at their home addresses and to approach the percentage achieved in the breast cancer programme. In October 2008, 112,853 sets of tests were sent to home addresses for three more age groups (those born in 1934, 1935 and 1936) and the collection of samples is now under way. Of those processed so far, a total of 1,092 suspect findings have been identified, of which 421 revealed polyps (considered to become potentially malignant in 10-15 years), while 75 people were pathohistologically confirmed as having colon cancer. These people promptly underwent surgery. Funds for the above-mentioned screening programmes are provided from the State Budget and the costs are not charged to citizens.
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Blood and blood components The centralisation of Croatian transfusion centres is under way in accordance with the adopted network of transfusion services (OG 115/07). The idea of introducing a single information system for blood and blood components has had a good start and is being put into practice in accordance with predefined stages. As part of the offered forms of EU technical assistance, several IPA 2009 projects have been prepared concerning the alignment of transfusion services with the requirements of the acquis and the fulfilment of the obligations laid down in the Action Plan for the Adoption and Implementation of the acquis in the Area of Health Protection (Chapter 28). Requests for TAIEX assistance in 2009 have also been defined. Tissues and cells Pursuant to the Act on Explantation and Transplantation of Parts of the Human Body for Medical Purposes (OG 177/04), the Ordinance on the procedure for collection, storage and use of haematopoietic stem cells (OG 59/08) has been adopted. In line with the Action Plan for the Adoption and Implementation of the acquis in the Area of Health Protection (Chapter 28), the MHSW Commission for Tissues and Cells has been established (12 September 2008), entrusted with preparing documentation for legislative amendments required for alignment with the acquis and implementation of the set standards for the operation of tissue banks, as well as proposing a financial and information model and system for the biological monitoring of tissues and cells. So far, the Commission has held three sessions. As part of the EUs technical assistance, training has been provided (for 3 persons) in establishing inspections relating to tissues and cells (TAIEX - workshop on tissue and cells; EUSTUITE the EU funded project European Union Standards and Training for the Inspection of Tissue Establishments); requests have been made for additional TAIEX assistance: 2 workshops, 2 study trips and 3 specialisations. A project has also been prepared entitled Strengthening the institutional capacity for tissues and cells, for which Croatia has applied for IPA 2009 (EU Assistance in tissue and cell sector). In compliance with the requirements of Directive 2004/23/EC, an annual report on tissues and cells has been prepared and a Register of Tissue/Cell Banks has been established, which can be accessed by the public on the website of the Ministry of Health and Social Welfare (www.MHSW.hr). As recommended by the EU, the above-mentioned annual report and the Register will also be sent to EUROCET (European Registry for Organs, Tissues and Cells) for publication on the website presenting the European platform collecting the activity annual reports and tissue establishment registries of the EU Member States by the end of 2008. Communicable diseases The new Act on the Protection of the Population from Infectious Diseases was passed by the Croatian Parliament in July 2007 and published in the Official Gazette No. 79/07. In 2008, this was followed by the Act on Amendments to the Act on the Protection of the Population from Infectious Diseases (OG 113/08), which provides for a more efficient list of communicable diseases, a simplified disease detection procedure and approval by the minister responsible for health for the issuing of a list of communicable diseases. This makes the list of reportable infectious diseases wholly aligned. Tobacco The Act on the Ratification of the WHO Framework Convention on Tobacco Control (OG IT 3/2008) and the Act on the Restricted Use of Tobacco Products (OG 125/08) have been adopted. With the latter Act, alignment has been achieved with Directives 2001/37/ EC and 2003/33/EC of the European Parliament and of the Council, especially in the part relating to health warnings, prohibition of misleading product descriptions, declarations on ingredients, sponsorships by tobacco companies, advertising of tobacco products in the media and the protection of non-smokers.
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B) KEY PRIORITIES
Public health programmes The adoption of the Act Ratifying the Memorandum of Understanding with the European Community on participation in the Community Public Health Programme is planned for the first quarter of 2009. Tobacco Further alignment with Directive 2001/37/EC of the European Parliament and of the Council is planned through the adoption of an implementing regulation pursuant to the Act on the Restricted Use of Tobacco Products. Blood and blood components Administrative capacity building is planned to ensure proper implementation of aligned laws and related subordinate legislation in the area of blood and blood components (provision of technical conditions, accreditation of blood collection establishments, an inspection framework, and organisation in the event of serious events and adverse reactions associated with blood collection or transfusion). Malignant diseases The adoption and start of the implementation of the National Programme for the Early Detection of Cervical Cancer countrywide and the continued implementation of the initiated national programmes for the early detection of breast and colon cancer. Communicable diseases Croatia will maintain and further improve its existing efficient infectious disease control system and the establishments participating in it, with an emphasis on the best possible networking of the epidemiological services at county health institutes and at the Croatian Public Health Institute to ensure efficient early detection of the outbreak of diseases. Emphasis will also be placed on the development of diagnostic public health laboratories and the development of quality hospital care (diagnostics, therapy, isolation) of patients with infectious diseases. In addition, in the coming years it is planned to complete a comprehensive, detailed, national, generic preparedness and response plan for epidemic events and incidents. Co-operation in the control of infectious diseases will be continued with the relevant authorities of Member States. Tissues and cells The alignment of laws and subordinate legislation on the explantation and transplantation of parts of the human body for medical purposes in compliance with the requirements of Directives 2004/23/EC, 17/2006/EC and 86/2006/EC will be continued. Administrative capacity building is also planned to ensure the proper implementation of aligned laws and subordinate legislation in the area of tissues and cells (the creation of technical conditions, accreditation of establishments, an inspection framework, and organisation in the event of serious events and adverse reactions) in accordance with the Action Plan for the Adoption and Implementation of the acquis in the Area of Health Protection (Chapter 28) presented to the European Commission. It is planned to establish and organise a new Department for Blood, Tissues and Cells (within the MHSW), which will be responsible for licensing and inspecting tissue/cell banks and providing an appropriate organisational structure and administrative capacities at the Agency for Quality Control and Accreditation in the Health Sector. The Agency will participate in the quality control of tissue banks and the provision of technical assistance in the implementation of a quality management system at tissue banks. The Agency
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will also act as the body responsible for the accreditation of tissues banks. The Agencys Statute is still pending (scheduled for first quarter of 2009). It is planned to define a system for biological monitoring and adverse reaction reporting for tissues and cells. Through participation in EU-funded projects (EUSTITE, EUROCET) and other forms of EU technical assistance, education and training will be provided for experts employed at the newly formed departments of the competent authorities (the MHSW and the Quality Control Agency) and tissue banks. The issuing of an ordinance on accreditation procedures, accreditation standards and accreditation is also necessary in the first quarter of 2009 which, upon the proposal of the Agency for Quality Control and Accreditation in the Health Sector, is to be adopted by the MHSW.
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3.29. CUSTOMS UNION

Legislative measures The process of adjustment and alignment of Croatian customs legislation with the acquis started in 1999 with the adjustment of the basic customs regulations, the Customs Act and the Regulation on implementation of the Customs Act. This continued with various amendments targeted at achieving the maximum degree of alignment with the customs systems of the European Union, and proceeded in 2008 with further amendments to the above-mentioned customs regulations. It is important to point out that in the process of aligning Croatian customs regulations with those of the acquis, a high degree of alignment was achieved from the very beginning of negotiations for Chapter 29 on Customs union, which was established in the course of the screening carried out for the said chapter, and also confirmed in the EC Progress Reports for 2006, 2007 and 2008. Consistent with the commitments assumed in the process of negotiations, legislative activities in 2008 involved amendments to the Customs Act in the first place, followed by amendments to the Regulation on implementation of the Customs Act. These amendments brought about the last stage of alignment, by which requirements with regard to the acquis in the field of customs have been complied with in their entirety. With regard to the Customs Act, the commitment to align provisions regulating non-preferential origin and the deadline for collecting customs debts no later than the second quarter of 2008 was assumed. Therefore the majority of provisions which were the object of amendments involved the above-mentioned provisions, while the remaining provisions were amended to achieve consistent alignment with the relevant provisions of the European Customs Code. The Act Amending the Customs Act was adopted at the session of the Croatian Parliament on 9 May 2008, and published in the Official Gazette (60/2008). The Act came into force on 1 July 2008. The amendments to the Customs Act covered the areas of non-preferential origin, guarantees in the transit procedure, bookkeeping registration and deadlines related to the registration of debts, and deadlines and facilities for payment of customs debts. As part of the further development of the process of alignment of Croatian legislation with the acquis, on 12 June 2008 the Government of the Republic of Croatia adopted the Regulation on amendments to the Regulation on implementation of the Customs Act (OG 70/08) which entered into force simultaneously with the entering into force of the amended Customs Act on 1 July 2008. The basic areas amended by the Regulation are non-preferential origin, customs value, special end-use of goods, internal production procedures, transit procedures, deadlines for customs debt payment and deferred payment. The Government of the Republic of Croatia, at its session held on 21 November 2008, adopted the Regulation on the Customs Tariff for 2009 (OG 140/08), which entered into force on 1 January 2009. The Regulation brought about alignment with the amendments of the Combined Nomenclature, i.e. with the Combined Nomenclature for 2009, pursuant to the commitments ensuing from the Stabilisation and Association Agreement. With regard to customs levies that have an effect equivalent to import and export duties, and whose collection violates the provisions of Articles 19 and 20 of the SAA, the Croatian Parliament adopted on 5 December 2008 the Act on amendments to the Customs Tariff Act, which as of 1 January 2009 lifts the obligation to pay the customs levy of HRK 10.00 per single submitted customs declaration. Implementation measures The Anti-corruption programme of the Ministry of Finance, Customs Administration, was adopted in June 2008. A campaign to raise awareness of the detrimental effect of corruption started in September 2007 and continued throughout 2008. In order to strengthen internal inspections and controls, in the course of 2008 a total of 47 inspections of the operations of organisational units of the Customs Administration of the Republic of Croatia were carried out. These concerned the regular, timely and
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lawful implementation of customs, excise, foreign trade, foreign exchange, tax and other regulations in order to eliminate irregularities and to standardise operations. As part of the framework of the Phare 2005 programme Interoperability of Croatian customs IT systems with customs IT systems of the European Union, the implementation of projects aimed at the development of the TARIC and NCTS IT interconnectivity and interoperability systems started. The aim of these two projects is to develop the TARIC and NCTS software and two parallel twinning projects, the purpose of which is to provide assistance to the Customs Administration in managing the development of the said IT systems. All activities to date and results scheduled for completion and delivery in 2008 have been completed and delivered in compliance with contractual obligations. Implementation of the project will continue in 2009. The automated risk management system has been implemented, and in January 2008 was integrated into the customs IT system and is now available at all customs points. This involves a system of selectivity, a system for targeted detection and a knowledge base to support the decision-making procedure. The system is managed centrally from the Central Office, which is responsible for the co-ordination of activities with regard to the development, analysis and implementation of rules in the system and proceeding in compliance with them. In the course of 2008, as part of the implementation framework of the 2008 Training programme, 107 training activities (seminars, workshops, technical meetings) were organised by the Customs Training Centre and attended by 2,159 customs officers. B) KEY PRIORITIES
Legislative activities The Customs Tariff Regulation will be adopted before the end of 2009 for application in 2010. It will bring about alignment with the amendments to the Combined Nomenclature, i.e. the Combined Nomenclature for 2010, in compliance with the obligations ensuing from the Stabilisation and Association Agreement. Implementation measures In the course of 2009, the customs authorities of the Republic of Croatia and other authorities involved in customs operations will continue to observe the activities of the European Commission and customs authorities of Member States aimed at the implementation of the provisions of Regulation (EC) No 648/2005 and Commission Regulation (EC) No 1875/2006, the enforcement of which has been postponed until 1 July 2009. In addition, the drafting of the Regulation for implementing Regulation (EC) No 450/2008 (Modernised Customs Code) will be followed closely, as well as all other activities concerning the said regulation, the entering into force of which and the start of the application of the majority of the provisions of which are envisaged in the period 2011-2013. The Customs Administration will continue to follow closely the practice of the customs authorities of Member States and will undertake activities aimed at the alignment and capacity-building of the Croatian customs authorities and economic operators involved in customs legal operations so that they are line with European customs standards, so that at the moment of accession to the European Union, European customs practice will be adopted in its entirety, and legislation will be aligned to the maximum extent possible. The interconnectivity and interoperability projects of the Customs Administration will proceed within the framework of the implementation of the Phare 2005 and Phare 2006 programmes on the basis of contracts concerning the development of the TARIC and NCTS software with the parallel implementation of the twinning project. The objectives of the project are oriented to the development of the IT interconnectivity system, i.e. the development of the application for managing the TARIC database based on completing the existing system (ACT), and the development of the NCTS system based on completing the existing application for transit procedures, along with the twinning projects which have the aim of providing support to the Customs administration in managing the development of the above-mentioned IT systems.
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In line with the established risk management system, activities are envisaged to further upgrade the system and its functionalities as well as to create a sound and functional user interface for the production, installation, updating and saving of risk profiles in the system. The Customs Administration, aware of the significance of its role in the system of intellectual property rights protection and of the importance of the system itself, plans to proceed with regular activities and systematic work aimed at implementing as efficiently as possible customs measures for protecting intellectual property rights in 2009. In addition, pursuant to the National Strategy for the Development of the Intellectual Property System of the Republic of Croatia for 2005-2010, it is planned to proceed further with activities aimed at upgrading collaboration with the Ministry of Internal Affairs, the State Inspectorate and other competent state authorities in the national intellectual property system, particularly in activities defining the co-operation model in the concrete enforcement of intellectual property rights protection measures. This will be done by strengthening and concretising collaboration at the local level by harmonising procedures for the joint activities of competent bodies and the exchange of information among the competent authorities. In this regard, within the framework of the PHARE 2006 programme Strengthening the capacity for implementing intellectual property rights in the Republic of Croatia, the procuring of and fitting customs offices with digital cameras for recording goods violating intellectual property rights is envisaged, so that records can be forwarded in electronic form to holders of such rights and other bodies in charge of enforcing intellectual property rights.
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3.30. EXTERNAL RELATIONS

A) Achievements in 2008
Legislative measures
Common Commercial Policy In May 2008, the Government of the Republic of Croatia adopted the Action Plan for remaining preparations in terms of legislation and bringing international agreements into conformity with the acquis communautaire under Chapter 30 External Relations. The objective of the Action Plan is to ensure the efficient application and implementation of the acquis communautaire covered by this Chapter. The alignment of national legislation with the acquis communautaire of the EU in the area of the Common Commercial Policy continued in 2008. Membership in the World Trade Organisation (WTO), along with the Stabilisation and Association Agreement and other preferential trade agreements, remained a cornerstone of the trade policy of the Republic of Croatia. In 2008, the trade policy of the Republic of Croatia was in line with its internationally assumed obligations. In formulating its positions in the round of multilateral trade negotiations in accordance with the Doha Development Agenda (DDA), the Republic of Croatia took into account its status as a candidate country for membership of the European Union and co-ordinated its positions with those of the European Union to the greatest extent possible. The Republic of Croatia joined the WTO GI-Friends group in July 2008, thus aligning its positions with European Union positions in the area of TRIPS negotiations (Trade-Related Aspects of Intellectual Property Rights). The basic law regulating trade policy issues in the Republic of Croatia is the Trade Act. At its session on 15 July 2008, the Croatian Parliament adopted the new Trade Act (OG 87/08, 116/08), which regulates the conditions for conducting trade on domestic and foreign markets. The provisions of the Trade Act which regulate conditions for conducting foreign trade are in accordance with European Union regulations that are directly binding upon EU Member States as an integral part of the Common Commercial Policy of the European Union. From the date of the accession of the Republic of Croatia to the European Union, the provisions of the Trade Act that are in line with EU Common Commercial Policy, such as trade protection instruments and the rights of natural persons when exporting or importing, will cease to apply, as the relevant provisions of the Common Commercial Policy will apply. The Act on Amendments to the Customs Tariff Act has been submitted for adoption procedure in order to align it with the relevant commitments undertaken in the Stabilisation and Association Agreement and as part of the negotiations under Chapter 29 Customs Union. The Regulation on the Customs Tariff for 2008 (OG 124/07, 132/07, 134/07, 73/08 and 114/08) was adopted by the Government of the Republic of Croatia pursuant to the Customs Tariff Act (OG 61/00, 117/00 and 119/00). All internationally assumed obligations for 2008 (tariffs and quotas) resulting from membership of the World Trade Organisation, the Stabilisation and Association Agreement and preferential trade agreements that the Republic of Croatia has concluded with other countries have been incorporated into the Regulation. In addition, the Nomenclature has been aligned with the amendments to the Combined Nomenclature for 2008 (Commission Regulation No 1214/07 of 20 September 2007 OJ L 286 of 31 October 2007).
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In addition, preferences on imports of pharmaceutical substances in accordance with the lists on duty-free imports have been aligned with the Integrated EU Customs Tariff. Before the Regulation on Customs Tariffs for 2008 was adopted, pharmaceutical products received duty-free treatment in line with the Customs Tariff, but were not included on the lists. In compliance with the legal obligation of the Government of the Republic of Croatia to pass the Customs Tariff for the following year at the latest by the end of November of the current year, the Regulation on the Customs Tariff for 2009 (OG 140/08) was adopted at the session of the Government of the Republic of Croatia held on 21 November 2008. All of the internationally assumed obligations for 2009 (tariffs and quotas) were introduced into the Regulation and the Nomenclature was aligned with the amendments to the Combined Nomenclature for 2009 (Commission Regulation No. 1031/08 of 19 September 2008 OJ L 291 of 31 October 2008). In May 2008, the Government of the Republic of Croatia passed the Regulation on import and export controls on rough diamonds (OG 64/08), in which it aligned the current list of Kimberley Process participants with the new one, as the Republic of Turkey and Congo have been added to the list of Kimberley Process participants. The Act on the Amendments to the Act on the Export of Dual-Use Items (OG 84/08) was passed by the Croatian Parliament in July 2008. The Act entered into force on 26 July 2008. The aim of the Amendments to the Act is to strengthen and enhance the system of dual-use export control in the Republic of Croatia in order to reach standards set by UN Security Council Resolution 1540 on the non-proliferation of weapons of mass destruction. The Amendments to the Act have been aligned with the Council Joint Action of 22 June 2000 concerning the control of technical assistance related to certain military end-uses. The Amendments to the Act on the Export of Dual-Use Items stipulate the conditions of the transit of dual-use items, the provision of brokerage services (brokerage services are mediatory services comprising negotiating business deals for acquisition or direct purchase or sale of goods from one to another state) and technical assistance provision associated with dual-use items. Penalties for violations of the Act when the internal or external political interests of the Republic of Croatia are at risk have been stipulated. The new List of dual-use items was adopted by the Government of the Republic of Croatia at its session on 8 May 2008 as the Regulation on the amendments to the Regulation on the List of dual-use items. The List is completely aligned with Annex I of Council Regulation (EC) No. 1183/2007 of 18 September 2007. Bilateral Agreements At present, the Republic of Croatia operates Free Trade Agreements with 39 countries: the 27 EU Member States, EFTA, CEFTA and Turkey. The CEFTA 2006 Agreement has been applied since the end of 2007 by all the countries signatory to the Agreement. Within the framework of CEFTA 2006 Agreement implementation, the Subcommittee on Agriculture and SPS met in Chisinau, Republic of Moldova in April 2008, the Subcommittee on customs issues and rules of origin in Podgorica, Montenegro in May, and the Subcommittee on technical and non-tariff barriers to trade between countries signatory to the CEFTA 2006 Agreement in Belgrade, Republic of Serbia in June. As stipulated by the CEFTA 2006 Agreement, the Joint Committee is administratively supported by a Secretariat seated in Brussels. To this end, CEFTA signatories concluded an Agreement with the Kingdom of Belgium on privileges and immunities for the CEFTA 2006 Agreement Secretariat to ensure the appropriate legal status for its assets and personnel and to allow it to function unhindered in the territory of the Kingdom of Belgium. The Secretariat of the CEFTA 2006 Agreement started work on 8 September 2008. The Joint Committee meeting of the CEFTA 2006 Agreement was held in Chisinau, the Republic of Moldova on 8 October 2008. With regard to international agreements in the area of the economy (agreements on trade and/or economic co-operation and agreements on investment promotion and protection) in 2008, the Republic of Croatia concluded one agreement and two additional protocols on amendments to agreements in the area of investment promotion and protection. These are: Agreement on
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the Promotion and Protection of Investments with the Republic of Lithuania, signed on 15 April 2008; Additional Protocol on Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Slovak Republic on the Promotion and Protection of Investments, signed on 1 July 2008; and Additional Protocol on Amendments to the Agreement between the Government of the Republic of Croatia and the Government of the Czech Republic on the Promotion and Protection of Investments, signed on 8 September 2008. In 2008, the Republic of Croatia also signed an Agreement on Economic Co-operation with the Socialist Republic of Vietnam. In view of the obligation of the Republic of Croatia to align its international agreements with third countries with the acquis communautaire, and in line with the Action Plan for remaining preparations in terms of legislation and bringing international agreements into conformity with the acquis communautaire for Chapter 30 External Relations, in 2008 the Republic of Croatia adopted a decision on deadlines for the alignment of these agreements with the acquis. In this context, a process for the conclusion of Additional Protocols for the Amendments to the Agreements on the Promotion and Protection of Investments was undertaken for all 35 agreements in 2008. The Draft Additional Protocols on the Amendments to the said agreements have been submitted to the other parties for comment. In 2008, negotiations were held and finalised for the conclusion of the above-mentioned Additional Protocols with the Republic of Turkey and Bosnia and Herzegovina. The proposed Additional Protocols on the Amendments were accepted without objection by the State of Kuwait and Albania. For trade and economic agreements with third countries, and in line with the Action Plan for remaining preparations in terms of legislation and bringing international agreements into conformity with the acquis communautaire for Chapter 30 External Relations, the Republic of Croatia adopted a decision to start amending 15 agreements. Therefore, in 2008, a process for the conclusion of these amendments was undertaken. The said agreements on amendments have been submitted to the other parties for comment. In line with the above-mentioned Action Plan, the Government of the Republic of Croatia informed 10 states of the intention of the Republic of Croatia to withdraw from or not apply signed agreements on trade and economic co-operation. Export credits The Regulation on the amendments to the Regulation on export insurance (OG 61/07) was published in the Official Gazette No. 92/2008 on 8 August 2008. The Regulation on the amendments to the Regulation on export insurance fulfilled the following objectives: 1. insurance of guarantees was made possible, which had been omitted by error in the basic Regulation on export insurance; 2. insurance of foreign insured persons was made possible (for instance in the case of a joint business deal by a Croatian exporter with foreigners); 3. a Commission for export insurance, as a body giving opinions and monitoring the implementation of export insurance, has been set up; and 4. sources of financing for carrying out the activities of export insurance have been transparently defined. In addition, certain terminological discrepancies in the basic Regulation on export insurance have been removed. Consequently, the Regulation on export insurance (OG 61/07 and 92/2008) transposes into national legislation all the provisions of the EU acquis on export insurance, such as Council Directive 82/29/EC of 7 May 1998, Council Directive 84/568/EEC of 27 November 1984, Council Decision 82/854/EEC of 10 December 1982 and the Communication of the Commission to the Member States pursuant to Article 93 (1) of the EC Treaty applying Articles 92 and 93 of the Treaty to short-term export-credit insurance of 17 September 1997 with all its amendments. In this manner, the part of the legislation of the Republic of Croatia covering export insurance has been aligned with the acquis communautaire. The system of minimum premium rates will be aligned, and the obligation to notify the European Commission will be applied from the date of the Republic of Croatias accession to the European Union.
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Activities aimed at establishing jointly with a company partner from an EU Member State an insurance company in Croatia which would insure marketable risks, have been undertaken from mid-2007 up to the present. This company would undertake activities of the kind that are currently carried out by the HBOR pursuant to the exemption of the Croatian Competition Agency Class UP/I 430-01/2006-09/40, No. 580-03-06-61-3 of 19 October 2006. The establishment of the insurance company is planned for the fourth quarter of 2008. Development co-operation and humanitarian aid The Interdepartmental Working Group for Development Assistance Policy and Advancement held two meetings in the course of 2008: in April and July. During the April meeting, among other topics, the need for a more efficient submission of data on development assistance provided by state administration bodies was discussed. Pursuant to the proposal of the IWG, a Decision was adopted by the Government on 12 July 2008 which obliges state administration bodies to submit data on provided development assistance regularly to the Ministry of Foreign Affairs and European Integration. During the July meeting, the draft National Development Cooperation Strategy and the results of the public poll conducted as part of the Support to the national capacities for development co-operation in Croatia project between the UNDP and MFAEI were presented. Data on the development assistance projects provided for 2007 to a total amount of HRK 120 million were collected and compiled. Taking into account the experience of most EU Member States, a Decision on the institutional humanitarian policy framework relating to EC humanitarian policy was passed. Pursuant to the Act on Amendments to the Act on the Structure and Scope of Central State Administration Organisations passed in February 2008 (OG 27/08), the Ministry of Foreign Affairs and European Integration became the competent body for the implementation of humanitarian policy towards third countries. The Act on Development Cooperation and External Humanitarian Assistance was passed by the Croatian Parliament on 5 December 2008.
Implementation measures For the purpose of strengthening administrative capacities and civil service training in the area of trade policy, representatives of the Ministry of the Economy, Labour and Entrepreneurship Trade Policy and International Relations Directorate regularly participated in a series of seminars and courses organised by the World Trade Organisation WTO; in particular those covering the areas of trade policy, regional free trade agreements, dispute resolution rules, as well as on-line courses. The Export Control Department was established as part of the Trade Policy and International Relations Directorate at the Governments session on 10 October 2008 through the adoption of the Regulation on amendments to the Regulation on the internal organisation of the Ministry of the Economy, Labour and Entrepreneurship (OG 119/08). The establishment of the Department is aimed at improving co-ordination of the system for the control of exports of dual-use items and the strengthening of the export control system. To make legislation more transparent and inform exporters, new web pages on export control (exportcontrol.mingorp.hr) were added to the website of the Ministry of the Economy, Labour and Entrepreneurship as of 22 February 2008. The Ministry of the Economy, Labour and Entrepreneurship and the German Federal Office of Economics and Export Control (BAFA), as part of the EU Pilot Project 2006, organised an Industry Outreach Seminar with the objective of improving the export control system for dual-use items in February 2008. In addition, in April 2008 a seminar for state attorneys, police and customs on the violation of regulations concerning dual-use items was held. In the course of 2008, the Customs Administration continued to undertake and fulfil activities in the area of strengthening administrative capacities through the training of customs officials, seminars, etc. Seminars are organised by the Customs Training Centre. Each seminar covers: legislation, export control, investigation and dual-use items recognition. In the course of 2008, one seminar has
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so far been held in each quarter (3 seminars) with the participation of 3 x 20 customs officials. Training will continue in the fourth quarter with a seminar with the same content and number of participants. The Ninth International Export Control Conference was held in Cavtat, Croatia from 20 to 22 October 2008. The Conference was jointly organised by the Government of the Republic of Croatia and the Government of the United States of America. The Conference gathered about 200 higher officials, experts and representatives of numerous non-governmental organisations from almost 65 countries, who exchanged their experiences and views on the latest global trends and challenges that are found in export control and border related security issues In the area of strengthening administrative capacities related to development co-operation, a two-day seminar on development cooperation was organised with the Finnish Ministry of Foreign Affairs in Zagreb in May 2008, while the representatives of the OECD/ DEC held a seminar on Official Development Assistance statistics in Zagreb in July 2008. B) KEY PRIORITIES The Republic of Croatia will continue to implement its obligations arising from membership in the WTO and to actively advocate its positions taking into account the fact that it is a candidate country for membership of the European Union. The Republic of Croatia will continue to align its positions with those of the European Union, as these are the parts of Common EU Policy which will become binding for the Republic of Croatia from the date of its accession. Alignment with EU legislation will continue, especially through the adoption of regulations that ensure the direct application of the Common Commercial Policy. The Action Plan for remaining preparations in terms of legislation and bringing international agreements into conformity with the acquis communautaire under Chapter 30 External Relations provides for regular monitoring and the regular updating of the European Commission every 6 months on progress in alignment with the acquis communautaire. The Ministry of the Economy, Labour and Entrepreneurship will submit for adoption to the Government of the Republic of Croatia a Report on progress in fulfilling obligations assumed under the Action Plan for Chapter 30 - External Relations every six months. On the basis of its legal authority, the Government of the Republic of Croatia will adopt the Regulation on the Customs Tariff for 2010, which will continue to follow the corresponding EU legislation. In addition, the adoption of new regulations in the fields of trade policy, export control of dual-use items and export and import control of rough diamonds at the EU level will be monitored, and national regulations prepared to comply with them. The Republic of Croatias goal in 2009 is to finalise most of the negotiations on amendments to trade and/or economic co-operation agreements and agreements on the promotion and protection of investments, and to initiate procedures for withdrawing from nine trade and/or economic co-operation agreements. Further administrative capacity building of civil servants implementing trade policy, in particular in the area of export control of dualuse items, will continue. The strengthening of the administrative capacities of the Ministry of Foreign Affairs and European Integration, as well as other state administration bodies, in the area of development assistance will continue in 2009. It is necessary to adopt the National Programme for Development Assistance Provision for 2010 in the course of 2009.
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3.31. FOREIGN, SECURITY AND DEFENCE POLICY 3.31.1. Introduction

As in previous periods, Croatias foreign policy reached a high level of alignment with the EU Common Foreign and Security Policy (CFSP) and the European Defence and Security Policy (EDSP) during 2008. In 2008, the practice of regularly associating with the statements and common positions of the EU and its current presidency in various international fora was continued, accompanied by Croatias participation in relevant CFSP and EDSP meetings. In the forthcoming period, along with the continuing process of association, Croatia will continue to participate in informal meetings of Ministers of Foreign Affairs of EU Member States, consultations between the political leaders of candidate countries and the EU Troika, consultations between defence ministers of candidate countries, Norway, Iceland and the EU Troika, as well as EUMC and PSC meetings in the same format. Croatias being invited to join NATO at the NATO Summit in Bucharest on 3-4 April 2008 marked a crucial step forward in fulfilling one of Croatias strategic foreign policy objectives, which will give an additional impetus to Croatias accession to the European Union. Croatias contribution to UN peace missions grew from 46 members of Croatias armed forces in 2007 to 133 in 2008. By contributing an entire unit to the UN mission on the Golan Heights (UNDOF), Croatia has raised its participation in UN missions to a new level, as its prior participation involved only individual staff officers and military observers. The number of Croatian soldiers deployed in the NATO ISAF mission grew in 2008, and in July 2008, the Croatian Parliament passed a decision on deploying 20 members of Croatias armed forces and two transportation helicopters in Kosovo as part of the KFOR operation. Furthermore, Croatia started participating in the EULEX rule of law mission in Kosovo, another civil mission under ESDP auspices, and its involvement in the EU operation in Chad and the Central African Republic (EUFOR Tchad/RCA) signified Croatias first participation in an EU military operation. Upon the invitation of Slovenias EU Presidency, Croatia submitted its negotiating position for Chapter 31- Foreign, Security and Defence Policy on 8 May 2008.
3.31.1.1. Political dialogue The framework for dialogue between the Republic of Croatia and the European Union in the field of foreign, security and defence policy is formed by the Stabilisation and Association Agreement, the European Council conclusions of 2003 in Thessaloniki, and the accession negotiations. The degree of alignment of Croatias foreign policy with CFSP has continued to be high. This is reflected in Croatias systematic associating with the statements and common positions of the EU and its current presidency, which continued at an intense pace in 2008. From the beginning of 2008 until December 2008, Croatia associated with a total of 550 EU statements in various international organisations (the EU Council, OSCE, UN, specialised UN agencies and other international organisations). The process of association at the invitation of the EU Council General Secretariat has been taking place through the Associated Countries Network (ACN) since February 2007. Regular meetings including the EU Troika and the political leaders of candidate countries were held in January and July 2008. In February and October 2008, meetings were held between the EU Troika and candidate countries concerning human rights. In September 2008, the EU Troika and candidate countries met to discuss preparations for the 63rd session of the UN General Assembly. The political leaders of the EU Troika and the Western Balkan countries met on the margins of the 63rd UN General Assembly session in September 2008. In addition, Croatia took part in informal meetings of Ministers of Foreign Affairs of EU Members States (the so-called Gymnich) held in Brdo, Slovenia (March 2008) and Avignon (September 2008). This years meeting of the Stabilisation and Association Council was held in Luxembourg in April 2008, while the Joint CroatiaEU Parliamentary Committee met in Opatija in April 2008 and in Brussels at the beginning of October 2008.
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On 13 July 2008, Croatia became a participant in the Barcelona Process a Union for the Mediterranean by taking part in the Paris Summit for the Mediterranean, where it accepted the acquis of the Barcelona Process and the content of the Paris Declaration developing a Union for the Mediterranean. A regular annual meeting of Ministers of Foreign Affairs, to be held in Marseille on 3-4 November, will prepare the basis for the implementation of the Paris Declaration conclusions. KEY PRIORITIES Consultations between political leaders and meetings of the Council and the Joint Croatia-EU Parliamentary Committee, where issues related to international relations are also discussed, will continue throughout 2009 in line with already established practice. In addition, Members of the Croatian Parliament will continue to take an active part in other inter-parliamentary activities in the European Parliament and the national parliaments of EU Member States and candidate countries, within which CFSP-related topics are discussed. These activities include: the Conference of the Speakers of European Union Parliaments; the Conference of Community and European Affairs Committees of Parliaments of the European Union (COSAC); meetings of the Conference of Foreign Affairs Committee Chairpersons (COFACC); and meetings of the Conference of Defence Committee Chairpersons. In order to improve the quality of co-operation, to contribute to the better preparation of activities within CFSP instruments, and to ensure overall alignment with EU structures and policies, the Republic of Croatia will continue to strengthen its administrative capacities for CFSP and ESDP issues at the Ministry of Foreign Affairs and European Integration, the Ministry of Defence, the Ministry of the Interior, and the Permanent Mission of the Republic of Croatia to the European Communities. In addition, as of 1 October 2008, the new Regulation on the internal organisation of the Ministry of Foreign Affairs and European Integration and Croatias diplomatic missions and consular posts abroad (OG 64/08) has been implemented, based on which the previous CFSP and Foreign Affairs Section has been transformed into the Department for Common Foreign and Security Policy and European Security and Defence Policy. In 2009, the Republic of Croatia will continue to prepare and implement activities related to its participation in military and civil missions within the ESDP framework, as well as activities in the fields of combating terrorism, conflict prevention, crisis management and non-proliferation. Croatia will intensify its involvement in the Barcelona Process a Union for the Mediterranean by outlining the priority fields of co-operation and concrete projects.
3.31.2. Co-operation with international organisations

3.31.2.1. Membership of international organisations The Republic of Croatia is a member of the following universal and regional international organisations: UNIVERSAL ORGANISATIONS
English Title
1. WIPO 2. ICAO 3. OUN* 4. UNIDO 5. WHO 6. ITU World Intellectual Property Organization International Civil Aviation Organization Organization of the United Nations United Nations Industrial Development Organization International Telecommunication Union World Health Organization
Date
08.10.1991. 09.05.1992. 22.05.1992. 02.06.1992. 11.06.1992. 03.06.1992.
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7. UNESCO** 8. UPU 9. ILO 10. IPU 11. IMO 12. INTERPOL 13. WMO 14. IMF 15. INTELSAT 16. IMSO 17. IAEA 18. ISO
United Nations Educational, Scientific and Cultural Organization Universal Postal Union International Labour Organization Inter-Parliamentary Union International Maritime Organization International Criminal Police Organization World Meteorological Organization International Monetary Fund International Telecommunications Satellite Organization International Mobile Satellite Organization International Atomic Energy Agency International Organization for Standardization The World Bank Group (IBRD, IDA, IFC, MIGA, ICSID)
07.07.1992. 20.07.1992. 06.08.1992. 07. 09. 1992. 08.10.1992. 04.11.1992 08.11.1992. 14.12.1992. 14.12.1992. 1992. 12.02.1993. 01.01.1993. 19.05.1993. 16.06.1997. 01.07.1993. 04.10.1993. 06.11.1993. 23.11.1993. 16.12.1993. 1994. 05.04.1995. 13.04.1995. 01.07.1995. 23.11. 1995. 01.01.1996. 28.07.1996.
19.MIGA, ICSID
- Multilateral Investment Guarantee Agency - International Centre for the Settlement of Investment Disputes
20. WCO 21. WTO (Madrid) 22. FAO 23. IOM 24. IADB 25. ICCROM 26. ITLOS 27. OPCW 28. IIAS 29. IHO 30. UNIDROIT 31. ISBA 32. IFAD 33. IIR 34. PCA 35. OIML 36. NATO PA 37. WTO (Geneva)
World Customs Organization World Tourism Organization Food and Agriculture Organization International Organization for Migration Inter-American Development Bank International Centre for the Study of the Preservation and Restoration of Cultural Property International Tribunal for the Law of the Sea Organization for the Prohibition of Chemical Weapons International Institute of Administrative Sciences International Hydrographic Organization International Institute for the Unification of Private Law International Seabed Authority International Fund for Agricultural Development International Institute of Refrigeration Permanent Court of Arbitration International Organization for Legal Metrology NATO Parliamentary Assembly World Trade Organization
02.07.1998. 02.10.1998. 24.01.1999.
30.11.2000.
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SPECIAL UNIVERSAL ORGANISATION

CTBTO Comprehensive Nuclear-Test-Ban Treaty Organization 02. 03.01.
REGIONAL ORGANISATIONS
English Title
1. CIESM 2. OSCE 3. OTIF 4. ECAC 5. IOC 6. EBRD 7. EMPPO 8. ECMWF 9. CE 10. EUROCONTROL 11. BIS 12. CEB 13. ICCAT 14. DC 15. OIML 16. CIEC 17. 18. IOTA 19. 20. EUMETSAT 21. CEFTA 22. PAM International Commission for the Scientific Research of the Mediterranean Sea Organization on Security and Co-operation in Europe Intergovernmental Organization for International Carriage by Rail European Civil Aviation Conference Intergovernmental Oceanographic Commission European Bank for Reconstruction and Development European and Mediterranean Plant Protection Organization European Centre for Medium-range Weather Forecasts Council of Europe European Organization for the Safety of Air Navigation Bank for International Settlements The Council of Europe Development Bank International Commission for the Conservation of Atlantic Tunas Commission du Danube International Organization for Legal Metrology International Commission on Civil Status International Olive Oil Council Intra-European Organization of Tax Administrations International Union for the Protection of New Varieties of Plants European Organization for the Exploitation of Meteorological Satellite Central European Free-Trade Association Parliamentary Assembly of the Mediterranean
Date
20.01.1992. 24.03.1992. 10.06.1992. 02.07.1992. 24.12.1992. 15.04.1993. 09.1994. 28.12.1995. 06.11.1996. 01.04.1997. 09.06.1997. 24.06.1997. 20.10.1997. 26.03.1998. 24.01.1999. 25.03.1999. 27.04.1999. 19.09.2001. 01.09.2001. 01.01.2002. 01.03.2003. 10. 09. 2006.
SPECIAL REGIONAL ORGANISATION

EUROFISH EUROFISH is international organization for assisting the development of fisheries in Central and Eastern Europe 08. 2003.
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OTHER INITIATIVES AND PROCESSES

Stability Pact for South Eastern Europe (SP) 10.06.99. Southeast European Co-operative Initiative (SECI) 14.09.00. Southeast European Co-operation Process (SEECP) status promatraa Central European Initiative (CEI) 18.07.92. The Alps-Adriatic Working Community 20.11.1978. Danube Commission (DC) 26.03.98. Working Community of the Danube Regions - ARGE DL 16.05.91 Danube Co-operation Process DCP 27.05.02. International Commission for the Protection of the Danube River ICPDR 22.10.98. Adriatic and Ionian Initiative AII 20.05.00. The Sava Commission 3. 12. 2002. The Quadrilateral 13. rujna 2000. Central European Free Trade Association (CEFTA) 01.03.03.
PARTICIPATION OF CROATIA IN THE UN BODIES AND SPECIALISED AGENCIES

Committee on the Elimination of Discrimination Against Women - CEDAW (2007. 2010.) Commission on the Status of Women - CSW (2006.-2009.) Executive Board of UNICEF (2007. 2009.) Commission on Sustainable Development - CSD (2007. - 2010.) Committee on Prevention of Torture CAT (2007. - 2010.) Security Council (2008. 2009.) Executive Council of the UN Environmental Programme UNEP (2008.-2010.) Commission for Population and Development (2008. 2012)
PARTICIPATION OF CROATIA IN THE UNESCO BODIES

Intergovernmental Committee for Physical Education of Sport - CIGEPS (2006. 2009.) Intergovernmental Council of the International Programme of the Development of Communication - IPDC (2006. 2009.) Intergovernmental Committee for the Protection and Promotion of the Diversity of Cultural Expressions (2007. 2011.) Safeguarding Intangible Cultural Heritage (2008. 2012.)
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3.31.2.1.1. Organisation of the United Nations During the past 16 years as a member of the United Nations, Croatia has been gradually strengthening its presence and creating a distinctive image within the UN system via numerous activities. Against this background, Croatias membership of ECOSOC and of the UN Security Council from 2008 should be highlighted. From once being a country which was the subject of debates within the Security Council, Croatia has become its non-permanent member. Within the UN, Croatia is recognised for its active commitment to economic and social issues, and especially as a provider of military troops for UN peace missions. As a member of the UN Security Council, Croatia continues to act as a responsible partner dedicated to the common efforts of peacekeeping and building through the promotion of human rights and democracy, the fight against poverty and injustice, and the promotion of efficient multilateralism. On 3 January 2008, Croatia assumed the two-year chairmanship-in-office of the UNSC Committee established pursuant to Resolution 1373 (2001) concerning counter-terrorism, the so-called Counter-Terrorism Committee. In addition to the Counter-Terrorism Committee, Croatia will also spend the following two years chairing the Working Group established under Resolution 1566 (2004), which is also dedicated to the suppression of terrorism. Croatia is a vice-chair of the Committee established pursuant to Resolution 751 (1992) concerning Somalia, the Committee established pursuant to Resolution 1591 (2005) concerning the Sudan, and the Committee established pursuant to Resolution 1540 (2004) concerning non-proliferation of weapons of mass destruction. Croatia plays an active part in the implementation of Resolution 1325 on women, peace and security. The Republic of Croatia was elected to the first composition of the newly established UN Peacebuilding Commission. As a member of this body, Croatia has taken an active part in work and projects within the scope of the Commission, trying to share its knowledge and experience of post-war or post-conflict peacebuilding, reconstruction, and construction and reconstruction in war/conflictaffected areas. Croatia became a member of the Group of Friends as part of the Alliance of Civilisations initiative. This initiative may have an encouraging role in improving the level of mutual respect, understanding and co-operation among states and peoples, beyond cultural and religious borders. Croatia supports the United Nations shared vision of a prosperous, peaceful and safe world, and in line with the Millennium Development Goals (MDGs), Croatia ensures the development and provides assistance to countries in need. Croatia is successfully implementing the Millennium Development Goals, combining them with its national development strategy. Within this context, it fulfilled its obligation by submitting its first national report on the implementation of the MDGs. The Republic of Croatia has moved from the category of development aid recipient to the group of donor countries. Croatia is taking an active part in establishing an institutional framework and mechanisms for providing development aid. This is an important step in meeting the obligations for membership of Euro-Atlantic integrations and the obligations arising from the MDGs. Pursuant to the above-mentioned Regulation on the internal organisation of the Ministry of Foreign Affairs and European Integration and diplomatic missions and consular posts (OG 64/08), the Department for International Development Co-operation was set up within the Directorate for Multilateral Affairs, and the Act on Development Cooperation and External Humanitarian Assistance was passed by the Croatian Parliament on 5 December 2008. The Monterrey Agreement remains the basis of global partnership for development. Croatia believes in a positive outcome of the conference scheduled to take place in Doha at the end of the year. Against this background, Croatia will respect the obligations arising from its candidate country status for EU membership. Croatia believes that every country can and must contribute to global efforts aimed at reducing the emission of greenhouse gases. Croatia therefore holds that the active involvement of all UNFCCC parties, accompanied by full respect for the principle that UNFCCC parties must protect the climate according to the principle of impartiality through both the joint and at the same time individual obligations and opportunities of each state, are indispensable in attaining the goal of halting global warming. Croatia plays an active part in post-Kyoto negotiations aimed at streamlining new international obligations in the field of greenhouse gas reduction. Following an initiative of the Republic of Croatia in December 2006, the UN General Assembly passed a Resolution proclaiming the year 2011 as the International Year of Forests. Croatia is confident that the celebration of the International Year of Forests will raise
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awareness of and promote activities related to the sustainable management, protection and development of all types of forest at global, regional and national levels. In addition, forest-related issues should be examined in the broader context of climate change, sustainable development, poverty reduction and other MDGs. Croatia strongly supports a comprehensive reform of the UN system, based on the goals and principles of the UN Charter, international law, the resolutions of international conferences and summits, and the consensually adopted Millennium Declaration. Croatia also endorses the more efficient and transparent work of the UN Security Council and better co-ordination with the other main bodies of the UN. Croatia supports active multilateralism and associates with the EUs political line, which favours balance between the security-political and development components of foreign policy. Croatia supports management reform and system-wide coherence aimed at improving the responsibility, transparency and efficiency of the work of the UN Secretariat. Croatia welcomes joint international efforts aimed at suppressing severe violations of international humanitarian law and human rights in general, and takes part in promoting international human rights protection mechanisms. The Republic of Croatia is a party to all key UN human rights instruments and takes a regular and active part in the further development of international standards and their implementation in national legislation. Against this background, and following last years ratification of the Convention on the Rights of Persons with Disabilities and the Optional Protocol to the Convention, the first reports by all competent authorities on the implementation of the 2007-2015 National Strategy for Equal Opportunities for Persons with Disabilities, which includes the standards outlined in the Convention, are expected in 2009, indicating the extent to which the Convention has been implemented in Croatia. Furthermore, Croatia was among the first countries in 2007 to sign the International Convention for the Protection of All Persons from Enforced Disappearance, the ratification of which is pending. As regards the field of human rights, Croatia continues to pursue an active policy as a member of international bodies. In 2008, Croatia presented its candidacy for membership of the Human Rights Council from 2010 to 2013, and started lobbying other states. Croatia currently contributes to the promotion of human rights through its membership of the Commission for the Status of Women for the 2006-2009 term (its second membership term), as well as being a member of the UNICEF Executive Board for the 2007-2009 term. In addition, after becoming a non-permanent member of the UN Security Council for the 2008-2009 term, Croatia also became an active member of the SC Working Group on Children and Armed Conflict. Croatia also makes a contribution to the wider acceptance of the Durban Process in the light of the approaching Review Conference on Racism, scheduled to take place in Geneva in 2009, and is one of the co-chairing countries of the Bureau preparing the Conference. The implementation of conflict prevention measures and mechanisms is based on the National Security Strategy of the Republic of Croatia and the Defence Strategy of the Republic of Croatia. Croatia will continue to provide active support to and take part in conflict prevention measures implemented by the EU. Croatias contribution in this field includes, inter alia, participation in the mechanisms of the UN, OSCE, Council of Europe and other regional organisations, initiatives and activities, such as political dialogue with third countries, providing development aid, sharing its specific demining experience, the Kimberley Process, etc. KEY PRIORITIES Special attention will be devoted to work within the UN Security Council and its committees. Membership of the UN Security Council is indeed a significant obligation, but also an opportunity for Croatia to strengthen its reputation worldwide and to increase recognition of the country and its foreign policy. Against this background, Croatia will continue to work actively on the committees which it chairs, but also on the committees in the work of which it takes part as a UNSC member. Special efforts will be devoted to the further improvement of the work of the UNSC Counter-Terrorism Committee and its Executive Directorate. Having confirmed its capability of providing support to UN activities in various fields, Croatia will continue to provide assistance to those in need through involvement in various UN funds and programmes. Croatia has presented its candidacy for membership of the UN Human Rights Council for the 2010-2013 mandate.
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3.31.2.1.2. Council of Europe Since becoming a member of the Council of Europe in 1996, and especially after the post-monitoring dialogue was concluded in 2003, the Republic of Croatia has been pursuing a policy of active partnership with the Council of Europe (CoE). In addition to meeting its obligations arising from CoE membership and a series of conventions and partial agreements which Croatia is a party to, Croatia invests additional efforts in promoting the fundamental goals of the Organisation, above all the protection and promotion of human rights, democracy and the rule of law in Europe. Croatia is a party to 85 European conventions, agreements and pertaining protocols, and several others await ratification. Croatia recently ratified the CoE Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism, signifying that, together with the already ratified Protocol amending the European Convention on the Suppression of Terrorism and the Convention on the Prevention of Terrorism, Croatia has taken over all the three pillars of CoE legislative instruments related to the fight against terrorism. Of the total number of CoE conventions and protocols (202), 28 are an integral part of the acquis communautaire. The Republic of Croatia is a party to the majority of them, and its competent state administration bodies will be further encouraged in 2008 to accede to the remaining legal instruments relevant for the alignment of Croatias national legislation with European standards. Croatia is also a party to 11 (out of 14) partial agreements of the Council of Europe. Croatias co-operation with the Council of Europe includes many activities and is pursued within government institutions, the academic community, expert bodies and non-governmental organisations. Indeed, Croatias renown is increasing due to the active contribution of its experts to CoE bodies. Representatives of Croatia at expert level regularly take part in the work of approximately seventy permanent and ad hoc bodies (committees) of the Council of Europe. CoE reports and recommendations relating to Croatia reflect the permanent progress of Croatia, and there are no outstanding issues regarding respect for the Organisations standards. Croatia will submit its report to the CoE by February 2009, when the third monitoring cycle for Croatia is scheduled to start in line with the Framework Convention for the Protection of National Minorities. Croatia continues to provide support to the work of the European Court of Human Rights and makes an effort to become actively involved in the reform of the said Court, aimed at ensuring its long-term efficiency. Consequently, by endeavouring to implement the European Convention for the Protection of Human Rights and Fundamental Freedoms at the national level, Croatia is seeking to contribute to reducing the workload of the Court. Cases against Croatia which are presented to the Court are becoming increasingly diverse and demanding; however, the number of court decisions against Croatia remains stable and relatively low, and Croatia duly complies with them. With regard to technical assistance and co-operation, Croatia takes part on a solidarity basis in several regional programmes implemented as joint projects of the Council of Europe and the European Union/Commission in South Eastern Europe, as well as in the areas of the judiciary, social affairs, cultural heritage, democracy and youth co-operation. KEY PRIORITIES Croatia will continue to pursue its policy of partnership with the Council of Europe, especially by playing a constructive part in CoE programmes and activities related to the democratisation of society, protection of human and minority rights, and the rule of law. In addition, Croatia will continue to make an active contribution to topics relevant to the organisation, particularly by improving its profile in certain fields in which domestic legislation is remarkably advanced, such as protection of the family, especially women and children. For instance, after Zagreb hosted the launching of the CoE initiative against corporal punishment of children in June 2008, Croatia confirmed itself at the European level as a leading advocate of prohibiting the corporal punishment of children. As outlined in its priority foreign policy objectives, Croatia will continue to support EU policy within the CoE by aligning its actions with EU positions and by acting in line with the Memorandum of Understanding between the EU and the CoE.
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3.31.2.1.3. The Organisation for Security and Co-operation in Europe (OSCE) In 2008, the Republic of Croatia continued its activities in three main OSCE areas: the politico-military, human, economic and environmental dimensions. Each comprises a very broad range of themes and culminates in at least one major annual gathering. The Republic of Croatia applies OSCE norms and standards in the military and political dimension (weapons control and confidencebuilding measures), the human dimension (protection of human and minority rights, freedom of the media, tolerance and non-discrimination, etc), and the economic and environmental dimension (sustainable development). Croatia also takes part in several OSCE working groups, especially those active in the fight against terrorism, border security and other aspects of co-operative security. In 2008, Croatia actively contributed to OSCE field activities by seconding government and civil sector personnel to OSCE missions in SEE and elsewhere as necessary, and this practice will continue in 2009. Likewise, Croatia regularly sends short-term and long-term observers (both diplomats and representatives of non-governmental organisations, such as GONG) as part of OSCE/ODIHR electionmonitoring missions. Following a decision of the OSCE Permanent Council of 21 December 2007, the OSCE Mission to the Republic of Croatia was wound up on 31 December 2007. A smaller-scale OSCE office was opened in Zagreb on 1 January 2008, and its competences include the monitoring of war crime trials and reporting on the implementation of the Governments housing care programme for refugees. The decision was based on the assessment that Croatias progress in implementing its internationally assumed obligations as part of the OSCE Mission mandate was significant, and that Croatia had successfully resolved most of the issues covered by the Missions comprehensive mandate. The decision was also facilitated by the fact that the OSCE Mission closed or transformed four of its departments at the end of 2006, thus accelerating the winding-up process. The OSCE Office in Zagreb is competent primarily for monitoring war crime trials which have been or will be transferred from the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague. More precisely, according to an agreement with the ICTY, the OSCE must ensure continued monitoring, which was one of the preconditions for transferring ICTY cases to national jurisdiction. In addition to reporting on war crime trials, the OSCE Office also briefs the OSCE seat about the implementation of the Governments housing care programme. KEY PRIORITIES The Republic of Croatia will continue to play an active part in the Organisation for Security and Co-operation in Europe through participation in all gatherings involving the three OSCE dimensions, with a particular emphasis on the OSCE security dimension within the context of current conflicts in the wider region. In the forthcoming period, Croatias successful co-operation with the OSCE Office in Zagreb will continue, and so will its active implementation of the Action Plan for the Accelerated Implementation of the Housing Care Programme within and outside the Areas of Special State Concern. The implementation of judicial reform in the field of war crime trials and co-operation with the ICTY will also be continued, thus contributing to the fulfilment of the OSCE Office mandate in Zagreb.
3.31.2.1.4. NATO Croatias invitation to join NATO at the NATO Summit in Bucharest on 3 and 4 April 2008 marked a crucial step forward in meeting one of Croatias strategic foreign policy objectives. After the representatives of NATO Member States signed the Protocol on NATO Enlargement to the Republic of Croatia on 9 July 2008, the ratification of the Accession Protocol has successfully proceeded in the national parliaments of the 26 Member States of the Alliance. Croatia expects to take part in the next NATO Summit in Strasbourg in France and Kehl in Germany on 3 and 4 April 2009 as a fully-fledged member of the Alliance.
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This year, Croatia entered the seventh cycle of the Membership Action Plan for 2008 and 2009, which was presented at the meeting of the NATO Senior Enforced Political Committee on 16 October 2008. In addition to meeting the general political and economic requirements for membership, the Action Plan also displays Croatias achievements so far and outlines its future tasks, above all in the fields of defence and security, the major components of which are Croatias increased contribution to Allied Forces operations (Afghanistan), regional co-operation, the implementation of defence reform, and dialogue with the public on Croatias membership of the Alliance. Participation in NATOs ISAF mission to Afghanistan is Croatias largest contribution to peace building missions and represents a long-term priority. The current Croatian contingent numbers 277 members and will grow to up to 300 soldiers during 2009. Croatia will continue providing development aid to Afghanistan and will continue its involvement in other NATO operations, including the KFOR mission to Kosovo. The implementation of required defence reforms has continued. A comprehensive transformation of Croatias armed forces, aimed at achieving full interoperability with NATO, is proceeding successfully. Croatias armed forces, once stationary forces organised according to the territorial principle, will be transformed into forces capable of acting within the full spectrum of NATO operations, and this transformation is visible in all aspects of Croatias defence reform. The process of professionalisation of the armed forces has continued with their complete restructuring into an army filled exclusively on a voluntary basis. In the process of integration into NATO, the role of Croatia as an important factor in achieving security and stability in South Eastern Europe is also increasing. Against this background, Croatias co-operation and activities within the framework of the US-Adriatic Charter are also significant. Croatia supports the expansion of the US-Adriatic Charter to other countries in the region which wish to join the Alliance, in line with the principles and objectives of the Charter. In line with the above-mentioned, on 4 December 2008 Croatia supported the expansion of the US-Adriatic Charter to Bosnia and Herzegovina and to Montenegro. Special attention has been paid to efforts aimed at raising the support of the public for Croatias membership of NATO. Information and education activities, designed to increase public support for Croatias membership of NATO and to make it sustainable, were continued after the Bucharest Summit. Croatia continued aligning its legal framework with the requirements of future NATO membership, and the analysis of other Constitutional and legal provisions which may affect Croatias efficient involvement within NATO continued. KEY PRIORITIES In 2009, Croatia will continue to implement the political, economic and defence criteria for NATO membership and to carry out the following priority tasks: meeting its obligations within the framework of Allied Forces operations (Afghanistan), regional cooperation, implementation of defence reforms, and dialogue with the public on Croatias membership of the Alliance. The alignment of Croatias legal framework with the requirements of future NATO membership will also continue. In the first quarter of 2009, the Croatian Parliament will ratify the Protocol on NATO Enlargement to the Republic of Croatia.
3.31.2.1.5. International Criminal Court (ICC) The Republic of Croatia takes an active part in all activities organised by the ICC for the States Parties to the Rome Statute of the International Criminal Court. The Croatian delegation attended the 6th Assembly of the States Parties to the Rome Statute held in New York in December 2007 and in June 2008. In the past two three-year mandates Croatia has been a member of the Bureau of the Assembly of States Parties (BASP), a supporting body consisting of a President, two Vice Presidents and 18 members (8 of them European states in the past three-year mandate from 2005 until 2008). Croatia regularly participates in the work of BASP working
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groups, which meet in New York and The Hague in between sessions. In addition, a representative of Croatia is a member of the Special Working Group on the Crime of Aggression. As a candidate country for EU membership, Croatia has continuously supported the joint positions and statements of the EU regarding the International Criminal Court. The Republic of Croatia also supports the integrity, autonomy and efficiency of the ICC at the level of particular UN General Assembly Committees. In some cases, Croatia has co-sponsored and participated in drafting thematic resolutions of the UN General Assembly which provide positive references concerning the role of the ICC as a means of promoting international peace and security. KEY PRIORITIES The Republic of Croatia will continue to support the work and efficient functioning of the Court and will maintain full co-operation with the ICC, in compliance with the provisions of the Act on the Application of the Statute of the International Criminal Court and Prosecution of Crimes against International War and Humanitarian Law.
3.31.3. Arms control

The Republic of Croatia is a contracting party to and an active participant in most major international agreements and conventions, and a signatory state of the following documents relating to the non-proliferation of weapons of mass destruction and to armament export and import controls: the Nuclear Non-Proliferation Treaty (NPT); the Convention on the Physical Protection of Nuclear Material (CPPNM); the Comprehensive Nuclear Test Ban Treaty (CTBT); the Chemical Weapons Convention (CWC); the Biological and Toxin Weapons Convention (BTWC); the Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons (CCW); the Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of Warfare (Geneva Protocol); the Vienna Convention on Civil Liability for Nuclear Damage; the Convention on Early Notification of a Nuclear Accident; and the Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency. Croatia has also signed the Agreement with the International Atomic Energy Agency concerning the application of safeguards in relation to the Nuclear Non-Proliferation Treaty, as well as the Protocol to the Agreement and the Additional Protocol to the Agreement. Croatia applies the Code of Conduct for the safety of and protection against ionizing radiation and additional guidelines for the import and export of radioactive sources. The International Convention for the Suppression of Acts of Nuclear Terrorism, adopted in New York on 13 April 2005, has been applied in Croatia as of 7 July 2007. The Republic of Croatia is a contracting party to the Landmine Ban Treaty (Ottawa Convention), The Hague Code of Conduct against Ballistic Missile Proliferation (HCOC), the Vienna Document 99 (WD 99), and the Agreement on Sub-regional Arms Control (SSKN). Croatia has accepted the principles of the EU Code of Conduct for Arms Exports. Croatia is a State Party to the Wassenaar Arrangement (WA), the Zangger Commission, the Australia Group and the Nuclear Suppliers Group (NSG). Croatia is involved in the Initiative to suppress the proliferation of weapons of mass destruction and of related equipment, technology and materials (Proliferation Security Initiative - PSI). It also participates in the Global Initiative to Combat Nuclear Terrorism.
3.31.3.1. CONVENTIONAL ARMS CONTROL AND DISARMAMENT
3.31.3.1.1. Small Arms and Light Weapons (SALW) The issue of small arms and light weapons is regulated in the Weapons Act (OG 63/07, in line with Directive 91/477/91/EEC) and the Act on the Production, Overhaul and Movement of Arms and Military Equipment (OG 33/02, 173/03).
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The National Commission for Arms and Ammunition, headquartered at the Ministry of Foreign Affairs and European Integration and set up in line with the decision of the Croatian Government of 31 March 2005, has prepared a draft of the National Strategy for Small Arms and Light Weapons Control, which is in line with the EU Strategy to Combat Illicit Accumulation and Trafficking of SALW and their Ammunition (5319/06). In July 2008, the draft of the National Strategy was referred to the Ministry of the Interior for further finalisation. The Ministry of the Interior should forward the draft of the Strategy to expert working groups of the Government in the near future to initiate its adoption procedure. In addition, an Action Plan will be prepared and is to be adopted in the first quarter of 2009. KEY PRIORITIES During 2009, the Ministry of Foreign Affairs and European Integration will continue to co-ordinate the work of the National Commission for Arms and Ammunition, with special emphasis on the implementation of national, regional and international projects aimed at preventing excessive SALW accumulation, and it will also support information exchange designed to achieve greater transparency. The Ministry will continue to collect data and prepare annual reports in line with the UN Programme of Action, the OSCE Document on SALW, the Questionnaire on OSCE Participating States Policy and/or National Practices and Procedures for the Export of Conventional and Related Technology, the OSCE Questionnaire on Anti-Personnel Landmines and Explosive Remnants of War, and the Stability Pact Implementation Plan for Combating the Proliferation of Small Arms and Light Weapons.
3.31.3.1.2. Import/export legislation The export and import of arms and ammunition in the Republic of Croatia are regulated by the Trade Act (OG 87/08), the Regulation specifying goods subject to export and import licences (OG 128/07, 8/08, 25/08, 41/08 and 73/08), the Act on the Production, Overhaul and Movement of Arms and Military Equipment (OG 33/02 and 173/03) and the Act on the Export and Import of MilitaryUse Items and Non-Military Ordnance (OG 86/08). Institutional progress in export control is visible in strengthened interdepartmental co-operation and the introduced TRACKER electronic system. Equipment for the systems application has been procured and installed, linking the competent state authorities which take part in the issuing of licences for the export and import of military use items contained in the List of Military Equipment, which has been aligned with the EU Common List of Military Equipment, as well as for the export and import of non-military ordnance from the List of Non-Military Ordnance, and the export of dual-use items. Non-military ordnance includes hunting and sporting rifles, their components and accompanying equipment, hunting and sporting ammunition and its components, commercial explosives and their components, gunpowder and anti-hail rockets. The state institutions which take part in the issuing of export and import licences for military use items and non-military ordnance are the Ministry of the Economy, Labour and Entrepreneurship, the Ministry of Foreign Affairs and European Integration, the Ministry of the Interior, and the Ministry of Defence. The Republic of Croatia hosted the 9th International Conference on the Control of Exports of Military-Use Items and Dual-Use Items, which took place in Cavtat in October 2008. KEY PRIORITIES To pursue and promote co-operation through outreach activities with the business sector and companies engaged in the production and movement of military-use items, non-military ordnance and dual-use items, and strengthen the involvement of the academic community and scientific institutions. The export system of the Republic of Croatia includes: the Trade Act (OG 87/2008) the Regulation specifying goods subject to export and import licences (OG 128/07, 8/08, 25/08, 41/08 and 73/08)
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the Act on the Export and Import of Military-Use Items and Non-Military Ordnance (OG 86/08), which is to be applied as of 1 January 2009
the Act on the Production, Overhaul and Movement of Arms and Military Equipment (OG 33/02 and 173/03) the Act on the Export of Dual-Use Items (OG 100/04 and 84/08) the Ordinance on application forms for the issuing of export licences for dual-use items (OG 166/04 123/07) the Regulation on the List of Dual-Use Items (OG 184/04, 62/07 and 57/98)
The Act on the Export and Import of Military-Use Items and Non-Military Ordnance, which entered into force on 1 January 2009, improves the quality and modernises the field of controlling the import and export of military-use items and non-military ordnance, and the provision of services for military-use items, which include brokerage services and technical assistance related to military-use items. Violations of the provisions of this Act will result in imprisonment or fines. KEY PRIORITIES
National Commission on Arms and Ammunition The main task of the National Commission for Arms and Ammunition in 2009 will be to operate in line with the National Strategy, to pass the Action Plan for the Control of Small Arms and Light Weapons, and to co-ordinate the financial and technical assistance envisaged by the EC and UN for the funding of projects related to the implementation of the National Strategy. Committed to supporting and contributing to security and confidence-building measures, Croatia remains actively involved in the area of arms control, practised through an exchange of inspection and evaluation visits and visits to airbases and military facilities, and regularly fulfils its obligations and carries out information exchanges pursuant to the Vienna Document 99. In 2009, several passive and active inspection/evaluation visits are planned to be carried out by the MoD Arms Control Service as part of VD 99, with the full support of the MFAEI Directorate for International Organisations and Security. Sub-regional Agreement on Arms Control (SAAC) The Republic of Croatia is committed to co-operation as part of the Agreement on Sub-regional Arms Control (SSKN) and its full application, which is carried out by the Arms Control Service in line with the adopted active and passive inspection and acceptance quotas among SSKN parties. Croatia will continue to take an active part in the work of the Sub-regional Consultation Commission (SRCC), pursuant to Article IV Annex 1 B of the Dayton Peace Accords, in the implementation of its policies furthering its interest in peace in Bosnia and Herzegovina. Croatia will preside over the SRCC Meeting in March 2009 and will attend SRCC meetings in Bosnia and Herzegovina, Montenegro and Serbia, and quarterly expert meetings as part of the Permanent Working Group. It has also participated in the information exchange in December 2008 in Vienna. In accordance with the amendments to the Agreement on Sub-regional Arms Control, Article IV of Annex 1-B to the General Framework Agreement for Peace in Bosnia and Herzegovina, co-operation among the parties to the Agreement will continue. In 2009, the work of inspection teams will be improved and simplified with a harmonised and mandatory handbook for inspectors, which has already been prepared and adopted at a regular SRCC meeting. RACVIAC Centre for Security Co-operation The Republic of Croatia has expressed its interest and readiness to fully support the continued role of RACVIAC (Regional Arms Control Verification and Implementation Assistance Centre) in the region.
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RACVIACs priorities for the coming period are based on the decisions issued by the RACVIAC Membership Advisory Group (MAG) concerning its strategy, field of action and strategic goals. Meetings of working groups for the Centres organisation and legal status in 2008 are aimed at facilitating a faster and more efficient realisation of the Centres strategic goals. In view of the corresponding conclusions of the working groups on RACVIACs legal status and its organisational structure, an intense debate on a new legal framework for RACVIAC is anticipated in 2009, so that the overall relationship among potential contracting parties within RACVIAC may be fully resolved in the procedure of their assuming regional ownership in this field of regional co-operation, including financial obligations, as well as accepting the initiative in defining the modalities and principles of co-operation, but also the status of so-called associate members, a group of states which would participate in RACVIAC primarily through individual projects. In accordance with the decision of an MAG meeting, the Republic of Croatia chairs the RACVIAC Working Group for Legal Affairs. KEY PRIORITIES In 2009, Croatia will provide full support for the application of RACVIACs newly established goals and for the implementation of its programme, and will take part in seminars concerning the activities planned for the coming period. In 2009, it is planned to continue interdepartmental co-operation (MFAEI, MELE, MF Customs Directorate, MoD and MoI) in the exchange of information on Croatias progress in the area of export control of conventional arms and dual-use goods covered by the Wassenaar Arrangement (WA). Croatia will continue to participate in the meetings of the General Working Group, the Experts Group, the Licensing and Enforcement Officers, the WA Experts Group for Intelligence and Security Issues, and WA plenary sessions. The Conference on Disarmament is the only multilateral body dedicated to disarmament negotiations. Activities will be continued towards achieving Croatias full membership of the Conference on Disarmament. Croatia has been on the waiting list since 1992 and is chronologically the second on the list of countries waiting for full membership. Through the CPMUN in Geneva, Croatias observer status will be maintained, enabling Croatia to participate in the work of the CD (which meets in Geneva three times a year). Croatias actions are based on full respect for the UN Charter, and Croatia will follow up the work of the UN GA First Committee in 2009, including work aimed at its reform. Through an exchange of information as part of annual declarations, Croatia plays an active role in relation to the HCOC, reporting on its achievements in the areas of non-proliferation policy, its participation in and membership of international arms control regimes, and receiving from member countries pre-launch notifications. Croatia regularly and timely submits its annual declarations in accordance with the revised HCOC form and attends preparatory and annual meetings. Croatia will continue to play an active role in the initiatives and exercises related to crisis management, civil emergency planning and disaster preparedness.
3.31.3.1.3. Arms control, security and confidence-building measures Major advances have been made in the implementation of the Agreement on Sub-Regional Arms Control (SSKN), with all parties thereto coming much closer to attaining the basic SSKN goal the establishment of new forms of co-operation in the field of security aimed at building transparency and confidence and achieving balanced and stable defence force levels at the minimum level required for the Parties respective security. In the course of 2008, the Republic of Croatia continued to abide consistently by SSKN provisions, by carrying out acceptance and inspection missions in conformity with the agreed inspection schedule adopted by the Sub-regional Consultation Commission (SRCC). In the post-war years, the Agreement served as an important security and confidence-building measure. Today, adapted to new circumstances, the Agreement applies to a new state of affairs among its signatories, as it reflects the political progress achieved in Bosnia and Herzegovina and the existence of a single Bosnia and Herzegovina Ministry of Defence. This makes Bosnia and Herzegovina
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one Party to the Agreement, replacing the previous two parties (entities). After gaining independence in 2007, Montenegro was admitted to the SSKN as an independent member. The Republic of Croatia remains fully committed to all forms of co-operation as part of the SSKN and is prepared to consider proposals for the further improvement of arms control mechanisms at sub-regional and regional levels. The Republic of Croatia continues to actively support and contribute to confidence and security-building measures (CSBMs) in South Eastern Europe by regularly meeting its obligations under the Vienna Document 99. In line with its obligations arising from the Vienna Document 99, the Republic of Croatia has completed its annual exchange of information and has participated in the implementation of inspection and evaluation visits regulated by VD 99. Croatia is a Signatory State to the Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons23 (CCW) and the pertaining Protocols I, II, III, IV, V. It takes an active part in negotiations on the prospective adoption of the protocol for cluster munitions. From the very beginning, the Republic of Croatia has supported the Oslo Declaration on Cluster Munitions. It took an active part in the adoption of the text of the Convention on Cluster Munitions which was passed in Dublin on 30 May 2008, and Croatias Minister of Foreign Affairs and European Integration Gordan Jandrokovi signed it on behalf of the Republic of Croatia at the signing ceremony held in Oslo on 3 December 2008. RACVIAC and the Croatian Ministry of Foreign Affairs and European Integration co-organised a workshop on cluster munitions at the end of October 2008. The Republic of Croatia requested a prolongation of the deadline under Article 5 of the Ottawa Convention for completing the demining of its territory. The requested completion deadline is an additional ten years. KEY PRIORITIES As part of the monitoring of anti-landmine activities, an annual report will be prepared pursuant to Article VII of the Ottawa Convention on Anti-Personnel Mines, and another annual report relating to the OSCE Questionnaire on Anti-Personnel Mines & Explosive Remnants of War. Pursuant to the obligations assumed under the Convention on Cluster Munitions, the Republic of Croatia will start destroying its supplies of cluster munitions in 2009.
3.31.3.2. NON-PROLIFERATION OF WEAPONS OF MASS DESTRUCTION The risk of proliferation of weapons of mass destruction and their use by terrorists has been recognised, and special attention has been devoted to preventing the proliferation of weapons of mass destruction, related materials and dual-use items. In addition to a precise legal framework, strong emphasis has been placed on the permanent training of the staff of implementing institutions. As a member of global non-proliferation treaties and an active participating country in international organisations and non-proliferation regimes related to suppressing the proliferation of weapons of mass destruction, the Republic of Croatia maintains a pro-active policy in the field of non-proliferation of weapons of mass destruction. It does so by implementing existing international mechanisms and improving the national system for supervising the physical protection, import, export and transport of particularly sensitive technologies and double-use substances, which may also be used in the production of weapons of mass destruction. A) ACHIEVEMENTS IN 2008 The Republic of Croatia has intensified international co-operation with partner countries by exchanging relevant information and co-ordinating activities aimed at raising the level of security necessary for the efficient fight against terrorist acts caused by weapons of mass destruction.
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Full title of the Convention: the Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to be Excessively Injurious or to Have Indiscriminate Effects (CCW)
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The Republic of Croatia believes that the Initiative to suppress the proliferation of weapons of mass destruction and of related equipment, technology and materials (Proliferation Security Initiative - PSI) is one of the most efficient mechanisms in the fight against WMD proliferation. It therefore organised, together with the USA and Poland as partner countries, an international exercise PSI Adriatic Shield 2008. In addition to the countries listed above, the other participants were Bosnia and Herzegovina, Italy, Montenegro and Slovenia. Countries of the Mediterranean and other regions took part as observers. The exercise reflected the need for a more active approach to non-proliferation by strengthening the partnership of the Adriatic Sea countries and improving their national capacities for interception procedures at sea. The exercise PSI Adriatic Shield 2008 also tested and strengthened the efficiency of regional and international co-operation, particularly in the field of information exchange. The part of the exercise which took place at sea was carried out in line with the provisions of the Agreement between the Republic of Croatia and the United States of America Concerning Co-operation to Suppress the Proliferation of Weapons of Mass Destruction by Sea (the Shipboarding Agreement). Following Croatias support for the Initiative, representatives of Croatia attended the celebration of the Initiatives 5th anniversary, and Croatia chaired a working group which presented the advantages of co-operation based on PSI principles to those countries which do not provide public support for PSI objectives. Croatia believes that the Global Initiative to Combat Nuclear Terrorism (GI) represents an important contribution to strengthening international efforts to suppress nuclear terrorism threats. Croatia takes part in two GI projects, both launched by the USA. The first project was initiated by the Defence Threat Reduction Agency and includes the creation of a global GI Internet portal accessible to all GI countries. The second project was launched by the US Department of Homeland Security and focuses on creating a global architecture for nuclear detection. Croatia is a vice-chair of the UNSC Committee established pursuant to Resolution 1540 (2004) and takes part in shaping and implementing programmes aimed at improving the implementation of the relevant Resolution. In line with the above, the Workshop on UNSC Resolution 1540 (2004) Modalities of Future Implementation was organised in Croatia in the RACVIAC Security Cooperation Centre as a joint project of Croatia and Romania as part of the Euro-Atlantic Partnership Council (June 2008). As a candidate country of the Eastern Europe group of countries, Croatia was a member of the Board of Governors of the International Atomic Energy Agency (IAEA) from September 2007 until September 2008. On 22 May 2008, the Republic of Croatia fulfilled all requirements pursuant to national legal procedures needed for the entry into force of the Agreement between the Republic of Croatia and the IAEA Amending and Supplementing the Protocol to the Agreement between the Republic of Croatia and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Nuclear Non-Proliferation Treaty. Croatia considers the Nuclear Suppliers Group (NSG) an important non-proliferation regime designed to prevent nuclear and other radioactive material misuse, and it therefore plays an active part in all important NSG topics. The Republic of Croatia continued upgrading its export control system. At this years plenary meeting of the Australia Group (AG), Croatia reported on the planned amendments to the Act on the Export of Dual-Use Items, designed to introduce stricter provisions related to transit on land and sea, brokering, and higher penalties for offenders. The amendments were passed, and the Act, thus improved, entered into force in September 2008. The efficiency of licence-issuing procedures was improved with the installed Tracker system and a regularly updated website. In 2008, Croatia continued its active co-operation with the OPCW, mostly through the activities of the National Committee for CWC Implementation, but also through the activities of other state administration bodies. The CWC provisions have been transposed into national legislation. Croatia submits regular annual declarations to the OPCW concerning civil facilities which could produce chemical weapons. Croatia pays particular attention to contributing to regional co-operation through participation in the meetings of regional national commissions, and it played an active part in the 2nd meeting of SAP countries directly involved in CWC implementation, which was held in Podgorica on 13 and 14 February 2008. The meeting served to discuss proposals for joint border crossing points where CWC goods and substances will be referred for appropriate customs and other controls.
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Representatives of the National Committee took an active part in all events organised by the OPCW dedicated to assistance and protection, including seminars held in Bratislava, Minsk and Prague, as well as in the first meeting of representatives of South Eastern Europe and the Caucasus on the data management system concerning illicit trade in chemical, biological, radiological and nuclear material, which was held in Turin, Italy, in May 2008. The aim of the meeting was to present the programme Improving International Co-operation in Suppressing Illicit Trade in Chemical, Biological, Radiological and Nuclear Material. To promote the universal application of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, Croatia organised a regional seminar Chemical Weapons Convention for representatives of South Eastern European countries in February 2008, in co-operation with the RACVIAC Security Co-operation Centre. The Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction (BTWC) has been transposed into Croatias legislation, and Croatia submits regular reports to the UN Office for Disarmament Affairs in Geneva on activities related to national implementation as part of Croatias contribution to confidencebuilding measures under BTWC. In the forthcoming period, Croatia will invest additional efforts in fulfilling BTWC provisions through training for the competent bodies, as well as in improving the co-ordination of institutions competent for the implementation of legislation pertaining to dual-use items. In November 2006, the Republic of Croatia deposited the ratification instruments for the Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of Warfare (Geneva Protocol 1925) with the depository, the Government of the French Republic. It thus waived the use of asphyxiating, poisonous or other gases and all similar liquids, substances or agents which are justly condemned by the civilised world in any circumstances. Finally, in 2008 Croatia organised a number of international activities with a view to informing and training the staff of civil institutions, companies and the academic community in recognising the illegal transfer of dual-use items and sensitive technologies. The activities were carried out with the assistance of NATO, the OSCE and OPCW and within the framework of non-proliferation regimes and initiatives which the Republic of Croatia has joined. In the first half of 2008, Croatia organised a series of seminars to better acquaint the staff of public services, dealers, manufacturers, scientists and the academic community with their legal obligations and with the implementation of procedural arrangements. The said seminars were organised by the MFAEI and the Croatian Chamber of Economy, and ensured not only transfer of knowledge, but also improved co-operation and co-ordination with civil servants. Regarding radiation protection, in compliance with the Act on Ionising Radiation Protection and Safety of Ionising Radiation Sources (OG 64/06), hereinafter referred to as: the Act, the following pieces of subordinate legislation have been passed: Ordinance on conditions, deadlines and methods for acquiring the required professional training and renewal of knowledge on the application of measures for protection against ionising radiation (OG 30/08); Ordinance on radiological and physical safety measures for ionising radiation sources (OG 39/08); Ordinance on the method of removal of radioactive contamination, disposal of the radioactive source or undertaking other indispensable measures in order to reduce the damage to people and the environment or eliminate further threats, hazards or damages (OG 53/08); Ordinance on the conditions, manner, places and deadlines for systematic testing and monitoring of the type and activity of radioactive substances in the air, soil, the sea, rivers, lakes, ground waters, solid and liquid precipitation, drinking water, foodstuffs and general use products and dwelling and working spaces (OG 60/08); Ordinance on the requirements for the design, construction and removal of structures accommodating sources of ionising radiation or in which practices involving sources of ionising radiation take place (OG 99/08). The Croatian Government adopted the Regulation on the conditions and method of disposal of radioactive waste spent sealed radioactive sources and ionising radiation sources which are not intended for further use (OG 44/08), which, for the first time in the Republic of Croatia, regulates the conditions required for disposal of radioactive waste, spent sealed radioactive sources and ionising
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radiation sources not intended for further use. Pursuant to Article 53 of the said Regulation, the Croatian Government will designate a location for the disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources not intended for further use (central disposal facility). Within the framework of the IAEA-RER-9.073 project entitled the Implementation of National Strategies for Regaining Control over Orphan Sources, the Strategy for Management of Radioactive Waste and Spent Nuclear Fuel has been prepared. The Strategy covers highly active radioactive waste, as well as intermediate and low level radioactive waste, and orphan ionising radiation sources and sources without users. Pursuant to Article 37 of the Act, upon the proposal of the minister competent for health, the Government of the Republic of Croatia adopted the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency, which was published in the Official Gazette (49/08) The National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency is a strategic document of the Republic of Croatia related to intervention measures in the case of emergencies that may arise while performing activities with ionising radiation sources or nuclear activities. It is intended for the prevention of deterministic and the reduction of stochastic effects of ionising radiation on the exposed population as well as for the prevention or reduction of radiological pollution of the environment. B) KEY PRIORITIES The Republic of Croatia will continue excellent international co-operation with partner countries by exchanging relevant information and co-ordinating activities aimed at raising the level of security necessary for the efficient fight against terrorist acts caused by weapons of mass destruction. Pursuant to the above, in 2009 Croatia will organise a number of international activities with a view to informing and training the staff of civil institutions, companies and the academic community in recognising the illegal transfer of dual-use items and sensitive technologies. The activities will be carried out both in the Republic of Croatia and abroad, with the assistance of NATO, the OSCE and OPCW and within the framework of non-proliferation regimes and initiatives which the Republic of Croatia has joined. A Regional workshop Advanced Training Course Croatia NATO ATC, organised by the Croatian and US Governments and sponsored by NATO, will take place in Split from 4 until 8 May 2009, and will deal with the guidelines and foundations for preparing a national strategy for WMD non-proliferation. This programme will serve as an outreach tool for the competent representatives of neighbouring countries and countries in the region. The workshop aims to create guidelines and foundations for preparing national strategies for WMD non-proliferation, modelled after the national strategies of EU Member States and the USA. It has been proposed that the first day of the workshop include state officials and Members of the Croatian Parliament as Croatian speakers. The presence of high-level executive and legislative branch representatives would confirm Croatias commitment and full-scale contribution to the fight against WMD proliferation, which is defined by NATO, the EU and UN as a key security priority. Because of this fact, and in compliance with the corresponding practice of NATO and EU Member States, the preparation of the national strategy for WMD non-proliferation is one of the relevant documents and integral parts of the National Security Strategy. The US Department of Energy has invited the Republic of Croatia to participate in the programme Second Line of Defense (SLD). Equipment for nuclear and other radioactive material control would be donated to the Republic of Croatia as part of the project. It includes a significant number of stationary portal monitors which are to be installed at border crossing points with Bosnia and Herzegovina and Serbia, and in maritime ports. The donation also includes the installing of the monitors, three-year maintenance and training the staff of the implementing institutions to use the equipment. In 2008, Croatia plans to strengthen its involvement in all aspects of the Initiative to suppress the proliferation of weapons of mass destruction and of related equipment, technology and materials (Proliferation Security Initiative - PSI). Croatia will continue to take part in two projects of the Global Initiative to Combat Nuclear Terrorism. Croatia will pursue activities within the UNSC Committee established pursuant to Resolution 1540 (2004).
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In the forthcoming period, Croatia will invest additional efforts in fulfilling BTWC provisions through training for the competent authorities, as well as improving the co-ordination of institutions responsible for the implementation of legislation pertaining to dual-use items. In the forthcoming period, Croatia will make additional efforts in providing technical assistance to those countries which have not transposed the CWC and BTWC into their legislation. The Fifth World Congress on Chemical, Biological and Radiological Terrorism is being organised and will take place in April 2009, accompanied by an international workshop Chemical Weapons, Biological Weapons and UNSC Resolution 1540 (2004). The workshop represents the last in a series of joint projects of Croatia and its National Committee for CWC and OPCW implementation. It is usually organised as part of the international symposium on chemical, biological, nuclear and radiological terrorism (CBMTS), which takes place in Croatia biannually. At our initiative, the UN Secretariat Department for Disarmament Affairs has joined the preparation of the workshop. In addition, at the initiative of the National Committee, for the first time the workshop offers an integral approach to international instruments (CWC, BTWC, UNSC Resolution 1540) in the field of WMD non-proliferation, while including their specific contributions to global anti-terrorism efforts. The OPCW has expressed its readiness to sponsor around 20 participants, including representatives of African countries. The legislation passed in the previous year will be implemented in 2009. The plan and programme of ionising radiation protection measures and interventions in the case of extraordinary events will be implemented at the state level. Instructions will be drawn up for obtaining approval for activities including sources of ionising radiation, their use, import, export and supply of ionising radiation sources. Measures aimed at alignment with the acquis and EU practices will be implemented, particularly those regarding measures for radiological and physical safety of ionising radiation sources. The Regulation on the conditions and method of disposal of radioactive waste, spent sealed radioactive sources and ionising radiation sources which are not intended for further use will be implemented. As part of the project Border Control of Nuclear and Other Radioactive Materials with Stationary Portal Monitor Practices in Croatia within the PHARE 2006 programme, stationary portal monitors for nuclear and other radioactive material control will be installed at border crossing points. Procedures in the case of detection of illicit transfer of radioactive material over state borders have been devised by the Ordinance on the method and procedure for supervising the import or export of materials reasonably suspected of being contaminated by radionuclides or of containing radioactive sources. Implementation of the project will continue in 2009. Training in using equipment will be organised for customs officials as well as for personnel involved in the detection, identification and disposal of all types of radioactive materials. Software for monitoring and the central collection of data recorded by monitors installed on border crossing points will be developed, which will ensure the accessibility and high quality of data and its timely exchange, facilitating in this way decision-making on necessary measures. Other implementing activities will primarily include the strengthening of administrative capacities in implementing institutions.
3.31.4. Implementation of restrictive measures and economic sanctions

A) ACHIEVEMENTS IN 2008 Restrictive measures proclaimed in respective UNSC resolutions are implemented in line with obligations assumed under the UN Charter, an international agreement which is part of the internal legal order of the Republic of Croatia and is above the law in terms of legal effects (Article 140 of the Constitution of the Republic of Croatia). The basic act regulating the imposition, implementation and lifting of international restrictive measures is the Act on International Restrictive Measures (OG 139/08), pursuant to which Croatia imposes, implements and lifts international restrictive measures in line with the legal acts and decisions of international organisations for the purpose of establishing and (or) preserving international peace and security, respect for human rights and fundamental freedoms, the development and strengthening of democracy and the rule of law, and other objectives aligned with international law.
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In 2008, the Croatian Government adopted the Decision on the Implementation of Measures Listed in UNSC Resolution 1803 (2008) regarding Sanctions against the Islamic Republic of Iran (OG 68/08). Furthermore, to facilitate the implementation of restrictive measures, an ad hoc Interdepartmental Working Group composed of representatives of relevant state bodies was set up. The Croatian Government entrusted the Working Group with the task of drafting the new Act, which was passed by the Croatian Parliament at its session held on 21 November 2008. Decisions on imposing any individual international restrictive measure, its type, method of implementation and lifting are issued by the Croatian Government. The said decisions are then published in the Official Gazette of the Republic of Croatia together with accompanying lists. The Interdepartmental Working Group for Monitoring the Implementation of the Act on International Restrictive Measures remains the competent body for further monitoring of the implementation of the said Act. B) KEY PRIORITIES According to Croatias negotiating position for Chapter 31, alignment in the field of EU autonomous restrictive measures will be completed prior to Croatias accession to the EU at the latest; however, a legal framework aimed at raising the level of efficiency in the implementation of measures is currently being prepared. As the full application of the new Act on International Restrictive Measures (OG 139/08) is expected in 2009, the technical details for the application of the new Act were already determined at meetings of the Interdepartmental Working Group for Monitoring the Implementation of the Act on International Restrictive Measures in 2008. In addition, competences and authorisations were clearly defined, thus creating the preconditions for further improving the co-operation of bodies taking part in the work of the Interdepartmental Working Group and in the application of the Act.
3.31.5. Croatias contribution to anti-terrorism efforts

A) ACHIEVEMENTS IN 2008 Legislative activities: The Croatian Parliament passed the Act on the Ratification of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (OG IA 87/08) and the Act on the Prevention of Money Laundering and Financing of Terrorism (OG 87/08) at its session held on 15 July 2008. On 27 November 2008, the Croatian Government adopted the National Strategy for the Prevention and Suppression of Terrorism, which was submitted for parliamentary procedure. Implementation measures: Croatias active involvement in international meetings dealing with terrorism issues. B) KEY PRIORITIES Legislative activities: Ratification of the relevant international law instruments Implementation activities: Preparation of the Action Plan for the Implementation of the National Strategy for the Prevention and Suppression of Terrorism; Continued participation of Croatian representatives in political and expert international meetings related to the suppression of terrorism and in concrete counter-terrorism exercises with international partners; Active participation in/commitment to preparations for a Comprehensive UN Convention on Terrorism.
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3.31.6. European Security and Defence Policy

In 2008, representatives of the Croatian Ministry of Defence regularly attended high-level meetings: four meetings of the EU Troika with the Defence Ministers of candidate countries and NATO Member Countries other than EU Member States (Croatia, Macedonia, Turkey, Iceland and Norway), and four meetings of the EU Military Committee (EUMC) in the EUMC+5 format (attended by Croatias Military Representative to NATO). In June 2008, General Henri Bentgeat, Chairman of the EU Military Committee, visited Croatia at the invitation of the Croatian Chief of General Staff. In line with the 2006-2015 Long-term Development Plan for the Croatian Armed Forces, which anticipates Croatias contribution to the crisis management capabilities of the European Union, including its participation in the EU Battlegroups concept (EUBG), the year 2008 saw a continuation of activities aimed at Croatias EUBG inclusion under Germanys leadership, which will be in a stand-by status in the second half of 2012. In 2008, two co-ordination meetings were held, where the initial offers of the participating countries were presented. Croatia offered a motorised company and an engineering platoon for horizontal constructions. In 2008, activities related to better information dissemination as well as training for staff members of the Ministry of Defence and the Armed Forces in the European Security and Defence Policy (ESDP) were continued. From February 2008 until May 2008, the second training cycle (3 one-week modules) was carried out for SAP countries and was attended by 6 Croatian representatives. In addition, staff members of the Ministry of Defence and the Armed Forces are included in the ESDP Orientation Courses within the European Security and Defence College (ESDC). Two representatives of the Croatian Ministry of Defence took part in the 7th EUMS Geographic Conference held in Brussels in April. KEY PRIORITIES In 2009, the focus of co-operation in the ESDP field will be Croatias continued participation in high-level meetings (EU Troika with Defence Ministers of candidate countries, and EUMC +5), activities related to the inclusion of Croatias Armed Forces in EU Battlegroups, and information dissemination, education and training for staff members of the Ministry of Defence and the Armed Forces in the field of ESDP, both within the system and for future work in EU bodies.
3.31.7. Peace missions and operations

3.31.7.1. UN In 2008, Croatia made a very active contribution to UN peace missions through the participation of its Armed Forces and police. In line with the decisions of the Croatian Parliament on deploying members of the Croatian Armed Forces in UN peace missions of 18 May 2007, 13 July 2007 and 28 March 2008, Croatia currently takes part in 13 UN missions with a total of 156 members of Croatias Armed Forces and police. Croatias military contribution to UN peace missions grew from 46 in 2007 to 133 members of the Croatian Armed Forces deployed on 11 missions in 2008: MINURSO (Western Sahara) 7 military observers, MINUSTAH (Haiti) - 3 staff officers, UNFICYP (Cyprus) 4 military observers, UNMIL (Liberia) 4 staff officers, UNMIS (Sudan) 5 staff officers, UNMOGIP (India and Pakistan) 8 military observers, UNOCI (Ivory Coast) 2 military observers, UNOMIG (Georgia) 3 military observers, UNIFIL (Lebanon) 1 staff officer, BINUB (Burundi) 1 military observer, and UNDOF (Golan Heights) 93 members of the 1st Croatian national contingent (HRVCON) and 2 staff officers. By contributing an entire unit to the UNDOF mission, Croatia raised its contribution to UN missions to a new level, as its prior contribution involved only individual staff officers and military observers. In 2008, Croatia concluded its military
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contribution to two UN missions: UNMEE (Ethiopia and Eritrea) the mission mandate was wound up; and UNMIN (Nepal) the number of UN military observers was reduced. In 2008, Croatias police contribution to UN peace missions grew from 19 (in 2007) to 23 members. Croatia deployed a police officer as part of MINUSTAH (Haiti) for the first time, its contribution to UNMIT (East Timor) was raised from 2 to 5 police officers, and the number of Croatias police officers deployed as part of UNMIK (Kosovo) grew from 13 to 14. Croatias contribution to the UNFICYP mission in Cyprus was reduced from 4 to 3 police officers. Croatia co-operates with the UN on a permanent basis in the field of peace support training with a view to acquiring experience and information for both high-quality upgrading of existing training plans and programmes for members of the Croatian Armed Forces and police and also the development of new ones. Peace support training for members of the Croatian Armed Forces is conducted at the Croatian Army Peace Support Operations Centre (CAPSOC) in line with UN standards and the profiling of the programmes and contents of Croatian courses for participation in UN peace operations. Two UNMOC courses were held in 2008 (and attended, inter alia, by 2 foreign participants), and CAPSOC trainers who possess UN certificates are active in international courses outside Croatia. In February 2008, international courses for UN police officers (UNPOC), organised by Croatia since 2006, obtained a UN certificate. The third course, UNPOC-3, was organised very successfully in September 2008. The Republic of Croatia has observer status at SHIRBRIG (Stand-by High Readiness Brigade for United Nations Operations), a standby unit/planned force for UN peace missions, which contributes to the best possible modality of Croatias participation in this multinational unit. KEY PRIORITIES Croatias military and police contribution to UN peace missions will continue, and emphasis in the forthcoming period will be on strengthening Croatias position in UN peace operations (especially concerning the first Croatian unit in the UNDOF mission on the Golan Heights) and on increasing Croatias participation in missions located in areas which are geographically closer to Croatia (the immediate neighbourhood, Middle East, South Mediterranean/Northern Africa and the Caucasus). Croatia will continue to work on the selection process for candidates for UN DPKO posts, it will continue to develop a peace support training programme and to support an increasingly higher participation of women on peace missions. To fulfil these goals and objectives, Croatia plans to prepare an interdepartmental strategy for Croatias involvement in international peace missions, with the Ministry of Foreign Affairs and European Integration as the competent authority.
3.31.7.2. NATO ISAF Afghanistan Pursuant to the decision of the Croatian Parliament of 8 December 2006, the number of Croatian soldiers in ISAF was increased during 2008, and there are currently 277 members of Croatias Armed Forces deployed in the mission area. In August 2008, the 12th Croatian national contingent (HRVCON) was sent to the mission area, and members of Croatias Armed Forces are located in the area of three Regional Commands (RC): RC North, RC West and RC Capital, and are deployed in four permanent locations: Kabul, Mazar-e-Sharif, Chaghcharan and Pol-e-Khomri. A Croatian diplomat has been included in PRT Feyzabad. Croatias participation in the NATO-led ISAF mission to Afghanistan is its biggest contribution to peacebuilding missions and represents a long-term priority of Croatia. KFOR, Kosovo On 15 July 2008, the Croatian Parliament passed a decision on deploying 20 members of the Croatian Armed Forces and two transportation helicopters as part of the KFOR operation in Kosovo. Croatia made a formal offer of this contribution to NATO and awaits its reply. If the offer is accepted, deployment within the mission would occur at the beginning of 2009. Croatia continues to provide logistic support to the NATO-led KFOR mission and has therefore made available the capacities of its maritime ports and airports, military facilities, and the use of its airspace and air traffic control services.
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Active Endeavour Operation, Mediterranean Croatia started participating in the Active Endeavour Operation (OAE) prior to the formal conclusion of the Memorandum of Understanding with NATO through the exchange of information on the situation at sea. After the 3 AIS system was borrowed from CC-MAR Naples and installed in the summer of 2007, exchange of information with CC-MAR Naples was initiated, and the Operation Centre of the Croatian Navy Command was linked to the MSSIS system (Maritime Safety and Security Informational System). Seven AIS devices are currently being installed (6 on vessels, 1 on POM). It is planned to install AIS systems on all vessels of the Croatian Navy during 2009. At the end of September 2008, the Croatian Defence Minister sent a letter to the Secretary General of NATO, proposing the modalities of Croatias participation in the operation. The written response of the Secretary General and the Ministers letter will together make an international treaty on AEO participation between Croatia and NATO. NATO Training Mission Iraq (NTM-I) In an effort to contribute to stability and security in Iraq and to the training of Iraqi security forces, Croatia made an offer via the NATO Training Mission Iraq, NTM-I to donate weapons and military equipment and to provide training to Iraqi armed forces in Croatia. The Iraqi side accepted a training course in 2009. On 31 July 2008, the Croatian Government passed a decision on donating weapons (500 assault rifles) to Iraqi security forces. KEY PRIORITIES In 2009, priority tasks as part of ISAF will be to deliver new modern equipment and armoured vehicles to the Croatian contingent in line with NATO standards, to continue the process of forces concentration and consolidation and to examine the possibility of assuming the role of a PRT lead nation. The possibility of increasing Croatias contribution to the training of the Afghan National Army (ANA) by taking part in a multinational Operational Mentor and Liaison Team (OMLT) will also be examined. As regards KFOR, the inclusion of members of the Croatian Armed Forces in the operation is a priority for 2009. Concerning the Active Endeavour operation, AIS systems will be installed on all vessels of the Croatian Navy and exchange of information on the situation at sea with NATO will be continued via the AIS system.
3.31.7.3. EUROPEAN UNION EUPOL Afghanistan On 10 July 2007, two Croatian police advisers joined the EU-EUPOL Afghanistan police mission established on 17 June 2007. From 2005 onwards, these police officers were deployed in the Croatian civil team as part of the German police project in PRT Feyzabad. Croatias participation in this mission continued during 2008, and after the mandate of the two police advisers expired, two other police officers from Croatia were sent to new posts as part of the EUPOL mission: one is involved in coordinating the reform of the Afghan National Police in Kabul, and the other works on police training in Pol-i-Khomri. EUFOR Tchad/RCA By deploying 15 members of the Croatian Armed Forces as a reconnaissance team as part of the EU operation in Chad and the Central African Republic (EUFOR Tchad/RCA), Croatia joined EU military operations for the first time. Its participation in the operation enables Croatias Armed Forces to test their interoperability with EU partners and their capability to lead distant and demanding operations in terms of logistics, which they will face once Croatia becomes a fully-fledged member of the EU and NATO. This also shows the readiness of Croatia to make an active contribution to one of the long-term objectives of the EUs Common Foreign and Security Policy: support to peace and security in Africa. On 15 July 2008, the Croatian Parliament passed a decision on deploying members of the Croatian Armed Forces to the EUFOR Tchad/RCA mission for a six-month period, starting from the autumn of 2008. Members of the Croatian Armed Forces were deployed in the mission area at the beginning of October 2008 (an advance contingent was deployed on 3 October, and the majority of forces 11 members on 6 October). The Croatian team in the mission will carry out reconnaissance tasks in the area of the Polish-led Multinational Battalion North. Following an inquiry of the Secretary General of the EU Council and High Commissioner for CFSP Javier Solana and the UN Department of Peacekeeping Operations (DPKO), Croatia expressed its readiness to continue its participation in the Tchad/RCA mission after its transfer from under the UN umbrella, which is envisaged after 15 March 2009.
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EULEX Kosovo Croatia took part in the preparatory activities of the recently launched ESOP mission in Kosovo: EULEX - Kosovo. At its session held on 20 June 2008, the Croatian Government adopted a decision on Croatias participation in the EULEX Kosovo mission. Several members of the Croatian police contingent (four police officers) who are currently deployed as part of the UNMIK mission will be transferred to the EULEX mission, with a possibility of permanent rotation. At its session held on 12 September 2008, the Croatian Government adopted a conclusion on signing an Agreement between the European Union and the Republic of Croatia on the participation of the Republic of Croatia in the European Union Rule of Law Mission in Kosovo, EULEX Kosovo, and the said Agreement was signed on 24 November 2008. In addition to the participation of Croatian police officers as part of EULEX, Croatia is examining the possibility of deploying other experts from Croatia (diplomats, judicial officers, customs and prison system officers, etc) on this mission. EUFOR Althea In line with the expressed requirements, in 2008 Croatia continued to provide Host Nation Support to international forces in the EUFOR Althea mission in Bosnia and Herzegovina. To this end, Croatia made available the capacities of its maritime ports and airports, military facilities, and the use of its airspace and air traffic control services. KEY PRIORITES A priority task in 2009 is Croatias continued participation in the EUFOR Tchad/RCA operation, participation in EULEX, and further provision of Host Nation Support to members of the EU mission in Bosnia and Herzegovina, EUFOR Althea. Croatia will also follow other EU missions and, depending on concrete circumstances, make decisions on participating in them. The Ministry of Foreign Affairs and European Integration will continue to provide political guidelines for Croatias participation in these missions in close co-operation with other competent state bodies, primarily the Croatian Ministry of Defence.
3.31.8. Visa regime

In line with the Aliens Act (OG 79/07), the Croatian Government adopted new Regulation on the visa regime (OG 41/08), which entered into effect on 1 May 2008. The Regulation signifies further alignment of Croatias visa regime with the EU visa regime: a visa regime was introduced for the nationals of Bolivia, and special categories of nationals of the United Kingdom of Great Britain and Northern Ireland who are not nationals of the aforementioned country in the sense of Community law were introduced into the visa system. Implementing regulations passed on the basis of the Act, which regulate the visa issuing procedure in Croatias diplomatic missions/ consular posts, visa forms and the Croatian Visa Database entered into force on 1 June 2008 (OG 49/08). In July 2008, an Implementation Plan for the Preparation of Foreign and Internal Affairs Services for the Alignment of the Visa Regime was adopted. Consultations with the Russian party on signing an agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on mutual rights of travel of nationals were completed (for the second time). Preparations for its signing will be carried out. The proposal of the Decision on the extension of the temporary suspension of the visa regime for nationals of the Republic of Serbia and nationals of the Republic of Montenegro will be referred to the Croatian Government for adoption, and is to be applied from 1 January to 31 December 2009. A decision has been made to refrain from concluding new bilateral agreements on the suspension of visas with states on the EU negative list. With regard to the holders of diplomatic and official passports from such states, Annex 2 to the Common Consular Instructions on Visas for Diplomatic Missions and Consular Posts (Provisions on the movement of holders of diplomatic, official and
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service-related passports and holders of laissez passers issued by some international inter-governmental organisations to their employees) is taken into consideration when deciding on the possibility of a visa not being required. KEY PRIORITIES According to the Plan of Full Alignment of the Croatian Visa Regime with the EU Visa Regime, it is planned to conduct bilateral consultations on regulating the regime of mutual travel of nationals with states which are on the EU negative list, but which do not require a visa to enter the Republic of Croatia: the Republic of Turkey, the Republic of Serbia, Montenegro, the Republic of Macedonia, and Bosnia and Herzegovina. This implies an agreement on revising or repealing bilateral visa suspension agreements. The conclusion of an agreement between the Government of the Republic of Croatia and the Government of the Russian Federation on mutual rights of travel of nationals is expected in the first quarter of 2009, and its entry into force is envisaged for the end of 2009. The implementation of measures envisaged under the Plan for the Preparation of Foreign and Internal Affairs Services for the Alignment of the Visa Regime will be continued.
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3.32. FINANCIAL CONTROL 3.32.1 Public Internal Financial Control System

The basic acts regulating the area of public internal financial control in the Republic of Croatia are the Public Internal Financial Control Act (OG 141/06), the Ordinance on Internal Audits of Budget Users (OG 35/08), the Ordinance on the Implementation of Financial Management and Control (OG 35/08), the Development Strategy of Public Internal Financial Control (PIFIC), adopted by the Government of the Republic of Croatia in 2005, and the Independent Development Strategy of Public Internal Financial Control in the Republic of Croatia for local and regional self-government, adopted by the Government in 2007. A) ACHIEVEMENTS IN 2008 In 2008, activities aimed at establishing and developing the public internal financial control system continued in accordance with the Action Plan for the establishment and development of public internal financial control in the Republic of Croatia by the end of 2008, which was adopted in 2007, and in accordance with the Action Plan, i.e. the time framework for activities relating to the development of public internal financial control of local and regional government units by 2010. The Central Harmonisation Unit of the Ministry of Finance continued co-ordinating activities concerning the establishment and normative set-up of the appropriate organisation of the public internal control system in ministries and state administration bodies, as well as in units of local and regional self-government. The new Budget Act (OG 87/08), which does not regulate internal audits, was adopted in July 2008 and the Budget Act and the Public Internal Financial Control Act were harmonised. In addition, a new Ordinance on Budgetary Supervision (OG 79/08) was adopted, clearly defining the role of budgetary supervision, which means that there is no overlapping of functions between budgetary supervision and internal audits. Joint activities undertaken: The annual consolidated report on the public internal financial control system was compiled based on the annual reports of budgetary users on their activities relating to the establishment and development of financial management and control, and annual reports on the internal audits performed and the activities of internal audit functions. The consolidated report on the public internal control system for 2007 was discussed by the Internal Financial Control Council at its session held on 27 May 2008, and the Government of the Republic of Croatia at its session held on 30 June 2008, leading to conclusions aimed at the improvement and further development of this system. In accordance with the commitments undertaken as part of the Action Plan and Ordinance, the following registers were established: the register of internal audit units; the register of internal auditors charters; the register of certified auditors and the register of persons involved in financial management and control, which are regularly updated and amended. In 2008, there was uninterrupted promotional activity relating to the internal financial control system, including regular meetings with heads of financial management and control units, heads of internal audit units, and persons responsible for the establishment of financial management and control, as well as awareness-raising seminars. The training capacity of the Central Harmonisation Unit was increased. Four regional centres for training in the area of financial control and management were opened in Zagreb, Split, Osijek and Rijeka. Seminars were held for unit heads and regular training was provided for heads of financial management and control and internal auditors at local level. At the invitation of the Minister of Finance, in the period 25-28 March and 14-18 April 2008, SIGMA carried out an expert evaluation, i.e. peer-review of the public internal financial control system in the Republic of Croatia.
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The SIGMA expert team prepared a detailed report containing its findings and recommendations to be used for further development of the internal financial control system in the Republic of Croatia. The Central Harmonisation Unit of the Ministry of Finance employs 13 people. Four new employees were hired in 2008, while two employees left the unit. Activities in the area of financial management and control: The following activities took place in 2008: the Ordinance on the implementation of financial management and control was adopted, laying down the implementation of financial management and control, reporting on its implementation, verification of the quality of financial management and control, and establishment of the register of persons responsible for the implementation of financial management and control; training activities went on in accordance with the Training Plan. At the beginning of the year, seminars were held for persons involved in the establishment of financial management and control in different state administration bodies. Seminars were also held for persons responsible for the establishment and development of financial management and control at local level. With the help of experts from the CARDS 2004 projects, an additional module was organised, entitled Managing Performance, for the continuous training of persons involved in financial management and control. The module was held for heads of financial management and control at regional training centres; meetings were held with co-ordinators of financial management and control in different state administration bodies. At these meetings, the Central Harmonisation Unit provided technical and advisory assistance to budgetary users in relation to the harmonised approach to the list and the description of business processes, and the establishment of the book of business processes of budgetary users in accordance with valid financial management and control methodology; a seminar entitled The key to successful implementation of the PIFC was held in Varadin for persons responsible for the establishment and development of financial management and control at state level, organised as part of CARDS 2004; in 2008, Guidelines were laid down for the development of a Risk Management Strategy providing the methodology and basic guidelines for the establishment and development of risk management for budgetary users, with the aim of strengthening a high-quality and uniform internal control system, taking into account the differences and specific features of individual budgetary users. In 2008, budgetary users implemented activities relating to the establishment and development of financial management and control in accordance with their own action plans, which defined the activities, competent authorities and deadlines for the development of the system. Activities at state level were directed primarily towards laying down business processes and their description, while at local level they were directed towards appointing persons responsible for the establishment of the financial management and control system and drawing up plans for the determination and implementation of activities based on their own plans. The Central Harmonisation Unit provided technical and advisory assistance for the development of the financial management and control system at state level and for the implementation of the financial management and control system at local level. Activities in the area of internal audits: In accordance with the Action Plan for the establishment and development of public internal financial control in the Republic of Croatia by the end of 2008, the following regulations were adopted in 2008: the Ordinance on the internal audit of budget users (Official Gazette 35/2008); the Code of Professional Ethics for Internal Auditors (Official Gazette 18/08); a template of the Internal Auditors' Charter was drawn up and sent to the heads of internal audits for the purpose of the preparing and signing of the Internal Auditors' Charter at the individual budget users;
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the Training Plan for Internal Auditors for the period 2008-2010; the Internal Auditors' Manual, adapted to the new work methodology for carrying out individual system audits in accordance with international internal audit standards and best EU practices. The Manual was updated with the help of experts from the CARDS 2004 project.
In accordance with the Internal Auditor Training Programme, the Ministry of Finance organised training for internal auditors at state and local level in 2008. By the end of 2008, a total of 233 auditors, or 12 groups, had completed the training, which was first organised in 2004. Of the total number of persons which completed the training, including participants of the 12th group, 167 fulfilled the requirements for professional certification by the Minister of Finance. Internal auditors who have not yet fulfilled the requirements for professional certification by the Minister of Finance and who have completed theoretical training and passed the exam have to conduct two more audits to gain practical experience within a mentoring programme. In co-operation with the CARDS 2004 team, future mentors at local level received theoretical training at training centres in accordance with the Strategy. Pursuant to the mentoring plan, audits aimed at gaining practical experience were carried out with the help of mentors at local and regional level. Additional modules for the continuous training of internal audit units and internal auditors were prepared in 2008 with the help of experts from the CARDS 2004 project, as follows: Audits of programmes and projects financed by the European Union; Alignment audits; Performance audits; Financial audits; IT system audits; Risk assessment and strategic planning; Assessment of internal audit performance quality.
In 2008, the Central Harmonisation Unit actively participated in the co-ordination of activities aimed at carrying out the internal audit of Project Implementation Units for the CARDS, PHARE and IPA I programmes (hereinafter PIUs) at institutions subject to internal audits. In accordance with the Action Plan of the National Fund for strengthening weaknesses in the operation of PIUs, which listed an insufficient number of internal audits as one of the weaknesses, the Central Harmonisation Unit drew up an Action Plan for the performance of internal audits of PIUs. Aiming at the easier co-ordination of activities and the creation of a consolidated report, the Central Harmonisation Unit, in co-operation with various institutions included in the operations of PIUs (the National Fund, the Central Finance and Contracting Agency, and relevant ministries), and with the help of consultants from the CARDS 2004 projects, prepared the following documents: Guidelines for performing internal audits of PIUs; Instructions for the use of documents; Internal control questionnaire.
Based on individual audit reports on the operation of PIUs, a consolidated report was prepared for the National Authorising Officer. A meeting of the delegation of the Republic of Croatia and the auditors of the European Commission was held in Brussels on 8 July 2008, at which the auditors of the European Commission were notified of the activities undertaken by the Central Harmonisation Unit in relation to the internal audits of PIUs. Activities relating to the procurement of the internal audit software (Galileo) continued in 2008. The procurement process includes the adjustment of the software to the valid methodology of public sector internal audits in the Republic of Croatia, the testing of the
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software system and the training of internal auditors from ministries and other institutions at central government level and the City of Zagreb regarding the use of the software system. Aimed at strengthening co-operation with the State Audit Office, a joint seminar of the Central Harmonisation Unit and the State Audit Office was organised in February 2008 in which, in addition to the employees of the Central Harmonisation Unit and the State Audit Office, heads of internal audit units and heads of financial management and control from ministries and other institutions at state level participated. For the purpose of widening the network of internal auditors from all institutions at state and local level, the 4th seminar of internal auditors in the public sector of the Republic of Croatia was held in 2008, providing a platform for exchanging practical experience and for agreeing on joint tasks in the development of internal audits in the forthcoming period. B) KEY PRIORITIES The Central Harmonisation Unit of the Ministry of Finance will continue to pursue the activities within its scope of competence, notably those relating to the developing of methodology and standards of financial management and control and internal audits, organising the training of persons involved in financial management and control and internal audits, and further co-ordination of the establishment and development of the system. It is planned that the Central Harmonisation Unit will be reorganised in order to facilitate co-ordination of activities for further development of the internal financial control system.
3.32.2 External Audits State Audit Office

External audits in the Republic of Croatia fall under the competence of the State Audit Office, and are regulated by the State Audit Act (OG 70/93, 48/95, 105/99, 36/01, 44/01, 177/04). The Act provides for the functional and operative independence of the State Audit Office and establishes as the scope of its activity the audit of all public revenue and expenditure at state and local levels, as well as the auditing of EU funds received by the Republic of Croatia. Audits are performed in accordance with the Auditing Standards of the International Organisation of Supreme Audit Institutions (INTOSAI), the European Guidelines for the Implementation of INTOSAI Auditing Standards and the Code of Professional Ethics for State Auditors. The State Audit Office is a member of the International Organisation of Supreme Audit Institutions and the European Organisation of Supreme Audit Institutions (EUROSAI) and actively participates in the work of its bodies and working groups, and is a member of the Contact Committee of Supreme Audit Institutions of the EU, in whose work it participates as an active observer. A) ACHIEVEMENTS IN 2008 Guidelines for the continuous development of the State Audit Office (SAO) were laid down in the Strategic Development Plan 20082012, which was adopted in December 2007. The said Strategic Development Plan was directed primarily at the strengthening of quality control, the strengthening of capacity management and the strengthening of IT support. The implementation of the strategic plan was supported by the Human Resources Strategy and the accompanying Action Plan, and IT Strategy. A special working group is in charge of monitoring the implementation of the Strategic Plan. B) KEY PRIORITIES The short-term priorities of the State Audit Office for 2009 are laid down in the Strategic Development Plan for the period 20082012, while detailed implementation is specified by associated strategies and action plans, aligned with international auditing standards and best EU practices.
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Accordingly, in 2009 the SAO will continue its activities aimed at strengthening its independence and its organisational and management capacity, and at continually raising the quality of its performance and audit reports in accordance with the development of the profession. It will also continue activities aimed at strengthening its IT capabilities and at bolstering international co-operation, and all other activities needed to effectively fulfil legislative tasks and to achieve its vision and missions.
3.32.3. Protection of EU financial interests

In accordance with its assumed international commitments, the Republic of Croatia has undertaken to ensure the legatine framework for the protection of EU financial interests in the pre-accession period and ensure an efficient and effective system for managing irregularities and fraud relating to the utilisation of EU assistance funds (the AFCOS system). The said system must enable the efficient co-ordination of legislative, administrative and operational activities relating to the prevention of fraud (AFCOS - Anti Fraud Co-ordinating Structure) and relating to co-operation with the European Commissions Anti-Fraud Office (OLAF), and ensure the development of the administrative capacity necessary for the application of the acquis communautaire, including the capacity of legislative and judicial bodies to respond to cases where EU financial interests are jeopardised. In the Republic of Croatia, AFCOS comprises: a) a network of bodies which manage and use EU assistance funds (the Irregularity Reporting System); b) a network of bodies involved in combating fraud, corruption and other forms of irregularities in the system (the AFCOS Network);. c) the Ministry of Finance Department for Combating Irregularities and Fraud, which has a co-ordinating role in the system and represents a contact point with OLAF. A) ACHIEVEMENTS IN 2008 According to Article 114, paragraph 4 of the Budget Act (OG 87/2008), the Republic of Croatia as a country with access to European Union funds is obliged to ensure the protection of EU financial interests by setting up a system for combating irregularities and fraud. The Government of the Republic of Croatia adopted an Action Plan in its Conclusion of 17 July 2008, which contains measures aimed at strengthening the AFCOS system for the purpose of protecting EU financial interests. One of the key measures is the adoption of the National Strategy for Combating Fraud, aimed at protecting EU financial interests. The Irregularity Reporting System has been developed uninterruptedly since 2005, when state administration bodies were preparing for accreditation by the European Commission in relation to the use of EU assistance funds. Persons responsible for irregularities have been appointed and act in accordance with the Instructions adopted by the National Fund and the National Authorising Officer. They regularly, on a quarterly basis, report on irregularities in the bodies where they work. In the second quarter of 2008, the management of the system was transferred from the National Fund to the Department for Combating Irregularities and Fraud while the National Authorising Officer remains ultimately responsible for the functioning of the system. The AFCOS Network was established by virtue of a Decision of the Government of the Republic of Croatia (OG 92/2008) which also appointed persons to represent their institutions in the AFCOS Network, and stipulated the responsibilities of institutions in the said Network. The Section for Combating Irregularities and Fraud was established within the Ministry of Finance Budgetary Supervision Department in December 2006 as a section responsible for the co-ordination of legislative, administrative and operative activities aimed at the protection of EU financial interests. At the beginning of 2008, the Section was reorganised into the Department for Combating Irregularities and Fraud within the Budget Supervision Division.
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Since a Department cannot be a part of a body in the AFCOS Network, which is currently the case, one of the measures envisaged by the Action Plan is to change the position of the Department in the organisational structure and reorganise it as an independent Department, which will enable its operational independence. The Ministry of Finance created the Draft National Strategy for Combating Fraud with the Aim of Protection of EU Financial Interests and the Action Plan for its implementation, and submitted these documents to the European Commissions Anti-Fraud Office (OLAF) for their opinion. Institutions in the AFCOS system were provided with numerous training opportunities in relation to the area of protection of EU financial interests. A training programme Strengthening of integrity and the system for combating irregularities and fraud in the Republic of Croatia strengthening of the Croatian AFCOS, which was carried out by experts from the Kingdom of the Netherlands within the framework of MATRAFLEX, ended with a study visit by representatives of the Ministry of Finance (Division for Budgetary Supervision, Department for Combating Irregularities and Fraud, National Fund Operations Division, Directorate for Harmonisation of Internal Audits and Financial Control, and the Tax Administration) and the Public Procurement Office to institutions of the Kingdom of the Netherlands on 4-8 February 2008. On 25 March 2008, the Department for Combating Irregularities and Fraud held the first presentation on procedures of reporting on irregularities regarding the fourth component (IPA) at the Ministry of the Economy, Labour and Entrepreneurship. The Department for Combating Irregularities and Fraud held, in co-operation with a consultant, two training programmes for persons responsible for irregularities (on 8-10 April 2008), presenting the Instructions on irregularities and their practical implementation. The Department for Combating Irregularities and Fraud, with the technical assistance of the TAIEX instrument, organised a study visit to OLAF on 2-4 June 2008, which also included representatives of the Central Finance and Contracting Agency, the SAPARD Agency, the Public Procurement Directorate, the Tax Administration and persons responsible for irregularities in the operative structure of the IPA and PIU. On 17 and 19 June 2008, the Department for Combating Irregularities and Fraud, in co-operation with a consultant, held two workshops for persons responsible for irregularities and representatives of the network of institutions participating in combating fraud and corruption. On 2-3 September and 4-5 September, the Department for Combating Irregularities and Fraud, in co-operation with OLAF, as part of TAIEX, held two workshops for persons responsible for managing and reporting on irregularities with the aim of protecting EU financial interests. B) KEY PRIORITIES In accordance with the mid-term training strategy for institutions in the AFCOS system relating to the management of irregularities and fraud in the period 2009-2011, the Department for Combating Irregularities and Fraud drew up the Annual Training Plan for bodies in the AFCOS system relating to management irregularities and fraud. The plan for 2009 envisages training for bodies in the AFCOS system (representatives of bodies in the AFCOS Network, persons responsible for irregularities, and employees of the Department for Combating Irregularities and Fraud). The Annual Plan also envisages testing the knowledge of representatives of bodies in the AFCOS system in the area of managing irregularities and fraud and on reporting procedures. In addition, pursuant to the Methodology of risk management relating to irregularities and fraud, bodies in the AFCOS system are obliged to create and submit to the Department for Combating Irregularities and Fraud analyses of the risk of irregularities and fraud for their respective bodies, which the Department will combine to draw up a General analysis of the risk of irregularities and fraud in the AFCOS system.
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PROTECTION OF THE EURO FROM COUNTERFEITING
A) ACHIEVEMENTS IN 2008 A working group for the implementation of the Project for the establishment of the National Analysis Centre and the Coin National Analysis Centre within the Croatian National Bank (CNB) was appointed by the Decision of the Governor of the CNB No. 745020/11-07/R of 7 November 2007, thus launching the Project for the establishment of the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre within the Croatian National Bank. The Decision on medals and tokens similar to euro coins was published in the Official Gazette (132/2007). The Decision on the establishment of the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre was adopted on 20 March 2008, entering into force on 1 March 2009 (OG 37/08). The working group for the implementation of the Project for the establishment of the National Analysis Centre and the Coin National Analysis Centre of the Croatian National Bank prepared the Implementation plan for the establishment of the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre, and on 23 April 2008 it was approved by the CNB management. On 23 May 2008, the Ministry of the Interior of the Republic of Croatia (hereinafter MI) and the Croatian National Bank signed a Co-operation Agreement on the prevention of counterfeiting and the detection of counterfeit banknotes and coins. Pursuant to the Agreement, the MI is obliged to establish a National Central Office for organising and carrying out investigations related to counterfeiting issues pursuant to the International Convention for the Suppression of Counterfeiting Currency (Geneva Convention of 20 April 1929), while the CNB is obliged to establish the National Counterfeit Centre (NCC), the National Analysis Centre (NAC) and the Coin National Analysis Centre (CNAC). The Co-operation Agreement between the European Central Bank and the Croatian National Bank was signed on 9 May 2008 by the Governor of the CNB and on 27 May 2008 by the President of the European Central Bank. On 19 May 2008, the Governor of the CNB signed a letter on the acceptance of the Co-operation Agreement between the Croatian National Bank and the European Commission/OLAF/ETSC, while on 24 July 2008 a letter was received from Mr. Franz-Hermann Brner, Director General of OLAF on the acceptance of the Co-operation Agreement between the Croatian National Bank and the European Commission/OLAF/ETSC, which meant the Agreement had been accepted by both parties. The Ordinance on amendments to the Ordinance on the internal organisation of the Croatian National Bank was adopted on 19 June, pursuant to which the Division for the National Counterfeit, National Analysis and Coin National Analysis Centres was established within the Currency Department. A consulting services and training contract was signed on 29 April 2008 by the CNB, and on 23 June 2008 by the sterreichische Banknoten- und Sicherheitsdruck GmbH (OeBS), Vienna, relating to the training of CNB employees in the relevant Austrian centres. In the period 1-3 September 2008, three CNB employees underwent training at the OeBS (Module 1), three CNB employees completed training at the Austrian National Analysis Centre (Module 2) between 4 September and 7 October 2008, while three CNB employees completed training at the Austrian Mint in the period 13-23 October 2008 (Module 3), pursuant to the above consulting services and training contract signed between the CNB and the OeBS. On 7 July 2008, the Specification of a request for the creation of an IT system for counterfeit registration was drafted. The procedure for creating the IT system has begun, with the execution deadline set for the end of November 2008. A network between the National Analysis Centre and the Coin National Analysis Centre was set up, work on IT support continued and future counterfeit reports were created. On 29 July 2008, the application procedure to fill two counterfeit analysis expert posts at the NAC and the CNAC was concluded. On 18 August 2008, employment contracts were signed with the new experts, with a start date of 1 September 2008.
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In the period 628 August 2008, four supply contracts for equipping the NAC and CNAC were signed pursuant to the Implementation Plan. Pursuant to contracts on the procurement of equipment for the NAC and CNAC, they were equipped with personal computers, analytical scales, machines for the verification of note authenticity with a microscope, and machines for checking magnetic moment and electrical conductivity. Work on the renovation of facilities for the NAC and CNAC were concluded on 15 September 2008 in line with the construction contract. In accordance with the Co-operation Agreement signed between the European Central Bank and the Croatian National Bank, employees of the CNB went on a working visit to the European Central Bank on 24-25 September 2008 relating to the fulfilment of commitments both parties had assumed under the Agreement. In November 2008, pursuant to the Co-operation Agreement on the prevention of counterfeiting and the detection of counterfeit banknotes and coins signed between the Ministry of the Interior and the Croatian National Bank, samples of registered counterfeit banknotes and coins from the period 2002-2008 were taken over from the Ivan Vueti Forensic Science Centre and test work started on the verification of the authenticity of euros with the help of the test version of the system for registering counterfeits application. The preparation of internal procedures for the operation of national centres has started. B) KEY PRIORITIES A trial period is envisaged in January and February 2009, while it is planned that the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre will commence their operations on 1 March 2009. Further training of employees of the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre will be carried out.
505
3.33. FINANCIAL AND BUDGETARY PROVISIONS

A) ACHIEVEMENTS IN 2008 With the aim of creating an efficient and high quality system of administering own resources, Croatia has established a working group consisting of representatives of all the institutions/organisational units involved in the implementation of the system (the Department for Co-ordination and Management of the EU Own Resources System; the Sector for Budget Execution; the Customs Administration; the Tax Administration; the Ministry of Agriculture, Fisheries and Rural Development; the Croatian Central Bureau of Statistics; and the Croatian National Bank) and has defined the working groups working procedure. As a result of their efficient work, on 29 February 2008 Croatia delivered to the European Commission, at its request, replies to the Questionnaire on Croatias capacity for meeting administrative conditions in the area of EU own resources, in order to assess the current state of Croatias administrative capacity and its readiness for the adequate implementation of the system. The first simulation of the A and B accounts for the 4th quarter 2007 traditional own resources was also carried out within the framework of the questionnaire. In addition, a European Commission workshop was held in Zagreb on 16 and 17 April 2008 to bring together experts from various government institutions involved in the own resources system, aimed at providing technical assistance regarding all types of own resources, but also assessing the current administrative capacity. The workshop contributed to a deeper understanding of the whole EU own resources system and improved the capacity for making calculations and projections in the area of own resources. With the aim of meeting the obligations assumed within the framework of negotiations on Chapter 33: Financial and Budgetary Provisions and the full alignment of its legislative and institutional framework with the acquis communautaire, on 31 July 2008 Croatian Government adopted an Action Plan for the implementation of the system of administration of the EU own resources in the Republic of Croatia, that was submitted to the European Commission. The Action Plan was tailored according to each individual area of the EU own resources system and includes targets, activities that need to be carried out to meet these targets, competent authorities and deadlines for the implementation of the said activities. In November 2008, Croatia delivered to the European Commission the first Progress report on the implementation of activities under the Action Plan for the period August-October 2008. In the area of traditional own resources, on 9 May 2008 the Croatian Parliament adopted the Act on Amendments to the Customs Act (the most important amendments relating to: accounting and time limits for entry of debt, time limits for payment of customs debt, payment deferral and other advantages). The Act came into effect on 1 July 2008. As regards the creation of an IT system and procedures for the maintenance of the A and B accounts, a project team was appointed which is responsible for carrying out activities under the Action Plan Chapter 33: Financial and Budgetary Provisions. The project team started operating, assigning responsibility for activities planned in 2008. The competent authorities were defined and methodology established to ensure that the project team works efficiently. It is planned that the team will conduct an analysis aimed at understanding the accounting of traditional own resources through A and B accounts, drawing on experience acquired during working visits to EU Member States (comparison of best practices), complete preparatory work relating to the change of current accounting practices under which the Tax Administration enforces the collection of customs debts, i.e. including them in the Customs accounting system, since A and B accounts of traditional own resources will be integrated into and connected with Customs accounting, and also specify and encode revenues in special accounts A and B. In connection with administrative capacity, the recruiting of new staff for the Department for the Co-ordination and Management of the EU Own Resources System continued at the end of 2008. The Department currently has a staff of three. With the entry into force of the Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development (OG 35/2008), a Division for Market Support was formed within the Directorate for Market and Structural Support in Agriculture, consisting of two departments: the Department for Trade Measures and the Department for Market Intervention. As regards VAT-based resources, a VAT statement simulation was the subject of intensive work in the 3rd quarter of 2008. A questionnaire was created (primarily directed at budgetary users, such as schools, hospitals and kindergartens, in order for them to specify
506
products with 0%, 10% and 22% VAT rates) for the purpose of calculating the weighted average rate. Data necessary for calculating the weighted average rate and the VAT report simulation were collected, analysed and processed. The final VAT Statement was delivered to the European Commission on 1 October 2008. As regards the aligning of GDP-GNI data important for GNI-based own resources, in 2008 efforts were invested in supplementing those elements of the Methods and Sources, GNI Inventory that represent the preconditions for meeting the European Commissions benchmark in the area of national accounts, which are discussed in more detail in Section 3.18 Statistics. In addition, on 19 June 2008, the Croatian Parliament adopted the new Act on the Croatian National Bank, which entered into force on 9 July 2008 and which, inter alia, governs the issue of the account of the European Commission. B) KEY PRIORITIES Croatia has an adequate institutional framework for establishing an efficient own resources system and there are no substantial differences between the Croatian and the EU systems as regards the basic principles and institutions relating to the implementation of the own resources system. However, efforts will be made to further strengthen all technical and administrative capacities to ensure the uninterrupted functioning of the system from the date of accession of the Republic of Croatia to the EU. As a consequence and with the aim of laying down the procedures for the system of administering EU own resources in the Republic of Croatia, a Manual for administration of EU own resources in Croatia is to be created in 2009. In addition, with the aim of developing the appropriate level of administrative capacity for adequate forecasting of individual types of own resources, a model for assessment of own resources is to be defined in 2009. In 2009, efforts will also be invested in mobilising human resources through education and training, and the organisation of workshops relating to individual areas of the EU own resources system, combined with ongoing learning from the own resources structures, procedures and experiences of other EU Member States. In 2009, within the framework of the last phase of alignment of national customs legislation with EU customs legislation relating to Chapter 29: Customs Union, provisions will be aligned regarding customs debt in the part which assumes the implementation of the provisions of Article 220, paragraph 1, item b) of Regulation 2913/92 (the Community Customs Code). The alignment will be carried out by adopting the Act on Amendments to the Customs Act. The Customs Administration plans to carry out the following implementing activities in 2009: adopting procedural Instructions on recording Community legislation and procedures of TOR reporting which will specify TOR sources, TOR accounts (A, B), the basis for claims, deadlines for entry, the division of entries in the Customs Administration, and formats for different reports. Based on the aforementioned Instructions, it will integrate the A and B accounts (IT application) in the existing accounting system and accordingly develop an automated IT system for the A and B accounts, and upgrade the existing IT system to automatically generate reports regarding the A and B accounts in the format laid down in Commission Decision 97/245/EC. The Customs Administration will also adopt Guidelines for the use of special A and B accounts, train employees and create a user manual, and create reports on obligations established by subsequent controls for which there is no customs debt security and which should thus be entered into account B (the further development of audits following customs procedures). Amendments to the Regulation on the internal organisation of the Ministry of Agriculture, Fisheries and Rural Development are planned in the 1st quarter of 2009. A section for sugar will be established within the Directorate for Market and Structural Support in Agriculture, Division for Market Support, Department for Market Intervention. In relation to strengthening capacity in the area of sugar levies, it is planned that two more employees will be recruited in the new organisational unit of the Ministry of Agriculture, Fisheries and Rural Development, Directorate for Market and Structural Support in Agriculture, in the Division for Market Support, and that they will be trained by the middle of 2009. A regulation which will introduce certain elements of market organisation as preparation for the future implementation of EU market policy is to be adopted in the 2nd quarter of 2009. This will lay the foundations for the implementation of the system of production quotas, i.e. prepare the competent section within the Directorate for Market and Structural Support of the MAFRD for its administration. The regulation will also define the production year as defined in the EU, establish the conditions for the purchase of sugar-beet and establish a data collection system in the sugar sector, which is
507
necessary for future reporting to the European Commission and the supervision of production. It should be underlined that this is to do with the preparation of the competent authorities for the implementation of the system of production quotas for sugar following Croatias accession to the EU and not with alignment with the sugar market order which is in force in the EU, given that Croatia does not have production restrictions and nor will it introduce them in the pre-accession period. The Value Added Tax Act is expected to be adopted in the 2nd quarter of 2009, ensuring alignment with the provisions of Directive 2006/112/EC. As regards the aligning of GDP-GNI data, the National Accounts Division of the Croatian Central Bureau of Statistics will deliver a complete GNI Inventory to Eurostat, with the regular quarterly transmission of all requested elements of gross national income to Eurostat starting at the beginning of 2009. In 2009, the next phase of work will be completed on the following products: supply and use tables and the assessment of tangible assets in current prices.
508
ANNEX A
510
ANNEX A
ANNEX A PLAN FOR THE ALIGNMENT OF THE LEGISLATION OF THE REPUBLIC OF CROATIA WITH THE ACQUIS COMMUNAUTAIRE AND OVERVIEW OF THE IMPLEMENTATION MEASURES FOR 2009
1.1. DEMOCRACY AND THE RULE OF LAW
LEGISLATIVE MEASURES Subordinate legislation adopted pursuant to previously adopted laws
No
Subordinate legislation
Competent authority
Legal basis for the adoption of subordinate legislation

Act on Civil Servants (OG 92/05, 142/06, 77/07, 107/07, 27/08), Article 139
To be aligned with the following acts of the acquis
To be submitted for Government procedure

II quarter 2008
Regulation on job classification and the salaries of employees
CSOPA
Derived from political criteria
IMPLEMENTATION MEASURES Adoption / implementation deadline
Description of measures
STRATEGIES Adoption of the Human Resources Management and Development Strategy for State Administration OTHER Implementation of training for the new General Administrative Procedure Act Implementation of training for the application of regulations on employee relations in state administration
Competent authority
Sources of financing
CSOPA
IV quarter 2009
Danish bilateral assistance and State Budget
CSOPA
I-IV quarter 2009
State Budget
CSOPA
II-IV quarter
State Budget
511
1.2.2.1. State Administration Reform

LEGISLATIVE MEASURES a) Laws and related subordinate legislation
No
Legislative measure
Competent authority

Council Directive 94/80/EC of 19 December 1994 laying down detailed arrangements for the exercise of the right to vote and to stand as a candidate in municipal elections by citizens of the Union residing in a Member State of which they are not nationals OJ C 323, 21.11.1994
Act on the Right of Nationals of EU Member States who Reside in the Republic of Croatia to Vote and Run for Office in Elections for Local and Regional Self-government
CSOPA
III quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws
No
Competent authority

Act on Civil Servants (OG 92/05, 142/06, 77/07, 107/07, 27/08), Article 139

II quarter 2009
Regulation on job classification and the salaries of employees
CSOPA
IMPLEMENTATION MEASURES Adoption / implementation deadline Sources of financing
STRATEGIES Adoption of the Human Resources Management and Development Strategy for State Administration OTHER Implementation of the Administrative Inspection Act and implementation of thorough inspection supervision in all state administration bodies Implementation of training for the new General Administrative Procedure Act Implementation of the new electoral model for local selfgovernment
Competent authority
CSOPA
III quarter 2009
Danish bilateral assistance and State Budget
CSOPA
I-III quarter 2009
State Budget
CSOPA
I-III quarter 2009
State Budget Budget of local self-government and State Budget
State Electoral Commission and CSOPA
II quarter 2009
512
ANNEX A
Implementation of training for the application of regulations on employee relations in state administration Establishment of the record of employment of national minority members in local and regional selfgovernment Establishment of the register of civil servants
CSOPA
II-III quarter 2009
State Budget
CSOPA
III quarter 2009
State Budget
CSOPA
III quarter 2009
State Budget
513
1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES
1.3.1. Civil, political, economic and social rights
No
Legislative measure
Competent authority
MJ

II quarter 2009
1 SUBORDINATE ACTS
Probation Act
Act on Amendments to the Act on the Enforcement of Criminal Sanctions and Measures Issued against Minor Perpetrators of Criminal Offences
MJ
II quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws -
STRENGTHENING ADMINISTRATIVE CAPACITY Implementation of the bilateral programme funded by the Government of the United Kingdom and Northern Ireland entitled Strategic Programme Fund - Support to the Development of the Probation System in the Republic of Croatia Admittance to the civil service of 200 security officers (judicial police)
Competent authority
MJ
I quarter 2009
Government of the United Kingdom
MJ
IV quarter 2009
State Budget
514
ANNEX A
1.6. CO-OPERATION WITH THE ICTY
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws -
OTHER As part of war-crimes proceedings, it is planned to implement a project with the UNDP and to expand and institutionally strengthen the system of support to witnesses and victims of criminal offences, to introduce a support service to witnesses and victims of criminal offences at 4 pilot courts
Competent authority
MJ
IV quarter 2009
UNDP funds
515
3.1. FREE MOVEMENT OF GOODS
3.1.1. Horizontal issues
No
Legislative measure
Competent authority

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 and repealing Regulation (EEC) No 339/93
To be submitted to Government procedure
1 CB
Act on Technical Requirements for Products and Conformity Assessment
MELE
32008R0765 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
II quarter 2009

-
516
ANNEX A
STRATEGIES 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 2008 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 2009
Competent authority
MELE
I quarter 2009
1 CB
MELE
III quarter 2009
PLANS OR PROGRAMMES Report on the implementation of the Action plan for alignment with Articles 28-30 of the Treaty establishing the EC for the period July December 2008 Report on the implementation of the Action plan for alignment with Articles 28-30 of the Treaty establishing the EC for the period January June 2009
MELE
I quarter 2009
1 CB
MELE
III quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES 1 CB EDUCATION AND TRAINING OTHER ACAA Agreement - Proceeding with consultations and launching negotiations connected with the conclusion of the ACAA Agreement in the fields: recreational craft, cement, protective gloves, low-voltage equipment and electromagnetic compatibility; - Giving proposals for sectors regarding the second package of negotiations and launching negotiations connected with the conclusion of the ACAA Agreement. MELE Continuous MELE During 2009
MELE
During 2009
517
3.1.1.1. Standardisation
STRATEGIES
Process phases
Competent authority
Public discussion on the HZN Development Strategy HZN Development Strategy Adoption of the HZN Development Strategy PROGRAMMES HZN membership of the European standards bodies: CEN and CENELEC Drawing up a membership application Preparation for an independent audit Drawing up the Programme Programme of participation in the work of CEN and CENELEC Preparations for the implementation of the programme
MELE, HZN Croatian Government
I quarter 2009 II quarter 2009
State Budget, CARDS 2004
MELE, HZN MELE, HZN HZN HZN
I quarter 2009 II quarter 2009 II quarter 2009 During 2009
State Budget, CARDS 2004 State Budget State Budget State Budget
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES (HZN) RESTRUCTURING OF THE ORGANISATIONAL STRUCTURE (HZN) In the course of 2009, it is planned to recruit 2 new employees Amendments to the Ordinance on the internal organisation and job description and classification scheme a) ongoing professional development in the professional field of standardisation b) ongoing learning of the English language a) providing for new business premises TECHNICAL SUPPORT (FACILITIES, EQIUIPMENT, IT EQUIPMENT...) b) furnishing the new business premises c) permanent upgrading of the IT system
518
MELE, HZN
During 2009 Following the adoption of the HZN Development Strategy Continuous
State Budget
MELE, HZN
1 CB
HZN
State Budget
EDUCATION AND TRAINING OF THE EMPLOYEES
HZN CSAOSPM HZN HZN
Continuous Following a) Continuous
State Budget State Budget State Budget
ANNEX A
3.1.1.2. Accreditation
No
Legislative measure
Competent authority

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 and repealing Regulation (EEC) No 339/93 32008R0765
Accreditation Act
MELE HAA
II quarter 2009
HAA Articles of Association
HAA
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 and repealing Regulation (EEC) No 339/93 32008R0765
II quarter 2009
PLANS OR PROGRAMMES Programme of Work of the HAA for 2009 (to be approved by the HAA Management Council) STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of 3 new employees (with university qualifications) 1 CB Training of the employees and assessors of the HAA according to the HAA Training Plan for 2009 Procurement of IT equipment
Competent authority
HAA
I quarter/ During 2009
State Budget, projects CARDS, PHARE
HAA
During 2009 I quarter/ During 2009 During 2009
State Budget State Budget, projects CARDS, PHARE State Budget
HAA HAA
519
3.1.1.5. Market surveillance
PLANS OR PROGRAMMES Annual surveillance plan in the field of technical products STRENGTHENING ADMINISTRATIVE CAPACITY 1 CB OTHER Further upgrading of the IT system and databases Recruitment of new employees Ongoing training of economic inspectors in the field of technical products
Competent authority
SI
I quarter 2009
State Budget
SI SI
During 2009 Continuous
State Budget State Budget
SI
Continuous
State Budget
520
ANNEX A
3.1.2. Old Approach Directives
3.1.2.1. Motor vehicles
LEGISLATIVE MEASURES a) Laws and related subordinate legislation -
No
Competent authority
Ordinance on amendments to the Ordinance on the procedure for the type-approval of devices for indirect vision and of vehicles equipped with these devices TPV 108.01 (Issue 01)
DZM
Road Traffic Safety Act (OG 67/08), Article 275, paragraph 3
Commission Directive 2005/27/EC of 29 March 2005 amending, for the purposes of its adaptation to technical progress, Directive 2003/97/EC of the European Parliament and of the Council, concerning the approximation of the laws of the Member States relating to the type-approval of devices for indirect vision and of vehicles equipped with these devices 32005L0027
Il quarter 2009
Ordinance on the procedure for the type-approval of motor vehicles in terms of the permissible sound level and the exhaust system of motor vehicles TPV 109.01 (Issue 01)
DZM
Council Directive 70/157/EEC of 6 February 1970 on the approximation of the laws of the Member States relating to the permissible sound level and the exhaust system of motor vehicles, as last amended by Directive 2007/34/EC 31970L0157
lI quarter 2009
Ordinance on the procedure for the type-approval of compressionignition engines and engines fuelled with natural gas for use in vehicles equipped with such engines, relating to the emission of gaseous and particulate pollutants from engines TPV 141.01 (Issue 01)
DZM
Directive 2005/55/EC of the European Parliament and of the Council of 28 September 2005 on the approximation of the laws of the Member States relating to the measures to be taken against the emission of gaseous and particulate pollutants from compression-ignition engines for use in vehicles, and the emission of gaseous pollutants from positive-ignition engines fuelled with natural gas or liquefied petroleum gas for use in vehicles 32005L0055
IV quarter 2009
521
Ordinance on the procedure for the type-approval of motor vehicles relating to emissions from air conditioning systems TPV 161.00 (Issue 00)
DZM
Directive 2006/40/EC of the European Parliament and of the Council of 17 May 2006 relating to emissions from air conditioning systems in motor vehicles and amending Council Directive 70/156/EEC, as amended by Regulation 706/2007/EC 32006L0040
lII quarter 2009
Ordinance on amendments to the Ordinance on the procedure for the type-approval of agricultural and forestry tractors in view of the maximum permissible total mass, location and method of affixing rear registration plates, gas reservoirs, additional weights, permissible noise levels and the exhaust system and solid harmful substances from the engine TPV 301.00 (Issue 00) Ordinance on amendments to the Ordinance on the procedure for the type-approval of agricultural and forestry tractors in terms of the field of vision and windscreen wipers TPV 304.00 (Issue 00)
DZM
Commission Directive 2006/26/ EC of 2 March 2006 amending, for the purposes of their adaptation to technical progress, Council Directives 74/151/EEC, 77/311/EEC, 78/933/EEC and 89/173/EEC relating to wheeled agricultural or forestry tractors 32006L0026
I quarter 2009
DZM
Directive 2008/2/EC of the European Parliament and of the Council of 15 January 2008 on the field of vision and windscreen wipers for wheeled agricultural or forestry tractors 32008L0002 Commission Directive 2006/26/ EC of 2 March 2006 amending, for the purposes of their adaptation to technical progress, Council Directives 74/151/EEC, 77/311/EEC, 78/933/EEC and 89/173/EEC relating to wheeled agricultural or forestry tractors 32006L0026
lI quarter 2009
Ordinance on amendments to the Ordinance on the procedure for the type-approval of agricultural and forestry tractors in terms of the level of noise experienced by the driver of the tractor TPV 309.00 (Issue 00)
DZM
I quarter 2009
Ordinance on amendments to the Ordinance on the procedure for the type-approval of agricultural and forestry tractors in terms of the installation of lighting equipment and signalling equipment TPV 313.00 (Issue 00)
DZM
Commission Directive 2006/26/ EC of 2 March 2006 amending, for the purposes of their adaptation to technical progress, Council Directives 74/151/EEC, 77/311/EEC, 78/933/EEC and 89/173/EEC relating to wheeled agricultural or forestry tractors 32006L0026 Commission Directive 2006/26/ EC of 2 March 2006 amending, for the purposes of their adaptation to technical progress, Council Directives 74/151/EEC, 77/311/EEC, 78/933/EEC and 89/173/EEC relating to wheeled agricultural or forestry tractors 32006L0026 Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles 32007L0046
I quarter 2009
Ordinance on amendments to the Ordinance on certain components and features of wheeled agricultural and forestry tractors TPV 322.00 (Issue 00)
DZM
I quarter 2009
10
Ordinance on the type-approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles
DZM
IV quarter 2009
522
ANNEX A
3.1.2.2. Chemical products (see item 3.27.8. Chemicals and GMO)
3.1.2.5. Pharmaceuticals
No
Legislative measure
Competent authority

Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use
1 CB
32001L0083 Act on Amendments to the Medicinal Products Act MHSW Directive 2004/27/EC of the European Parliament and of the Council of 31 March 2004 amending Directive 2001/83/EC on the Community code relating to medicinal products for human use 32004L0027 I quarter 2009
No
Competent authority
Ordinance on the manner of advertising and publishing information on medicinal products
MHSW
Act on Medicinal Products (OG 71/07), Articles 84 and 86
Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use 32001L0083 Directive 2004/27/EC of the European Parliament and of the Council of 31 March 2004 amending Directive 2001/83/EC on the Community code relating to medicinal products for human use 32004L0027 III quarter 2009
523
Ordinance on good manufacturing practice and the procedure of establishing requirements of good manufacturing practice
MHSW
Act on Medicinal Products (OG 71/07), Article 34 Act on Medicinal Products (OG 71/07) Article 73
Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use 32001L0083 Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use 32001L0083
II quarter 2009
Ordinance on pharmacovigilance
MHSW
III quarter 2009
IMPLEMENTATION MEASURES -
3.1.2.6. Veterinary pharmaceuticals
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws
No
Competent authority
Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to veterinary medicinal products Ordinance on veterinary medicinal products Act on Veterinary Medicinal Products (OG 84/2008) 32001L0082 Directive 2004/28/EC of the European Parliament and of the Council of 31 March 2004 amending Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to veterinary medicinal products 32004L0028 I quarter 2009
MAFRD
524
ANNEX A
Ordinance as regards the establishment of criteria for exempting certain veterinary medicinal products for food-producing animals from the requirement of a veterinary prescription Ordinance establishing a list of substances essential for the treatment of equidae Ordinance relating to the monitoring of side-effects of veterinary medicinal products
MAFRD
Act on Veterinary Medicinal Products (OG 84/2008)
Commission Regulation 2006/130/EC of 11 December 2006 implementing Directive 2001/82/ EC of the European Parliament and of the Council as regards the establishment of criteria for exempting certain veterinary medicinal products for foodproducing animals from the requirement of a veterinary prescription 32006L0130
II quarter 2009
MAFRD
Commission Regulation 1950/2006/EC of 13 December 2006 establishing, in accordance with Directive 2001/82/EC of the European Parliament and of the Council on the Community code relating to veterinary medicinal products, a list of substances essential for the treatment of equidae 32006R1950 Commission Regulation 540/95/EC of 10 March 1995 laying down the arrangements for reporting suspected unexpected adverse reactions which are not serious, whether arising in the Community or in a third country, to medicinal products for human or veterinary use authorised in accordance with the provisions of Council Regulation (EEC) No 2309/93 31995R0540
II quarter 2009
MAFRD
II quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY a) Recruiting two expert associates for veterinary pharmaceuticals in the Veterinary Directorate b) Recruiting one inspector for veterinary pharmaceuticals in the Veterinary Inspection Directorate
Competent authority
MAFRD
2009
State Budget
MAFRD
2009
State Budget
525
3.1.2.7. Cosmetic products
No
Legislative measure
Competent authority

Council Directive 76/768/EEC of 27 July 1976 on the approximation of the laws of the Member States relating to cosmetic products 31976L0768
Act on Amendments to the Act on General Use Items
MHSW
II quarter 2009
Ordinance on amendments to the Ordinance on the sanitary safety of general use items and the sanitary safety of toys
MHSW
Council Directive 76/768/EEC of 27 July 1976 on the approximation of the laws of the Member States relating to cosmetic products 31976L0768
III quarter 2009
526
ANNEX A
3.1.2.8. Glass
No
Competent authority

Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03, 79/07)

Remarks of the EC
Ordinance on amendments to the Ordinance on crystal glass products
MELE
I quarter 2009
527
3.1.3. New Approach Directives
3.1.3.1. Low-voltage equipment
STRENGTHENING ADMINISTRATIVE CAPACITY
Process phases
Competent authority
RECRUITMENT OF NEW EMPLOYEES
The Section for the Implementation of Technical Legislation was formed within MELEs Industry Directorate. The Section has got 3 employees, of the 6 planned. It is necessary to strengthen the administrative capacity of the Section as soon as possible by recruiting 3 more employees
MELE
I quarter 2009
State Budget
528
ANNEX A
3.1.3.2. Simple pressure vessels
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws IMPLEMENTATION MEASURES Adoption / implementation deadline
Process phases
Competent authority
STRENGTHENING ADMINISTRATIVE CAPACITY The Section for the Implementation of Technical Legislation was formed within MELEs Industry Directorate. The Section has got 3 employees, of the 6 planned. It is necessary to strengthen the administrative capacity of the Section as soon as possible by recruiting 3 more employees
MELE
I quarter 2009
State Budget
3.1.3.7. Machinery
Process phases
Competent authority
MELE
I quarter 2009
State Budget
529
3.1.3.8. Personal protective equipment
No
Competent authority

Act on Technical Requirements for Products and on Conformity Assessment (OG 158/03 and 79/07), Article 5

Council Directive 89/686/EEC of 21 December 1989 on the approximation of the laws of the Member States relating to personal protective equipment 31989L0686
Ordinance on amendments to the Ordinance on the placing of personal protective equipment on the market (OG 106/07 and 121/07)
MELE
I quarter 2009
530
ANNEX A
3.1.3.11. Lifts
Process phases
Competent authority
MELE
I quarter 2009
State Budget
3.1.3.13. Pressure equipment
Process phases
Competent authority
MELE
I quarter 2009
State Budget
531
3.1.3.14. Gas appliances
STRENGTHENING ADMINISTRATIVE CAPACITY
Process phases
Competent authority
The Section for the Implementation of Technical Legislation was formed within MELEs Industry Directorate. The Section has got 3 employees, of the 6 planned. It is necessary to strengthen the administrative capacity of the Section as soon as possible by recruiting 3 more employees
MELE
I quarter 2009
State Budget
532
ANNEX A
3.1.3.18. Cableway installations designed to carry persons
No
Competent authority

Directive 2000/9/EC of the European Parliament and of the Council of 20 March 2000 relating to cableway installations designed to carry persons, Annex IV, Annex V, Annex VI, Annex VII, Annex VIII and Annex IX 32000L0009
Ordinance on the procedure of conformity assessment, the content and appearance of the declaration of conformity and the appearance of the conformity marking for safety components and subsystems of cableways
MSTI MELE
Act on Cableway Installations Designed to Carry Persons (OG 79/07), Article 26, paragraph 5
I quarter 2009
IMPLEMENTATION MEASURES
Adoption / implementation deadline Sources of financing
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES
Competent authority
MSTI
2009
State Budget
533
3.1.3.19. Construction products
No
Competent authority

Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products (CPD) 31989L0106 (Implementation of the Directive in the part concerning the use of construction products for composite steel-concrete structures)
Technical regulation for composite steel-concrete structures
MEPPPC
Physical Planning and Building Act (OG 76/07), Article 19
III quarter 2009
IMPLEMENTATION MEASURES Competent authority Adoption / implementation deadline Sources of financing
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of staff for the currently vacant positions in the Sector for Construction for the performance of standardising and expert-analytical duties (a total of 11 vacancies) Opening of 3 new positions for the performance of standardising and expert-analytical duties for the implementation of the CPD and 1 new position for the performance of the activities as the national contact point under Article 9 of the proposal for the Regulation of the European Parliament and of the Council laying down harmonised conditions for the marketing of construction products (May 2008) Opening of 4 new positions for the inspection supervision of the building inspection of construction products and the recruitment of said employees Adjustments to the structure of the Sector for Construction or the establishment of a separate organisational unit for the performance of activities concerning Chapter 1 Free Movement of Goods Training and professional development of all civil servants Improving the material-technical conditions of work for all civil servants
MEPPPC
I quarter 2009
State Budget
MEPPPC
II quarter 2009
State Budget
MEPPPC
II quarter 2009
State Budget
MEPPPC
I quarter 2009
MEPPPC MEPPPC
Continuous Continuous
534
ANNEX A
3.1.3.20. Medical devices
No
Competent authority

Commission Directive 2003/12/EC of 3 February 2003 on the reclassification of breast implants in the framework of Directive 93/42/EEC concerning medical devices 32003L0012
Ordinance on classification, issuing, requirements, conformity assessment and register of medical devices
MHSW
Act on Medical Devices (OG 67/08 ) Articles 6, 10, 25, 33
Council Directive 93/42/EEC of 14 June 1993 concerning medical devices 31993L0042 Directive 98/79/EC of the European Parliament and of the Council of 27 October 1998 on in vitro diagnostic medical devices 31998L0079
III quarter 2009
Ordinance on monitoring adverse events concerning medical devices
MHSW
Act on Medical Devices (OG 67/08), Article 54
Council Directive 93/42/EEC of 14 June 1993 concerning medical devices 31993L0042
II quarter 2009
535
3.1.4. Procedural matters
3.1.4.1. Notification procedures
No
Competent authority

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 31998L0034 Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998 amending Directive 98/34/EC 31998L0048
Regulation on notification procedures in the field of standards, technical regulations and regulations on information society services
MELE
Act on Technical Requirements for Products and on Conformity Assessment (OG 157/03, 79/07)
I quarter 2009
536
ANNEX A
3.1.4.3. Control of the acquisition and possession of weapons
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws IMPLEMENTATION MEASURES Adoption / implementation deadline Sources of financing
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES
Competent authority
MI
2009
State Budget
537
3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES
3.3.2. Freedom to provide cross-border services
No
1 2 3 4
Legislative measure
Act on Amendments to the Libraries Act Act on Amendments to the Museums Act Act on Amendments to the Act on Archival Material and Archives Act on Health Care Activities
Competent authority
MC MC MC MHSW

Treaty establishing the European Community, Article 12 and Article 49 Treaty establishing the European Community, Article 12 and Article 49 Treaty establishing the European Community, Article 12 and Article 49 Treaty establishing the European Community, Article 12 and Article 49

II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009
538
ANNEX A
No
Competent authority

Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications 32005L0036 Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications 32005L0036
Ordinance on the conditions under which nationals of EU Member States may conduct veterinary activities in the Republic of Croatia
MAFRD
Veterinary Act (OG 41/07)
II quarter 2009
Ordinance on the amendments to the Ordinance on the conditions, manner of issue, extension and revoking of authorisation for veterinarians
MAFRD
Veterinary Act (OG 41/07)
II quarter 2009
Ordinance on the conditions and criteria for granting approval for conducting professional activities of physical planning Ordinance concerning the granting of approval for conducting activities of construction and other related issues Ordinance on internationally recognized systems of certification of the ability to manage projects and training programmes relevant to managing construction projects
MEPPPC
Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction
Treaty establishing the European Community, Article 12 and Article 49
IIl quarter 2009
MEPPPC
Treaty establishing the European Community, Article 12 and Article 49
lI quarter 2009
MEPPPC
Treaty establishing the European Community, Article 12 and Article 49 Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications 32005L0036
II quarter 2009
Ordinance on the recognition of foreign professional qualifications in the area of architectural and civil engineering activities
MEPPPC
Act on Architectural and Civil Engineering Affairs and Activities in Physical Planning and Construction
II quarter 2009
Ordinances for the implementation of the Act on Tourist Boards and the Promotion of Croatian Tourism
MT
Act on Tourist Boards and the Promotion of Croatian Tourism
Treaty establishing the European Community, the principle of prohibiting discrimination Article 12 Treaty establishing the European Community, the principle of prohibiting discrimination Article 12 Treaty establishing the European Community, the principle of prohibiting discrimination Article 12
III quarter 2009
Ordinances for the implementation of the Sojourn Tax Act
MT
Sojourn Tax Act
III quarter 2009
Ordinances for the implementation of the Act on Tourist Board Membership Fees
MT
Act on Tourist Board Memberships
III quarter 2009
539
IMPLEMENTATION MEASURES Adoption/ implementation deadline
STRENGTHENING ADMINISTRATIVE CAPACITY Creating a vacancy for a civil servant to conduct normative and expert analysis activities pertaining to the implementation of the acquis related to the recognition of foreign diplomas and professional qualifications Training and development for all civil servants Enhancing material and technical working conditions for all civil servants
Competent authority
MEPPPC
III quarter 2009
State Budget
MEPPPC MEPPPC
3.3.3. Postal services
LEGISLATIVE MEASURES -
IMPLEMENTATION MEASURES Adoption/implementation deadline Sources of financing
STRENGTHENING ADMINISTRATIVE CAPACITY Recruiting one employee to conduct regulatory activities in the area of postal services in HAKOMs Professional Service Recruiting one employee to conduct regulatory activities in the area of postal services in HAKOMs Professional Service Recruiting one employee to conduct regulatory activities in the area of postal services in HAKOMs Professional Service
Competent authority
HAKOM
I quarter 2009
State Budget
HAKOM
Il quarter 2009
State Budget
HAKOM
Ill quarter 2009
State Budget
540
ANNEX A
3.4. FREE MOVEMENT OF CAPITAL
3.4.2. Payments and collections
No
Legislative measure
Competent authority

Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing 32005L0060 Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market amending Directives 97/7/EC, 2000/12/EC and 2002/65/EC 32007L0064
Act on Amendments to the Act on Games of Chance
MF
II quarter 2009
Payment Transactions Act
MF/CNB
II quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws _
541
3.5. PUBLIC PROCUREMENT
No
Competent authority

Public Procurement Act (OG 110/07, 125/08 ), Article 5.a; Act on Amendments to the Public Procurement Act (OG 125/08), Article 99

Proposal for a Directive of the European Parliament and of the Council on the coordination of procedures for the award of certain public works contracts, public supply contracts and public service contracts in the fields of defence and security 2007/0280 (COD)
Regulation on public procurement for the needs of defence and security
MELE
III quarter 2009
IMPLEMENTATION MEASURES Description of measures Competent authority Adoption/implementation deadline Sources of financing
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Tender procedure for the project of establishing the Central Public Procurement Authority
MELE
I quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of 10 employees in APPP Recruitment of 10 employees in APPP OTHER Implementation of the Public Awareness Raising Campaign Transparency in Public Procurement Drawing up of The Guide to Public Private Partnerships APPP APPP I quarter 2009 IV quarter 2009
MELE
During 2009
APPP
I quarter 2009
542
ANNEX A
3.6. COMPANY LAW
No
Legislative measure
Competent authority

Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies
Act on Amendments to the Companies Act
32007L0036 Directive 2007/63/EC of the European Parliament and of the Council of 13 November 2007 amending Council Directives 78/855/EEC and 82/891/EEC as regards the requirement of an independent experts report on the occasion of merger or division of public limited liability companies 32007L0063 III quarter 2009
543
3.7. INTELLECTUAL PROPERTY RIGHTS
No
Legislative measure
Competent authority

Directive 98/44/EC of the European Parliament and of the Council of 6 July 1998 on the legal protection of biotechnological inventions 31998L0044 Regulation (EC) No 1610/96 of the European Parliament and of the Council of 23 July 1996 concerning the creation of a supplementary protection certificate for plant protection products 31996R1610 Council Regulation (EEC) No 1768/92 of 18 June 1992 concerning the creation of a supplementary protection certificate for medicinal products 31992R1768
Patent Act
SIPO (MELE)
I quarter 2009
Trademarks Act
SIPO (MELE)
Council Regulation (EC) No 40/94 of 20 December 1993 on the Community trade mark 31994R0040
I quarter 2009
Industrial Design Act
SIPO (MELE)
Council Regulation (EC) No 6/2002 of 12 December 2001 on Community designs 32002R0006 Council Directive 87/54/EEC of 16 December 1986 on the legal protection of topographies of semiconductor products 31987L0054
I quarter 2009
Act on the Protection of Topographies of Semiconductor Products
SIPO (MELE)
I quarter 2009
544
ANNEX A
IMPLEMENTING MEASURES Adoption / implementation deadline
STRATEGIES Implementation of measures from the National Strategy for the Development of the Intellectual Property System of the Republic of Croatia 2005 -2010 STREGTHENING ADMINISTRATIVE CAPACITY Continuing education and training of employees of SIPO will continue State Inspectorate of the Republic of Croatia will continuously carry out training of its staff through seminars, workshops, procedural instructions in compliance with the Strategy and the Programme of Activities of the Intellectual Property Department SI plans to purchase IT equipment, portable computers and printers (hardware and software) and digital cameras for the activities of inspectors in the field and to procure software to be used for the control of computer programmes A storage facility is to be built for the storage of temporarily seized goods infringing intellectual property rights
Competent authority
SIPO/State administration bodies
Continuous until 2010
State Budget, foreign aid
SIPO
Continuous
State Budget, foreign aid State Budget, foreign aid
SI
Continuous
SI
End 2009
State Budget, foreign aid programmes, bilateral aid
545
3.8. COMPETITION POLICY
3.8.1. Competition law
No
Legislative measure
Competent authority
To be aligned with the following acquis

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 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) 32004R0139 Guidelines on the method of setting fines imposed pursuant to Article 23(2)(a) of Regulation No 1/2003 52006XC0901(01)
1.
Competition Act (revised)
MELE, CCA
Commission Notice on Immunity from fines and reduction of fines in cartel cases 52006XC1208(04) Council Regulation (EC) No 1419/2006 of 25 September 2006 repealing Regulation (EEC) No 4056/86 laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport, and amending Regulation (EC) No 1/2003 as regards the extension of its scope to include cabotage and international tramp services 32006R1419 Commission Regulation (EC) No 1459/2006 of 28 September 2006 on the application of Article 81(3) of the Treaty to certain categories of agreements and concerted practices concerning consultations on passenger tariffs on scheduled air services and slot allocation at airports 32006R1459
I quarter 2009
546
ANNEX A
No
Competent authority

Council Regulation (EC) No 1419/2006 of 25 September 2006 repealing Regulation (EEC) No 4056/86 laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport, and amending Regulation (EC) No 1/2003 as regards the extension of its scope to include cabotage and international tramp services
Regulation on block exemption in the transport sector
CCA
Competition Act
32006R1419 Commission Regulation (EC) No 1459/2006 of 28 September 2006 on the application of Article 81(3) of the Treaty to certain categories of agreements and concerted practices concerning consultations on passenger tariffs on scheduled air services and slot allocation at airports 32006R1459 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) 32004R0139 Guidelines on the method of setting fines imposed pursuant to Article 23(2)(a) of Regulation No 1/2003 52006XC0901(01) Commission Notice on Immunity from fines and reduction of fines in cartel cases 52006XC1208(04) Commission Regulation (EC) No 802/2004 of 7 April 2004 implementing Council Regulation (EC) No 139/2004 on the control of concentrations between undertakings
III quarter 2009
Regulation on the method of setting fines and calculation of fines Regulation on criteria for the reduction of fines or release from fines CCA Competition Act
III quarter 2009
Regulation on notification procedure and assessment of concentrations between undertakings
CCA
Competition Act
32004R0802 Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 52005XC0305(03)
III quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY Technical assistance (technical support project and twinning project in the area of competition)
Competent authority
CCA
IV quarter 2009
IPA project 2007 (EUR 2 000 000)
547
3.8.2. State aid
No
Competent authority

Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid 32006R1998 Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid 32006R1998 Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid 32006R1998
Ordinance on tax payers eligibility requirements in the areas of special state concern
MRDFWM
Act on Areas of Special State Concern (OG86/08)
I quarter 2009
Ordinance on tax payers eligibility requirements in hilly and mountainous areas
MRDFWM
Act on Hilly and Mountainous Areas (OG 12/02, 32/02, 117/03, 42/05, 90/05, 80/08)
I quarter 2009
Ordinance on tax payers eligibility requirements in the Town of Vukovar
MRDFWM
Act on Reconstruction and Development of the Town of Vukovar (OG 44/01, 90/05 and 80/08)
I quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY Technical assistance (technical support project and twinning project in the area of state aid)
Competent authority
CCA
IV quarter 2009
IPA project 2007 (EUR 2 000 000)
548
ANNEX A
3.9. FINANCIAL SERVICES
3.9.3. Securities market and investment services
No
Competent authority
1.
Ordinance on characteristics of derivative financial instruments
HANFA
Capital Market Act (OG 88/08), Article 3
Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive 32006R1287 Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive 32006R1287 Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive 32006L0073 Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive 32006L0073 Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive 32006L0073
I quarter 2009
2.
Ordinance on trading information disclosure requirements
HANFA
Capital Market Act (OG 88/08), Articles 114, 135, and 336
I quarter 2009
3.
Ordinance on the organisational requirements for investment firms
HANFA
I quarter 2009
4.
Ordinance on conduct of business obligations
HANFA
I quarter 2009
5.
Ordinance on client order execution requirements
HANFA
Capital Market Act (OG 88/08), Articles 84 and 91
I quarter 2009
549
6.
Ordinance on transaction reporting requirements
HANFA
Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive 32006R1287 Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast)
I quarter 2009
7.
Ordinance on investment firm capital
HANFA
Capital Market Act (OG 88/08), Articles 156, 158, 159 and 161
32006L0048 Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) 32006L0049
I quarter 2009
8.
Ordinance on investment firm liquidity Ordinance on investment firm information disclosure requirements
HANFA
Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) 32006L0048 Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) 32006L0048 Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) 32006L0048 Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) 32006L0049
I quarter 2009
9.
HANFA
I quarter 2009
10.
Ordinance on capital adequacy of investment firms
HANFA
Capital Market Act (OG 88/08), Articles 179, 180, 181, 182, 183, 184, 185, and 191
I quarter 2009
11.
Ordinance on the conditions for admission of financial instruments to a regular market Ordinance on the minimum information, dissemination of advertisements and incorporation of information by reference in prospectuses Ordinance on exemptions from market abuse provisions as regards buy-back programmes and stabilisation of financial instruments
HANFA
Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive 32006L0073 Council Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements 32004R0809
I quarter 2009
12.
HANFA
Capital Market Act (OG 88/08), Articles 360, 364 and 374
I quarter 2009
13.
HANFA
Commission Regulation (EC) No 2273/2003 of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards exemptions for buy-back programmes and stabilisaiton of financial instruments 32003R2273
I quarter 2009
550
ANNEX A
Commission Directive 2004/72/EC Ordinance on market manipulation and reporting on suspicions of market abuse of 29 April 2004 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers transactions and the notification of suspicious transactions 32004L0072 Commission Directive 2004/72/EC of 29 April 2004 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers transactions and the notification of suspicious transactions 32004L0072 Commission Directive 2004/72/EC of 29 April 2004 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers transactions and the notification of suspicious transactions 32004L0072 Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) 17. Ordinance on capital adequacy reporting HANFA Capital Market Act (OG 88/08), Articles 200 and 218 32006L0048 Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) 32006L0049 I quarter 2009
14.
HANFA
I quarter 2009
15.
Ordinance on disclosure of inside information
HANFA
Capital Market Act (OG 88/08), Articles 459 and 461
I quarter 2009
16.
Ordinance on accepted market practices
HANFA
I quarter 2009
PLANS OR PROGRAMMES Regular meetings of the working group for capital adequacy to prepare investment firms for the forthcoming legislation
Competent authority
Adoption/ implementation deadline
HANFA
II quarter 2009
551
3.10. INFORMATION SOCIETY AND MEDIA
3.10.1. Electronic communications
LEGISLATIVE MEASURES a) Laws and related subordinate legislation: b) Subordinate legislation adopted pursuant to previously adopted laws:
No
Ordinance on the operation of the internal organisational unit of the Croatian Post and Telecommunications Agency responsible for the protection of rights of service users
Competent authority
HAKOM
Electronic Communications Act (OG 73/08), Article 51
Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022 Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022 Commission Directive 2002/77/EC of 16 September 2002 on competition in the markets for electronic communications networks and services 32002L0077
I quarter 2009
Ordinance on the provision of universal services
HAKOM
I quarter 2009
Ordinance on a comprehensive public subscribers directory and information service
HAKOM
Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022
I quarter 2009
552
ANNEX A
Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive) Ordinance establishing the zone of electronic communications infrastructure and associated facilities, protective zone and radio corridor, and obligations of investor, works or building in this zone 32002L0021 Electronic Communications Act (OG 73/08), Article 26 Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (Access Directive) 32002L0019 Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022 Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive) 32002L0021 Ordinance on the Reference Interconnection Offer in electronic communications Electronic Communications Act (OG 73/08), Article 58 Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (Access Directive) 32002L0019 Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022 Electronic Communications Act (OG 73/08), Article 76 Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022 Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications) 32002L0058 Electronic Communications Act (OG 73/08), Article 77 Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users rights relating to electronic communications networks and services (Universal Service Directive) 32002L0022
HAKOM
I quarter 2009
HAKOM
I quarter 2009
Ordinance on number portability
HAKOM
I quarter 2009
Ordinance on the prevention and fight against abuse and fraud in electronic postal services
HAKOM
I quarter 2009
Ordinance on the single European number for emergency services
MSTI
II quarter 2009
553
Ordinance on fees of the Croatian Post and Telecommunications Agency
HAKOM
Electronic Communications Act (OG 73/08), Articles 16, 70 and 84
Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (Authorisation Directive) 32002L0020
IV quarter 2009
3.10.2. Information society
LEGISLATIVE MEASURES a) Laws and related subordinate legislation:
No
Legislative measure
Competent authority

Directive 2000/31/EC on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce) 32000L0031
Act on Amendments to the Electronic Commerce Act
MELE
I quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws: -
Measures
PLANS or programmes Initiate the procedure to conclude the Memorandum of Understanding for the participation of the Republic of Croatia in the Safer Internet+ Programme.
Competent authority
MSES
During 2009
554
ANNEX A
3.10.3. Audiovisual policy
IMPLEMENTATION MEASURES a) Laws and related subordinate legislation:
No
Legislative measure
Competent authority

Directive 2007/65/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities 32007L0065
Act on Amendments to the Electronic Media Act
MC
IV quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws: -
Measures
PLANS or programmes Programme and protection measures for the national film collection for 2009
Competent authority
Croatian Archives Croatian Cinematheque
IV quarter 2009
State Budget
555
3.11. AGRICULTURE AND RURAL DEVELOPMENT
3.11.1. Agricultural policy and horizontal measures
No
Competent authority
Ordinance on the market information system for the market in cereals
MAFRD
Agriculture Act (OG 66/01 and 83/02)
Council Regulation (EC) No 1234/2007 and the document of the EUs Management Committee for Cereals AGRO-D.2/FAL D(2008) 32007R1234 Council Regulation (EC) No 1234/2007 32007R1234 Council Regulation (EC) No 1234/2007 32007R1234
II quarter 2009
Ordinance on the market information system for the market in pig meat Ordinance on the market information system for the market in beef
MAFRD
III quarter 2009
MAFRD
IV quarter 2009
PLANS OR PROGRAMMES 1 Plan for the establishment of the Integrated Administration and Control System (IACS) Plan for the establishment of the Paying Agency
Competent authority
MAFRD
I quarter 2009
State Budget
MAFRD
I quarter 2009
State Budget
556
ANNEX A
3.11.2. Rural development policy
No
Legislative measure
Act on Support for Rural Development
Competent authority

Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 32005R1698
MAFRD
I quarter 2009
No
Competent authority
Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 1 Ordinance on less favoured areas MAFRD Agriculture Act (OG 66/01 and 83/02) 32005R1698 III quarter 2009 Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) 31999R1257
557
3.11.3. Livestock breeding
No
Competent authority

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)
Ordinance on the organisation of the market in poultrymeat
MAFRD
Agriculture Act (OG 66/01 and 83/02), Article 8
32007R1234 Commission Regulation (EC) No 936/2008 of 24 September 2008 correcting Regulation (EC) No 543/2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for poultrymeat 32008R0936 II quarter 2009
Ordinance on the organisation of the market in sheepmeat and goatmeat Ordinance on the organisation of the market in milk
MAFRD
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) 32007R1234 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) 32007R1234
II quarter 2009
MAFRD
II quarter 2009
558
ANNEX A
Fruit and vegetables
No
Competent authority
Ordinance on the organisation of the market in fruit and vegetables
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 MAFRD Agriculture Act (OG 66/01, 83/02) 32007R1234 IV quarter 2009 Council Regulation (EC) No 361/2008 of 14 April 2008 amending Regulation EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products 32008R0361
Ordinance on quality standards for flowering bulbs, corms and tubers Ordinance on quality standards for fresh and cut flowers and ornamental foliage
MAFRD
Agriculture Act (OG 66/01, 83/02)
Regulation (EEC) No 315/68 of the Council of 12 March 1968 fixing quality standards for flowering bulbs, corms and tubers 31968R0315
III quarter 2009
MAFRD
Regulation (EEC) No 316/68 of the Council of 12 March 1968 fixing quality standards for fresh cut flowers and fresh ornamental foliage 31968R0316
IV quarter 2009
559
Wine and alcohol Olives and olive oil
No
Competent authority

Food Act (OG 46/07), Article 94 (2) and Article 123(2)
Ordinance on spirit drinks
MAFRD
Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89 32008R0110
III quarter 2009
Ordinance on the documents accompanying the transport of grapes and wine Ordinance on the accreditation of olive oil sensory evaluation panels
MAFRD
Wine Act (OG 96/03), Article 42
Commission Regulation (EC) No 884/2001 of 24 April 2001 laying down detailed rules of application concerning the documents accompanying the carriage of wine products and the records to be kept in the wine sector 32001R0884
III quarter 2009
MAFRD
Food Act (OG 46/07), Article 94
Commission Regulation (EEC) No 2568/91 of 11 July 1991 on the characteristics of olive oil and olive-residue oil and on the relevant methods of analysis 31991R2568 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 32007R1234
III quarter 2009
Legislation regulating the olive oil market
MAFRD
Council Regulation (EC) No 865/2004, in the part relating to the approval of operators organisations 32004R0865 Commission Regulation (EC) No 2080/2005 of 19 December 2005 laying down detailed rules for the application of Council Regulation (EC) No 865/2004 as regards operators organisations in the olive sector, their work programmes and the financing thereof 32005R2080
IV quarter 2009
560
ANNEX A
IMPLEMENTATION MEASURES Competent authority Adoption/implementation deadline Sources of financing
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES 1 employee in the Department for Wine and Spirit Drinks 1 employee in the Department for Food Processing Industry the Market Section
MAFRD
by 12/2009
State Budget
3.11.5. Quality policy

No
Competent authority

Commission Regulation (EC) No 1898/2006 of 14 December 2006 laying down detailed rules of implementation of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs 32006R1898
Ordinance on designations of origin and geographical indications for agricultural products and foodstuffs
MAFRD
Act on designations of origin, geographical indications and traditional speciality guaranteed logos for agricultural products and foodstuffs (OG 84/08 )
II quarter 2009
Ordinance on traditional speciality guaranteed logos for agricultural products and foodstuffs
MAFRD
Act on designations of origin, geographical indications and traditional speciality guaranteed logos for agricultural products and foodstuffs (OG 84/08 )
Commission Regulation (EC) No 1216/2007 of 18 October 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 509/2006 on agricultural products and foodstuffs as traditional specialities guaranteed 32007R1216
II quarter 2009
561
PLANS OR PROGRAMMES PLANS a) Continuation of activities related to the accreditation of certification bodies operating the system of supervision and control of compliance of foodstuffs which bear a designation of origin or a geographical indication or a traditional speciality guaranteed logo on the basis of the public tender
Competent authority
MAFRD
During 2009
PROGRAMMES a) Programme: Co-financing accreditation of certification bodies for operating the system of supervision and control of compliance of foodstuffs bearing a designation of origin or a geographical indication or a traditional speciality guaranteed logo STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES a) Recruitment of staff for the Directorate for Food Safety and Quality EDUCATION AND TRAINING a) Training of civil servants and inspectors, related to control activities in the area of quality policy and assistance to producers when creating specifications for products potentially protected by one of the registered marks TECHNICAL ASSISTANCE (FACILITIES, EQUIPMENT, IT-EQUIPMENT,) MAFRD during 2009 MAFRD By 12/2009 State Budget MAFRD End 2009 State Budget
562
ANNEX A
3.11.6. Organic production
No
Competent authority

Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 32007R0834 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 32008R0889 Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 32007R0834 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 32008R0889
Ordinance on the marking and labelling of organic products
MAFRD
Act on Organic Production of Agricultural Products and Foodstuffs (OG 12/01, 14/01 and 79/07), Article 16(6)
II quarter 2009
Ordinance on amendments to the Ordinance on processing in organic production
MAFRD
Act on Organic Production of Agricultural Products and Foodstuffs (OG 12/01, 1420/01 and 79/07), Article 12(2)
III quarter 2009
563
3.11.7. Vertical legislation
No
Competent authority
Council Directive 2001/111/EC of 20 December 2001 relating to certain sugars intended for human consumption 1 Ordinance on sugars and methods of analysis for testing sugars intended for human consumption MAFRD Food Act (OG 46/07), Article 94(2) 32001L0111 First Commission Directive 79/796/ EEC of 26 July 1979 laying down Community methods of analysis for testing certain sugars intended for human consumption 31979L0796 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 - the provisions of Article 114 and of Annexes XII and XIII are transposed 32007R1234 Regulation (EEC) No 1265/69 of the Commission of 1 July 1969 establishing methods for determining the quality of sugar bought in by intervention agencies 31969R1265 Ordinance on amendments to the Ordinance on the quality of honey and other bee products Council Directive 2001/110/EC of 20 December 2001 relating to honey 32001L0110 Commission Directive 93/45/EEC of 17 June 1993 concerning the manufacture of nectars without the addition of sugars or honey 31993L0045 I quarter 2009
Ordinance on milk and milk products
MAFRD
Food Act (OG 46/07), Article 94(2)
I quarter 2009
Ordinance on methods for determining the quality of sugar bought in by intervention agencies
MAFRD
II quarter 2009
MAFRD
IV quarter 2009
Ordinance on amendments to the Ordinance on fruit juices and nectars and related products
MAFRD
I quarter 2009
564
ANNEX A
First Commission Directive 85/503/ EEC of 25 October 1985 on methods of analysis for edible caseins and caseinates 6 Ordinance on methods of analysis for edible caseins and caseinates MAFRD Food Act (OG 46/07), Article 94(2) 31985L0503 First Commission Directive 86/424/ EEC of 15 July 1986 laying down methods of sampling for chemical analysis of edible caseins and caseinates 31986L0424 First Commission Directive 79/1067/ EEC of 13 November 1979 laying down Community methods of analysis for testing certain partly or wholly dehydrated preserved milk for human consumption MAFRD Food Act (OG 46/07), Article 94(2) 31979L1067 First Commission Directive 87/524/ EEC of 6 October 1987 laying down Community methods of sampling for chemical analysis for the monitoring of preserved milk products 31987L0524 III quarter 2009 II quarter 2009
Ordinance on methods of analysis for testing wholly or partly dehydrated milk and milk powder for human consumption and methods of sampling for chemical analysis of milk products
565
3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY
3.12.1. Food safety
No
Competent authority

Food Act (OG 46/07), Articles 90 and 93
Ordinance on the conditions and procedure for authorising the placing on the market of novel foods and the labelling of such foods
MHSW
Regulation (EC) No 258/97 concerning novel foods and novel food ingredients 31997R0258 Commission Decision 2006/504/ EC of 12 July 2006 on special conditions governing certain foodstuffs imported from certain third countries due to contamination risks of these products by aflatoxins 32006D0504
III quarter 2009
Special regulation on special conditions governing certain foodstuffs imported from certain third countries due to contamination risks of these products by aflatoxins
MHSW
Food Act (OG 46/07)
IV quarter 2009
IMPLEMENTATION MEASURES Competent authority Adoption / implementation deadline
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES Recruitment of employees in the Directorate for Food Safety and Quality OTHER EDUCATION AND TRAINING Professional training of the staff of the Directorate for Food Safety and Quality (workshops, training, seminars, study visits)
MAFRD
12/2009
State Budget
State Budget and MAFRD 12/2009 CARDS 2004 Further Capacity Building in the Area of Live Animals and Food Products TAIEX, World Bank
566
ANNEX A
3.12.2. Veterinary medicine
No
Competent authority
Ordinance laying down biosecurity measures to reduce the risk of transmission of highly pathogenic avian influenza caused by Influenza virus A subtype H5N1 from birds living in the wild to poultry and other captive birds and providing for an early detection system in areas at particular risk
MAFRD
Veterinary Act (OG 41/07), Article 17(3)
2005/734/EC: Commission Decision of 19 October 2005 laying down biosecurity measures to reduce the risk of transmission of highly pathogenic avian influenza caused by Influenza virus A subtype H5N1 from birds living in the wild to poultry and other captive birds and providing for an early detection system in areas at particular risk 32005D0734 2000/25/EC: Commission Decision of 16 December 1999 establishing the detailed rules for the application of Article 9 of Council Directive 97/78/EC concerning the transhipment of products at a Border Inspection Post where the consignments are intended for eventual import into the European Community, and amending Commission Decision 93/14/EEC 32000D0025
I quarter 2009
Ordinance laying down the conditions for the transhipment of products at a veterinary border inspection post where the consignments are intended for import into the European Union
MAFRD
Veterinary Act (OG 41/07), Articles 72, 73, 76, 77, 79 and 80
I quarter 2009
Ordinance laying down the requirements for the transit of products of animal origin from one third country to another third country by road across the European Union Ordinance on the notification of animal diseases within the Community Ordinance concerning protection measures in relation to highly pathogenic avian influenza and and non-commercial movements of pet birds accompanying their owners into the European Union
MAFRD
Veterinary Act (OG 41/07), Articles 72 and 73
2000/208/EC: Commission Decision of 24 February 2000 establishing detailed rules for the application of Council Directive 97/78/EC concerning the transit of products of animal origin from one third country to another third country by road only across the European Community 32000D0208
I quarter 2009
MAFRD
Council Directive 82/894/EEC of 21 December 1982 on the notification of animal diseases within the Community 31982L0894 Commission Decision of 22 December 2006 as regards certain protection measures in relation to highly pathogenic avian influenza and movements of pet birds accompanying their owners into the Community 32007D0025
I quarter 2009
MAFRD
Veterinary Act (OG 41/07), Articles 72, 73 and 78
I quarter 2009
567
Ordinance on the rules for the control, monitoring, surveillance and restrictions on movements of certain animals of susceptible species in relation to bluetongue
MAFRD
Commission Regulation (EC) No 1266/2007 of 26 October 2007 on implementing rules for Council Directive 2000/75/EC as regards the control, monitoring, surveillance and restrictions on movements of certain animals of susceptible species in relation to bluetongue 32007R1266
II quarter 2009
Ordinance concerning model certificate and inspection report linked to trade in animals and products of animal origin within the European Union Ordinance establishing the BSE status of Member States or third countries or regions thereof according to their BSE risk Ordinance establishing a model for the lists of entities approved by Member States in accordance with various provisions of Community veterinary legislation, and the rules applying to the transmission of these lists to the Commission Ordinance on animal health conditions governing intraCommunity trade in ovine and caprine animals Ordinance on animal health conditions governing intraCommunity trade in, and imports from third countries of, poultry and hatching eggs Ordinance laying down animal health requirements governing trade in and imports into the Community of animals, semen, ova and embryos not subject to animal health requirements laid down in specific Community rules Ordinance laying down animal health requirements for the movement of circus animals between Member States of the European Union
MAFRD
Veterinary Act (OG 41/07), Articles 53, 56, 72, 73, 77, 78 and 79
Commission Regulation (EC) No 599/2004 of 30 March 2004 concerning the adoption of a harmonised model certificate and inspection report linked to intra-Community trade in animals and products of animal origin 32004R0599
II quarter 2009
MAFRD
2007/453/EC: Commission Decision of 29 June 2007 establishing the BSE status of Member States or third countries or regions thereof according to their BSE risk 32007D0453 2007/846/EC: Commission Decision of 6 December 2007 establishing a model for the lists of entities approved by Member States in accordance with various provisions of Community veterinary legislation, and the rules applying to the transmission of these lists to the Commission 32007D0846
II quarter 2009
MAFRD
Veterinary Act (OG 41/07), Article 31
II quarter 2009
10
MAFRD
Council Directive 91/68/EEC of 28 January 1991 on animal health conditions governing intra-Community trade in ovine and caprine animals 31991L0068
II quarter 2009
11
MAFRD
Veterinary Act (OG 41/07), Article 53 (2) and (9)
Council Directive 90/539/EEC of 15 October 1990 on animal health conditions governing intra-Community trade in, and imports from third countries of, poultry and hatching eggs 31990L0539 Council Directive 92/65/EEC of 13 July 1992 laying down animal health requirements governing trade in and imports into the Community of animals, semen, ova and embryos not subject to animal health requirements laid down in specific Community rules referred to in Annex A (I) to Directive 90/425/EEC 31992L0065 Commission Regulation (EC) No 1739/2005 of 21 October 2005 laying down animal health requirements for the movement of circus animals between Member States 32005R1739
II quarter 2009
Veterinary Act (OG 41/07), MAFRD Articles 53, 56, 59, 60, 62, 63, 72, 73, 77, 79, 80
12
II quarter 2009
13
MAFRD
Veterinary Act (OG 41/07), Articles 72 and 73
II quarter 2009
568
ANNEX A
14
Ordinance establishing a model passport for the intra-Community movements of dogs, cats and ferrets Ordinance establishing a model health certificate for non-commercial movements of dogs, cats and ferrets from third countries into the European Union
MAFRD
2003/803/EC: Commission Decision of 26 November 2003 establishing a model passport for the intra-Community movements of dogs, cats and ferrets 32003D0803
II quarter 2009
15
MAFRD
Veterinary Act (OG 41/07), Articles 56, 58, 59 and 61
2004/824/EC: Commission Decision of 1 December 2004 establishing a model health certificate for non-commercial movements of dogs, cats and ferrets from third countries into the Community 32004D0824 Council Directive 2004/68/EC of 26 April 2004 laying down animal health rules for the importation into and transit through the Community of certain live ungulate animals, amending Directives 90/426/EEC and 92/65/EEC and repealing Directive 72/462/EEC 32004L0068 Regulation (EC) No 999/2001 of the European Parliament and of the Council of 22 May 2001 laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathies 32001R0999 2005/64/EC: Commission Decision of 26 January 2005 implementing Council Directive 92/65/EEC as regards import conditions for cats, dogs and ferrets for approved bodies, institutes or centres 32005D0064 Council Directive 2002/99/EC of 16 December 2002 laying down the animal health rules governing the production, processing, distribution and introduction of products of animal origin for human consumption 32002L0099
II quarter 2009
16
Ordinance laying down animal health rules for the importation into and transit through the European Union of certain live ungulate animals
MAFRD
Veterinary Act (OG 41/07), Articles 53, 56, 61, 72, 73, 77, 78, 79
II quarter 2009
17
Ordinance laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathies
MAFRD
II quarter 2009
18
Ordinance concerning import conditions for cats, dogs and ferrets for approved bodies, institutes or centres
MAFRD
Veterinary Act (OG 41/07), Articles 59, 72, 73, 77 and 78
II quarter 2009
19
Ordinance laying down the animal health conditions governing the production, processing, distribution and introduction of products of animal origin for human consumption Ordinance laying down animal health and public health requirements governing trade in and imports into the European Union of products not subject to specific rules referred to in Annex A (I) to Directive 89/662/ EEC and, as regards pathogens, to Directive 90/425/EEC
MAFRD
II quarter 2009
Veterinary Act (OG 41/07), MAFRD Articles 53, 56, 59, 61, 62, 66, 72, 73, 77, 79, 80 and 81
20
Council Directive 92/118/EEC of 17 December 1992 laying down animal health and public health requirements governing trade in and imports into the Community of products not subject to the said requirements laid down in specific Community rules referred to in Annex A (I) to Directive 89/662/EEC and, as regards pathogens, to Directive 90/425/EEC 31992L0118
II quarter 2009
569
Regulation (EC) No 1774/2002 of the European Parliament and of the Council of 3 October 2002 laying down health rules concerning animal by-products not intended for human consumption 32002R1774
21 Ordinance laying down health rules concerning animal by-products not intended for human consumption
Commission Regulation (EC) No 92/2005 of 19 January 2005 implementing Regulation (EC) No 1774/2002 of the European Parliament and of the Council as regards means of disposal or uses of animal by-products and amending its Annex VI as regards biogas transformation and processing of rendered fats 32005R0092 MAFRD Veterinary Act (OG 41/07), Article 48 Commission Regulation (EC) No 181/2006 of 1 February 2006 implementing Regulation (EC) No 1774/2002 as regards organic fertilisers and soil improvers other than manure and amending that Regulation 32006R0181 Commission Regulation (EC) No 2007/2006 of 22 December 2006 implementing Regulation (EC) No 1774/2002 of the European Parliament and of the Council as regards the importation and transit of certain intermediate products derived from Category 3 material intended for technical uses in medical devices, in vitro diagnostics and laboratory reagents and amending that Regulation 32006R2007 2007/118/EC: Commission Decision of 16 February 2007 laying down detailed rules in relation to an alternative identification mark pursuant to Council Directive 2002/99/EC 32007D0118 Ordinance setting out the guidelines laying down criteria for the conduct of audits of official controls carried out to verify compliance with feed and food law, animal health and animal welfare rules 2006/677/EC: Commission Decision of 29 September 2006 setting out the guidelines laying down criteria for the conduct of audits under Regulation (EC) No 882/2004 of the European Parliament and of the Council on official controls to verify compliance with feed and food law, animal health and animal welfare rules 32006D0677 Commission Regulation (EC) No 811/2003 of 12 May 2003 implementing Regulation (EC) No 1774/2002 of the European Parliament and of the Council as regards the intra-species recycling ban for fish, the burial and burning of animal by-products and certain transitional measures 32003R0811 II quarter 2009
1. 2. 3.
22
Ordinance laying down detailed rules in relation to an alternative identification mark
MAFRD
II quarter 2009
23
MAFRD
Food Act (OG 46/07), Articles 67, 70
II quarter 2009
24
Ordinance concerning the intra-species recycling ban for fish, the burial and burning of animal by-products and certain transitional measures
MAFRD
II quarter 2009
570
ANNEX A
25
Ordinance laying down transitional measures for certain animal by-products classified as Category 1 and 2 materials and intended for technical purposes
MAFRD
Commission Regulation (EC) No 878/2004 of 29 April 2004 laying down transitional measures in accordance with Regulation (EC) No 1774/2002 for certain animal by-products classified as Category 1 and 2 materials and intended for technical purposes 32004R0878 Commission Regulation (EC) No 1192/2006 of 4 August 2006 implementing Regulation (EC) No 1774/2002 of the European Parliament and of the Council as regards lists of approved plants in Member States 32006R1192
II quarter 2009
26
Ordinance on the lists of approved plants in Member States
MAFRD
II quarter 2009
27
Ordinance on the placing on the market and use of feed Ordinance on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of legislation on veterinary and zootechnical matters
MAFRD
Proposal for a Regulation of the European Parliament and of the Council on the placing on the market and use of feed Council Directive 89/608/EEC of 21 November 1989 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of legislation on veterinary and zootechnical matters 31989L0608 Commission Regulation (EC) No 546/2006 of 31 March 2006 implementing Regulation (EC) No 999/2001 of the European Parliament and of the Council as regards national scrapie control programmes and additional guarantees and derogating from certain requirements of Decision 2003/100/EC and repealing Regulation 32006R0546
II quarter 2009
28
MAFRD
III quarter 2009
29
Ordinance on the national scrapie control programme and additional guarantees
MAFRD
III quarter 2009
30
Ordinance approving vaccines against bovine brucellosis
MAFRD
2002/598/EC: Commission Decision of 15 July 2002 approving vaccines against bovine brucellosis within the framework of Council Directive 64/432/EEC 32002D0598 95/329/EC: Commission Decision of 25 July 1995 defining the categories of male equidae to which the requirement regarding viral arteritis laid down in Article 15 (b) (ii) of Council Directive 90/426/EEC applies 31995D0329
III quarter 2009
31
Ordinance defining the categories of male equidae to which the requirements regarding viral arteritis apply
MAFRD
III quarter 2009
32
Ordinance on the system of identification for dogs and cats that are placed on the market in the United Kingdom and Ireland and not originating in those countries
MAFRD
94/274/EC: Commission Decision of 18 April 1994 laying down the system of identification for dogs and cats that are placed on the market in the United Kingdom and Ireland and not originating in those countries 31994D0274
III quarter 2009
571
33
Ordinance determining the specimen animal health certificate for trade in ova and embryos of the equine species Ordinance determining the specimen animal health certificate for trade in semen of the equine species Ordinance determining the specimen certificate for trade in semen, ova and embryos of sheep and goats within the European Union Ordinance determining the specimen certificate for trade in ova and embryos of swine within the European Union Ordinance authorising laboratories to check the effectiveness of vaccination against rabies in certain domestic carnivores Ordinance concerning the veterinary and certification conditions for imports of bees (Apis mellifera and Bombus spp.) from certain third countries
MAFRD
Veterinary Act (OG 41/07), Article 53 (2) and (9) Veterinary Act (OG 41/07), Article 53 (2) and (9)
95/294/EC: Commission Decision of 24 July 1995 determining the specimen animal health certificate for trade in ova and embryos of the equine species 31995D0294 95/307/EC: Commission Decision of 24 July 1995 determining the specimen animal health certificate for trade in semen of the equine species 31995D0307 Commission Decision 1995/388/EC of 19 September 1995 determining the specimen certificate for intra-Community trade in semen, ova and embryos of the ovine and caprine species 31995D0388
III quarter 2009
34
MAFRD
III quarter 2009
35
MAFRD
Veterinary Act (OG 41/07), Articles 53, 60, 61, 62
III quarter 2009
36
MAFRD
Veterinary Act (OG 41/07), Articles 53, 60, 61, 62
95/483/EC: Commission Decision of 9 November 1995 determining the specimen certificate for intra-Community trade in ova and embryos of swine 31995D0483 2004/233/EC: Commission Decision of 4 March 2004 authorising laboratories to check the effectiveness of vaccination against rabies in certain domestic carnivores 32004D0233 Commission Decision 2003/881/EC of 11 December 2003 concerning the animal health and certification conditions for imports of bees (Apis mellifera and Bombus spp.) from certain third countries and repealing Decision 2000/462/EC 32003D0881 Commission Regulation (EC) No 79/2005 of 19 January 2005 implementing Regulation (EC) No 1774/2002 of the European Parliament and of the Council as regards the use of milk, milk-based products and milk-derived products, defined as Category 3 material in that Regulation 32005R0079
III quarter 2009
37
MAFRD
III quarter 2009
38
MAFRD
III quarter 2009
39
Ordinance concerning the use of milk, milk-based products and milk-derived products, defined as Category 3 material
MAFRD
III quarter 2009
40
Ordinance concerning measures against certain diseases in aquaculture animals Ordinance on a harmonised monitoring of antimicrobial resistance in Salmonella in poultry and pigs
MAFRD
Commission Decision 2004/453/EC of 29 April 2004 implementing Council Directive 91/67/EEC as regards measures against certain diseases in aquaculture animals 32004D0453
IV quarter 2009
41
MAFRD
Commission Decision 2007/407/EC of 12 June 2007 on a harmonised monitoring of antimicrobial resistance in Salmonella in poultry and pigs 32007D0407
IV quarter 2009
572
ANNEX A
42
Ordinance on additional guarantees in intraCommunity trade of pigs relating to Aujeszkys disease and criteria to provide information on this disease Ordinance laying down criteria for information to be provided in accordance with Council Directive 64/432/EEC
MAFRD
Commission Decision 2001/618/EC of 23 July 2001 on additional guarantees in intra-Community trade of pigs relating to Aujeszkys disease, criteria to provide information on this disease and repealing Decisions 93/24/EEC and 93/244/EEC 32001D0618
IV quarter 2009
43
MAFRD
Commission Decision 2003/886/EC of 10 December 2003 laying down criteria for information to be provided in accordance with Council Directive 64/432/EEC 32003D0886 Commission Decision 2004/226/EC of 4 March 2004 approving tests for the detection of antibodies against bovine brucellosis within the framework of Council Directive 64/432/EEC 32004D0226
IV quarter 2009
44
Ordinance on the approval of tests for the detection of antibodies against bovine brucellosis
MAFRD
IV quarter 2009
45
Ordinance on additional guarantees for intraCommunity trade in bovine animals relating to infectious bovine rhinotracheitis and the approval of the eradication programmes presented by certain Member States
MAFRD
2004/558/EC: of 15 July 2004 implementing Council Directive 64/432/ EEC as regards additional guarantees for intra-Community trade in bovine animals relating to infectious bovine rhinotracheitis and the approval of the eradication programmes presented by certain Member States 32004D0558 94/327/EC: Commission Decision of 19 May 1994 fixing the criteria for annual testing of breeding poultry for Newcastle disease, in application of Article 12 (2) of Council Directive 90/539/EEC 31994D0327
IV quarter 2009
46
Ordinance fixing the criteria for annual testing of breeding poultry for Newcastle disease
MAFRD
IV quarter 2009
47
Ordinance on additional guarantees regarding salmonella for consignments to Finland and Sweden of breeding poultry and day-old chicks for introduction into flocks of breeding poultry or flocks of productive poultry Ordinance on additional guarantees regarding salmonella for consignments to Finland and Sweden of laying hens Ordinance on special conditions for placing on the market of aquaculture animals considered not susceptible to certain diseases and the products thereof
MAFRD
2003/644/EC: Commission Decision of 8 September 2003 establishing additional guarantees regarding salmonella for consignments to Finland and Sweden of breeding poultry and day-old chicks for introduction into flocks of breeding poultry or flocks of productive poultry 32003D0644 2004/235/EC: Commission Decision of 1 March 2004 establishing additional guarantees regarding salmonella for consignments to Finland and Sweden of laying hens 32004D0235 Commission Decision 2003/390/EC of 23 May 2003 establishing special conditions for placing on the market of aquaculture animals species considered not susceptible to certain diseases and the products thereof 32003D0390
IV quarter 2009
48
MAFRD
IV quarter 2009
49
MAFRD
Veterinary Act (OG 41/07), Articles 53, 56, 59, 60, 62 and 63
IV quarter 2009
573
50
Ordinance establishing criteria for zoning and official surveillance following suspicion or confirmation of the presence of infectious salmon anaemia Ordinance the animal and public health conditions and model certificates for imports into the European Union of certain meat products and treated stomachs, bladders and intestines for human consumption from third countries Ordinance concerning the conditions for the harvesting and processing of certain bivalve molluscs coming from areas where the paralytic shellfish poison level exceeds the limit values
MAFRD
Veterinary Act (OG. 41/07), Article 17(3)
2003/466/EC: Commission Decision of 13 June 2003 establishing criteria for zoning and official surveillance following suspicion or confirmation of the presence of infectious salmon anaemia 32003D0466 Commission Decision 2007/777/EC of 29 November 2007 laying down the animal and public health conditions and model certificates for imports of certain meat products and treated stomachs, bladders and intestines for human consumption from third countries and repealing Decision 2005/432/EC 32007D0777 96/77/EC: Commission Decision of 18 January 1996 establishing the conditions for the harvesting and processing of certain bivalve molluscs coming from areas where the paralytic shellfish poison level exceeds the limit laid down by Council Directive 91/492/EEC 31996D0077 2002/226/EC: Commission Decision of 15 March 2002 establishing special health checks for the harvesting and processing of certain bivalve molluscs with a level of amnesic shellfish poison (ASP) exceeding the limit laid down by Council Directive 91/492/EEC 32002D0226 Commission Regulation (EC) No 1688/2005 of 14 October 2005 implementing Regulation (EC) No 853/2004 of the European Parliament and of the Council as regards special guarantees concerning salmonella for consignments to Finland and Sweden of certain meat and eggs 32005R1688
IV quarter 2009
Veterinary Act (OG 41/07), MAFRD Articles 53, 59, 60, 61, 62, 63, 72, 73, 75, 77, 79 and 80
51
IV quarter 2009
52
MAFRD
IV quarter 2009
53
Ordinance concerning special health checks for the harvesting and processing of certain bivalve molluscs with a level of amnesic shellfish poison (ASP) exceeding the limit
MAFRD
IV quarter 2009
54
Ordinance on special guarantees concerning salmonella for consignments to Finland and Sweden of certain meat and eggs
MAFRD
IV quarter 2009
574
ANNEX A
IMPLEMENTATION MEASURES Adoption/implementation deadline
PLANS OR PROGRAMMES National plan for the upgrading of food business establishments that handle food of animal origin STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of new employees OTHER Education and training Technical assistance (facilities, equipment, it-equipment,)
Competent authority
2009 MAFRD, MHSW 2010 and continuously thereafter State Budget
MAFRD
IV quarter 2009
State Budget
MAFRD MAFRD
IV quarter 2009 IV quarter 2009
State Budget/World Bank project State Budget
3.12.3. Zootechnics
No
Amendments to the Ordinance on the identification and registration of equidae (OG 74/2007)
Competent authority

Commission Regulation (EC) No 504/2008 of 6 June 2008 implementing Council Directives 90/426/EEC and 90/427/EEC as regards methods for the identification of equidae 32008R0504
MAFRD
Livestock Act (OG 70/97, 36/98, 151/03 and 132/06.), Article 4 (3) Veterinary Act (OG 41/07) Article 35 (9)
III quarter 2009
575
3.12.4. Phytosanitary policy
3.12.4.1. Plant health protection
LEGISLATIVE MEASURES
a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws
No
Competent authority

Plant Health Act (OG 75/05), Articles 16(5) and 50

Council Directive 2006/91/EC of 7 November 2006 on control of San Jos Scale 32006L0091 Council Directive 74/647/EEC of 9 December 1974 on control of carnation leaf-rollers 31974L0647 Commission Decision 2007/365/EZ of 25 May 2007 on emergency measures to prevent the introduction into and the spread within the Community of Rhynchophorus ferrugineus (Olivier) 32007D0365
Order on measures to prevent the introduction and spread of San Jos Scale (Quadraspidiotus perniciosus Comst.) Order on measures to prevent the introduction and spread of carnation leaf-rollers (Cacoecimorpha pronubana, Epichoristodes acerbella)
MAFRD
I quarter 2009
MAFRD
Plant Health Act (OG 75/05), Articles 16(5) and 50
I quarter 2009
Ordinance on measures to prevent the introduction and spread of Rhynchophorus ferrugineus (Olivier)
MAFRD
Plant Health Act (OG 75/05), Article 16(5) and (7) and Article 50
I quarter 2009
Ordinance on measures to prevent the introduction and spread of Potato spindle tuber viroid
MAFRD
Plant Health Act (OG 75/05), Article 16 (5) and (7) and Article 50
Commission Decision 2007/410/EC of 12 June 2007 on measures to prevent the introduction into and the spread within the Community of Potato spindle tuber viroid 32007D0410 Commission Decision 98/109/EC of 2 February 1998 authorising Member States temporarily to take emergency measures against the dissemination of Thrips palmi Karny as regards Thailand 31998D0109 Commission Decision 2007/433/ EC of 18 June 2007 on provisional emergency measures to prevent the introduction into and the spread within the Community of Gibberella circinata Nirenberg & ODonnell 32007D0433
I quarter 2009
Order on measures to prevent the introduction and spread of Thrips palmi Karny
MAFRD
II quarter 2009
Ordinance on measures to prevent the introduction and spread of Gibberella circinata Nirenberg
MAFRD
II quarter 2009
576
ANNEX A
Ordinance laying down detailed rules for surveys to be carried out for purposes of the recognition of protected zones in the Community Ordinance establishing rules for movements of certain plants, plant products or other objects through a protected zone, and for movements of such plants, plant products or other objects originating in and moving within such a protected zone
MAFRD
Plant Health Act (OG 75/05), Article 15(4) and Article 50
COMMISSION DIRECTIVE 92/70/EEC of 30 July 1992 laying down detailed rules for surveys to be carried out for purposes of the recognition of protected zones in the Community 31992L0070 COMMISSION DIRECTIVE 93/51/EEC of 24 June 1993 establishing rules for movements of certain plants, plant products or other objects through a protected zone, and for movements of such plants, plant products or other objects originating in and moving within such a protected zone 31993L0051 Commission Regulation (EC) No 1756/2004 of 11 October 2004 specifying the detailed conditions for the evidence required and the criteria for the type and level of the reduction of the plant health checks of certain plants, plant products or other objects listed in Part B of Annex V to Council Directive 2000/29/EC 32004R1756
III quarter 2009
MAFRD
Plant Health Act (OG 75/05), Articles 27 and 50
III quarter 2009
Ordinance specifying the conditions for the reduced frequency of the plant health checks of certain plants, plant products or other objects listed in Part B of Annex V to Council Directive 2000/29/EC
MAFRD
Plant Health Act (OG 75/05), Article 37(1) second indent, Article 37(2)
IV quarter 2009
10
Order on measures for the control of potato cyst nematodes Ordinance specifying the detailed conditions for the evidence required and the criteria for the type and level of the reduction of the plant health checks of certain plants, plant products or other objects listed in Part B of Annex V to the Ordinance on protective measures against the introduction and spread of organisms harmful to plants Ordinance establishing detailed rules for the implementation of the provisions relating to the allocation of a financial contribution from the European Community for plant-health control Ordinance establishing detailed rules for the implementation of the provisions relating to the allocation of a Community financial contribution for Member States in order to strengthen inspection infrastructures for plant health checks on plants and plant products coming from third countries
MAFRD
Plant Health Act (OG 75/05), Articles 10(4), 11(5), 14(4) and 50
Council Directive 2007/33/EC of 11 June 2007 on the control of potato cyst nematodes and repealing Directive 69/465/EEC (from 01/06/2010) 32007L0033 Commission Regulation (EC) No 1756/2004 of 11 October 2004 specifying the detailed conditions for the evidence required and the criteria for the type and level of the reduction of the plant health checks of certain plants, plant products or other objects listed in Part B of Annex V to Council Directive 2000/29/EC 32004R1756 Commission Regulation (EC) No 1040/2002 of 14 June 2002 establishing detailed rules for the implementation of the provisions relating to the allocation of a financial contribution from the Community for plant-health control and repealing Regulation (EC) No 2051/97 32002R1040 Commission Regulation (EC) No 997/2002 of 11 June 2002 establishing detailed rules for the implementation of the provisions relating to the allocation of a Community financial contribution for Member States in order to strengthen inspection infrastructures for plant health checks on plants and plant products coming from third countries 32002R0997
IV quarter 2009
11
MAFRD
Plant Health Act (OG 75/05)
IV quarter 2009
12
MAFRD
Plant Health Act (OG 75/05), Article 84
IV quarter 2009
13
MAFRD
IV quarter 2009
577
14
Order recognizing Australia as being free from Erwinia amylovora (Burr.) Winsl. et al. Order recognizing certain third countries and certain areas of third countries as being free from Xanthomonas campestris (all strains pathogenic to Citrus), Cercospora angolensis Carv. et Mendes and Guignardia citricarpa Kiely (all strains pathogenic to Citrus) Order on temporary emergency measures in respect of certain citrus fruits originating in Argentina and Brazil
MAFRD
Commission Decision 91/261/EEC of 2 May 1991 recognizing Australia as being free from Erwinia amylovora (Burr.) Winsl. et al. 31991D0261 Commission Decision 2006/473/EC of 5 July 2006 recognising certain third countries and certain areas of third countries as being free from Xanthomonas campestris (all strains pathogenic to Citrus), Cercospora angolensis Carv. et Mendes and Guignardia citricarpa Kiely (all strains pathogenic to Citrus) 32006D0473R(01) 2007/347/EC: Commission Decision of 16 May 2007 amending Decision 2004/416/EC on temporary emergency measures in respect of certain citrus fruits originating in Argentina or Brazil 32007D0347 2004/4/EC: Commission Decision of 22 December 2003 authorising Member States temporarily to take emergency measures against the dissemination of Pseudomonas solanacearum (Smith) Smith as regards Egypt 32004D0004 93/359/EEC: Commission Decision of 28 May 1993 authorizing the Member States to provide for derogations from certain provisions of Council Directive 77/93/EEC in respect of wood of Thuja L., originating in the United States of America 31993D0359 93/360/EEC: Commission Decision of 28 May 1993 authorizing the Member States to provide for derogations from certain provisions of Council Directive 77/93/EEC in respect of wood of Thula L., originating in Canada 31993D0360 93/365/EEC: Commission Decision of 2 June 1993 authorizing the Member States to provide for derogations from certain provisions of Council Directive 77/93/EEC in respect of heat-treated coniferous wood, originating in Canada, and establishing the details of the indicator system to be applied to the heat-treated wood 31993D0365
IV quarter 2009
15
MAFRD
IV quarter 2009
16
MAFRD
IV quarter 2009
17
Order on emergency measures to prevent the introduction and spread of the harmful organism Pseudomonas solanacearum (Smith) Smith from Egypt
MAFRD
IV quarter 2009
18
Order providing for derogations from certain provisions of Council Directive 77/93/EEC in respect of wood of Thuja L., originating in the United States of America
MAFRD
IV quarter 2009
19
Order providing for derogations from certain provisions of Council Directive 77/93/EEC in respect of wood of Thula L., originating in Canada Order providing for derogations from certain provisions of Council Directive 77/93/EEC in respect of heat-treated coniferous wood, originating in Canada, and establishing the details of the indicator system to be applied to the heat-treated wood
MAFRD
IV quarter 2009
20
MAFRD
IV quarter 2009
578
ANNEX A
21
Order providing for derogations from certain provisions of Council Directive 77/93/EEC in respect of kiln dried coniferous wood, originating in Canada, and establishing the details of the indicator system to be applied to the kiln dried wood Order providing for derogations from certain provisions of Council Directive 77/93/EEC in respect of kiln dried coniferous wood, originating in the United States of America, and establishing the details of the indicator system to be applied to the kiln dried wood Order providing for derogations from certain provisions of Council Directive 2000/29/EC in respect of naturally or artificially dwarfed plants of Chamaecyparis Spach, Juniperus L. i Pinus L., originating in the Republic of Korea Order providing for derogations from certain provisions of Council Directive 2000/29/EC in respect of naturally or artificially dwarfed plants of Chamaecyparis Spach, Juniperus L. and Pinus L., originating in Japan Order providing for temporary derogations from Council Directive 2000/29/EC in respect of potatoes, other than potatoes intended for planting, originating in certain provinces of Cuba Order providing for temporary derogations from certain provisions of Council Directive 2000/29/ EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in Argentina
MAFRD
93/422/EEC: Commission Decision of 22 June 1993 authorizing the Member States to provide for derogations from certain provisions of Council Directive 77/93/EEC in respect of kiln dried coniferous wood, originating in Canada, and establishing the details of the indicator system to be applied to the kiln dried wood 31993D0422 93/423/EEC: Commission Decision of 22 June 1993 authorizing the Member States to provide for derogations from certain provisions of Council Directive 77/93/EEC in respect of kiln dried coniferous wood, originating in the United States of America, and establishing the details of the indicator system to be applied to the kiln dried wood 31993D0423 2002/499/EC: Commission Decision of 26 June 2002 authorising derogations from certain provisions of Council Directive 2000/29/EC in respect of naturally or artificially dwarfed plants of Chamaecyparis Spach, Juniperus L. and Pinus L., originating in the Republic of Korea 32002D0499 2002/887/EC: Commission Decision of 8 November 2002 authorising derogations from certain provisions of Council Directive 2000/29/EC in respect of naturally or artificially dwarfed plants of Chamaecyparis Spach, Juniperus L. and Pinus L., originating in Japan 32002D0887 2003/63/EC: Commission Decision of 28 January 2003 authorising Member States to provide for temporary derogations from Council Directive 2000/29/EC in respect of potatoes, other than potatoes intended for planting, originating in certain provinces of Cuba 32003D0063 2003/248/EC: Commission Decision of 9 April 2003 authorising Member States to provide for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in Argentina 32003D0248
IV quarter 2009
22
MAFRD
IV quarter 2009
23
MAFRD
IV quarter 2009
24
MAFRD
IV quarter 2009
25
MAFRD
IV quarter 2009
26
MAFRD
IV quarter 2009
579
27
Order providing for temporary derogations from certain provisions of Council Directive 2000/29/ EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in Chile Order providing for temporary derogations from certain provisions of Council Directive 2000/29/ EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in the Republic of South Africa Order providing for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of the importation of soil contaminated by pesticides or persistent organic pollutants for decontamination purposes Order providing for a derogation from certain provisions of Council Directive 2000/29/EC as regards oak (Quercus L.) logs with bark attached, originating in the United States of America Order providing for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of seed potatoes originating in certain provinces of Canada Order providing for a derogation from certain provisions of Council Directive 2000/29/EC in respect of plants of Vitis L., other than fruits, originating in the former Yugoslav Republic of Macedonia
MAFRD
2003/249/EC: Commission Decision of 9 April 2003 authorising Member States to provide for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in Chile 32003D0249 2003/250/EC: Commission Decision of 9 April 2003 authorising Member States to provide for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of plants of strawberry (Fragaria L.), intended for planting, other than seeds, originating in the Republic of South Africa 32003D0250 2005/51/EC: Commission Decision of 21 January 2005 authorising Member States temporarily to provide for derogations from certain provisions of Council Directive 2000/29/EC in respect of the importation of soil contaminated by pesticides or persistent organic pollutants for decontamination purposes 32005D0051 2005/359/EC: Commission Decision of 29 April 2005 providing for a derogation from certain provisions of Council Directive 2000/29/EC as regards oak (Quercus L.) logs with bark attached, originating in the United States of America 32005D0359 2003/61/EC: Commission Decision of 27 January 2003 authorising certain Member States to provide for temporary derogations from certain provisions of Council Directive 2000/29/EC in respect of seed potatoes originating in certain provinces of Canada 32003D0061 2007/847/EC: Commission Decision of 6 December 2007 providing for a derogation from certain provisions of Council Directive 2000/29/EC in respect of plants of Vitis L., other than fruits, originating in Croatia or the former Yugoslav Republic of Macedonia 32007D0847
IV quarter 2009
28
MAFRD
IV quarter 2009
29
MAFRD
IV quarter 2009
30
MAFRD
IV quarter 2009
31
MAFRD
IV quarter 2009
32
MAFRD
IV quarter 2009
580
ANNEX A
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of staff in the Phytosanitary Sector departments according to the specification laid down in the Ordinance on the internal organisation of the MAFRD Recruitment of staff in the Phytosanitary Inspection Sector under the existing job description and classification scheme in accordance with the Ordinance on the internal organisation of the MAFRD Continuation of professional training of phytosanitary inspectors (workshops, training courses, seminars, study visits) IT training of phytosanitary inspectors Improving phytosanitary inspectors knowledge of foreign languages Updating the existing chapters and developing new chapters of the manual for phytosanitary inspectors Supplementing and upgrading the equipment for the needs of phytosanitary inspection Equipping regional inspection offices Construction of phytosanitary BIPs that will remain operational after Croatias accession to the EU
Competent authority
MAFRD
II quarter 2009
State Budget
MAFRD
III quarter 2009
State Budget State Budget, international projects State Budget, World Bank project World Bank project State Budget State Budget and new EU projects State Budget EU projects, State Budget
MAFRD MAFRD MAFRD MAFRD
IV quarter 2009 IV quarter 2009 IV quarter 2009 IV quarter 2009 and continuously thereafter IV quarter 2009 IV quarter 2009 Until Croatias accession to the EU
MAFRD MAFRD MAFRD
581
3.12.4.2. Plant Protection Products and Pesticide Residues
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of staff in the Plant Protection Products Department according to the specification laid down in the Ordinance on the internal organisation of the MAFRD PLANS OR PROGRAMMES The 2009 national monitoring programme for pesticide residues in and on products of plant origin The 2009 national programme for post-registration control of plant protection products
Competent authority
MAFRD
II quarter 2009
State Budget
MAFRD, MHSW, CNIPH MAFRD, PPI
582
ANNEX A
3.12.5.1. Quality of seeds and planting material
No
Competent authority

Act on Seeds, Planting Material and Registration of Varieties of Agricultural Plants (OG 140/05, 35/08) Act on Seeds, Planting Material and Registration of Varieties of Agricultural Plants (OG 140/05, 35/08)
Ordinance on amendments to the Ordinance on the marketing of propagating material of ornamental plants
MAFRD
Council Directive 98/56/EC of 20 July 1998 on the marketing of propagating material of ornamental plants 31998L0056
I quarter 2009
Ordinance on amendments to the Ordinance on the marketing of cereal seed
MAFRD
Council Directive 66/402/EEC of 14 June 1966 on the marketing of cereal seed 31966L0402
II quarter 2009
Ordinance on the format, development and publishing of national lists of the basic material
MRDFWM
Act on Forest Reproductive Material (OG 140/05)
Commission Regulation (EC) No 1597/2002 of 6 September 2002 laying down detailed rules for the application of Council Directive 1999/105/ EC as regards the format of national lists of the basic material of forest reproductive material 32002R1597 Commission Regulation (EC) No 1598/2002 of 6 September 2002 laying down detailed rules for the application of Council Directive 1999/105/EC as regards the provision of mutual administrative assistance by official bodies 32002R1598
II quarter 2009
Ordinance on the format and modification of an Information Document
MRDFWM
II quarter 2009
583
Ordinance on the requirements that must be fulfilled by legal persons in order to carry out analyses concerning adverse effects of forest reproductive material and detailed rules for the submission of applications for authorisation to prohibit the marketing of specified forest reproductive material
MRDFWM
Commission Regulation (EC) No 1602/2002 of 9 September 2002 laying down detailed rules for the application of Council Directive 1999/105/EC as regards the authorisation of a Member State to prohibit the marketing of specified forest reproductive material to the end-user 32002R1602
II quarter 2009
The list of countries from which equivalent forest reproductive material may be imported
2003/122/EC: Commission Decision of 21 February 2003 authorising Member States to take decisions under Directive 1999/105/EC on forest reproductive material produced in third countries MRDFWM Act on Forest Reproductive Material (OG 140/05) 32003D0122 II quarter 2009 2005/942/EC: Commission Decision of 21 December 2005 authorising Member States to take decisions under Council Directive 1999/105/ EC on assurances afforded in respect of forest reproductive material produced in third countries 32005D0942
584
ANNEX A
3.13. FISHERIES
No
Legislative measure
Competent authority

Council Regulation (EC) No 2371/2002 of 20 December 2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy 32002R2371 Corrigendum 32002R2371R(01) Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund 32006R1198
Act on the Structural, Market and State Aid to Fisheries
MAFRD Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 1198/2006 on the European Fisheries Fund 32007R0498 Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products 32000R0104 Corrigendum 32000R0104R(02) Council Regulation (EC) No 2371/2002 of 20 December 2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy
III quarter 2009
Marine Fisheries Act
32002R2371 Corrigendum 32002R2371R(01) MAFRD Council Regulation (EC) No 1967/2006 of 21 December 2006 concerning management measures for the sustainable exploitation of fishery resources in the Mediterranean Sea, amending Regulation (EEC) No 2847/93 and repealing Regulation (EC) No 1626/94 32006R1967 Corrigendum 32006R1967R(01) II quarter 2009
585
No
Competent authority

Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products
Ordinance on establishing and recognition of producer organisations
32000R0104 Corrigendum 32000R0104R(02) MAFRD Act on the structural, market and state aid to fisheries Commission Regulation (EC) No 2318/2001 of 29 November 2001 laying down detailed rules for the application of Council Regulation (EC) No 104/2000 as regards the recognition of producer organisations in the fishery and aquaculture sector 32001R2318 Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products IV quarter 2009
Ordinance on market standards for fisheries products
32000R0104 Corrigendum 32000R0104R(02) MAFRD Marine Fisheries Act Commission Regulation (EC) No 2318/2001 of 29 November 2001 laying down detailed rules for the application of Council Regulation (EC) No 104/2000 as regards the recognition of producer organisations in the fishery and aquaculture sector 32001R2318 II quarter 2009
Ordinance on the standards for marketing fish and other marine organisms Ordinance on the quality of preserved sardines Ordinance on the quality of preserved tuna and bonito
MAFRD
Marine Fisheries Act (OG 74/94, 57/96 and 48/05) - Article 6a (2)
Council Regulation (EEC) No 2847/93 of 12 October 1993 establishing a control system applicable to the common fisheries policy 31993R2847 Council Regulation (EEC) No 2136/89 of 21 June 1989 laying down common marketing standards for preserved sardines 31989R2136 Council Regulation (EEC) No 1536/92 of 9 June 1992 laying down common marketing standards for preserved tuna and bonito 31992R1536
II quarter 2009
4.
MAFRD
Food Act (OG 46/07), Article 94 (2)
III quarter 2009
MAFRD
Food Act (OG 46/07), Article 94 (2)
III quarter 2009
586
ANNEX A
STRATEGIES National strategic plan adoption PLANS AND PROGRAMMES Operative programme producing the Draft Data collection programme STRENGTHENING ADMINISTRATIVE CAPACITY Recruiting new employees OTHER Procedures and forms for enforcing the inspection and control
Competent authority
Adoption/implementation deadline
MAFRD, Croatian Government
II quarter 2009
State Budget
MAFRD MAFRD
IV quarter 2009 II quarter 2009
MAFRD
IV quarter 2009
State Budget
MAFRD
III quarter 2009
State Budget
587
3.14. TRANSPORT POLICY
3.14.1. Road transport

a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws:
No
Competent authority

Road Transport Act (OG 178/04, 48/05, 105/05, 111/06 and 63/08), Article 4f, paragraph 4
Ordinance on the initial qualification and periodic training of drivers
MSTI
Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers, amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC 32003L0059
II quarter 2009
Ordinance on the amount of annual fee for the use of public roads paid upon registration of motor and towing vehicles
MSTI
Public Roads Act (OG 180/04 and 146/08) Article 62, paragraph 1
Directive 1999/62/EC of the European Parliament and of the Council of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures 31999L0062 Directive 2006/38/EC of the European Parliament and of the Council of 17 May 2006 amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructures 32006L0038 Directive 1999/62/EC of the European Parliament and of the Council of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures 31999L0062 II quarter 2009
Decision on the introduction and the amount of user fee
MSTI
Public Roads Act (OG 180/04 and 146/08) Article 62, paragraph 2
Directive 2006/38/EC of the European Parliament and of the Council of 17 May 2006 amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructures 32006L0038 Directive 2004/52/EC of the European Parliament and of the Council of 29 April 2004 on the interoperability of electronic road toll systems in the Community 32004L0052
II quarter 2009
Ordinance on minimum safety requirements for tunnels from the planning stage to the construction and exploitation stage
MSTI
Public Roads Act (OG 180/04 and 146/08) Article 45a
Directive 2004/54/EC of the European Parliament and of the Council of 29 April 2004 on minimum safety requirements for tunnels in the Trans-European Road Network 32004L0054
II quarter 2009
588
ANNEX A
STRATEGIES CB Preparing the National guidelines for safety policy in the field of digital tachographs and sending them to EC
Competent authority
Source of financing
MSTI
I quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of new employees (15 inspectors) at the Directorate of Traffic Inspection Education and training of inspectors OTHER Creating hardware and software for connecting to joint network with competent bodies of other countries via TACHOnet, in the framework of S-TEST MSTI MSTI 2009 2009
CB
MSTI
I quarter 2009
State Budget
3.14.2. Railway transport
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws:
No
Competent authority

Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety on the Communitys railways and amending Council Directive 95/18/EC on the licensing of railway undertakings and Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification (Railway Safety Directive) 32004L0049
Ordinance on emergency events
MSTI
Railway Transport Safety Act (OG 40/07), Article 65, paragraph 3
I quarter 2009
589
Description of measure
Competent authority
Establishment of new inStitUTIons and other bodies Establishment and the start of operation of the Railway Transport Safety Agency CB Beginning of work of the Railway Market Regulatory Agency MSTI 2009 Funds from the State Budget
MSTI/Agency
I quarter 2009
3.14.3. Combined transport
No
Legislative measure
Competent authority

Council Directive 92/106/EEC of 7 December 1992 on the establishment of common rules for certain types of combined transport of goods between Member States 31992L0106
Combined Transport Act
MSTI
II quarter 2009
590
ANNEX A
3.14.4. Inland navigation
STRATEGIES Implementation of the Inland Waterways Transport Development Strategy PLANS Preparing an Action plan for shipping
Process phases
Competent authority
MSTI
2009-2018
Funds from the State Budget
Government adoption
MSTI
2009
Funds from the State Budget
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Implementation of activities related to establishing of the National Control Centre will continue MSTI 2009-2011 Funds from the State Budget
591
3.14.5. Air transport
No
Legislative measure
Competent authority

Regulation (EC) No 785/2004 of the European Parliament and of the Council of 21 April 2004 on insurance requirements for air carriers and aircraft operators 32004R0785
1 CB 2 CB
Act on Amendments to the Act on Compulsory Insurance in Transport
MFIN
I quarter 2009
Act on Amendments to the Air Traffic Act
MSTI
Alignment with certain regulations and directives referred to in Annex I to the ECAA Agreement (exact scope of necessary changes is still not known).
I quarter 2009
1 SUBORDINATE LEGISLATION CB
Ordinance on conditions and method of issuing an Operating licence
MSTI
Regulation (EEC) No 2407/92 of 23 July 1992 on licensing of air carriers 31992R2407
I quarter 2009
Ordinance on computerized reservation system
MSTI
Council Regulation (EEC) No 2299/89 of 24 July 1989 on a code of conduct for computerized reservation systems as amended by: Council Regulation (EEC) No 3089/93 of 29 October 1993 amending Regulation (EEC) No 2299/89 on a code of conduct for computerized reservation systems, Council Regulation (EC) No 323/1999 of 8 February 1999 amending Regulation (EEC) No 2299/89 on a code of conduct for computer reservation systems (CRSs) 31989R2299
II quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws:
No
Competent authority

Air Traffic Act (OG 132/98, 178/04 and 46/07), Article 163

Directive 2006/93/EC of the European Parliament and of the Council of 12 December 2006 on the regulation of the operation of aeroplanes covered by Part II, Chapter 3 , Volume 1 of Annex 16 to the Convention on International Civil Aviation, second edition (1988) 52006PC0093
1 CB
Ordinance on amendments to the Ordinance on the operation of aircrafts
MSTI in agreement with MOD
I quarter 2009
592
ANNEX A
Process phases
Competent authority
Establishment of new institutions and other bodies - Adoption of internal acts (description of activities, of workplaces, systematisation of workplaces) CB Start of operation of the Civil Aviation Agency - Listing of all existing documentation, equipment - Decision on the transfer of certain employees, equipment and documentation of the MSTI to the Agency OTHER - receiving requests - first processing of requests - establishing of the certification team Procedure of certifying the Croatia Control, Croatian Air Navigation Services - review of documentation - audits - possible correction measures - report on implemented procedure - considering the decision on the issue of certificate - issuing a certificate or refusing a request STRENGTHENING ADMINISTRATIVE CAPACITY - theoretical and practical trainings, courses and seminars of employees of Directorate of Air Traffic in European institutions State Budget and organisations in which the training will be organised MSTI I quarter 2009 State Budget
- Agency - MSTI - MSTI I quarter 2009 State Budget
CB
EDUCATION AND TRAINING
MSTI
I, II, III and IV quarter 2009
593
3.14.6. Maritime transport
LEGISLATIVE MEASURES: a) Laws and related subordinate legislation:
No
Legislative measure
Competent authority

Regulation (EC) No 725/2004 of the European Parliament and of the Council of 31 March 2004 on enhancing ship and port facility security 32004R0725
Act on Amendments to the Act on Security of Merchant Ships and Ports Open to International Transport
MSTI
III quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws:
No
Competent authority

Act on Liner Shipping and the Seasonal Coastal Maritime Transport Services (OG 33/06), Article 17

Directive 2003/25/EC of the European Parliament and of the Council of 14 April 2003 on specific stability requirements for ro-ro passenger ships 32003L0025 Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organizations and for the relevant activities of maritime administrations 31994L0057 Directive 2005/45/EC of the European Parliament and of the Council of 7 September 2005 on the mutual recognition of seafarers certificates issued by the Member States 32005L0045
Ordinance on mandatory requirements imposed on ship and ship operator in international liner shipping
MSTI
III quarter 2009
Technical rules - Part VI Subdivision
CRS
Maritime Code, Article 77, paragraph 2 and Article 1019
III quarter 2009
Ordinance on amendments to the ordinance on ranks and certifications for seafarers
MSTI
Maritime Code, Article 1021, paragraph 3
I quarter 2009
594
ANNEX A
OTHER Submit request to the European Commission to gain the status of recognized organisation for the Croatian Shipping Registry pursuant to Council Directive 94/57/EC STRENGTHENING ADMINISTRATIVE CAPACITY EDUCATION AND TRAINING
Process phases
Competent authority
MSTI
I quarter 2009
training AIS/ VTMIS operators technical assistance for establishing VTMIS II phase
MSTI
II quarter 2009
PHARE 2005 State Budget
TECHNICAL ASSISTANCE (FACILITIES, EQUIPMENT, IT-EQUIPMENT, ...)
MSTI
II quarter 2009
PHARE 2006
595
3.15. ENERGY
No
Legislative measure
Competent authority

Directive 94/22/EEC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons (pending adoption) 31994L0022
Mining Act
MELE
I quarter 2009
No
Competent authority

Biofuels Act (I quarter 2009)
Related subordinate legislation
MELE
Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy enduse efficiency and energy services 32006L0032
IV quarter 2009
Related subordinate legislation
MELE
Act on Efficient Energy Use (pending adoption)
Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings 32002L0091
IV quarter 2008
Directive 2005/32/EC of the European Parliament and of the Council of 6 July 2005 establishing a framework for the setting of ecodesign requirements for energy using products 32005L0032
596
ANNEX A
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPLOYEES 4 new employees with university degrees, 1 new employee with secondary school qualifications Regulation on the internal structure of the State Office for Radiation Protection RECRUITMENT OF NEW EMPLOYEES, 5 new employees with university degrees OTHER Drawing up instructions for obtaining permits for working with sources of ionising radiation, their use, import, export and supply of ionising radiation sources Drawing up plans, procedures and manuals provided for in the National Plan and Programme of Ionising Radiation Protection Measures in the Event of a Radiological Emergency
Competent authority
MELE, Department for renewable sources and energy efficiency SORP SONS
IV quarter
State Budget
I quarter 2009 IV quarter 2009
SORP
III quarter 2009
State Budget
SOPR, SONS, NPRD
IV quarter 2009
State Budget
597
3.16. TAXATION
No
Legislative measure
Competent authority
MF, Tax Administration

Council Directive 2006/112/EC of 28 November 2006 on the common system of value-added tax 32006L0112 Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products 31992L0012 Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes 31992L0079 Council Directive 95/59/EC of 27 November 1995 on taxes other than turnover taxes which affect the consumption of manufactured tobacco 31995L0059 Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on manufactured tobacco other than cigarettes 31992L0080

II quarter 2009
Value-Added Tax Act
2.
Excise Duty Act
MF, Customs Directorate
Council Directive 92/83/EEC of 19 October 1992 on the harmonization of the structures of excise duties on alcohol and alcoholic beverages 31992L0083 Council Directive 92/83/EEC of 19 October 1992 on the harmonization of the structures of excise duties on alcohol and alcoholic beverages 31992L0083 Council Directive 92/84/EEC of 19 October 1992 on the approximation of the rates of excise duty on alcohol and alcoholic beverages 31992L0084 Council Directive 95/60/EC of 27 November 1995 on fiscal marking of gas oils and kerosene 31995L0060 Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity 32003L0096
I quarter 2009
598
ANNEX A
-
Process phases
Competent authority
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES - Excise Liaison Office (ELO) MF, Customs Directorate I quarter 2009 State Budget
STRENGTHENING ADMINISTRATIVE CAPACITY a) participation in the FISCALIS programme PHARE 2005 b) training of Tax Administration employees PHARE 2005 MF, Tax Administration MF, Customs Directorate MF, Customs Directorate During 2009 IV quarter 2007, duration 18 months 18 months from date of entering into contract MF, Tax Administration During 2009 90% EU funds and 10% State Budget World Bank Loan 75% EC funds and 25% State Budget 75% EC funds and 25% State Budget
PHARE 2006
599
3.18. STATISTICS
OTHER Drafting and submission of the updated description of the envisaged methodology and organisational structure overview for collection of statistical indicators on crop, livestock, meat production, milk production, dairy products and meat products as well as on agromonetary statistics to the Eurostat Drafting and submission of the updated description of the methodology used for the calculation of main indicators on national accounts, produced in accordance with the ESA 95 methodology to the Eurostat
Process phases
Competent authority
CB
CBS
I quarter 2009
State Budget
CB
CBS
I quarter 2009
State Budget
Register of Agricultural Holdings further activities on the improvement of the initial statistical register
a) Establish a system of updating and beginning of work on the updating with selected administrative sources (MAFRD Register) b) Prepare a manual of the statistical Register of Agricultural Holdings a) Analysis of administrative sources
CBS
II quarter 2009
State Budget
Register of Orchards and Vineyards
b) Prepare a methodology, forms and other accompanying materials needed to draw up the Register Calculation of production account and labour input in agriculture Drafting an Analysis of a pilot Survey on Income and Living Conditions
CBS
II quarter 2009
State Budget
Agro-monetary statistics Survey on Income and Living Conditions -SILC - pilot (trial) survey
CBS
II quarter 2009
PHARE 2005 State Budget PHARE 2005 State Budget MB PHARE 2006 State Budget
CBS
II quarter 2009
a) Regular (smaller) GDP revision Improving the System of National Accounts according to ESA 95 requirements b) Drawing up a quarterly nonfinancial account of the general government
CBS
III quarter 2009
CBS
III quarter 2009
600
ANNEX A
a) Carry out a tender procedure for the acquisition of the service of drafting a methodology for the inclusion of groups of companies in the SBR b) Drafting the methodology for the inclusion of groups of companies in the SBR and carry out a tender procedure for the acquisition of a service of software development for the purpose of registering and updating groups of companies in accordance with the drafted methodology c) Software development for registering and updating groups of companies a) Use of the new classification system NACE Rev.2/CPA 2008 in STS survey Short-term business statistics (STS) - implementation of a new classification system NACE Rev.2 in accordance with EU legislation in the field of STS and dissemination of recalculated time series including 8 new STS indicators to Eurostat b) Reconstruction of the time series of the available STS business indicators and change of the base year in accordance with EU legislation and their dissemination in accordance with the Eurostat timetable c) Production of 8 new STS indicators and their dissemination to Eurostat Statistics on the trade in goods between Member States (Intrastat) - activities on the introduction of Intrastat into the statistical system of the Republic of Croatia a) Definition of the contents of Intrastat form b) Definition of the scope of the Intrastat register a) Analysis of the existing situation and needs and study of experiences of EU countries in statistical data dissemination b) Drafting a proposal for dissemination strategy, discussions and strategy adoption a) Definition and development of a common technological and methodological basis for the compilation of SBS Annex 1-4 Council Regulation (EC) No 295/08 from administrative sources b) Definition and development of a common technological and methodological basis for compiling Structural Business Statistics of Annex 1-4 of Council Regulation (EC) No 295/08 through statistical surveys CBS CBS Customs Directorate
I quarter 2009
Statistical Business Register (SBR) - inclusion of groups of companies
CBS II quarter 2009
MB PHARE
III quarter 2009
I quarter 2009 State Budget
PHARE CBS II quarter 2009 MB PHARE 2006
State Budget II quarter 2009 MB PHARE 2006
Dissemination of statistical data - drafting a strategy for statistical data dissemination
State Budget CBS III quarter 2009 MB PHARE 2006
Structural Business Statistics (SBS) - definition of a model for the establishment of an integral system of structural business statistics
State Budget I quarter 2009 MB PHARE 2006
STRENGTHENING ADMINISTRATIVE CAPACITY EDUCATION AND TRAINING Drafting a proposal for the 2010 Training Plan CBS II quarter 2009 State Budget
601
3.19. SOCIAL POLICY AND EMPLOYMENT
3.19.1. Labour legislation
No
Legislative measure
Competent authority
32003L0088 1 Ordinance on the working hours of fishermen MELE Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time 31994L0045 2 Ordinance on the election to works councils MELE Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees 31994L0033 MELE Council Directive 94/33/EC of 22 June 1994 on the protection of young people at work II quarter 2009 II quarter 2009 II quarter 2009
Ordinance on jobs prohibited to minors and on jobs which minors may be employed on only upon the pre-employment medical examination
602
ANNEX A
Process phases
Competent authority
STRENGTHENING ADMINISTRATIVE CAPACITY a) Continuation of recruitment of new employees in the MELEs Directorate for Labour and the Labour Market, the Directorate for Pension Insurance, and the Directorate for International Co-operation in the Field of Social Security, until all vacancies are filled. b) Continuation of recruitment of new employees in the Croatian Employment Service b) Continuation of recruitment of new labour inspectors in the State Inspectorate ORGANISATIONAL RESTRUCTURING a) narrow specialisation of labour inspectors working in the State Inspectorate for application and supervision, and on-going training for inspectors in the protection of young persons b) narrow specialisation of civil servants for the protection of childrens rights and interests
MELE
2009
State Budget
RECRUITMENT OF NEW EMPOLOYEES
CES State Inspectorate
2009 2009
State Inspectorate State Inspectorate
2009
State Budget
2009
State Budget
603
3.19.2. Health and safety at work
LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws IMPLEMENTATION MEASURES Adoption/ implementation deadline
Process phases
Competent authority
STRENGTHENING ADMINISTRATIVE CAPACITY In addition to 11 persons who have already been recruited, it is planned to recruit 24 experts in occupational medicine and occupational health and safety in the new Croatian Institute for Health Protection and Safety at Work - recruitment of 3 civil servants in the Department for Occupational Safety and Health of the MELEs Directorate for Labour and the Labour Market - Croatian Institute for Health Protection and Safety at Work - MELE
RECRUITMENT OF NEW EMPOLOYEES
2009
State Budget
3.19.3. Social dialogue
Process phases
Competent authority
STRENGTHENING ADMINISTRATIVE CAPACITY RECRUITMENT OF NEW EMPOLOYEES Office for Social Partnership of the Croatian Government
Recruitment of two civil servants
2009
State Budget
604
ANNEX A
3.20. ENTERPRISE AND INDUSTRIAL POLICY
3.20.2. Industrial policy
STRATEGIES 1 Development Strategy for the Processing Industry
Process phases
Competent authority
MELE
I quarter 2009
605
3.21. TRANS-EUROPEAN NETWORKS
3.21.1. Transport networks
a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws: IMPLEMENTATION MEASURES Adoption/ implementation deadline
STRATEGIES Drafting/revision of the Transport Development Strategy of the Republic of Croatia
Competent authority
Source of financing
MSTi
IV quarter 2009
State Budget
606
ANNEX A
3.22. REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS
No
Legislative measure
Competent authority
Regional Development Act
MRDFWM
Council Regulation (EC) No 1260/1999 laying down general provisions on the Structural Funds - 31999R1260
III quarter 2009
b) Subordinate legislation adopted pursuant to previously adopted laws IMPLEMENTATION MEASURES Adoption/ implementation deadline
STRATEGIES
Process phases
Competent authority
CODEF MRDFWM Strategy of Evaluation Implementation for Structural Instruments MF a) Document preparation MEPPPC MSTI MELE MAFR Regional Development Strategy PROGRAMMES National Strategic Reference Framework (NSRF) a) Preparation of a detailed document draft CODEF MRDFWM MEPPPC Operational Programmes for Structural Funds a) Preparation of the first document draft MSTI MELE SDURF IV quarter 2009 State Budget PHARE 2006 II quarter 2009 State Budget PHARE 2006 a) Government adoption MRDFWM III quarter 2009 State Budget CARDS 2004 II quarter 2009 PHARE 2006
607
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES
OTHER Upgrade of the existing management information system (MIS) for structural instruments a) Establishing plans and deadlines for the system creation MF CODEF MSTI Elimination of omissions following the Commission audit results for IPA components III and IV MEPPPC MRDFWM MELE, MSES, MF, CODEF MSTI Continual preparation of tender documentation for projects within the IPA components III and IV MEPPPC MRDFWM, MELE, MSES MSTI MEPPPC, MRDFWM, MELE, MSES continual State Budget Continuous State Budget ISPA, IPA III quarter 2009 State Budget CARDS, ISPA, PHARE, IPA II quarter 2009 State Budget PHARE 2006
Timely fulfilment of scheduled deadlines from procurement plans for projects within the IPA components III and IV STRENGTHENING ADMINISTRATIVE CAPACITY
CODEF, MF Preparation of organisational development strategies in competent authorities for the structural instruments management MRDFWM a) Document preparation MEPPPC MSTI MELE MAFR Training Plan for the EU structural instruments management in the Republic of Croatia for 2009 I quarter 2009 State Budget PHARE 2006
a) Document preparation
CODEF
I quarter 2009
State Budget
Capacity building of the National Regional Development Agency
a) Capacity building
MRDFWM
III quarter 2009
State Budget
608
ANNEX A
3.23. JUDICIARY AND FUNDAMENTAL RIGHTS
3.23.1. Judicial reform
No
Legislative measure
Competent authority
MJ MJ MJ MJ MJ MJ MJ MJ

-

II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009 II quarter 2009
1 2 3 4 5 6 7 8
Act on Amendments to the Mediation Act Act on Amendments to the Courts Act Act on Amendments to the State Judiciary Council Act Act on Amendments to the Act on the State Attorneys Office Act on Amendments to the Act on Trainees in Judicial Bodies and the Judicial Exam Act on Amendments to the Public Notaries Act Act on Amendments to the Act on the Legal Profession Administrative Disputes Act
No
Ordinance on the schedule and deadlines for the physical merger of municipal state attorney offices Ordinance on the schedule and deadlines for the physical merger of misdemeanour courts
Competent institution

Act on Jurisdictions and Seats of State Attorneys Offices

-

I quarter 2009
MJ
MJ
Act on Jurisdictions and Seats of Misdemeanour Courts
III quarter 2009
609
PROGRAMMES AND PLANS Training of mentors for court and state attorney trainees Pilot Project PHARE 2005 Project Support for the Judicial Academy of Croatia: Developing a Training System for Future Judges and State Attorneys Development of the programme of continuous training for first-time judges for the duration of three (or six) months Further development of four Regional Centres of the Judicial Academy Rules of Procedure of the JAs Advisory Council and the Programme Council, module for initial professional training, selecting and training future lecturers of the theoretical part of the curriculum within the framework of initial professional training, and creating a module on the acquis communautaire
Process phases
Competent authority
Adoption/ implementation Deadline
JA
II quarter 2009
State Budget
JA
II quarter 2009
State Budget
JA
II quarter 2009
State Budget
JA
IV quarter 2009
State Budget
JA
II quarter 2009
State Budget
The eFILE system will be introduced into 15 more courts from the list of the PHARE 2006 Project.
MJ
IV quarter 2009
Project PHARE 2006 (Support to Court Administration and Case Management Improvement) State Budget PHARE 2005
The eFILE system will be introduced into 5 municipal courts that are not on the list for the PHARE Project Establishing the structure and system for court-based and out-of-court mediation, the functioning of pilot mediation centres at courts, and making the regional centres fully functional for out-of-court mediation, including the creation of a register of mediators
MJ
IV quarter 2009
MJ
IV quarter 2009
(Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement) PHARE 2005 (Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement) PHARE 2005 (Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement) PHARE 2005 (Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement) State Budget State Budget
Developing and implementing a training curriculum for mediators and trainers
MJ
IV quarter 2009
Preparing and distributing the mediation information and publications so as to make them available to the general public
MJ
IV quarter 2009
Drafting a Code of Ethics for Mediators
MJ
IV quarter 2009
Completing the verification of land registry data Solving the backlog in the Land Registry
MJ MJ
610
ANNEX A
Completing and making operational the Land Registry and EOP Land Book within the framework of the Joint Information System (JIS) Project Establishing an electronic register in all land registry courts, making the data available on the Internet and monitoring the work of each clerk
MJ
IV quarter 2009
State Budget
MJ
IV quarter 2009
State Budget
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Creating the School for Judges and State Attorneys OTHER Improving the institute of execution in the Republic of Croatia MJ IV quarter 2009 State Budget MJ IV quarter 2009 State Budget
3.23.2. Anti-corruption measures
IMPLEMENTATION MEASURES Adoption/ implementation Deadline
PLANS OR PROGRAMMES Amendments to the Code of Ethics and organisation of systematic training for mediators Completing the verification of land registry data Solving the backlog in the Land Registry Completing and making operational the Land Registry and EOP Land Book within the framework of the Joint Information System (JIS) Project Establishing an electronic register in all land registry courts, making the data available on the Internet and monitoring the work of each clerk OTHER Publishing a brochure with a view to inform the public about the conflict of interest Developing a research study on the justification of introducing the criminal offence of illicit enrichment referred to in Article 20 of the United Nations Convention against Corruption (UNCAC) into Croatian criminal legislation Round table on The Credibility of the Judiciary With Ethics against Corruption In co-operation with civil society organisations, devising and implementing educational programmes for journalists dealing with corruption issues with the aim of raising public awareness of the dangers of corruption and the measures for its suppression
Competent authorities
MJ MJ MJ MJ
IV quarter 2009 IV quarter 2009 IV quarter 2009 IV quarter 2009
State Budget State Budget State Budget State Budget
MJ
IV quarter 2009
State Budget
MJ
II quarter 2009
State Budget
MJ
IV quarter 2009
State Budget
MJ, SCRC, SAO MJ, GOCN, SAO
I quarter 2009
State Budget
IV quarter 2009
State Budget
611
3.24. JUSTICE, FREEDOM AND SECURITY
3.24.2. Migration
a) Laws and related subordinate legislation IMPLEMENTATION MEASURES Adoption/ implementation deadline
Description of measures PLANS
Process phases
Competent authority
Action Plan for the Integrated Border Management
Annual updating in accordance with the requirements/criteria set by the European Commission and adoption by the Government of the Republic of Croatia
MI
IV quarter 2009
State Budget
STRENGTHENING OF ADMINISTRATIVE CAPACITIES ORGANISATIONAL RESTRUCTURING a) Adoption and implementation of the organisational and human resources concept Education of police officers for illegal migrations in the Ministry and police administrations/stations in implementation of regulations and understanding acquis communauitaire in the area of migrations Preparation and drawing the project documentation for constructing 2 transit reception centres for aliens (Trilj and Tovarnik) and a unit for the accommodation of minors without escort at the Reception Centre for Aliens MI 2009 State Budget
MI
2009
State Budget
TECHNICAL ASSISTANCE (FACILITIES, EQUIPMENT, ITEQUIPMENT, etc.)
MI
2009
State Budget
612
ANNEX A
3.24.3. Visas
No
Competent authority
Act on Amendments to the Act on Travel Documents of Croatian Nationals
MI
Council Regulation (EC) No 2252/2004 of 13 December 2004 on standards for security features and biometrics in passports and travel documents issued by Member States 32004R2252
III quarter 2009
No
Competent authority

Council Decision(EC) No 512/2004 of 8 June 2004 establishing the Visa Information System (VIS) 32004D0512 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) The Schengen acquis - Decision of the Executive Committee of 28 April 1999 on the definitive versions of the Common Manual and the Common Consular Instructions (SCH/Com-ex (99) 13) 41999D0013
Amendments to the Ordinance on the Croatian Visa Database
MFAEI
Aliens Act (OG 79/07), Article 211 Ordinance on visas (OG 49/08)
II quarter 2009
Amendments to the Ordinance on visas
MFAEI
Aliens Act (OG 79/07), Article 211 Ordinance on visas (OG 49/08)
II quarter 2009
613
3.24.4. Border management and Schengen
No
Competent authority

Regulation (EC) No 562/2006 of the European Parliament and of the Council of 15 March 2006 establishing a Community Code on the rules governing the movement of persons across borders (Schengen Borders Code) 32006R0562
Ordinance on amendments to the Ordinance on the procedure for carrying out state border surveillance
MI
Act on Amendments to the State Border Protection Act
Council Regulation (EC) No 2007/2004 of 26 October 2004 establishing a European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union 32004R2007 Council Regulation (EC) No 1683/95 of 29 May 1995 laying down a uniform format for visas as amended 31995R1683 Council Regulation (EC) No 1030/2002 of 13 June 2002 laying down a uniform format for residence permits for thirdcountry nationals 32002R1030 Council Regulation (EC) No 2252/2004 of 13 December 2004 on standards for security features and biometrics in passports and travel documents issued by Member States 32004R2252 Regulation (EC) No 863/2007 of the European Parliament and of the Council of 11 July 2007 establishing a mechanism for the creation of Rapid Border Intervention Teams 32007R0863
I quarter 2009
614
ANNEX A
Process phases
Competent authority
PROGRAMMES Working Arrangement for the establishment of operative cooperation between MI and European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union (FRONTEX) Agreement of Cross-border Police Co-operation with the Republic of Italy OTHER In cooperation with the Ministry of Finance continuation of conducting activities with a view to constructing and reconstructing the existing infrastructure at border crossing points with Serbia, Bosnia and Herzegovina and Montenegro
a) Implementation of the Working Arrangement
MI
Continuous
State Budget
a) Signing the Agreement b) implementation
MI
2009 Continuous
State Budget
a) Implementation
MF MI
Continuous
State Budget
STRENGTHENING OF ADMINISTRATIVE CAPACITIES RECRUITMENT OF NEW EMPLOYEES ORGANISATIONAL RESTRUCTURING During 2009 it is planned to employ 700 new police officers a) Adoption and implementation of the organisational and human resources concept a) Carrying out specialist training for 700 border police officers b) Carrying out other types of trainings for border police officers (RTG operators etc.) EDUCATION AND TRAINING c) Professional specialist training for border police officers and, by means of multipliers, organisation of other forms of professional training, especially in the areas of European and national legislation, the detection of forged documents and the smuggling of vehicles MI 2009 State Budget PHARE 2005 State Budget State Budget
MI
2009
MI
2009
MI
2009
State Budget
MI
2009
State Budget
615
a) Procurement of necessary ITtechnology b) Procurement and putting into operative use of equipment for state border protection (for border crossing points, green and blue border) c) Construction and adaptation of facilities for work and accommodation of the border police TECHNICAL ASSISTANCE (FACILITIES, EQUIPMENT, ITEQUIPMENT, etc.) d) Phase III of the development of the National Information System for State Border Management, and technical equipping of seven permanent international border crossing points e) Procurement of technical equipment for the maritime police needs f) Preparation of all the needed documentation for the transit reception centres for aliens (Trilj and Tovarnik) and a unit for the accommodation of minors at the Reception Centre for Aliens Jeevo (minors department)
MI
2009
State Budget
MI
2009
State Budget
MI
2009
State Budget
MI
2009
State Budget IPA 2007
PHARE 2006
MI
2009
State Budget
616
ANNEX A
3.24.5. Police co-operation and the fight against organised crime
3.24.5.1. Police co-operation LEGISLATIVE MEASURES a) Laws and related subordinate legislation b) Subordinate legislation adopted pursuant to previously adopted laws
PROGRAMMES ILECUS
Process phases
Competent authority
a) Start of the implementation
MI
During 2009
EU funds
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES a) Start of the implementation PHARE 2006 EUR 130 000 twinning light project
S:I:R:E:N:E: Office
MI
End 2009
OTHER Concluding an agreement on cooperation with the European Police College (CEPOL) Participating in the work of the European Network for the Protection of Public Figures Concluding an agreement between the Government of Croatia and the Government of Germany on co-operation in the suppression of organised and heavy crime Concluding an agreement between the Government of Croatia and the Government of the State of Israel on co-operation in the fight against crime Concluding an agreement on cooperation between the MI of the Republic of Croatia and the MI of the Russian Federation STRENGTHENING OF ADMINISTRATIVE CAPACITIES a) Carrying out a course for contact-policemen in relation to further implementation of the Community Policing Strategy b) Organisation within the police administrations of the line of work for the prevention of violence and disturbances during sports events MI MI During 2009 During 2009 2009 Budget State Budget
MI
During 2009
2009 Budget
MI
During 2009
State Budget
MI
During 2009
2009 Budget
MI
During 2009
State Budget
MI
During 2009
State Budget
617
3.24.5.2. Fight against organised crime
Competent authority
STRENGTHENING OF ADMINISTRATIVE CAPACITIES MATRA LONG 08/HR/9/2 Criminal Police Reorganisation phase 2 General Police Directorate, Crime Police Directorate, Office for the Suppression of Corruption and Organised Crime (USKOK) IV quarter 2010 Government of the Kingdom of The Netherlands
3.24.5.3. Trafficking in persons
PLANS OR PROGRAMMES National Programme for the Suppression of Trafficking in Persons for the Period from 2009 to 2011
Competent authority
Office for Human Rights of the Government of the Republic of Croatia
III quarter 2009
State Budget
618
ANNEX A
3.24.5.6. Terrorism
PLANS Drawing up and adoption of the Action Plan for the Prevention and Suppression of Terrorism as a part of the National Strategy for the Prevention and Suppression of Terrorism
Process phases
Competent authority
a) Drawing up and adoption of the Action Plan for the Prevention and Suppression of Terrorism
The Government of the Republic of Croatia, MFAEI, MI, MD, Security Intelligence Agency, National Protection and Rescue Directorate, Office of the President of the Republic of Croatia
IV quarter 2009
State Budget
619
3.24.7. Co-operation in the area of drugs
PLANS OR PROGRAMMES Action Plan for Combating Narcotic Drugs Abuse in the Republic of Croatia 2009-2012 Implementation Programme of the Action Plan on the Suppression of Narcotic Drugs Abuse 2009 STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of four new employees in the Office for the Suppression of the Narcotic Drugs Abuse OTHER Agreement between the Republic of Croatia and the European Commission for the Participation of the Republic of Croatia in the Work of EMCDDA
Competent authority
Office for Combating Narcotic Drugs Abuse (OCNDA) and competent ministries Office for Combating Narcotic Drugs Abuse (OCNDA) and competent ministries
I quarter
State Budget
I quarter
State Budget
Office for Combating Narcotic Drugs Abuse (OCNDA)
III quarter
State Budget
MFVAIS, OCNDA
III quarter
State Budget EU funds
620
ANNEX A
3.24.8. Judicial co-operation in criminal and civil matters
LEGISLATIVE MEASURES a) Laws and related subordinate legislation LEGISLATIVE MEASURES To be aligned with the following acts of the acquis
No
Competent authority
2002/584/JHA Council Framework Decision of 13 June 2002 on the European arrest warrant and the surrender procedures between Member States 32002F0584 Council Framework Decision 2003/577/JHA of 22 July 2003 on the execution in the European Union of orders freezing property or evidence MJ 32003F0577 Council Framework Decision 2005/214/JHA of 24 February 2005 on the application of the principle of mutual recognition to financial penalties 32005F0214 Council Framework Decision 2006/783/JHA of 6 October 2006 on the application of the principle of mutual recognition to confiscation orders 32006F0783 Act on Amendments to the Act on the Enforcement of Prison Terms 2001/220/JHA: Council Framework Decision of 15 March 2001 on the standing of victims in criminal proceedings 32001F0220 Council Framework Decision 2008/675/JHA of 24 July 2008 on taking account of convictions in the Member States of the European Union in the course of new criminal proceedings 32008D0675 Act on the Ratification of the Convention on the Taking of Evidence Abroad in Civil or Commercial Matters Act on the Ratification of the Hague Convention on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children II quarter 2009
Act on Amendments 1 to the Act on International Legal Assistance in Criminal Matters
MJ
II quarter 2009
Act on Amendments to the Criminal Act
MJ
II quarter 2009
MJ
II quarter 2009
MHSC
II quarter 2009
621
No
Competent authority

Act on Ratification of the Agreement between Eurojust and the Republic of Croatia (OG 7/08)
Ordinance on seconding liaison officers to Eurojust
MJ
I quarter 2009
PLANS OR PROGRAMMES Training of judges, state attorneys and civil servants in the Ministry of Justice engaged in activities of international legal assistance in criminal matters STRENGTHENING ADMINISTRATIVE CAPACITY Further strengthening of administrative capacities of the Ministry of Justice in the system of international legal assistance in civil matters, training and specialisation of staff, support for the setting up of a network of judges in Croatia, with special attention given to compatibility, for the purpose of joining the European Judicial Network for civil and commercial matters Strengthening administrative capacities of the Ministry of Justice in international legal assistance in criminal matters is planned to be achieved by recruiting an appropriate number of civil servants, and providing training and specialisation in accordance with the need for efficient international co-operation, which is constantly growing, not only in terms of the number of actual cases, but also in terms of the degree of complexity of increasingly sophisticated cross-border crime Seconding liaison officers to Eurojust
Competent authority
MJ in cooperation with JA
Continuous
State Budget
MJ
IV quarter 2009
State Budget
MJ
IV quarter 2009
State Budget
MJ
IV quarter 2009
State Budget
622
ANNEX A
3.25. SCIENCE AND RESEARCH
PLANS OR PROGRAMMES Action Plan to strengthen the absorption capacity of the Republic of Croatia for the Seventh Framework Programme for research and technological development (strengthening human resources for the FP7, increasing material support to researchers for the FP7, stronger linking of doctoral studies with the FP7, involvement of the Republic of Croatia in the technology platforms and EU Joint Technology Initiatives) Plan of measures to intensify the involvement of the Republic of Croatia in the activities of the Joint Research Centre (JRC) of the EC, especially in the area of involvement in joint projects Action Plan for the Mobility of Researchers STRENGTHENING ADMINISTRATIVE CAPACITY
Competent authority
MSES and HIT
Continuous
State Budget
MSES MSES
I quarter I quarter
Strengthening the capacity of the Agency for Mobility and EU Programmes (AMEUP) as the National Contact Point for researcher mobility in the European Research Area
MSES and AMEUP
III quarter
State Budget and a project of the Seventh Framework Programme for research (beneficiary AMEUP)
OTHER Initiating the procedure for concluding the Memorandum on Participation in the Communitys Nuclear Energy Programme EURATOM Starting the implementation of the IPA Component 3C project Science and Innovation Investment Fund pursuant to the Operational Programme Regional Development Regional Competitiveness MSES II quarter State Budget
MSES
III quarter
IPA Component 3C and the State Budget
623
3.26. EDUCATION AND CULTURE
3.26.1. Education and training
PLANS OR PROGRAMMES Implementing the Action Plan for the Croatian Qualifications Framework (defining and describing basic qualification elements, preparing descriptors for all levels, dissemination, implementation in vocational legislation) STRENGTHENING ADMINISTRATIVE CAPACITY Strengthening the Agency for Mobility and EU Programmes (AMEUP) for the Integrated Lifelong Learning Programme preparatory measures OTHER Accreditation of the Agency for Mobility and EU Programmes (AMEUP) with the European Commission Initiating the procedure for concluding the Memorandum on Participation in the Integrated Lifelong Learning Programme Initiating the procedure for concluding the Memorandum on Participation in the Community ERASMUS MUNDUS Programme Starting the implementation of the IPA Component IV project pursuant to the Operational Programme Human Resource Development A complementary classes programme for pupils starting or continuing their elementary education in the Republic of Croatia
Competent authority
MSES and the Government Commission
III / IV quarter (in accordance with the Action Plan)
State Budget, funds of the European Training Foundation
MSES and AMEUP
III quarter
IPA 2007 and the State Budget
MSES and AMEUP
IV quarter III quarter (depending on the commencement date of the IPA 2007 project) II quarter
IPA 2007 and the State Budget
MSES
State Budget
MSES
State Budget IPA Component IV and the State Budget State Budget
MSES and the Vocational Education Agency
III quarter
MSES
III quarter
624
ANNEX A
3.27. ENVIRONMENT
This NPAEU 2009 proposal is in conformity with the obligations of the Republic of Croatia presented in the Plan for Setting up Necessary Administrative Capacities at National, Regional and Local Level and Required Financial Resources for Implementing the Environmental Acquis, drafted within the framework of negotiations for Chapter 27 Environment and adopted by the Government of the Republic of Croatia on 29 February 2008. However, in view of the announced State Budget restrictions, sections that envisage increasing administrative capacities are specially marked along with a note that the planned employment will be realised to the extent planned by the 2009 State Budget.
3.27.1. Horizontal legislation
LEGISLATIVE MEASURES IMPLEMENTATION MEASURES Adoption/ implementation deadline
PLANS OR PROGRAMMES Implementation of the programme for development and management of EIS Work plan of the Council for National Spatial Data Infrastructure (NSDI) for 2009 National quotas Allocation Plan ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES Establishment of working groups: 1. for linking NSDI and e-Government programmes 2. for development of the business model for setting up the NSDI 3. for capacity building for the purpose of setting up the NSDI STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 2 new employees (EIA) Hiring 2 new employees (Section for protection of climate and ozone layer) Hiring 4 environmental inspectors at the Directorate for Inspection Affairs Training of environmental inspectors Hiring a total of 18 new employees, of which: 12 for EIS, development, projects, international cooperation, general affairs; 1 at Section for Air; 2 at Section for Waste Management; 2 at Section for Inland Waters; 1 at Section for Nature
Competent authority
CEA NSDI Council MEPPPC
2009 I quarter 2009 I quarter 2009
State Budget State Budget (SGD) CARDS project
NSDI Council and SGD
II quarter 2009
State Budget (SGD)
MEPPPC MEPPPC MEPPPC MEPPPC
IV quarter 2009 2009 2009 2009
State Budget State Budget State Budget Phare 2005 State Budget
CEA
2009
State Budget
625
Education and training of employees Hiring 90 employees pursuant to the Regulation on the internal organisation of the National Protection and Rescue Directorate and according to the plan for filling vacancies in the state administration Establishing Sector for NSDI at SGD Establishing a department within the Sector for NSDI at SGD OTHER - Information system administration - Informatisation of administration and licences
CEA NPRD SGD SGD
2009 2009 I quarter 2009 II quarter 2009
State Budget State Budget State Budget State Budget
CEA
2009
State Budget
3.27.2. Air quality
PLANS OR PROGRAMMES Programme for the gradual reduction of emissions of certain pollutants that cause acidification, eutrophication and ground-level ozone in the Republic of Croatia for the period until the end of 2010, with forecasts of emissions for the period from 2010 till 2020 STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 1 employee at the Section for Air Protection
Competent authority
MEPPPC
IV quarter 2009
State Budget
MEPPPC
2009
State Budget
626
ANNEX A
3.27.3. Waste management
LEGISLATIVE MEASURES b) Subordinate legislation adopted pursuant to previously adopted laws
No
Competent authority

Waste Act (OG 178/04, 111/06, 60/08), Article 2 paragraph 3 and Article 103 subparagraph 2

Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste Council Decision 97/640/EC of 22 September 1997 amending Council Decision 93/98/EEC Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste Council Decision 97/640/EC of 22 September 1997 amending Council Decision 93/98/EEC
Regulation on Amendments to the Regulation on categories, types and classification of waste with a waste catalogue and list of hazardous waste
MEPPPC
I quarter 2009
Regulation on Amendments to the Regulation on supervision of transboundary movement of waste
MEPPPC
Waste Act (OG 178/04, 111/06, 60/08), Article 103 subparagraph 3
I quarter 2009
STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 5 new employees at the Sector for Waste
Competent authority
MEPPPC
2009
State Budget
627
3.27.4. Water management
No
Legislative measure
Competent authority

Adopted at the Governments session on 27 November 2008 and forwarded to the Croatian Parliament. Adoption is expected in I quarter 2009
Waters Act
MRDFWM
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (Water Framework Directive) 32000L0060
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (Water Framework Directive) 2 Water Management Financing Act MRDFWM 32000L0060 Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources 31991L0676 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (Water Framework Directive) MRDFWM 32000L0060 Council Directive 76/160/EEC of 8 December 1975 concerning the quality of bathing water (2006/11/EC) 31976L0166 SUBORDINATE LEGISLATION Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (Water Framework Directive) MRDFWM 32000L0060 Directive 2006/44/EC of the European Parliament and of the Council of 6 September 2006 on the quality of fresh waters needing protection or improvement in order to support fish life 32006L0044 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (Water Framework Directive) MRDFWM 32000L0060 Directive 2006/113/EC of the European Parliament and of the Council of 12 December 2006 on the quality required of shellfish waters 32006L0113
Adopted at the Governments session on 27 November 2008 and forwarded to the Croatian Parliament. Adoption is expected in I quarter 2009
Regulation on the quality of inland bathing water
I quarter 2009
Ordinance on the quality of water suitable for freshwater fish life
I quarter 2009
Ordinance on the quality of water for shellfish
I quarter 2009
628
ANNEX A
STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 58 new employees (35 at the Directorate for Water Management and 23 at the Directorate for Water Policy and International Projects) Taking over 26 regional water inspectors from state administration offices
Competent authority
MRDFWM
2009
State Budget
MRDFWM
2009
State Budget
629
3.27.6. Nature protection
No
Competent authority

Commission Regulation (EC) No 865/2006 of 4 May 2006 laying down detailed rules concerning the implementation of Council Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein 2006R0865 Commission Regulation (EC) No 811/2008 of 13 August 2008 suspending the introduction into the Community of specimens of certain species of wild fauna and flora 32008R0811
Ordinance on the transboundary movement and trade in protected species
MC
Nature Protection Act (OG 70/05), Article 101
II quarter 2009
2.
Amendments to the Ordinance on the conditions of keeping, marking methods and keeping records on protected animals in captivity
MC
Commission Regulation (EC) No 865/2006 of 4 May 2006 laying down detailed rules concerning the implementation of Council Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein 2006R0865 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora 1992L0043 Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds 1979L0409 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora 1992L0043 Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds 1979L0409
II quarter 2009
3.
Ordinance on nature impact assessment
MC
III quarter 2009
4.
Amendments to the Ordinance on proclaiming wild taxa protected and strictly protected
MC
III quarter 2009
5.
Amendments to the Ordinance on sorts of habitat types, habitat maps, endangered and rare habitat types and on measures for conservation of habitat types
MC
Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora 1992L0043
III quarter 2009
630
ANNEX A
STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 4 new employees at the Directorate for Nature Protection, MC Hiring 4 new nature protection inspectors at the Directorate for Inspection Affairs in Nature Protection, MC Hiring 9 new employees at SINP Hiring 1 expert assistant /experiments - ZOO/ Organisation of training for inspectors
Competent authority
MC MC SINP MAFRD MAFRD
IV quarter 2009 IV quarter 2009 IV quarter 2009 IV quarter 2009 III IV quarter 2009
State Budget State Budget State Budget State Budget Taiex
3.27.7. Industrial pollution control and risk management
STRENGTHENING ADMINISTRATIVE CAPACITY Hiring 3 employees at the Department for Environmental Permit and Environmental Liability
Competent authority
MEPPPC
2009
State Budget
631
3.27.8. Chemicals and GMO
No
Legislative measure
Competent authority
Regulation (EC) 1946/2003 of 15 July 2003 on transboundary movement of genetically modified organisms 32003R1946 Commission Recommendation 2004/787/EC on sampling and detection of genetically modified organisms , 32004H0787 Act on Amendments to the Act on Genetically Modified Organisms MHSW (in cooperation with MAFRD, MC and MRDFWM) Commission Recommendation 2003/556/EC on guidelines for the development of national strategies and best practices to ensure the coexistence of genetically modified crops with conventional and organic farming 32003H0556 Regulation (EC) 1946/2003 of 15 July 2003 on transboundary movement of genetically modified organisms 32003R1946 Commission Recommendation 2004/787/EC on sampling and detection of genetically modified organisms , 32004H0787
1.
III quarter 2009
No
Competent authority

Directive 2008/58 of 21 August 2008 amending, for the purpose of its adaptation to technical progress, for the 30th time, Directive 67/548 on the approximation of the laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances 32008L0058 Council Regulation (EC) No 440/2008 of 30 May 2008 laying down test methods pursuant to Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) 32008R0440
Ordinance on Amendments to the Ordinance on the classification, labelling and packaging of dangerous chemicals
MHSW
Chemicals Act (OG 150/05 and 53/08) Article 27 paragraph 5 and Article 28 paragraph 2
II quarter 2009
632
ANNEX A
Ordinance on the safety data sheet
MHSW MINGORP
Chemicals Act (OG 150/05 and 53/08) Article 29 Chemicals Act (OG 150/05 and 53/08) Article 55c paragraph 4 Act on Biocidal Products (OG 63/07 and 35/08), Article 23
Annex II of the Regulation 1907/2006/EC 32006R1907 Regulation (EC) No. 689/2008 of the European Parliament and of the Council of 17 June 2008 concerning the export and import of dangerous chemicals 32008R0698 Article 18 of the Directive 98/(/EC on biocidal products 31998L0008 Directive 2008/86/EC, Directive 2008/85/EC, Directive 2008/80/EC, Directive 2008/79/EC, Directive 2008/78/EC, Directive 2008/77/EC and Directive 2008/75/EC 32008L0086, 32008L0085, 32008L0080, 32008L0079, 32008L0078, 32008L0077, 32008L0075,
I quarter 2009
Ordinance on export and import of dangerous chemicals
MHSW
II quarter 2009
List of biocidal products
MHSW
II quarter 2009
Ordinance on Amendments to the Ordinance on the list of existing active substances permitted in biocidal products Ordinance on Amendments to the Ordinance on the list of existing active substances not permitted in biocidal products
MHSW
Act on Biocidal Products (OG 63/07 and 35/08) Article 7 paragraph 2
I quarter 2009
MHSW
Act on Biocidal Products (OG 63/07 and 35/08) Article 7 paragraph 2
Commission Decision 2008/681/EC and Commission Decision 2008/809/EC 332008D0681, 32008D0809
I quarter 2009
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
Commission Decision 2008/730/EC of 4 December 2008 authorising the placing on the market of products containing, consisting of, or produced from genetically modified soybean MON89788 (MON-89788-1) pursuant to Regulation (EC) No 1829/2003 32008D0730 Act on Genetically Modified Organisms (OG 70/05) Article 51 paragraph 3
MHSW
Commission Decision 2008/837/EC of 29 October 2008 authorising the placing on the market of products containing, consisting of, or produced from genetically modified LLCotton25 (ACS-GH1-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (notified under document number C(2008) 6204) 32008D0837
I quarter 2009
633
3.27.9. Noise protection
No
Legislative measure
Competent authority
Directive 2002/49/EC of the European Parliament and of the Council of 25 June 2002 relating to the assessment and management of environmental noise 32002L0049
Noise Protection Act
MHSW
Commission Recommendation 2003/613/EC of 6 August 2003 concerning the guidelines on the revised interim computation methods for industrial noise, aircraft noise, road traffic noise and railway noise, and related emission data 32003H0613
I quarter 2009
Ordinance on Amendments to the Ordinance on the method of preparation and content of noise maps and action plans
Directive 2002/49/EC of the European Parliament and of the Council of 25 June 2002 relating to the assessment and management of environmental noise MHSW 32002L0049 Commission Recommendation 2003/613/EC of 6 August 2003 32003H0613
II quarter 2009
634
ANNEX A
3.27.10. Forestry
LEGISLATIVE MEASURES IMPLEMENTATION MEASURES
STRENGTHENING ADMINISTRATIVE CAPACITY 1 new employee at the Sector for Forest Protection and International Cooperation 2 new employees at the Sector for Forestry Inspection Participating in seminars and workshops for professional education and training of employees OTHER Updating the software for the Single Information System and establishment of the register of forest fires
Competent authority
Adoption/ implementation deadline
MRDFWM MRDFWM MRDFWM
2009 2009 Continuous
State Budget State Budget State Budget
MRDFWM
2009
State Budget
635
3.28. CONSUMER AND HEALTH PROTECTION
3.28.1. Consumer protection
No
Legislative Measure
Act on Amendments to the General Product Safety Act
Competent authority

I quarter 2009
1 CB
MELE
Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety 32001L0095 Directive 2006/114/EC of the European Parliament and of the Council of 12 December 2006 concerning misleading and comparative advertising (codified version) 32006L0114 Directive 97/7/EC of the European Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts 3199720007 Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/ EEC and Directives 97/7/EC and 98/27/EC 32002L0065 Directive 94/47/EC of the European Parliament and of the Council of 26 October 1994. on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable properties on a timeshare basis 31994L0047 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts 31993L0013 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market 32005L0029 Directive 98/27/EC of the European Parliament and of the Council of 19 May 1998 on injunctions for the protection of consumers interests 31998L0027 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 32008L0048
2 CB
Act on Unpermitted Advertising
MELE
I quarter 2009
3 CB
Act on Amendments to the Consumer Protection Act
MELE
I quarter 2009
Consumer Credit Act
MF
II quarter 2009
636
ANNEX A
No
Legislative measure
Competent authority

General Product Safety Act (OG 158/03, 107/07)

Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety 32001L0095
1 CB
Regulation on Amendments to the Regulation on rapid information exchange system relating to products posing a risk to the health and safety of consumers
MELE
I quarter 2009
PLANS OR PROGRAMMES National Programme for Consumer Protection 2009-2012. Annual Inspection Plan in the Area of Consumer Protection ADMINISTRATIVE CAPACITY BUILDING New recruitments planned, meanwhile co-operation continued with the academic community in certain activities Continuous staff training in the Consumer Protection Department
Competent authority
Source of financing
MELE SI
IV quarter 2009 I quarter 2009
MELE
I quarter 2009
State Budget State Budget, CARDS 2004 Further capacity building in the area of consumer protection State Budget
MELE
IV quarter 2009
Continuous training of economic inspectors in the area of consumer protection
SI
2009
CARDS 2004 Further capacity building in the area of consumer protection
OTHER Continued improvement of the information system and databases SI Continuous State Budget
637
3.28.2. Health protection
No
Legislative Measure
Competent authority

Commission Directive 2006/86/EC of 24 October 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council 32006L0086
1 CB
Act on Amendments to the Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes
MHSW
I quarter 2009
No
Legislative measure
Competent authority

Directive 2001/37/EC defines the obligation of the manufacturers and importers of tobacco products to submit to the ministry responsible for health a list of all ingredients, and types and quantities thereof, used in the manufacture of tobacco products. 32001L0037 Commission Directive 2006/17/EC of 8 February 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council as regards certain technical requirements for the donation, procurement and testing of human tissues and cells 32006L0017 Directive 2006/86/EC 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
Ordinance on the content of data on all ingredients, and quantities and types thereof, used in the manufacture of tobacco products and the method of public information
MHSW
Act on the Restricted Use of Tobacco Products (OG 125/08), Article 3 paragraph 6
I quarter 2009
Ordinance on Amendments to the Ordinance on the method of keeping medical records on performed explantations and transplantations of parts of the human body
MHSW
Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04), Articles 35 and 37 subparagraph 7
III quarter 2009
638
ANNEX A
Ordinance on Amendments to the Ordinance on measures to ensure the safety and quality of parts of the human body for medical use
MHSW
Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04), Article 37 subparagraphs 3 and 11
Directive 2006/86/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 Commission Directive 2006/17/EC of 8 February 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council as regards certain technical requirements for the donation, procurement and testing of human tissues and cells 32006L0017 III quarter 2009
Ordinance on the conditions in respect of space, qualified staff and technical equipment for the explantation, storage and transplantation of tissues and cells
MHSW
Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04) Article 28
Directive 2004/23/EC on setting standards of quality and safety for the donation, procurement, testing, processing, preservation, storage and distribution of human tissues and cells 32004L0023 Commission Directive 2005/61/EC of 30 September 2005 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards traceability requirements and notification of serious adverse reactions and events 32005L0061 Commission Directive 2005/62/EC of 30 September 2005 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards Community standards and specifications relating to a quality system for blood establishments 32005L0062
III quarter 2009
5 CB
Ordinance on amendments to the Ordinance on the traceability of blood components and monitoring of serious adverse events and reactions
MHSW
Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04)
I quarter 2009
6 CB
Ordinance on amendments to the Ordinance on ensuring the quality of blood and blood products in authorised healthcare institutions
MHSW
Act on Explantation and Transplantation of Parts of the Human Body for Therapeutic Purposes (OG 177/04)
I quarter 2009
639
3.29. CUSTOMS UNION
No
Legislative measure
Competent authority

Council Regulation (EEC) No 918/83 of 28 March 1983 setting up a Community system of reliefs from customs duty 31983R0918
Act amending the Act on the Rights of Croatian War of Independence Veterans and the Members of Their Families
MFVAIS
III quarter 2009
No
Competent authority

Commission Regulation (No) amending Annex I to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (Combined nomenclature) CELEX No unknown, Combined Nomenclature to be adopted in October of current year for the subsequent year.
Regulation on Customs Tariff
MELE
Customs Tariff Act (OG 61/00 and 117/00), Article 6
IV quarter 2009
640
ANNEX A
3.30. EXTERNAL RELATIONS
No
Competent authority

Act on Exports of Dual-Use Items (OG 100/04, 84/08), Article 3

IV quarter 2009 depending on the adoption of the corresponding EU legislation
Regulation on the amendments to the Regulation on the list of dual-use items
MELE
Directive CELEX No Commission Regulation (EC) No (XXXX) on the amendments to the Annex I of the Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (Combined Nomenclature) CELEX No unknown, Combined Nomenclature is adopted in October of the current year for the following year
Regulation on Customs Tariff for 2010
MELE (MAFRD, MF-CA)
Act on Customs Tariff (OG 61/00, 117/00, 119/00), Art. 6
IV quarter 2009
PLANS AND PROGRAMMES National Programme for the Development Assistance Provision for 2010 STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of new employees in the Trade Policy and International Relations Directorate Customs Administration of the Republic of Croatia carries out export control of dual-use items and continuously does the training of its teams through education of its staff. In addition to the seminars abroad the education is done through Customs Training Centre of the Customs Administration. For 2009, four seminars are planned, one in each quarter. Approx. 100 customs officers will be trained and a separate Section will be established in the Central Office for the purpose of more efficient export control Strengthening of the administrative and control capacities for the correct implementation and application of the legislation in the fields of export control and dual-use technologies all bodies included in the export control of dual-use items and investigation of violations of regulations Administrative capacities strengthening through participation of employees in seminars, workshops and training organised by the WTO
Competent authority
MFAEI
II quarter 2009
MELE
During 2009
State Budget Sources from the EU Pilot Project for strengthening of export control of dual-use items State Budget Sources from the EU Pilot Project for strengthening of export control of dual-use items WTO
MF - CU
During 2009
MELE
During 2009
MELE
During 2009
641
3.31. FOREIGN, SECURITY AND DEFENCE POLICY
3.31.3. Arms control
3.31.3.1. Conventional arms control and disarmament
No
Competent authority

Act on the Export and Import of Military Use Items and Non-Military Ordnances (OG 86/08)

II quarter 2009
Regulation specifying goods subject to export and import licences (Annex IV List of Military Use Items)
MELE
Common Military List of the European Union (OJ 2009/C ..........)
depending on the adoption of the corresponding EU legislation
STRATEGIES National Strategy for the Control of Small Arms and Light Weapons (the Strategy is aligned with the EU Strategy to Combat Illicit Accumulation and Trafficking of SALW and Their Ammunition (5319/06). PLANS Action Plan for the Control of Small Arms and Light Weapons, in line with the National Strategy for the Control of Small Arms and Light Weapons (the Plan will be aligned with Council Joint Action of 12 July 2002 on the European Unions contribution to combating the destabilising accumulation and spread of small arms and light weapons and repealing Joint Action 1999/34/CFSP). STRENGTHENING ADMINISTRATIVE CAPACITY Employment of new staff in the Trade and Internal Market Directorate
Competent authority
The National Commission for Arms and Ammunition
I quarter 2009
The National Commission for Arms and Ammunition
I quarter 2009
MELE
2009
State Budget
642
ANNEX A
3.32. FINANCIAL SUPERVISION
PLANS OR PROGRAMMES Plan of activities for further development of internal financial control system CB National strategy for combating fraud with the aim of protection of EU financial interests and the associated Action Plan
Competent authority
Source of financing
MF MF
I quarter 2009 I quarter 2009
MF MF
ESTABLISHMENT OF NEW INSTITUTIONS AND OTHER BODIES CB Beginning of the operation of the National Counterfeit Centre, the National Analysis Centre and the Coin National Analysis Centre CNB I quarter 2009 CNB
STRENGTHENING ADMINISTRATIVE CAPACITY Recruitment of new employees to the Central Harmonisation Unit Organisational restructuring of the Central Harmonisation Unit Education of internal auditors and persons responsible for FMC. Further training of certified internal auditors and persons responsible for FMC in accordance with the Training Plan and further training of employees of the Central Harmonisation Unit. Education and training of employees of bodies in the AFCOS system Education and training of employees of NCC, NAC and CNAC MF MF MF MF
MF
Continuous
MF
MF and bodies in the AFCOS system CNB
MF CNB
643
3.33. FINANCIAL AND BUDGETARY PROVISIONS
STRENGHTENING ADMINISTRATIVE CAPACITY Education of employees and creation of a user manual
Competent authority
MF Customs Administration MAFRD Directorate for Market and Structural Support in Agriculture MAFRD Directorate for Market and Structural Support in Agriculture MAFRD Directorate for Market and Structural Support in Agriculture
2009
State Budget
Establishment of a Section for Sugar amendments to the Regulation on Internal Organisation of the Ministry of Agriculture, Fisheries and Rural Development
I quarter 2009
State Budget
CB
Recruitment of employees to the organisational unit responsible for implementation of common organisation of the sugar market within the Division for Market Support of the Directorate for Market and Structural Support in Agriculture
2009
State Budget
Education of employees relating to the implementation of the sugar levies system
Continuous
State Budget
OTHER Adoption of procedural Instructions on registering Community legislation and TOR reporting procedures Integration of A and B account (IT application) in the existing accounting system and consequent development of an automated IT system of the A and B accounts CB Reporting on obligations established by subsequent controls, for which there is no customs debt security and should thus be entered in account B (further development of audit following the customs procedure) Upgrading of the existing IT system for automated report generation on A and B account in the format laid down in the Commission Decision 97/245/EC, with a realisation plan MF Customs Administration MF Customs Administration 2009 State Budget
2009
State Budget
MF Customs Administration
2009
State Budget
MF Customs Administration
2009
State Budget
644
ANNEX B
646
ANNEX B
PLANNED BUDGET FUNDS Activity or Project Code 2
- in HRK 2009
Chapter / Beneficiary
Activity or Project Title
Funds from the State Budget 4
1. FREE MOVEMENT OF GOODS 050 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP Budget Beneficiary - Total 055 MINISTRY OF CULTURE Budget Beneficiary - Total 060 MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT A568000 K650077 ADMINISTRATION AND MANAGEMENT CENTRAL VETERINARY INFROMATION SYSTEM COMPUTERS K565010 PROTECTIVE WORKS ON IMMOVABLE CULTURAL HERITAGE K563106 ANALYSIS OF LEGISLATION IN NON-ALIGNED AREAS 200,000 200,000 5,000,000 5,000,000 70,000 450,000 520,000 A576115 ALIGNMENT OF CONSTRUCTION-TECHNICAL LEGISLATION WITH THE EU TECHNICAL LEGISLATION 1,175,000
Budget Beneficiary - Total 075 MINISTRY OF ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION Budget Beneficiary - Total 150 STATE OFFICE FOR METROLOGY A762000 K762001 K762002 K762003 K762004 Budget Beneficiary - Total 151 CROATIAN STANDARDS INSTITUTE A651002 K651010 K651006 K651008 Budget Beneficiary - Total 152 CROATIAN ACCREDITATION AGENCY A652002 K652004 K652006 K652008 Budget Beneficiary - Total 225 STATE INSPECTORS OFFICE A673000 K673006 Budget Beneficiary - Total TOTAL CHAPTER 1 INSPECTION ACTIVITIES OF THE STATE INSPECTORS OFFICE COMPUTERISATION OF THE STATE INSPECTORS OFFICE DEVELOPMENT OF ACCREDITATION SYSTEM EQUIPPING OF BUSINESS PREMISES COMPUTERISATION PURCHASE OF NEW VEHICLES DEVELOPMENT OF STANDARDISATION SYSTEM DEVELOPMENT OF COMPUTER SYSTEM CONSTRUCTION AND EQUIPPING OF BUSINESS PREMISES COMPUTERISATION OF THE OFFICE IMPROVEMENT AND MAINTENANCE OF METRIC RELATED OPERATIONS ALIGNMENT OF NATIONAL MEASURES WITH INTERNATIONAL ONES CONSTRUCTION AND EQUIPPING OF BUSINESS PREMISES PURCHASE OF NEW VEHICLES COMPUTERISATION OF THE OFFICE
1,175,000 4,212,000 1,000,000 500,000 90,000 680,000 6,482,000 11,843,713 1,000,000 53,000 212,000 13,108,713 6,861,000 210,000 268,000 50,000 7,389,000 805,000 100,000 905,000 34,779,713
647
- in HRK 2009
3. RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 06555 MINISTRY OF THE SEA, TRANSPORT AND INFRASTRUCTURE Budget Beneficiary - Total TOTAL CHAPTER 3 A821015 HAKOM-SUPPORT TO REGULATORY ACTIVITIES IN THER AREA OF POSTAL AND COURIER SERVICES 3,800,000 3,800,000 3,800,000
5. PUBLIC PROCUREMENT 05005 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP - THE ECONOMY 05055 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP - AGENCY FOR EXPORT AND INVESTMENT PROMOTION A822020 A560000 A775008 A775009 K775010 K775011 K775012 Budget Beneficiary - Total TOTAL CHAPTER 5 ESTABLISHMENT OF A CENTRAL BODY FOR PUBLIC PROCUREMENT ADMINISTRATION AND MANAGEMENT ADMINISTRATION AND MANAGEMENT PROMOTION OF PUBLIC-PRIVATE PARTNERSHIP EQUIPMENT COMPUTERISATION PURCHASE OF NEW VEHICLES 200,000 1,500,000 6,214,800 430,000 160,000 290,000 90,000 8,884,800 8,884,800
6. COMPANY LAW 110 MINISTRY OF JUSTICE A576238 K301143 Budget Beneficiary - Total TOTAL CHAPTER 6 ALIGNMENT OF LEGISLATION WITH THE ACQUIS COMMUNAUTAIRE COMPUTERISATION OF MINISTRIES AND CENTRAL REGISTERS 10,000 500,000 510,000 510,000
648
ANNEX B
- in HRK 2009
7. INTELLECTUAL PROPERTY LAW 110 MINISTRY OF JUSTICE A576238 A629000 Budget Beneficiary - Total 156 STATE INTELLECTUAL PROPERTY OFFICE Budget Beneficiary - Total 225 STATE INSPECTORS OFFICE A673000 A673010 Budget Beneficiary - Total TOTAL CHAPTER 7 INSPECTION ACTIVITIES OF THE STATE INSPECTORS OFFICE INTENSIFIED IMPLEMENTATION OF INTELLECTUAL PROPERTY LAW - PHARE 2006 K763003 COMPUTERISATION OF THE OFFICE - PHARE 2006 ALIGNMENT OF LEGISLATION WITH THE ACQUIS COMMUNAUTAIRE ADMINISTRATION AND MANAGEMENT 20,000 5,000 25,000 100,000 100,000 139,000 415,000 554,000 679,000
8. COMPETITION POLICY 018 STATE COMPETITION AGENCY A507008 K507005 K507007 K507010 Budget Beneficiary - Total 02506 MINISTRY OF FINANCE - OTHER STATE EXPENDITURE Budget Beneficiary - Total TOTAL CHAPTER 8 A557020 MONITORING AND PREPARTION OF PUBLICATION OF EU RULES REGARDING STATE AIDS PROTECTION OF COMPETITION AND STATE AID IMPLEMENTATION COMPUTERISATION OF THE AGENCY EQUIPMENT FOR THE AGENCY CAPACITY BUILDING FOR IMPLEMENTATION OF THE EU COMPETITION POLICY AND STATE AID (PHARE 2005) 13,779,741 18,000 130,000 219,000 14,146,741 150,000 150,000 14,296,741
649
- in HRK 2009
10. INFORMATION SOCIETY AND MEDIA 022 CENTRAL STATE OFFICE FOR E-CROATIA A677013 A677012 A757008 A757010 K757011 Budget Beneficiary - Total 05505 MINISTRY OF CULTURE 05555 MINISTRY OF CULTURE - AUDIOVISUAL ACTIVITIES AND MEDIA A576227 A565031 A785007 NATIONAL CONTRIBUTION FOR EU CULTURE PROGRAMMES FILM AND CINEMATOGRAPHY CULTURE CONTACT POINT OF THE MEDIA PROGRAMME MEDIA DESK IDABC - PARTICIPTATION OF THE OFFICE IN THE EU PROGRAMMES CIP ICT - PARTICIPTATION OF THE OFFICE IN THE EU PROGRAMMES NATIONAL COUNCIL FOR INFORMATION SOCIETY PROMOTION AND MONITORING OF INFORMATION SOCIETY DEVELOPMENT JOINT INFORMATION RESOURCES OF THE PUBLIC ADMINISTRATION BODIES 230,000 261,720 51,000 400,000 9,158,938 10,101,658 237,640 2,000,000 300,000 2,300,000 12,401,658
Budget Beneficiary - Total TOTAL CHAPTER 10
11. AGRICULTURE AND RURAL DEVELOPMENT 060 MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT A650100 A401104 K568272 K650046 K650068 K401119 MONITORING AND IMPLEMENTATION SYSTEM FOR THE SAPARD PROGRAMME PREPARATION AND IMPLEMENTATION OF THE IPARD PROGRAMME ESTABLISHMENT OF THE SAPARD AGENCY PURCHASE OF BUSINESS PREMISES - FINANCIAL LEASING ESTABLISHMENT OF INTEGRATED ADMINISTRATIVE CONTROL SYSTEM -LPIS ESTABLISHMENT OF RELIABLE MANAGEMENT SYSTEM AND CONTROL OF UTILISATION OF AGRICULTURAL FUNDS PROCUREMENT OF EQUIPMENT ADMINISTRATION AND MANAGEMENT 100,000 7,100,000 11,953,500 1,500,000 30,000,000 1,660,923
A568000 Budget Beneficiary - Total TOTAL CHAPTER 11
500,000 52,814,423 52,814,423
650
ANNEX B
- in HRK 2009
12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 060 MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT A568001 K650054 A568057 A401084 K650077 T568081 K568309 A401098 A568007 T568308 A568021 K568114 K650047 K650049 A568250 K568254 K568271 A568000 K568070 Budget Beneficiary - Total 10005 MINISTRY OF HEALTH AND SOCIAL WELFARE - MINISTRY OF HEALTH AND SOCIAL WELFARE A618221 K618223 A618224 A618374 K618377 A618551 STATE MONITORING OF FOOD AND DRINKING WATER SAFETY CONTROL SUPERVISION OF HACCP IMPLEMENTATION CONTINUOUS PROFESSIONAL TRAINING OF SANITARY INSPECTORS BUSINESS TRIPS FOR SANITARY INSPECTION CONTROLS COMPUTERISATION OF SANITARY INSPECTION OBLIGATIONS DUE TO THE EU ACCESSION (IMPLEMENTATION OF PROJECTS RELATED TO ALIGNMENT WITH THE ACQUIS COMMUNAUTAIRE) ANIMAL HEALTH PROTECTION EQUIPING OF CRISIS CENTRES DISPOSAL-HARMLESS DESTRUCTION MONITORING PROGRAMMES CENTRAL VETERINARY INFORMATION SYSTEM COMPUTERISATION ANIMAL MARKING SERVICES CAPACITY BUILDING IN AGRICULTURE, LIVE ANIMALS AND FOOD PRODUCTS IMPLEMENTATION OF URGENT PHYTOSANITARY MEASURES PLANT HEALTH PROTECTION FURTHER CAPACITY BUILDING IN PLANT PROTECTION PLANT PROTECTION (PLANT PROTECTION INSTITUTE) CONSTRUCTION OF BUSINESS PREMISES FOR THE PLANT PROTECTION INSTITUTE MONITORING OF RESIDUES OF PLANT PROTECTION SUBSTANCES POST-REGISTRATION CONTROL OF THE PLANT PROTECTION SUBSTANCES COSTS OF ANALYSIS OF INSPECTION SAMPLES AND GEODETIC SERVICES ESTABLISHMENT AND EQUIPMENT FOR INSPECTION VEHICLES - INSPECTION ADMINISTRATION AND MANAGEMENT COMPUTERISATION 148,885,000 2,020,000 18,457,600 9,150,000 4,300,000 10,430,000 20,000 490,000 1,470,000 5,000 13,524,000 950,000 803,600 294,000 2,000,000 1,751,200 2,878,200 1,987,600 430,300 219,846,500 3,000,000 620,000 730,000 120,000 700,000 170,000
5,340,000 225,186,500
651
- in HRK 2009
13. FISHERIES 060 MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT K401095 K650064 A568004 A568061 A650052 A650058 K568068 K568069 A650061 K568314 SATELLITE SYSTEM FOR VESSEL SURVEILANCE COMPUTER SUPPORT TO THE CROATIAN FISHERIES POLICY MONITORING OF BIOLOGIC WEALTH OF THE SEA ALIGNMENT OF FISHERIES CAPACITIES WITH FISHING POSSIBILITIES STRUCTURAL SUPPORT TO FISHERIES ESTABLISHMENT AND DEVELOPMENT OF FISHERY COOPERATIVES AND ASSOCIATIONS PROJECT OF THE CONSTRUCTION OF WHOLESALE FISH MARKETS AND DEBARKATION SPOTS BREEDING AND SELECTON ACTIVITIES IN AQUACULTURE DRAFTING OF DEVELOPMENT PROGRAMMES, EXPERT BACKGROUND MATERIAL AND STUDIES SUPPORT TO CROATIA IN FORMULATION OF THE STRATEGY ON DEVELOPMENT OF FISHERIES, WITH THE AIM OF ALIGNMENT WITH AND IMPLEMENTATION OF THE ACQUIS COMMUNAUTAIRE RELATING TO THE COMMON FISHERIES POLICY STRENGTHENING OF THE FISHERIES INSPECTION SERVICE 2,750,000 3,000,000 1,470,000 3,800,000 24,000,000 2,940,000 3,950,000 475,000 600,000 2,114,461
K650108 Budget Beneficiary - Total TOTAL CHAPTER 13
5,000,000 50,099,461 50,099,461
14. TRANSPORT POLICY 065 MINISTRY OF THE SEA, TRANSPORT AND INFRASTRUCTURE K250796 A570501 K819013 ESTABLISHMENT OF THE MARITIME TRANSPORT COMPUTER SYSTEM PHARE 2005 - PARTICIPATION IN THE MARCO POLO COMMUNITY PROGRAMME VTS SYSTEM - ESTABLISHMENT OF NAVIGATION SURVEILLANCE AND RADIO COMMUNICATION SYSTEM FOR MONITORING OF MARITIME TRAFFIC - PHARE SUPPORT PHARE 2006- ESTABLISHMENT OF NAVIGATION SURVEILLANCE AND RADIO COMMUNICATION SYSTEM FOR MONITORING OF MARITIME TRAFFIC OPRATION OF THE WATERWAYS AGENCY NCC-NATIONAL CONTROL CENTRE ESTABLISHMENT OF CIVILIAN AIR TRANSPORT AGENCY 5,650,000 444,500 2,150,000
K821012
6,570,000
A570448 K587029 A587049 Budget Beneficiary - Total TOTAL CHAPTER 14
800,000 3,850,000 2,000,000 21,464,500 21,464,500
652
ANNEX B
- in HRK 2009
15. ENERGY 050 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP A560035 A560036 A560063 K406409 Budget Beneficiary - Total 10005 MINISTRY OF HEALTH AND SOCIAL WELFARE - MINISTRY OF HEALTH AND SOCIAL WELFARE K734227 A618551 CAPACITY BUILDING IN THE AREA PROTECTION AGAINST IONISING AND NON-IONISING RADIATION OBLIGATIONS DUE TO THE EU ACCESSION (IMPLEMENTATION OF PROJECTS AIMED AT ALIGNMENT WITH THE ACQUIS COMMUNAUTAIRE) ENERGY EFFICIENCY PROGRAMMES RENEWABLE ENERGY SOURCES PROGRAMMES AND PROJECTS STATE AIDS FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES NATIONAL ENERGY PROGRAMMES 150,000 230,000 4,940,000 800,000 6,120,000 770,000 170,000
Budget Beneficiary - Total 255 STATE INSTITE FOR PROTECTON AGAINST RADIATION A766003 K766006 Budget Beneficiary - Total 260 STATE NUCLEAR SAFETY INSTITUTE Budget Beneficiary - Total TOTAL CHAPTER 15 A769007 ALIGNMENT OF THE NATIONAL TECHNICAL LEGISLATION WITH THE ACQUIS COMMUNAUTAIRE MEASURES OF PROTECTION AGAINST IONISING RADIATION IN CASE OF EXTRAORDINARY EVENTS BORDER CONTROL OF NUCLEAR AND OTHER RADIOACTIVE MATERIALS BY STATIONARY MONITORS - PHARE 2006.
940,000 180,000 1,470,000 1,650,000 100,000 100,000 8,810,000
16. TAXATION 02515 MINISTRY OF FINANCE - TAX ADMINISTRATION A541021 K541025 PARTICIPATION OF CROATIA IN EU PROGRAMMES MODERNISATION OF TAX ADMINISTRATION (IBRD LOAN AND CROATIAN CONTRIBUTION) 200,000 67,253,750 67,453,750 67,453,750
17. EMU 025 MINISTRY OF FINANCE Budget Beneficiary - Total TOTAL CHAPTER 17 T539299 ADMINISTRATIVE ALIGNMENT OF THE CROATIAN FISCAL SYSTEM WITH THE EU REQUIREMENTS 1,000,000 1,000,000 1,000,000
653
- in HRK 2009
18. STATISTICS 02506 MINISTRY OF FINANCE - OTHER STATE EXPENDITURES Budget Beneficiary - Total 160 STATE BUREAU OF STATISTICS A658038 A658040 A658041 A658043 A658057 A658063 A658065 A658068 A658069 A658072 A658073 A658075 A658076 A658077 A658081 A658083 A658089 BASIC STATISTICS OPERATIONS BUSINESS STATISTICS DEVELOPMENT LIVESTOCK SURVEY REGIONAL ACCOUNTS (REGIONAL GDP AND REGIONAL HOUSEHOLD ACCOUNTS) AGRO-MONETARY STATISTICS ESTIMATE OF PLANT-BASED PRODUCTION REGISTER OF AGRICULTURAL HOUSEHOLDS STATISTICS ON DISTRIBUTIVE TRADES, CATERING INDUSTRIES AND TOURISM CONSTRUCTION AND HOUSING STATISTICS FOREIGN TRADE STATISTICS TRANSPORT, COMMUNICATIONS AND BUSINESS SERVICES STATISTICS POPULATION STATISTICS JUDICIAL SYSTEM AND PUBLIC ADMINISTRATION STATISTICS EDUCATION, CULTURE, RESEARCH AND DEVELOPMENT, SPORTS AND SOCIAL WELFARE STATISTICS QUARTERLY NATIONAL ACCOUNTS COMPILATION ESTIMATE OF MATERIAL ASSETS OF THE REPUBLIC OF CROATIA ACCORDING TO SUBSTITUTION OF COSTS DEVELOPMENT OF THE SYSTEM OF SUPPLY AND THE USE OF I/O TABLES IN ACCORDANCE WITH ESA95 REQUIREMENTS PRICE STATISTICS AND THE ECP 2003 EUROPEAN COMPARISON PROGRAMME TUITION FEES REVISION OF NATIONAL CLASSIFICATION OF ACTIVITIES DEVELOPMENT OF ENERGY STATISTICS ACCORDING TO THE EU MODEL CLASSIFICATION OF PRODUCTS ACCORDING TO THE NATIONAL CLASSIFICATION OF ACTIVITIES (RH/KPD 2007) A538029 INTRASTAT - ESTABLISHMENT OF THE SYSTEM 11,100,000 11,100,000 56,247,091 30,000 660,000 50,000 120,000 2,028,000 20,000 622,000 1,100,000 108,000 40,000 1,000,000 405,000 115,000 290,000 170,000 400,000
A658091 A658093 A658096 A658097 A658098
205,000 400,000 20,000 970,000 50,000
654
ANNEX B
- in HRK 2009
A658099 A658100 K658101 A658104 A658105 A658106 A658107 A658108 A658109 A658114 A658115 K658035 K658036 K658116 T658113 Budget Beneficiary - Total TOTAL CHAPTER 18
SHORT-TERM BUSINESS STATISTICS ACCORDING TO THE EU MODEL INDUSTRIAL STATISTICS, INCLUDING PRODCOM TECHNICAL ASSISTANCE TO THE STATE BUREAU OF STATISTICS WITH TRANSPOSITION OF THE ACQUIS SECTOR ACCOUNTS INFORMATION SOCIETY PUBLICATION AND INFORMATION LABOUR MARKET STATISTICS AND LABOUR FORCE SURVEY REGISTERS AND CLASSIFICATIONS PERSONAL AND HOUSEHOLD CONSUMPTION STATISTICS RECONSTRUCTION OF TIME SERIES OF QUARTERLY GDP FROM 2000 WITH GREY ECONOMY INCLUDED ORCHARD AND VINYARD CENSUS COMPUTERISATION OF THE BUREAU EQUIPMENT OF THE BUREAU MAIN AUDIT OF CLASSIFICATIONS AND IMPROVEMENT OF SELECTED STATISTICS - PHARE 2006 MULTI-BENEFICIARY STATISTICAL PROGRAMME PHARE 2006
100,000 98,000 337,662 154,000 990,000 928,000 1,679,000 120,000 1,505,000 120,000 810,000 7,390,276 1,326,000 277,500 187,001 81,072,530 92,172,530
655
- in HRK 2009
19. SOCIAL POLICY AND EMPLOYMENT 02089 GOVERNMENT OF THE REPUBLIC OF CROATIA - OFFICE FOR SOCIAL PARTNERSHIP T685012 T685014 T685016 Budget Beneficiary - Total 10005 MINISTRY OF HEALTH AND SOCIAL WELFARE - MINISTRY OF HEALTH AND SOCIAL WELFARE A618551 A618210 K803003 10025 MINISTRY OF HEALTH AND SOCIAL WELFARE - CROATIAN INSTITUTE FOR HEALTH INSURANCE HEALTH AND SAFETY AT WORK A 812000 K 812018 A812010 A812011 A812012 A812014 A812015 A812019 A812020 A812013 A812016 A812017 A812021 A812001 Budget Beneficiary - Total 110 MINISTRY OF JUSTICE Budget Beneficiary - Total 225 STATE INSPECTORS OFFICE Budget Beneficiary - Total TOTAL CHAPTER 19 A673000 INSPECTION ACTIVITIES OF THE STATE INSPECTORS OFFICE A629000 ADMINISTRATION AND MANAGEMENT IN THE MINISTRY OBLIGATIONS DUE TO EU ACCESSION (IMPLEMENTATION OF PROJECTS OF ALIGNMENT WITH THE EU) CROATIAN INSTITUTE FOR HEALTH INSURANCE AND SAFETY AT WORK IPA 2007 - COMPONENT I - ADMINISTRATIVE CAPACITY BUILDING - HEALTH AND SAFETY AT WORK ADMINISTRATION AND MANAGEMENT PROCUREMENT OF NON-FINANCIAL ASSETS FEES FOR SICK LEAVE AND OTHER PAYMENTS TO INSURED PERSONS OTHER PAYMENTS TO INSURED PERSONS PRIMARY HEALTH CARE HOSPITAL HEALTH CARE SPECIALIST-CONSILIARY HEALTH CARE TREATMENTS ABROAD SPECIAL PROGRAMMES ON TERTIARY LEVEL ORTHOPAEDIC AND OTHER DEVICES PRESCRIPTION DRUGS SPECIFIC HEALTHCARE OF WORKERS EDUCATION AND TRAINING OF SPECIALISTS REIMBURSEMENT OF DAMAGES STRENGTHENING OF SOCIAL DIALOGUE AND PARTNERSHIP IN CROATIA EU-CROATIA - COUNCIL FOR CIVIL SOCIETY MONITORING MEDIATION IN INDIVIDUAL WORK DISPUTES 50,000 52,850 252,400 355,250 890,000 10,000,000 214,500 33,558,890 6,796,500 126,904,820 2,000,000 10,500,000 40,000,000 12,500,000 500,000 3,500,000 2,000,000 1,500,000 134,420,000 3,878,200 15,000,000 404,162,910 50,000 50,000 180,000 180,000 404,748,160
656
ANNEX B
- in HRK 2009
20. ENTERPRISE AND INDUSTRIAL POLICY 050 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP A560087 A560004 A817018 A560083 A560089 A560091 A560093 A560095 A560097 A560099 A560113 A560119 A563040 A563101 A563103 A563108 A563111 A563116 A817012 A563041 A563094 Budget Beneficiary - Total 060 MINISTRY OF REGIONAL DEVELOPMENT, FORESTRY AND WATER MANAGEMENT Budget Beneficiary - Total TOTAL CHAPTER 20 K828006 A650082 MEASURES FOR DEVELOPMENT OF WOOD PROCESSING SECTOR NATIONAL DESIGN STRATEGY INCENTIVES TO TRAINING SUPPORT TO MEASURES FOR INVESTMENT PROMOTION PROMOTION OF WOMEN ENTREPRENEURS TRAINING OF CRAFTSMEN SUPPORT TO BUSINESS INFRASTRUCTURE INTEREST RATE SUBSIDIES AND GRANTS PROMOTION OF ENTREPRENEURSHIP SUPPORT TO SPECIFIC TARGET GROUPS SUPPORT TO COOPERATIVES PRODUCTION SUPPORT - PRODUCTS, INNOVATION, LINKS WITH SCIENTIFIC COMMUNITY SUPPORT TO INVESTMENT IN CLUSTERS REGIONAL GUARANTEE FUND SUPPORT TO MARKETING ACTIVITIES INTERNATIONAL ACTIVITIES OF ENTREPRENEURS TRAINING AND DEVELOPMENT OF CONSULTANTS NETWORK VENTURE CAPITAL FUND COMMUNICATION AND TRAINING NETWORK FOR ENTREPRENEURS BUSINESS SUPPORT INSTITUTIONS EXPORT INCENTIVES ADDITIONAL TRAINING, RETRAINING AND EMPLOYMENT OF CRAFTSMEN DEVELOPMENT OF CRAFTS 6,922,830 1,480,000 4,500,000 5,156,200 98,210,000 58,386,090 3,169,240 5,500,000 4,500,000 53,800,000 5,063,950 6,500,000 16,100,000 486,400 1,000,000 4,000,000 10,000 6,373,000 17,750,000 1,913,800 5,000,000 305,821,510 49,000,000 300,000 49,300,000 355,121,510
657
- in HRK 2009
21. TRANS-EUROPEAN NETWORKS 065 MINISTRY OF THE SEA, TRANSPORT AND INFRASTRUCTURE T570365 T821028 K761029 K570484 Budget Beneficiary - Total TOTAL CHAPTER 21 ISPA PROJECT - MODERNISATION AND CONSTRUCTION OF RAILWAYS ON CORRIDOR X IPA PROJECT-MODERNISATION AND CONSTRUCTION OF ZAGREB KNOT - MAIN TRAIN STATION IPA PROJECT- MODERNISATION AND CONSTRUCTION OF RAIL TRACKS - DRAFTING OF PROJECT DOCUMENTATION ISPA PROJECTS - STUDIES 107,500,000 9,581,250 1,109,000 800,000 118,990,250 118,990,250
22. REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS 023 CENTRAL OFFICE FOR DEVELOPMENT OF STRATEGY AND COORDINATION OF EU FUNDS A758008 A758010 A680014 A758015 Budget Beneficiary - Total 062 MINISTRY OF REGIONAL DEVELOPMENT, FORESTRY AND WATER MANAGEMENT K587031 A587032 K820022 K828008 K828009 K828010 K828011 K828012 K828013 K821024 K828024 DEVELOPMENT AND IMPLEMENTATION OF THE REGIONAL DEVELOPMENT PROGRAMME SUPPORT FOR ESTABLISHMENT AND OPERATION OF THE COUNTY DEVELOPMENT AGENCIES IPA III C REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME IPA 2007 PROJECT - CROSS-BORDER COOPERATION BETWEEN CROATIA AND MONTENEGRO IPA 2007 PROGRAMME OF CROSS-BORDER COOPERATION BETWEEN CROATIA AND SERBIA IPA 2007 PROGRAMME OF CROSS-BORDER COOPERATION BETWEEN CROATIA AND BOSNIA-HERZEGOVINA IPA 2007 PROGRAMME OF CROSS-BORDER COOPERATION BETWEEN CROATIA AND HUNGARY IPA 2007 PROGRAMME OF CROSS-BORDER COOPERATION BETWEEN CROATIA AND SLOVENIA IPA 2007 ADRIATIC CROSS-BORDER COOPERATION IPA 2007 TRANSNATIONAL SEE PROGRAMME IPA 2007 TRANSNATIONAL MEDITERRANEAN PROGRAMME COORDINATION OF EU PROGRAMMES TRAINING ON EU PROGRAMMES AWARENESS RAISING ON EU PROGRAMMES IMPLEMENTATION OF THE COMMUNICATION STRATEGY PREPARATION OF STRATEGIC DOCUMENTS AND MONITORING OF THEIR IMPLEMENTATION 440,000 350,000 340,000 600,000 1,730,000 2,000,000 500,000 317,550 495,154 862,180 1,008,327 2,810,186 1,868,915 4,167,539 412,186 54,622
658
ANNEX B
- in HRK 2009
A819002
PHARE 2006 CBC PROJECT - CROSS-BORDER COOPERATION BETWEEN CROATIA, SLOVENIA AND HUNGARY PHARE 2006 CBC PROJECT - CROSS-BORDER COOPERATION BETWEEN CROATIA AND ITALY PHARE 2006 CBC PROJECT - CROSS-BORDER COOPERATION BETWEEN CROATIA AND ITALY
800,000
A587036 A828007 Budget Beneficiary - Total TOTAL CHAPTER 22
186,777 3,321,403 18,804,839 20,534,839
23. JUDICIARY AND FUNDAMENTAL RIGHTS 110 MINISTRY OF JUSTICE A576238 A629008 A629242 A629258 A630048 A630060 A629269 K576245 A678000 K576244 K576245 K576246 Budget Beneficiary - Total 250 CROATIAN PERSONAL DATA PROTECTION AGENCY Budget Beneficiary - Total TOTAL CHAPTER 23 K765003 CAPACITY BUILDING FOR PERSONAL DATA PROTECTION AGENCY - IPA ALIGNMENT OF LEGISLATION WITH THE ACQUIS COMMUNAUTAIRE REFORM OF CRIMINAL LEGISLATION MEDIATION AS ALTERNATIVE METHOD OF DISPUTE SETTLEMENT ANTI-CORRUPTION STRATEGY FREE LEGAL ASSISTANCE PROMOTION AND TRAINING OF PUBLIC COMMISSIONERS STRATEGY OF JUDICIARY DEVELOPMENT STRENGTHENING OF INTERAGENCY COOPERATION IN COMBATING CORRUPTION (IPA 2007) COMBATING CORRUPTION AND ORGANISED CRIME ALIGNMENT AND PUBLICATION OF COURT CASES (PHARE 2006) STRENGTHENING OF INTERAGENCY COOPERATION IN COMBATING CORRUPTION (IPA 2007) STRENGTHENING CAPACITY OF USKOK-A (IPA 2007) 200,000 10,000 50,000 1,000,000 100,000 50,000 100,000 277,500 1,000,000 1,387,500 277,500 77,700 4,530,200 804,000 804,000 5,334,200
659
- in HRK 2009
24. JUSTICE, FREEDOM AND SECURITY 02090 GOVERNMENT OF THE REPUBLIC OF CROATIA - OFFICE FOR PREVENTION OF DRUGS ABUSE A530000 A530001 A530007 A530014 A530019 A530020 K530009 K530017 Budget Beneficiary - Total 025 MINISTRY OF FINANCE K107548 K253008 K253016 K302084 K320828 K321066 Budget Beneficiary - Total 040 MINISTRY OF THE INTERIOR K553026 K260994 CAPACITY BUILDING IN THE AREA OF ASYLUM, VISA SYSTEM AND ILLEGAL MIGRATION PROCUREMENT OF VESSELS IN MARITIME AND INLAND WATERWAY TRAFFIC FOR ACTIVITIES OF COASTAL GUARD AND SURVEILLANCE OF THE STATE BORDER (PEFZ) POLICE EQUIPMENT BORDER PROJECTS EXTENTION OF THE DIGITAL-RADIO COMMUNICATION NETWORK OF THE MI - TETRA MUPNET CONSTRUCTION AND EQUIPPING OF BORDER CROSSINGS TO BOSNIA-HERZEGOVINA CONSTRUCTION AND EQUIPPING OF BORDER CROSSINGS TO SLOVENIA CONSTRUCTION AND EQUIPPING OF BORDER CROSSINGS TO SERBIA CONSTRUCTION AND EQUIPPING OF BORDER CROSSINGS TO MONTENEGRO CONSTRUCTION AND EQUIPPING OF BORDER CROSSINGS TO HUNGARY CONSTRUCTION AND EQUIPPING OF MARITIME AND AIR TRAFFIC BORDER CROSSINGS PREVENTION OF DRUGS ABUSE IMPLEMENTATION OF NATIONAL STRATEGY AND ACTION PLAN TRAINING ON PREVENTION OF DRUGS ABUSE IMPLEMENTATION OF MEDIA CAMPAIGN ON PREVENTION OF DRUGS ABUSE ANTI DRUGS PHONE ESTABLISHMENT OF THE NATIONAL INFORMATION UNIT FOR DRUGS EQUIPMENT FOR OFFICE FOR PREVENTION OF DRUGS ABUSE COMPUTERISATION OF OFFICE FOR PREVENTION OF DRUGS ABUSE 2,659,660 1,400,000 225,000 580,000 200,000 737,650 45,000 80,000 5,927,310 12,000,000 3,100,000 29,000,000 600,000 1,600,000 1,000,000 47,300,000 1,500,000 19,768,501
K553009 K553074 K553077
22,300,000 21,380,000 16,000,000
660
ANNEX B
- in HRK 2009
K553082
PHARE 2005 - ESTABLISHMENT OF THE BORDER MANAGEMENT SYSTEM IN ACCORDANCE WITH THE SCHENGEN AGREEMENT PHARE 2006 - BLUE BORDER SURVEILLANCE MANAGEMENT OF THE STATE BORDER SYSTEM REGULAR OPERATION
287,386
K553104 A553102 A553061 Budget Beneficiary - Total 110 MINISTRY OF JUSTICE A629006 A629008 A629262 A678000 A678008 Budget Beneficiary - Total TOTAL CHAPTER 24
432,900 53,500,000 28,160,500 163,329,287
INTERNATIONAL LEGAL ASSISTANCE REFORM OF CRIMINAL LEGISLATION COOPERATION OF CROATIA AND EUROJUST COMBATING CORRUPTION AND ORGANIZED CRIME INTERNATIONAL COOPERATION ON COMBATING ORGANISED CRIME
50,000 20,000 500,000 5,000,000 20,000 5,590,000 222,146,597
661
- in HRK 2009
25. SCIENCE 08005 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - SCIENCE, EDUCATION AND SPORTS A622119 A 622002 A 622003 A622009 A818002 K622118 A622010 A818003 A767009 A676005 A676007 A676049 A676050 A676051 A676006 A679047 08008 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - PUBLIC INSTITUTES IN THE REPUBLIC OF CROATIA Budget Beneficiary - Total TOTAL CHAPTER 25 K622113 EUROPEAN COMMUNITY PROGRAMMES - NATIONAL CONTRIBUTION TRAINING PROGRAMME FOR RESEARCH ASSISTANTS SCIENCE AND RESEARCH RPOGRAMMES AND PROJECTS PROMOTION OF SCIENCE DEVELOPMENT AND INVESTMENT IN STAFF - FINANCING FEES FOR POSTGRADUATE STUDIES PROMOTING EXCELLENCE IN SCIENCE SCIENTIFIC EQUIPMENT MAINTENANCE OF SCIENTIFIC INFRASTRUCTURE IPAIIIC- INVESTMENT AND INNOVATION FUND - NATIONAL CONTRIBUTION CENTRES OF EXCELLENCE PROJECTS AND PROGRAMMES OF TECHNOLOGY RESEARCH AND DEVELOPMENT ACTIVITIES INCENTIVES FOR TECHNOLOGY INFRASTRUCTURE ANALYSIS AND MONITORING OF TECHNOLOGY DEVELOPMENT DEVELOPMENT OF TECHNOLOGY INFRASTRUCTURE TEHCRO INCREASE IN COMPETITIVENESS KONCRO DEVELOPMENT OF KNOWLEDGE-BASED SMES EUROPEAN INTEGRATION DIRECT CAPITAL INVESTMENT OF PUBLIC INSTITUTES 14,100,000 329,550,078 152,796,467 5,172,274 5,500,000 28,500,000 2,650,000 378,750 2,300,000 26,050,000 15,600,000 1,350,000 7,500,000 1,000,000 14,400,000 5,623,000 12,000,000
624,470,569 624,470,569
662
ANNEX B
- in HRK 2009
26. EDUCATION AND CULTURE 04605 MINISTRY OF FAMILY, WAR VETERANS AND INTERGENERATONAL SOLIDARITY Budget Beneficiary - Total 055 MINISTRY OF CULTURE A576226 A576227 Budget Beneficiary - Total 08005 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - SCIENCE, EDUCATION AND SPORTS A577004 A579069 A580044 A580004 A580037 A580014 K580034 A580056 A580050 A580059 A589063 K110195 A733047 A679047 A767013 08006 MINISTRY OF SCIENCE, EDUCATION AND SPORTS UNIVERSITIES AND COLLEGES IN THE REPUBLIC OF CROATIA 08060 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - ADULT EDUCATION AGENCY A621171 DRAFTING OF TEACHERS GUIDEBOOK (CURRICULUM) PROJECT OF PRIMARY EDUCATION REFORM PROVISION OF EXPERT SERVICES IN THE SECONDARY EDUCATION SYSTEM REARING AND EDUCATION OF PUPILS WITH DISABILITIES PUBLIC TRANSPORTATION FOR PUPILS ADULT EDUCATION - DECADE OF LITERACY 2003.-2012 EQUIPMENT FOR CRAFTS SCHOOLS FOR PRACTICAL EDUCATION FOR WORK IN SMALL ENTERPRISES REVISION OF THE EXISTING AND DRAFTING OF NEW PROGRAMMES IN THE SECONDARY EDUCATION SYSTEM DEVELOPMENT OF CURRICULUM MODEL FOR SECONDARY EDUCATION ESTABLISHING OF PROGRAMME NETWORK AND SECONDARY EDUCATION INSTITUTIONS NETWORK NATIONAL PUPILS COUNCIL OF THE REPUBLIC OF CROATIA EQUIPMENT FOR VOCATIONAL SCHOOLS - WORKSHOPS AND CABINET EQUIPMENT CO-FINANCING OF LIFELONG LEARNING PROGRAMME EUROPEAN INTEGRATION DEVELOPMENT OF QUALITY ASSURANCE SYSTEM IMPLEMENTATION OF THE BOLOGNA PROCESS CULTURE CONTACT POINT (EU-CCP) NATIONAL CONTRIBUTION FOR EU CULTURE PROGRAMMES A558047 YOUTH POLICY 2,744,720
2,744,720 600,000 499,324 1,099,324 1,647,936 490,400 200,000 400,000 165,000,000 3,466,080 1,750,000 1,350,000 118,940 150,000 70,000 2,800,000 500,000 1,000,000 375,000 2,000,000
A589085 A589084
PROMOTING LEARNING CULTURE - WEEK OF LIFELONG LEARNING EXPERT CONSULTING
634,750 531,000
663
- in HRK 2009
08085 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - NATIONAL CENTRE FOR EXTERNAL EVALUATION OF EDUCATION 08090 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - EDUCATION AND TEACHER TRAINING AGENCY 08095 MINISTRY OF SCIENCE, EDUCATION AND SPORTS - OTHER PUBLIC INSTITUTIONS IN SCIENCE, EDUCATION AND SPORTS
A814001
PREPARATION FOR STATE FINAL EXAM AND NATIONAL EXAMS IN SECONDARY SCHOOLS
12,450,000
K767005
CO-FINANCING OF TEXTBOOKS
290,000,000
A589090
PREPARATION OF CROATIAN INSTITUTIONS FOR THE LIFELONG LEARNING PROGRAMME (COMMUNITY PROGRAMME) IPA I - NATIONAL CO-FINANCING OF THE IPA PROJECT - PREPARATION MEASURES FOR THE YOUTH IN ACTION PROGRAMME IPA I - NATIONAL CO-FINANCING OF THE IPA PROJECT PREPARATORY MEASURES FOR THE LIFELONG LEARNING PROGRAMME (50%)
272,000
A818004
529,999
A818005
4,633,200
490,369,305 494,213,349
27. ENVIRONMENT 04020 MINISTRY OF THE INTERIOR - NATIONAL SEARCH AND RESCUE DIRECTORATE Budget Beneficiary - Total 05530 MINISTRY OF CULTURE - NATURE PROTECTION AND CONSERVATION A779006 A779008 A779003 K779002 A779001 A779000 NATURE PROTECTION INDEMNITY FOR DAMAGE CAUSED BY PROTECTED ANIMAL SPECIES FINANCING OF INTERNATIONAL PROJECTS ESTABLISHMENT OF THE NATURA 2000 NETWORK - PHARE PROJECT COMBATING OF SPREADING OF INVASIVE SPECIES MANAGEMENT AND ADMINISTRATION - NATIONAL PARKS, NATURE PARKS AND STATE INSTITUTE FOR NATURE PROTECTION ENFORCEMENT OF INSPECTION DECISIONS EDUCATION AND TRAINING (IMPLEMENTATION OF THE ACQUIS) IMPLEMENTATION OF THE NATIONAL STRATEGY ON BIODIVERSITY A553018 SEARCH AND RESCUE IN CIVILIAN DISASTERS 7,000,000
7,000,000 8,857,800 2,240,000 800,000 691,936 500,000 49,599,432
A779015 A779014 A779018
100,000 200,000 243,000
664
ANNEX B
- in HRK 2009
A779019 Budget Beneficiary - Total 062 MINISTRY OF REGIONAL DEVELOPMENT, FORESTRY AND WATER MANAGEMENT T568063 A568198 K650041 K650050 A650043 A650051 A650053 K828014 A828001 A650016 A650006 K821013 K828025 K828016 K568298 K568131 K568132 K650036 K568135 K568136 K650078 K650079 K650071
PRESERVING ECOLOGICAL NETWORK
200,000 63,432,168
INVENTORY OF FOREST RESOURCES IMPROVEMENT OF FORESTRY REPORTING AND FORECASTING ACTIVITIES IN FORESTRY PROGRAMME OF MEASURES FOR COLLECTION OF DATA AND SETTING UP A REGISTRY OF FOREST DAMAGES GENE BANK SAVINGS BANK REGISTER OF FOREST OWNERS PPN OPATOVAC ADMINISTRATION AND MANAGEMENT ALIGNMENT OF CROATIAN REGULATIONS WITH THE EU ACQUIS CROATIAN WATERS SURVEY PROTECTION OF WATERS AND SEA FROM POLUTION LOCAL/REGIONAL AUTHORITIES IPA III B COMPONENT - WATERS PPN DONJA NERETVA CONSTRUCTION OF DRAINAGE SYSTEM IN COUNTIES WATER SUPPLY - REGIONAL WATER SUPPLY SYSTEM OF HRVATSKO ZAGORJE WATER SUPPLY - REGIONAL WATER SUPPLY SYSTEM OF EASTERN SLAVONIA WATER SUPPLY - CROATIAN WATERS WATER SUPPLY - CONSTRUCTION WATER SUPPLY SYSTEM OF THE KOPRIVNICA-KRIEVCI COUNTY WATER SUPPLY - CONSTRUCTION WATER SUPPLY SYSTEM OF THE BJELOVAR-BILOGORA COUNTY CONSTRUCTION OF DRAINAGE SYSTEM - OSIJEK-BARANJA COUNTY CONSTRUCTION OF DRAINAGE SYSTEM - MEIMURJE COUNTY REGIONAL WATER SUPPLY SYSTEM - DALMATIA
5,250,000 380,000 200,000 150,000 250,000 250,000 100,000 14,000,000 100,644,000 1,250,000 840,000 12,000,000 1,000,000 3,000,000 5,000,000 14,000,000 30,000,000 42,000,000 12,000,000 3,000,000 8,000,000 7,000,000 15,000,000
665
- in HRK 2009
K650072 K650073 K650075 K828018 K821019 K820019 K820013 K820025 K819025 K828005 K828015 K650034 K650038 K650039 K650048 T650040 T568108 K650045 K650050 Budget Beneficiary - Total 07505 MINISTRY OF ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION - MINISTRY OF ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION A576036 A576095 K576119 A576184 A576144
REGIONAL WATER SUPPLY SYSTEM - VIROVITICAPODRAVINA COUNTY REGIONAL WATER SUPPLY SYSTEM - OSIJEK-BARANJA COUNTY REGIONAL WATER SUPPLY SYSTEM - NERETVA-KORULAPELJEAC-LASTOVO-MLJET WATER SUPPLY - ZAGREB COUNTY WATER SUPPLY - SISAK-MOSLOVINA COUNTY WATER SUPPLY - BISTRA WATER SUPPLY - LOCAL/REGIONAL AUTHORITIES IRRIGATION SYSTEM BATICA IRRIGATION SYSTEM MEIMURJE CONSTRUCTION OF DRAINAGE SYSTEM VARADIN - NOVI MAROF PPN KATELA - TROGIR - SEGET PROTECTION OF WATERS AND SEA FROM POLLUTION CROATIAN WATERS ISPA IBRD - NERETVA, TREBINJICA IRRIGATION BI-BOSUTSKO POLJE PROTECTION OF ADRIATIC AGAINST POLUTION - IBRD PROJECT AND CROATIAN COMPONENT IRRIGATION SYSTEM SINGLE INFORMATION SYSTEM AND ESTABLISHMENT OF FOREST FIRES REGISTER PROGRAMME OF MEASURES FOR COLLECTION OF DATA AND SETTING UP A REGISTRY OF FOREST DAMAGES
5,000,000 5,000,000 4,000,000 500,000 500,000 2,000,000 15,000,000 15,200,000 17,480,000 7,000,000 1,000,000 32,000,000 5,000,000 2,150,000 44,000,000 14,000,000 25,880,000 250,000 150,000 471,424,000
PROTECTION OF ATMOSPHERE MAINTENANCE OF STATIONS IN THE STATE NETWORK FOR MONITORING OF AIR QUALITY DEVELOPMENT OF THE STATE NETWORK FOR MONITORING OF AIR QUALITY CLIMATE CHANGE ENVIRONMENTAL IMPACT ASSESSMENT AND LAUNCHING OF THE STRATEGIC ENVIRONMENTAL IMPACT ASSESSMENT
700,000 3,240,000 2,450,000 1,500,000 850,000
666
ANNEX B
- in HRK 2009
T576217 K576225 A576020 K576113 A576084 A576182 A576183 K576229
SUPPORT TO CONSTRUCTION AND REVITALISATION OF ENVIRONMENT - ISPA 2005 ESTABLISHMENT OF THE AIR QUALITY MONITORING AND MANAGEMENT SYSTEM - PHARE 2006 MONITORING OF SEA QUALITY CLEANING SHIPS OPERATIONAL COSTS FOR CLEANING SHIPS INTERVENTION PLANS WASTE MANAGEMENT DEVELOPMENT OF A SYSTEM OF DANGEROUS WASTE MANAGEMENT INCLUDING IDENTIFICATION AND MANAGEMENT OF HOT SPOTS IN CROATIA - PHARE INTEGRATED POLLUTION PREVENTION AND CONTROL IPPC MANAGEMENT OF OPERATIONAL PROGRAMME AND CAPACITY BUILDING - IPA OPERATIONSL PROGRAMME MEASURE 3.1. ENHANCEMENT OF ENVIRONMENTAL INSPECTION FOR ENFORCEMENT OF NEW ENVIRONMENTAL LEGISLATION PHARE 2005 ADRIATIC SEA MONITORING - IBRD ENVIRONMENT PROTECTION INFORMATION SYSTEM COMPUTERISATION OF THE AGENCY MAINTENANCE OF THE ENVIRONMENT PROTECTION INFORMATION SYSTEM
1,120,000 4,130,000 190,000 300,000 2,890,000 540,000 250,000 340,000
A576248 A576231
450,000 250,000
K576218
315,000
K576219 07515 MINISTRY OF ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION - ENVIRONMENT PROTECTION AGENCY A730007 K730008 A730044
10,562,000 1,065,000 1,030,000 950,000 33,122,000
Budget Beneficiary - Total 10005 MINISTRY OF HEALTH AND SOCIAL WELFARE - MINISTRY OF HEALTH AND SOCIAL WELFARE K734212 A734217 A618551 IMPLEMENTATION OF THE NATIONAL CHEMICALS SECURITY PROGRAMME COORDINATION IN THE FIELD OF GENETICALLY MODIFIED ORGANISMS OBLIGATIONS DUE TO THE EU ACCESSION (IMPLEMENTATION OF PROJECTS RELATED TO ALIGNMENT WITH THE ACQUIS COMMUNAUTAIRE)
560,000 700,000 160,000
1,420,000 576,398,168
667
- in HRK 2009
28. CONSUMER AND HEALTH PROTECTION 050 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP A560054 A560104 NATIONAL CONSUMER PROTECTION PROGRAMME DRAFTING AND IMPLEMENTATION OF THE ACT ON THE AMENDMENTS TO THE CONSUMER PROTECTION ACT 2,400,000 125,000 2,525,000 A 618003 A618184 A 618258 A 618215 A618172 A618344 A734203 A734204 A618163 K618197 Budget Beneficiary - Total 225 STATE INSPECTORS OFFICE Budget Beneficiary - Total TOTAL CHAPTER 28 A673000 INSPECTION ACTIVITIES OF THE STATE INSPECTORS OFFICE ENFORCEMENT OF THE ACT ON LIMITING TOBACCO PRODUCTS CONSUMPTION PREVENTION, EARLY DETECTION, THERAPY AND REHABILITATION OF ADICTS PRIMARY AND SECONDARY PREVENTION OF ALCOHOLISM PREVENTION OF MALIGN DISEASES PREVENTION AND EARLY DETECTION OF BREAST CANCER CROATIAN INSTITUTE FOR MENTAL HEALTH AGENCY FOR QUALITY AND ACCREDITATION IN HEALTH SYSTEM ACTION PLAN FOR PREVENTION AND REDUCTION OF EXCESSIVE BODY WEIGHT INCREASE IN NUMBER OF ORGAN DONORS AND IMPROVEMENT TO TRANSPLATATION PROGRAMME IMPROVEMENT OF TRANSPLANTATION PROGRAMME 260,000 740,000 40,000 9,670,000 1,890,000 1,265,500 2,900,000 420,000 150,000 1,580,000 18,915,500 75,000 75,000 21,515,500
Budget Beneficiary - Total 10005 MINISTRY OF HEALTH AND SOCIAL WELFARE - MINISTRY OF HEALTH AND SOCIAL WELFARE
29. CUSTOMS UNION 02510 MINISTRY OF FINANCE CUSTOMS ADMINISTRATION A540000 K540018 K540021 Budget Beneficiary - Total TOTAL CHAPTER 29 BASIC OPERATION OF THE CUSTOMS ADMINISTRATION FINANCING OF PHARE 2005 PROGRAMME IN COMPETENCE OF THE CUSTOMS ADMINISTRATION FINANCING OF PHARE 2006 PROGRAMME IN COMPETENCE OF THE CUSTOMS ADMINISTRATION 19,920,000 4,400,000 3,819,000 28,139,000 28,139,000
668
ANNEX B
- in HRK 2009
30. EXTERNAL RELATIONS 050 MINISTRY OF THE ECONOMY, LABOUR AND ENTREPRENEURSHIP A560016 A560024 MULTILATERAL TRADE NEGOTIATIONS WITHIN WORLD TRADE ORGANISATION (WTO) IMPLEMENTATION OF THE INTERIM AGREEMENT ON TRADE ISSUES BETWEEN THE REPUBLIC OF CROATIA AND THE EUROPEAN COMMUNITY CONTROL OF EXPORT OF DUAL PURPOSE GOODS 120,000 40,000
200,000 360,000 360,000
31. FOREIGN, SECURITY AND DEFENCE POLICY 030 MINISTRY OF DEFENCE A545008 A545029 A545037 Budget Beneficiary - Total 110 MINISTRY OF JUSTICE Budget Beneficiary - Total TOTAL CHAPTER 31 A629171 COOPERATION WITH INTERNATIONAL COURT AND INTERNATIONAL TRIBUNALS INTERNATIONAL COOPERATION ADMINISTRATIVE AND GENERAL ACTIVITIES COSTS OF PEACEKEEPING MISSIONS 550,000 550,000 10,108,000 11,208,000 237,000 237,000 11,445,000
32. FINANCIAL CONTROL 025 MINISTRY OF FINANCE Budget Beneficiary - Total TOTAL CHAPTER 32 A538000 MANAGEMENT AND ADMINISTRATION 956,000 956,000 956,000
669
- in HRK 2009
33. FINANCIAL AND BUDGETARY PROVISIONS 02505 MINISTRY OF FINANCE MINISTRY OF FINANCE 02506 MINISTRY OF FINANCE MINISTRY OF FINANCE - OTHER STATE EXPENDITURES K113290 K538024 STATE TREASURY SYSTEM - IMPLEMENTATION PHARE 2006-INTEGRATION OF FINANCE MONITORING INFORMATION SYSTEMS IN LOCAL TREASURIES WITH THE INFORMATION SYSTEM OF THE STATE TREASURY AND DEVELOPMENT OF MANAGEMENT SYSTEM FOR MASTER DATA CONTRIBUTION OF THE REPUBLIC OF CROATIA IN DRAWING EU PRE-ACCESSION FUNDS 500,000 2,600,000
80,000,000 83,100,000 83,100,000
TOTAL CHAPTERS 1 TO 33
3,561,826,218
OTHER - Budget funds not covered by the 33 chapters 02010 GOVERNMENT OF THE REPUBLIC OF CROATIA - GOVERNMENT OFFICE FOR NGOS A509024 IMPLEMENTATION OF THE NATIONAL STRATEGY OF CREATION OF FAVOURABLE ENVIRONMENT FOR DEVELOPMENT OF CIVIL SOCIETY COUNCIL FOR DEVELOPMENT OF CIVIL SOCIETY PHARE 2006 - ESTABLISHING OF CIVIL SOCIETY ACTIVE CONTRIBUTION IN THE PRE-ACCESSION PROCESS IMPLEMENTATION OF THE NATIONAL ANTI-CORRUPTION PROGRAMME IMPLEMENTATION OF COMMUNITY PROGRAMME EUROPE FOR CITIZENS 200,000
A509030 A509037 A509042 A509043 Budget Beneficiary - Total 02025 GOVERNMENT OF THE REPUBLIC OF CROATIA - GOVERNMENT OFFICE FOR NATIONAL MINORITIES A513002 A513013 T513020 A513021 Budget Beneficiary - Total
30,000 2,190,000 120,000 63,000 2,603,000
NATIONAL MINORITIES PROGRAMME PROGRAMME FOR THE ROMA POPULATION PHARE 2006 - SUPPORT TO ROMA POPULATION REGIONAL CONFERENCE ON NATIONAL MINORITIES RIGHTS
1,082,000 1,962,000 3,950,000 120,000 7,114,000
670
ANNEX B
- in HRK 2009
02092 GOVERNMENT OF THE REPUBLIC OF CROATIA - GOVERNMENT OFFICE FOR GENDER EQUALITY
A532004 A532009 A532013 A532015
PROTECTION AND PROMOTION OF GENDER EQUALITY IMPLEMENTATION OF NATIONAL POLICY FOR PROMOTION OF GENDER EQUALITY IMPLEMENTATION OF NATIONAL STRATEGY ON PROTECTION AGAINST DOMESTIC VIOLENCE IMPLEMENTATION OF NATIONAL STRATEGY OF EQUAL OPPORTUNITY FOR PERSONS WITH DISABILITY 2007-2015
1,654,910 1,670,200 160,000 245,000 3,730,110
Budget Beneficiary - Total 048 MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION K776001 A776003 K776002 04810 MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION - DIPLOMATIC AND CONSULAR REPRESENTATION OFFICES 04815 MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION EUROPEAN INTEGRATION A777000 A777002 A778002 A778023 A778024 A778051 EQUIPMENT FOR THE MINISTRY IMPLEMENTATION OF THE FOREGING POLICY OF THE REPUBLIC OF CROATIA COMPUTERISATION OF THE MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION DIPLOMATIC AND CONSULAR ACTIVITIES ABROAD DIPLOMATIC PROTOCOLAR OBLIGATIONS ABROAD TRANSLATION OF THE EU ACQUIS AND RELEVANT CROATIAN LEGISLATION SCHOLARSHIPS FOR EUROPEAN POSTGRADUATE STUDIES ABROAD AND IN CROATIA INFORMATION AND TRAINING COORDINATION OF FULFILLING OBLIGATIONS FROM EU MEMBERSHIP AND SECRETARIAT OF THE NEGOTIATING TEAM EURO-INTERNET KIOSKS
500,000 2,000,000 2,500,000 15,000,000 500,000 8,775,000 620,000 7,800,000 1,470,000
K778050 Budget Beneficiary - Total TOTAL OTHER TOTAL BUDGET FUNDS
520,000 39,685,000 53,132,110 3,614,958,328
SHARE IN GDP (%)
1.13
671
672
ANNEX B
ANNEX B
PLANNED FOREIGN ASSISTANCE FUNDS
673
674
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
1. Free Movement of Goods State Inspectors Office Market Surveillance System in the Field of Technical Products PHARE 2005 1,375,000 The primary objective of the project is to ensure further consolidation of the Croatian market surveillance in terms of meeting technical requirements for products, and ensuring safety of products on the market according to EU models and practice. The project is oriented towards: 1. Capacity building of the State Inspectors Office in order to support the implementation of market surveillance according to EU practices 2. Institutional capacity strengthening in the area of quality control 3. Strengthening the professional expertise of the State Inspectors Office personnel 4. Promotion of international cooperation and active participation in technical councils 5. Providing support to bodies responsible for the assessment of consistence in their operations The project purpose is to support the CAA and provide technical support to the bodies for compliance assessment in Croatia with a view of new technical regulations harmonised with the New Approach Directives in the area of pressure equipment and lifts.
Croatian Accreditation Agency
Support to the Croatian Accreditation Agency for establishment of evaluation system for ToS capacity according to the EU New Approach Directives Development of a National System of Metrology, Standardisation, Assessment of Conformity and Accreditation
PHARE 2005-PPF
199,000
State Office for Metrology (project coordinator); Croatian Standards Institute and Croatian Accreditation Agency (project beneficiaries)
CARDS 2004
2,000,000
The general project purpose is to improve the quality infrastructure of the Republic of Croatia along with providing support to the implementation of the Stabilisation and Association Agreement and the process of negotiations. The objective is to improve the conditions for Croatian industry and manufacturers in order to promote trade and industrial relations with the European and international market, as well as the quality of life. The project activities are directed at consolidating institutional and organisational competence of newly established institutions: the State Office for Metrology (SOM), the Croatian Accreditation Agency (CAA), the Croatian Standards Institute (CSI) and the Croatian Metrology Institute (CMI) and provide support for the membership in relevant European institutions. For this purpose, institution strategies will be devised based on analyses of national priorities. In addition to this, EU experts will provide their support in the area of metrology development in chemistry and consultancy regarding conformity assessment, accreditation and standardisation.
Total Free Movement of Goods
3,574,000
675
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
3. Right of Establishment Agency for Science and Higher Education Strengthening the Role of Croatian ENIC/NARIC Office regarding professional recognition and implementation of Directive 2005/36/EZ Support to the Postal Services Council MATRA 274,984 Strengthening the role of the National ENIC/NARIC Office in transferring professional recognition of qualifications for regulated professions to competent chambers, professional organisations; dissemination of information on professional and academic recognition of qualifications with the aim of harmonisation of Croatian legislation with the requirements of the Directive No. 2005/36/EC and creation of administrative and legal preconditions for proper application of the legal possibilities. The project is intended for strengthening of institutional capacity in the Postal Services Council in order for it to function as an independent regulatory body on the postal and courier services market; introduction, maintenance and promotion of sustainable competition on the postal and courier services market and familiarisation of all actors on the market and the general public with the upcoming liberalisation of the sector and changes on the market.
Postal Services Council
CARDS 2004
50,000
Total Right of Establishment
324,984
5. Public Procurement State Commission for Supervision of Public Procurement Procedure Further Strengthening of the State Commission for Supervision of Public Procedure and Legal Protection System PPF Phare 2006 250,000 The project is intended for further strengthening of the State Commission for Supervision of Public Procurement Procedure and training of expert advisors and members of the Commission. Specific workshops on legal protection in the public procurement system intended for representatives of public and private sector will also be organised. The project is expected to commence at the end of November 2008. This twinning project is expected to be implemented over six (6) months.
Total Public Procurement
250,000
7. Intellectual Property Rights State Intellectual Property Office Strengthening of the Capacity to Enforce Intellectual Property Rights PHARE 2006 1,630,000 The project foresees capacity building for enforcement of intellectual property rights (IPR) in order to ensure the level of protection in line with the Internal Market requirements. The project will strengthen administrative and technical capacity of the enforcement bodies (Ministry of the Interior, Customs Administration, State Inspectors Office). The project foresees awareness raising about application of intellectual property rights in SMEs and the increase in their innovation capacity and competition in line with the Lisbon Agenda.
Intellectual Property for Innovation
FP6
1,997,894
Total Intellectual Property Rights
3,627,894
676
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
8. Competition Policy Croatian Competition Agency Strengthening of the Implementation of Competition Policy and Government EU Assistance PHARE 2005 1,800,000 The project covers the activities of the CCA as a whole, not only the activities of its individual constituents. It will be conducted from April 2007 to November 2008 on the basis of a twinning contract worth 1,5 million 1 and an IT equipment contract worth 0.4 million 1 (contractor to be chosen by the end of October 2007). The project follows short-term and long-term priorities determined in the Accession Partnership (strengthening of administrative capacity and CCA independence in activities related to competition and state aid, establishment of transparency in activities related to state aid, primarily those relating to annual reports to the EU, training in the area of competition policy (training of judges). The objective of the project is to improve competition environment and state aid policies by means of continuous support to the Croatian Competition Agency and partners. The activities will provide the Agency and other stakeholders with additional capacities for efficient implementation of the new competition regime and the state aid law and policy. The project will be implemented through a twinning contract (11.000.000) for training of the Agency staff, judges and sector regulators, and a service contract (11.000.000) intended for public awareness raising.
Implementation of the competition and state aid policies in Croatia
IPA 2007
2,000,000
Total Competition Policy
3,800,000
677
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
10. Information Society and Media Croatian Telecommunications Agency Med-term Planning of Electronic Communications Market Development in Croatia Reinforcement of Croatian Telecommunications Agency PHARE 2006 PPF 163,000 The project will provide an overview of the entire electronic communications market development in Croatia so far, and future development forecasts. The objective of the analysis is to identify areas in which the role of the regulator should be strengthened for the benefit of competition and final beneficiaries. Development and/or support to the implementation of the separate accounting model with operators with significant market force. Support in conducting market surveys in accordance with the European Union regulatory framework. Human resources development through workshops and training in real operative situations. Compliance analysis of Croatian legislation in the area of telecommunications with the European Union regulatory framework. Procurement of equipment and software necessary for modernisation of the System of ControlMeasuring Centres and Stations, and their installation in the system. In order to be able to participate in the IDABC programme the Republic of Croatia shall pay annual contributions into the General Budget of the European Union in accordance with the amounts stated in the Annex I of the Memorandum of Understanding, which will be partially financed from the PHARE/IPA preaccession programmes, while the remainder of the total annual contribution shall be earmarked in the State Budget of the Republic of Croatia. The total entry ticket for 2008 amounts to 110,162 1, and 75% of it will be financed from the PHARE programme. By participating in the EU IDABC programme, the aim of which is to establish a framework for harmonised delivery of panEuropean electronic public services between Member State public administrations, Croatia wants to be a part of the process geared towards development of e-Government in the European Union and the European Interoperability Framework. In order to participate in the ICT PSP Programme the Republic of Croatia shall pay annual contributions to the General Budget of the European Union in accordance with the Annex I of the Memorandum of Understanding, which will be partially paid from the Phare/IPA preaccession funds, while the remainder of the total annual financial contribution set by the Memorandum of Understanding shall be earmarked in the State Budget of the Republic of Croatia. Since the Republic of Croatia intends to participate in the activities of the ICT PSP Community Programme in 2007, and the relevant Memorandum of Understanding is foreseen to enter into force in the first quarter of 2008, a simultaneous call for funds for 2007 amounting to 107,360 1 and for 2008 amounting to 106,193 1 can be expected. Contribution co-financing is foreseen amounting to 75% from Phare 2006 for participation in 2007, and amounting to 90% from IPA for participation in 2008. In participating in the Programme Croatia becomes eligible to participate in pilot projects, thematic networks, studies for information society progress measurement, participation in expert conferences and other activities.
IPA 2007 Component 1
3,325,000
Central State Administrative Office for e-Croatia
Participation in the IDABC Community Programme
Co-financing of the national contribution from the PHARE/ IPA Programme
82,622
Participation in the ICT PSP Community Programme
Co-financing of the national contribution from the PHARE/ IPA Programme
176,074
678
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Development of the regulatory impact assessment
IPA 2007
1,100,000
The final objective of the project is capacity strengthening in the state and public administration for user-oriented service. This project will improve legal, organisational and horizontal integration of administrative procedures for providing public services to citizens and legal entities in accordance with the e-Europe 2007 Programme. The implementation is envisaged after the preconditions have been fulfilled, i.e. after the new Act on Administrative Procedure, the Act on Salaries and the Public Procurement Act have been passed in the Parliament. The project, in co-operation with the Ministry of Economy, Labour and Entrepreneurship, will finance opening of two pilot telecentres in the premises of two existing SME centres in selected areas (Skrad and Vinkovci) in order to provide fast access to Internet for local workforce and citizens enabling them to take advantage of the lifelong learning possibilities, creativity and development. The MEDIA programme is an EU support programme for development of the European audio-visual industry. The Croatian Parliament adopted on 25 April 2008 the Memorandum of Understanding between Croatia and the EC on Participation of Croatia in the MEDIA 2007 Community Programme (from 2007 until 2013), which was published in the Croatian Official Gazette - International Agreements No. 3/08. For the implementation of the Memorandum, a MEDIA desk as a contact point for all information linked to the MEDIA programme (consultancy and technical assistance) was established.
TELEACCESS Creation of Telecentres to Support Learning, Entrepreneurship and Access to Information Society in Isolated Areas Ministry of Culture MEDIA 2007
Interreg IIIB Cadses programme
117,421
Co-financing of the national contribution from the IPA programme (for the period 20082013)
600,117
Total Information Society and Media
5,564,233
11. Agriculture and Rural Development Ministry of Agriculture, Fisheries and Rural Development Institutional Capacity Building and Support to the Implementation of the IPA-RD Programme Strengthening of the Agriculture Inspection and Further Harmonisation of Legislation with the Acquis Support to the SAPARD/ IPARD Agency in Improvement of SAPARD/IPA-RD Implementation PHARE 2005 3,867,200 Support in programming and implementation of rural development measures and operation of the necessary administrative structures and the SAPARD/IPARD Agency.
PHARE PPF 2005
249,999
The objective of the project is to build capacities in the sector of agricultural inspection in the Ministry of Agriculture to enforce legislation harmonised with the acquis and international standards.
PHARE PPF 2005
199,999
The objective of the project is assistance to the beneficiary institution in achieving quality capacities for implementation of rural development measures.
679
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
SEEDNet (South East European Development Network on Plant Genetic Resources) Land Consolidation in Croatia
Bilateral Source Sweden
70,000
Support to the sustainable utilisation of the plant genetic resources by networking and linking different stakeholders on the national and regional level, purchase of equipment, public awareness raising, training. Negotiations are under way for prolongation of the project during the period 2008-2010. Implementation of pilot projects in selected areas in the towns of Novi Vinodolski and Vrbovec and the municipalities of Tompojevci, Vidovec and Krai Establishment of Land Fund aiming at land consolidation Establishment of structures necessary for reaching project goals and implementation of land consolidation Drafting of new/adaptation of the existing regulations regarding land consolidation/reallocation. Promotion and efficiency increase on the agricultural land market by removing existing obstacles, Capacity building and promotion of public participation on the land issues. Development of the Paying Agency; digital orto photo maps, digital cadastre plans, promotion campaign for LPIS; assistance in implementation of the SAPARD programme; office equipment, an advisor for the rural forum; a M&E advisor, a M&E consultancy firm, a CAACP quality assurance advisor, agriculture policy studies, FADN establishment in Croatia, office material for PIU, procurement of furniture for PIU, national consultants. Development of small and medium-sized companies in food production and processing in Croatia and equipping a laboratory for quality control of meat.
Bilateral Source - Sweden 20062009
3,150,000
Legal and Institutional Harmonisation with the EU Acquis in Agriculture
World Bank
5,576,791
Promotion of Economy and Job Creation in Food-Processing Sector Directorate for Market and Structural Support in Agriculture Management and Control of Agricultural Funds
Bilateral source Germany - GTZ
1,500,000
IPA 2007
6,125,000
The objective of the project is to establish and implement a financial management system and a system for control of use of agricultural funds in line with EU and international auditing standards. The activities will insure full compatibility of the financial management system with the relevant EU legislation and harmonise administrative and operational structures in line with EU requirements and recommendations.
Total Agriculture and Rural Development
20,738,989
680
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
12. Food Safety, Veterinary and Phytosanitary Policy Ministry of Agriculture, Fisheries and Rural Development Capacity Building in the Area of Agriculture, Live Animals and Foodstuffs Capacity Building of the Veterinary Border Inspection Further Capacity Building in the Area of Plant Protection CARDS 2004 1,500,000 Technical assistance in further harmonisation of legislation with the acquis communautaire in the area of food control and legal harmonisation in the veterinary sector.
CARDS 2004
722,278
Capacity building of the Croatian veterinary border inspection: detailed analysis of the border crossing posts, legal harmonisation, training, equipping of border crossings. Continuation of the activities planned under CARDS 2002 Capacity Building in the Area of Agriculture, Live Animals and Food Products and CARDS 2003 Capacity Building in the Area of Plant Health-Equipment; further institutional capacity building in the Ministry of Agriculture and Plant Protection Institute aiming at improved operation of the plant protection sector component for plant protection products and residues. Preparation for further activities in the framework of the IPA project including drafting documentation for reconstruction of 3 long-term veterinary and 3 phytosanitary border crossings in order to improve and equip them in line with the EU requirements. Assistance to the competent body for efficient application of EU legislation in the area of food safety (Hygiene Package Regulations) in the Republic of Croatia, especially regarding improvement of establishments for production of food of animal origin.
CARDS 2004
699,754
Improvement of Long-term Veterinary and Phytosanitary Border Crossings Capacity Building in the Veterinary Directorate Improvement of Establishments for Food Production and Introduction of Food Safety Standards Legal and Institutional Harmonisation with the EU Acquis in Agriculture
PHARE PPF 2005
198,268
PHARE PPF 2005
199,650
World Bank
5,673,104
Skill gap analyst for SFS, advisor for phytosanitary and sanitary inspection, construction of regional inspection offices, office equipment, design and supervision of construction of regional inspection offices, procurement of dog micro-readers, dog micro-chips, a company for drafting report studies, reporting in the area of epidemiology and laboratory, development and implementation of the phytosanitary sector IS in MAFRD, inspection vehicles, development and implementation of the veterinary sector IS, MS database, food safety communication programmes, advisor for certificates of laboratory food testing, a company for laboratory certificates. Capacity building in biosafety and aspects of GMO. Additional construction of national infrastructure for biosafety.
Institute for Seed and Seedlings
Capacity Building for Supervisory Bodies in Charge of Handling and Supervision of Genetically Modified Cultures, Products and Processed Food
FAO
220,256
681
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
National Wholesale Markets Zagreb
Healthier and Safer Food for Future
UNIDO
63,297
Identification of specific needs and development of activities in participating countries. Promoting new culture in decision making. Identification of main technologies and new business methods for promotion of food quality and safety. Consultancy for food safety, ICT equipment (server), drafting of studies, training of staff
Croatian Food Agency
Legislative and institutional harmonisation with the EU acquis in the field of agriculture Support in Establishing an Independent Food Agency
World Bank
121,944
SIDA
276,000
Risk assessment training.
Croatian Veterinary Institute
Legislative and institutional harmonisation with the EU acquis in the field of agriculture Legislative and institutional harmonisation with the EU acquis in the field of agriculture Capacity Building for Implementation of HACCP Principles in Institutional Kitchens Multi-annual Plan for Monitoring of Monotoxines and Heavy Metals in Food Support to the Sanitary Inspection in Preparation, Implementation and Maintenance of HACCP Principles
World Bank
5,325,329
Construction of the Croatian Veterinary Institute, laboratory and office equipment, architect (design), advisor for laboratory design of the Croatian Veterinary Institute, supervision of construction
Plant Protection Institute
World Bank
5,232,710
Construction of the Plant Protection Institute, laboratory and office equipment, architect (design), supervision of construction
Ministry of Health and Social Welfare
MATRA 2007
350,000
Development of a Guide to Good Hygienic Practice for implementation of the HACCP principles in institutional kitchens, training of sanitary inspectors for implementation of efficient control and development of HACCP plan for institutional kitchens.
MATRA 2008
275,000
Strengthening of cooperation in public health between the EU Member States and candidate countries for EU membership
PHARE 2005
200,000
Development of written procedures for sanitary inspectors for carrying out audits with special focus on food of nonanimal origin in retail and catering sector, and training of 130 sanitary inspectors for implementation of HACCP audit in retail and catering sector.
Total Food Safety, Veterinary and Phytosanitary Policy
21,057,591
682
ANNEX B
Beneficiary
13. Fisheries Ministry of Agriculture, Fisheries and Rural Development
Project Title
Programme Title
Total Value in 1
Activities
Support to the Republic of Croatia in Development and Implementation of the Fisheries Development Strategy in View of the Alignment with and Implementation of the Acquis in the Part Relating to the Common Fisheries Policy
PHARE 2005
4,499,350
Increasing and developing operational capacity and administrative efficiency of the Fisheries Directorate in view of a more efficient harmonisation of the Croatian legislation with the acquis.
Total Fisheries
4,499,350
14. Transport Policy Ministry of the Sea, Transport and Infrastructure Maritime Safety: Enforcement of Administrative CapacityMonitoring and Management of Vessels, Phase 1 Phare 2005 1,050,000 The project envisages: completion of the existing AISAutomatic Identification System by establishing and integrating radio communication stations and other IT communication equipment along the Adriatic coast, technical support for the development of IT statistic and operational solutions of the VTMIS system, training of Ministry personnel according to existing international standards and devising a study of further system development, institutional building necessary for the harmonisation of navigation surveillance and maritime accidents analysis procedures in line with Directive 2002/59/EC and technical requirements of the European Maritime Safety Agency.
Maritime Safety: Enforcement of Administrative CapacityMonitoring and Management of Vessels, Phase 2 Croatian Maritime Sector: Market Access and State Aid Technical Assistance for Establishment of the Technical Inspection Body
Phare 2006
5,325,000
Phare 2005 PPF
178,688
A study on market access and state aids in the Croatian maritime sector as support to the assessment of the situation before and after Croatian accession to the EU The objective of the project is harmonisation of the national legislation with the Directive 2006/87/EZ and establishment of the Technical Inspection Body.
PHARE 2006 - PPF
192,000
683
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Improvement in Road Traffic Safety and Institutional Capacity Building in Road Traffic, Including Strengthening of the Inspection Body for Control of Vehicles while Driving and Control of Commercial Vehicles in Companies Restructuring and Development of Croatian Railway System in Framework of EU Legislation Participation in the Marco Polo II Community Programme 2008-2013
IPA 2008
1,857,000
The objective of the project is to improve road safety in the Republic of Croatia, taking into account that certain number of conventional tachographs will remain in use in foreign and domestic vehicles undergoing control, and that the improved capacities of the Ministry of Sea, Transport and Infrastructure and involved structures will insure better functioning of the road inspection and control of social conditions in road traffic. Introduction of digital tachographs, their control and testing, implies procurement of equipment which will enable these activities. It is also necessary to establish a central national database which will enable exchange of information between the Republic of Croatia and the EU Member States.
Phare 2006
2,200,000
The project will provide technical assistance and training in the railway sector in the Republic of Croatia in the process of restructuring and harmonisation of legislation with the acquis.
Co-financing of the national contribution from the Phare/ IPA Programme
840,468
The Ministry of Transport co-finances with national funds Croatian participation in the Programme. The total entry ticket for the period 2008-2013 amounts to 1,120,623 1 (8,180,550 HRK). It is foreseen that the participation in the Programme will be co-financed by 75% from the PHARE 2006 for the year 2008, and in the years 2009-2013 from the IPA programme. With Croatias participation in the Marco Polo Community Programme, the transport operators from Croatia shall be eligible to take part in EC calls for proposals for projects of shifting road cargo to environmentally acceptable transportation modalities.
Total Transport Policy
11,643,156
684
ANNEX B
Beneficiary
15. Energy Ministry of Regional Development, Forestry and Water Management State Office for Nuclear Safety
Project Title
Programme Title
Total Value in 1
Activities
Development of Sustainable Charcoal Industry
FAO
201,842
Preparation of a Croatian charcoal industry modernisation and revitalisation. Analysis and assessment of the situation regarding biomass sources for production of charcoal, and identification of new technological solutions for charcoal production in Croatia. The primary objective of the project is to increase reliability of timely warning in the framework of readiness in case of a nuclear accident.
Support to the State Office for Nuclear Safety in Extension and Modernisation of Timely Warning System Border Surveillance by Stationary Detectors for Discovering Nuclear and Other Radioactive Materials
PHARE 2006
440,000
State Office for Radiation Protection
PHARE 2006
1,209,000
The objective of the project is to increase capacity of services for protection of Croatian border to discover illicit and illegal transportation of radioactive materials. It is planned to equip fourteen border crossings (road and railway border crossings and ports) with stationary portal monitors for discovering nuclear and other radioactive materials and to train teams to work with the said portal monitors. Furthermore, the customs officers will be equipped with hand instruments. Before delivery a field analysis will be conducted in order to determine on which border crossings the monitors should be installed. Operating procedures will be developed and coordination with other relevant public administration bodies established. The main objective of the grant is to support development of economically and environmentally sustainable renewable energy sources market. The development of this market will make the Croatian economy less dependent on imports of electricity and fossil fuels, and contribute to the reduction in the overall emissions of greenhouse gasses. In addition, the development of the market will in the long run result in creation of favourable climate for private investments in the renewable energy sources and increase in utilisation of domestic equipment and services, which finally means development of domestic industry and increase in employment. Drafting primary and secondary legislation related to renewable energy sources in line with EU legislation Institutional capacity building for the implementation of harmonised sources Promotion of a labelling system for energy-efficient products
Ministry of Economy, Labour and Entrepreneurship
Renewable Energy Sources Project GEF/IBRD TF054973
Grant by Global Environmental Facility (GEF) Foundation, i.e. International Bank for Reconstruction and Development as a GEF implementation agency CARDS 2004
4,105,634
Harmonisation of Croatian Legislation with the Acquis in the Area of Renewable Energy Sources and Development of a System of Marking EnergyEfficient Products Energy Administrative Data Management
499,225
IPA 2007
1,071,000
The main objective of the project is to set up a national system of administrative registers (information system) in the energy sector, which would collect and analyse administrative data in line with the EU requirements.
Total Energy
7,526,701
685
Beneficiary
16. Taxation Ministry of Finance - Tax Administration
Project Title
Programme Title
Total Value in 1
Activities
Assistance to the Croatian Tax Administration in the development activities proceeding from the EU fiscal blueprints
PHARE 2005
3,000,000
Creating preconditions for launch and efficient management of the VAT Information Exchange System (VIES) by adapting the existing National VAT Information System Establishing interconnectivity with the EU taxation system, administrative cooperation with the EU Member States and the Directorate-General for Taxation and Customs Union with the European Commission, and improved communication with all interested parties. Twinning component 1: Support to the VIES IT interconnectivity system amounting to 1,000,000 EUR. Activities: 1. Assistance to the Tax Administration in planning and development of necessary operational capacities and achieving control over IT development and the project. 2. Audit and assistance in preparation of all necessary legal, administrative and procedural documents. 3. Technical assistance during various phases in development of IT system. 4. Training of the Tax Administration staff on management and maintenance of the VIES system. 5. Assistance to the Tax Administration in preparation of relevant terms of reference for a service contract Component 2: Service Contract VIES system - software development amounting to 2,000,000 EUR Support in creating conditions for IT connectivity with the EU tax systems, administrative cooperation with the EU member states and the Tax and Customs Union Directorate General with the European Commission and improvement of communication with all Interested parties. Activities: 1. preparation of VIES documentation 2. depending on needs of VIES system development, staff training 3. finalize methods, processes, procedures, products and tools, in order to ensure efficient software development which has to fulfil the needs of CLO and activities of the TAX administration 4. development of a VIES subsystem - verification of correctness of VAT identification numbers and verification of turnover; testing of subsystem; 5. early involvement of technical resources of the Tax Administration in the project lifecycle. 6. assistance in defining and set-up of a help desk Administrative capacity building in the Tax Administration in order to enable efficient management of the VIES and VES information system Improvement of the VIES system and development of the VES data processing system in order to enable exchange of relevant data with the information systems in the EU Member States
Strengthening and Improving the Croatian Tax Administration IT System with the Objective of Reaching EU Standards in the Field of VAT FISCALISNATIONAL CONTRIBUTIONS
PHARE 2006
3,000,000
IPA 2007
70,000
FISCALIS is a Community Programme intended as systematic assistance to European tax administrations for improving mutual cooperation. A Memorandum of Understanding from 2006 signed between the European Commission and the Republic of Croatia determines the annual entry ticket for participation in programmes amounting to 90,000 1, 90% of which is financed from the IPA 2007 pre-accession fund, and the rest of 10% is financed from the Croatian state budget.
686
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
FISCALISPARTICIPATION IN THE FISCALIS PROGRAMME Tax Administration Modernisation Project
IPA 2007
96,000
World Bank Loan
2,363,527
The total value of the project is estimated at 92.72 million 1, of which 50 million 1 a World Bank loan. The project purpose is to support the modernisation of the Tax Administration aiming at achieving further improvements in efficiency of operation, services for taxpayers and proper settlement of tax obligation, by capacity building and improvement of the Tax Administration system. Basic project components: 1. Modernisation of the business infrastructure (organisational consolidation and functional rearrangement of the Tax Offices in the City of Zagreb) 2. Modernisation of training infrastructure (establishment of a Tax Academy) 3. Modernisation of information infrastructure (improvement of the information management system and support to the introduction of the tax number).
Total Taxation
8,529,527
687
Beneficiary
18. Statistics Central Bureau of Statistics
Project Title
Programme Title
Total Value in 1
Activities
Technical Support to the Central Bureau of Statistics in Adoption of the Acquis Major Revision and Upgrading of the Subject Matter Statistics International Trade in Goods - INTRASTAT (Trade in Goods between EU Member States)
PHARE 2005
4,800,000
Improved organisational arrangements for the CBS and strengthening of the following priority areas: business registry and classifications, national accounts, business statistics and agricultural statistics.
Phare 2006
2,000,000
Upgrading of selected sectoral statistics, statistics, migration statistics and population projections, technology and science statistics. Establishment of the methodological base for establishment and regular conduct of INTRASTAT surveys.
PHARE 2005 - PPF
150,000
Multi-beneficiary Programme of Statistical Cooperation in 2005 - Technical Assistance
Eurostat Grant for the State Bureau of Statistics
1,250,000
Implementation of statistical projects: improvement of the range, timeliness and quality of national accounts, Purchasing Power Parities, innovation statistics, PhD holders carrier statistics, Statistical Business Register, ICT spending and investment survey, survey of ICT utilisation in companies, survey of ICT utilisation in households and with individuals, Labour Force Survey - ad hoc module 2007, labour cost index, adult education survey, improvement of plant statistics, improvement of the livestock statistics, structural improvement of the quality of agricultural statistics, small agricultural households statistics, urban statistics, portraits of regions, water statistics, pesticides statistics, statistics dissemination. Implementation of statistical projects: improvement of GNI inventory, Purchasing Power Parity, external trade statistics, short-term statistics, improvement of the structural business statistics, Statistical Business Register, Environmental Accounts, innovation statistics, PhD holders carrier statistics, Labour Force Survey, social protection statistics, improvement of the health protection statistics, implementation of the European Health Interview Survey (EHIS), improvement of the statistics on the causes of death, transport statistics, ICT spending and investment survey, survey on ICT utilisation in companies, survey on ICT utilisation in households and with individuals, dissemination of statistics. The project foresees the following activities: INTRASTAT introduction of statistical research in exchange of goods among EU Member States, introduction of statistical research on structure of earnings, preparation activities for implementation of the Population, Households and Housing Census in 2011.
Multi-beneficiary Programme of Statistical Cooperation in 2006 - Technical Assistance
Eurostat Grant for the State Bureau of Statistics
2,000,000
Technical Assistance in Development of Targeted Statistical Areas
IPA 2008
1,110,000
Total Statistics
11,310,000
688
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
19. Social Policy and Employment Croatian Employment Service Active Measures Promoting Employment in Groups Threatened by Social Exclusion Local Partnerships for Employment Phase 2 PHARE 2005 2,250,000 Strengthening the economic and social cohesion of the most vulnerable groups in Croatian society by means of increasing their employment rate. Capacity building of various stakeholders on the Croatian labour market for implementation of active employment measures for groups threatened by social exclusion. Project has two components: a service contract and a grant scheme. The purpose and objectives of the project are capacity building of local stakeholders to develop and implement active labour market measures. The first project component, Technical Assistance, is finished. At the moment the implementation of a grant scheme is under way for CARDS 2004 in the framework of which contracts have been signed for 10 projects. The aim of the grant scheme is to promote improved access to employment (including self-employment) on the local labour markets. Increase and strengthening of administrative capacities of public administration staff for implementation of IPA /ESF
CARDS 2004
1,500,000
Ministry of Economy, Labour and Entrepreneurship
Administrative capacity building for IPA/ESF management and application Community Programme for Employment and Social Solidarity PROGRESS Further Modernisation of Administration of Social Security in Croatia Protection and Safety at Work Operational Programme for Human Resources Development
PHARE 2006
150,000
PHARE 2006
160,000
Financial contribution for participation in the PROGRESS E161Community Programme.
MATRA
350,000
The objective of this programme is to contribute to further development of social security and administrative capacity building in the area of social security in line with the EU standards. Improving efficiency of health protection and safety at work system. Two components (twinning and procurement of equipment and vehicles). Improving access to employment and sustainable entering into the labour market and technical assistance in project preparation, management of the Operational Programme and capacity building. The objective of this programme is to ensure that the European social policy answers key challenges in the European Union Member States, i.e. that the Member States evenly ensure and implement the acquis in the area of social protection and inclusion, improvement of work environment and work conditions as well as efficiently implement the principles of non-discrimination and gender equality.
IPA 2007
2,245,000
IPA Component IV
4,877,000
Government Office for Human Rights
Community Programme for Employment and Social Solidarity PROGRESS
Community Programme
75,000
Total Social Policy and Employment
11,607,000
689
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
20. Enterprise and Industrial Policy Ministry of Economy, Labour and Entrepreneurship Awareness Raising in Business Community CARDS 2004 1,499,700 The project envisages the following: strengthening of institutional capacity assessment of the impact of 8 EU laws on Croatian enterprises (RIA methodology) information dissemination (campaign modelling) and strengthening of public-private communication EU INFO CENTRE - continuation of activity The project purpose is to provide technical assistance, training and expertise which will ensure that directorates responsible for SME in the Ministry of Economy, Labour and Entrepreneurship and HAMAG (Guarantee Agency) are capable of developing a policy and providing SMEs with support harmonised with EU standards, SME chapters of the acquis and the European SME Charter. Furthermore, the scope of this project will encompass not only the policy development, but also ensure its efficient implementation by concrete measures, and especially by regional support institutions. Project activities refer to 6 specific measures: 1. Improvement of the institutional framework; 2. Improvement of the SME policies and strategies; 3. Improvement of the quality of advisory/ consultancy services; 4. Harmonisation of SME definitions, statistics and analysis; 5. Improvement of the SME regulatory framework; 6. Capacity building in the SME directorates of the Ministry and HAMAG - training and networking. The project encompasses the following activities: drafting of a Guide for Applicants and all the supporting documentation for the Phare 2006 project; training of the PIU/SME Department in implementation of the grant scheme; public awareness; potential beneficiaries training; assistance to the evaluation committee; training of grant managers; post-evaluation workshops; assistance in monitoring of implementation of individual contracts. Activities which will be financed by the grant scheme: Consultancy services necessary for strengthening of competitiveness and export Product testing for obtaining standards in accordance with the requirements of the export market Benchmarking necessary for strengthening of competitiveness and export Marketing and development of advertising strategies for awareness raising about Croatian products Promotion and presentation of products (brochures, campaigns, presentations) Branding, design, packaging of products Training and education of technical staff Informing entrepreneurs, market research, e-commerce (web sites) Matchmaking / B-to-B activities Participation in international fairs and events
Capacity Building of SME Institutions and Harmonisation with Policies and Initiative of the SME Charter and EU Acquis SMEPED Project
PHARE 2005
1,795,125
Support to the Ministry of Economy, Labour and Entrepreneurship in Implementation of SME Pilot Grant Scheme SME Pilot Grant Scheme - Support for Increasing Competitiveness and Export of Croatian SMEs
PHARE 2005 (PPF)
198,750
PHARE 2006
2,000,000
690
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Improvement of Administrative Efficiency on National Level
IPA - Regional Competitiveness Operational Programme 2007 - 2009
1,095,000
The system of support to SMEs in Croatia will be examined through a PHARE 2005 project, the beneficiary of which is the MELE, and in the framework of which recommendations will be made to improve efficiency of measures and their implementation. This operation will make it possible to implement some recommendations, significantly improve policy-making and deal with recommendations from the Strategic Development Framework 2006-2013 regarding SME policy. In order to improve the decision-making process and implementation of decisions, this operation will ensure methodology for measurement and evaluation of impact of SME incentives by establishment a central register for SME measures and incentives. In addition, methodology for systematic assessment of the impact of the recently adopted Act on Investment Incentives and methodology for regular evaluation of development of business environment in Croatia will be ensured. These tools will significantly improve policy-making on the national and regional level. This operation will ensure technical assistance for beneficiaries and prepare analyses, evaluations, methodologies, recommendations and set up the central registers of SME measures and incentives. The aim of this operation is to stimulate capacities for quality advice on e-business, ICT and support services to SMEs. The operation foresees training of staff in selected SME support centres on provision of e-business services to SMEs and procurement of equipment. The approach to setting up referential centres for e-business is in line with the EU guidelines and the best practice in e-business; activities will be carried out in cooperation with relevant local/regional entrepreneurial and educational institutions in order to secure impact and spill-over effect. The aim of this project is to improve business and investment climate in Croatia in order to achieve cohesive regional development, and to raise awareness on investors needs and to improve skills for efficient provision of services. The objective of this project is to improve and increase the support to the development of clusters, which are recognised as a significant tool to increase additional product value and export potential for SMEs. The project will prepare methodology for setting up clusters using top-down approach from the best European practices, which will be tested on three pilot clusters before wider application. For the sake of coherent approach to the development of clusters, Guidelines for Cluster Development in Croatia will be developed, for both approaches: top-down and bottom-up. During the project implementation seminars and targeted workshops will be organised to increase knowledge and skills of the cluster members, cluster managers and public institutions.
E-business Competitiveness Improvement Programme Service Contract
IPA - Regional Competitiveness Operational Programme 2007 - 2009
795,000
Development of Investment Climate
IPA - Regional Competitiveness Operational Programme 2007 - 2009 IPA - Regional Competitiveness Operational Programme 2007 - 2009
1,950,000
Support to Cluster Development
2,250,000
Total Enterprise and Industrial Policy
11,583,575
691
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
21. Trans-European Networks Ministry of Sea, Transport and Infrastructure/ Croatian Railways Restoration of the Railway Track on the Section Vinkovci -Tovarnik - Border Crossing Preparation of a Project Shortlist for Instrument for Pre-Accession (IPA) - Transport Sector ISPA 2005 2006 22,869,160 Replacement of the aging system of rails, along with the signalling system, and the construction of road border crossings in line with EU standards. Total project value amounts to 60,182,962.31 EUR, of which EU finances 38%. So far 6,265,000 EUR have been implemented. The project will concretely provide technical assistance in drafting of the plan for comprehensive modernisation of the railway on the Croatian section of the X TransEuropean Corridor. This task will include preparation of all supporting documents necessary for future application for the EU co-financing, which will be available to Croatia starting from next year. The results of the study under this project will determine, among other things, the selection of the sections for which IPA co-financing will be requested. Replacement of signalling-interlocking and telecommunications equipment in order to improve traffic safety at the Zagreb Main Train Station.
Ministry of Sea, Transport and Infrastructure
ISPA 2006
482,130
Ministry of Sea, Transport and Infrastructure/ Croatian Railways Ministry of Sea, Transport and Infrastructure Ministry of Sea, Transport and Infrastructure
Zagreb Main Train Station Signalling and Interlocking System Reconstruction of the Port of Vukovar New Port East Rehabilitation and Improvement of the Sava River Waterway
IPA - Transport Operational Programme 2007 - 2009 IPA - Transport Operational Programme 2007 - 2009 IPA - Transport Operational Programme 2007 - 2009
14,025,000
1,507,500
Drafting of the project documentation for reconstruction of the Port of Vukovar - New Port East (total planned project value amounts to 2,010,000 EUR, of which EU co-finances 75%). Drafting of the project documentation for reconstruction of the Sava River Waterway (total planned project value amounts to 2,500,000 EUR, of which EU co-finances 75%).
1,875,000
Total Trans-European Networks
40,758,790
22. Regional Policy and Coordination of Structural Instruments Ministry of Sea, Transport and Infrastructure Institution and Capacity Building for Cross-Border Cooperation in Croatia CARDS 2004 1,800,000 Technical Assistance includes and is implemented by means of six activities: assistance to the Joint Technical Secretariat; assistance to the National Info Point; establishment of sustainable management structures for the cross-border cooperation; institution building for the cross-border programmes with Serbia, Montenegro and Bosnia-Herzegovina; support to programming; support to management of grant schemes. The objective of this project is to support the Ministry of Sea, Transportation and Infrastructure to participate in the Adriatic Cross-border Cooperation Programme and create conditions for successful selection and implementation of cross-border cooperation projects in the framework of the PHARE 2006 call for proposals.
Regional CARDS 2004 Project Administrative Support with Implementation of the New Neighbourhood Programme of Adriatic Cross-border Cooperation
CARDS 2004
25,000
692
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Capacity Building for the Management of Regional Development Funds Sustainable Development in Return Areas
CARDS 2004
1,500,000
Institutional framework for regional policy management. Depends on the time schedule of NDP elaboration. Support for the future IPA programme.
CARDS 2004
14,000,000
The project is a continuation of the Sustainable Development in Return Areas projects for the programme years of 2002 and 2003. As such, it has the same objectives of strengthening the sustainability of the return process by means of economic revitalisation, entrepreneurship promotion, creation of new jobs and improvement of social acceptance. The projects objective is also to strengthen partnerships between the public, NGO and private sectors for developing the local economy. The project focuses on selected return areas. In this programme year it will be implemented in the Karlovac and Lika-Senj Counties.
Border Region Cooperation Business Infrastructure Grant Scheme Cross-border Cooperation between Croatia and Italy Cross-border Cooperation between Croatia, Slovenia and Hungary Improvement of development potential of areas lagging behind in the framework of the Regional Competitiveness OP Cross-border Cooperation Programme Croatia-Hungary
CARDS 2004
976,515
Grant scheme supporting Croatian participation in the Neighbourhood Programmes. Activities: demining, administrative capacity building and pilot grant schemes. Development of implementation mechanisms for the economic and social cohesion projects by capacity building for grant scheme management. Grant scheme supporting Croatian participation in the Neighbourhood Programmes. Priorities and measures are linked to the environment protection and enhancement, culture and infrastructure in the cross-border area, and to economic integration of the production systems. Grant scheme supporting Croatian participation in the Neighbourhood Programmes. Priorities and measures are linked to strengthening of economic and social cohesion and capacities, creation of joint economic, tourist and cultural area, environment protection and enhancement in the cross-border area. Support to the regional development by strengthening competitiveness and support to the areas of Croatia lagging behind by means of a grant scheme for business infrastructure projects.
PHARE 2005
5,280,197
Phare 2006 CBC
3,000,000
Phare 2006 CBC
2,029,865
IPA Regional Competitiveness OP 2007-2009
10,957,500
IPA 2007 - 2009
6,418,705
The objective of the Cross-border Programme Hungary Croatia for 2007-2013 is to enable development based on culture and knowledge by successful management of natural and cultural heritage and intensive social and economic interactions on both sides of the border in the Programme area. The main objective of the Operational Programme of the Cross-border Cooperation between Slovenia and Croatia for 2007-2013 is creation of a dynamic cross-border area with intensive interaction between both sides. This should contribute to improvement of sustainable territorial development of the area, which is a basic objective of the European territorial cooperation policy.
Cross-border Cooperation Programme Croatia-Slovenia
IPA 2007 - 2009
7,862,310
693
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Adriatic Cross-border Cooperation Programme
IPA 2007 - 2009
18,088,227
The objective of the Adriatic Cross-border Cooperation Programme is to promote cross-border cooperation in order to facilitate social and economic cohesion, and at the same time improve good neighbourly relationships between countries and regions participating in the Programme. Creation of favourable socio-economic and environmental conditions by improving cooperation in jointly selected sectors of activity and good neighbourly relations in the Programme area.
IPA 2007 Cross-border Cooperation Programme CroatiaMontenegro IPA 2007 Cross-border Cooperation Programme Croatia-Serbia
IPA 2007 - 2009
1,200,000
IPA 2007 - 2009
2,400,000
Promotion of cross-border cooperation in order to diversify and improve regional economy, improve good neighbourly relations between two countries in the programme area, and strengthen capacities of local, regional and national institutions for management of EU programmes and their preparation for management of future cross-border programmes of territorial cooperation. Supporting cross-border cooperation between two neighbouring countries, especially regional economic development, facilitation of good neighbourly relationships between two countries in the Programme area and strengthening of local, regional and state institutions for management of EU programmes and preparation of these institutions for management of future cross-border programmes of territorial cooperation. The objective of the Programme is to promote transnational cooperation in order to enable territorial cooperation and integration, balanced economic development of the countries in the area of South-Eastern Europe which would contribute to the stability in the region. Priorities of the Trans-national MED Programme are strengthening innovation capacity, support to the sustainable development and environment protection, prevention and safety at sea, improvement of mobility and accessibility in the Programme area, i.e. transport capacity building and accessibility of ports and support to polycentric and integrated development of the Programme area. The purpose of the project is to ensure efficient and effective management of the Regional Competitiveness Operational Programme, to develop institutional capacity for efficient and effective management of IPA funds, and thus to increase the capacity of Croatia to efficiently use the Structural Funds after its accession to the EU.
IPA 2007 Cross-border Cooperation Programme Croatia- BosniaHerzegovina
IPA 2007 - 2009
3,000,000
IPA 2007 SEE Trans-national Programme
IPA 2007 - 2009
1,200,000
IPA 2007 Trans-national Mediterranean Programme
IPA 2007 - 2009
159,060
Ministry of Economy Labour and Entrepreneurship
Capacity Building in the Responsible Body for the Regional Competitiveness Operational Programme in the Ministry of Economy, Labour and Entrepreneurship Regarding Preparation and Implementation of the Operational Programme
PHARE 2006 PPF
179,425
694
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Support to Setting-up and Accreditation of the Future Implementing Bodies for the Regional Competitiveness Operational Programme Technical Assistance Regarding Horizontal OP Management Issues
PHARE 2006 PPF
187,160
The purpose of the project is to build administrative capacity in the future OP implementing bodies, to consolidate the system, the process and the capacity to manage EU funds.
IPA - Regional Competitiveness Operational Programme 2007-2009
1,405,000
The purpose of this Technical Assistance regarding horizontal OP management issues is to support and consolidate the systems, processes and skills for EU funds management in the Operating Structure which manages the Regional Competitiveness Operational Programme, i.e. in the units in the Ministry of Economy, Labour and Entrepreneurship, the Ministry of Science, Education and Sports, the Ministry of Regional Development, Forestry and Water Management and the Central Finance and Contracting Agency, and to further develop institutional capacities for IPA programme management and absorption. The purpose of the project is to ensure adequate planning documents for the upcoming programming period, to strengthen the capacity of the RCOP Operating Structure to provide assistance in preparation of sector analytical documents and a pipeline of mature and sustainable projects/schemes. The project will also contribute to development of partner dialogue on the regional and local level. The purpose of the project is to increase capacity and retain staff in the Operating Structure. In order to ensure efficient management of the IPA funds, and avoid repayment of the IPA budget funds it is necessary to employ further staff - experts such as procurement experts, technical specialists, etc. - but also to retain the existing staff, which is a long-term problem in the public administration due to inadequate staff remuneration. The quality management of the EU funds requires qualified and highly motivated workforce, and low rate of fluctuation. Institutional capacity development for management of structural funds, support for programming of SF operational documents and improvement of monitoring system of their implementation. Support to the project preparation and implementation of training.
Development of Sector Studies, Preparation of Future Programming Documents and Project Pipelines Co financing Salaries of Staff in the Operating Structure
690,000
840,000
Central State Office for Development Strategy and Coordination of EU Funds
Institutional Capacity Development and Project Preparation for Structural Funds Management after Accession to the EU
Phare 2006
7,000,000
Total Regional Policy and Coordination of Structural Instruments
90,198,964
695
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
23. Judiciary and Fundamental Rights Ministry of Justice Modernisation of the Administrative Court- Support to a More Efficient, Effective and Modern Operation and Functioning Improving Court and Case Management at the High Misdemeanour Court and Selected Misdemeanour Courts CARDS 2004 999,389 Support to operation and functioning of the Administrative Court by improving efficiency of the implementation of positive regulations and support to the implementation of Courts decisions by other administrative bodies; drafting a new bill on administrative disputes; capacity building of the Administrative Court by improving court and case management. Support to the case management system at the High Misdemeanour Court and selected misdemeanour courts; IT training and training of judges.
CARDS 2004
2,443,989
Support to the Judicial Academy: Development of a Training System for Future Judges and Public Prosecutors Enhancement of Mediation as an Alternative to Courtbased Dispute Settlement Support to Court Administration and Case Management Improvement ICMS Harmonisation and Publication of Case Law Strengthening Capacities of USKOK
PHARE 2005
1,093,000
Amendments to the Court Trainees Act and improvement to the selection system for judges and public prosecutors; development of a strategy for selection and training of future judges and public prosecutors; development of a sustainable trainee training system; access to the legal information for trainees and court advisors. The project objective is to improve dispute settlement in Croatia and harmonisation with the EU practice; development of the court and out-of-court dispute settlement for natural persons and legal entities.
PHARE 2005
1,144,000
PHARE 2006
3,000,000
Management development and improvement; development of an information system, regulatory framework (laws); education and training.
PHARE 2006
1,750,000
Increase in accessibility of the national case law from 50 selected courts (municipal, county and commercial) to all interested parties, Croatian and foreign. Strengthening of the rule of law in Croatia by strengthening the investigation procedure and capacities of the Public Prosecutors Office in the criminal procedures, especially in combating corruption and organised crime. Further strengthening of the Independent Department for Strategic Development in the Ministry of Justice as a body to develop and implement anti-corruption strategy; strengthening of professional ethics in the public and local administration and in the judiciary; improvement of the interagency cooperation by developing a modern information system with a central database and Intranet/ Internet access for all participants; awareness raising about corruption by development and implementation of a public awareness campaign.
IPA 2007
1,252,500
Improving Anti-Corruption Inter-Agency Cooperation
IPA 2007
2,488,000
696
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Introduction of Management Efficiency into Four Biggest Municipal Courts in Croatia Violence Prevention Support (Turopolje Juvenile Correction Institution) Pre-loan for Preparation of Judicial Reform Projects Transition Assistance in Development of the Probation System in Croatia Support to the Croatian Judicial Inspection Support to the Victim Protection System in Croatia Croatian Personal Data Protection Agency Capacity Building of the Croatian Personal Data Protection Agency
CARDS 2004
376,500
Strengthening of management efficiency in the four biggest municipal courts.
UNDP
20,960
Decrease in frequency and intensity of violence in the Turopolje Juvenile Correction Institution by 50%.
World Bank + grant of the Kingdom of the Netherlands Bilateral project with the UK
680,000
Activities linked to preparation of the JRP projects defining activities, assessment of necessary resources and capacity building in the Ministry of Justice Expert assistance for the Croatian Ministry of Justice in the pilot phase of setting up the probation service
200,000
Bilateral project with the UK UNDP
52,000
Assistance to the Croatian judicial inspectorate in establishing management processes and drafting analysis on introduction of court managers in Croatian courts. Strengthening of the criminal law system in Croatia by supporting witnesses and victims in criminal procedures.
796,150
IPA 2007
1,897,500
Total Judiciary and Fundamental Rights
18,193,988
697
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
24. Justice, Freedom and Security Ministry of the Interior Capacity Building in the Areas of Human Resources Management, Education and Training PHARE 2006 Development of Readiness to Implement SIS II Blue Border Surveillance PHARE 2006 Preparation for the Establishment of the SIRENE Office PHARE 2005 1,700,000 Capacity building of Human Resources Management within the Ministry of the Interior, improvement of the education and training systems and enhancing the overall efficiency of personnel
Phare 2006
520,000
Creation of preconditions for data exchange between Croatian authorised bodies, including the Ministry of Interior, with SIS II system after Croatia becomes an EU Member State. Preparation of the border police for the efficient surveillance of the maritime border Creation of preconditions for establishment of the SIRENE Office (Supplementary Information Request at the National Entries)
Phare 2006 Phare 2006
1,010,000 130,000
Reform of Asylum Policy II PHARE 2006 Development of Readiness to Maintain the NBMIS Application in Operational Conditions PHARE 2006 Support to Establishment and Development of the Croatian Visa Information System and Preparation for Integration into the EU VIS
CARDS 2004
1,200,000
Further aligning of the Croatian asylum and illegal migration legislation with the acquis, and its subsequent implementation Determining expertise of the MI experts for the JAVA programming language, implementation of training, transfer of skills and mentoring for the JAVA programming language
Phare 2006
85,500
Phare 2006
160,000
Organisational and technical assessment of the Croatian Visa Information System in view of the future integration into the EU VIS and analysis of concordance of the Croatian VIS with the EU acquis in this area.
National Border Management Information System (NBMIS) Phase III Combating Drugs Trafficking and Abuse Blue Border Surveillance Phase II Preparation for the Implementation of the Schengen Acquis
IPA 2007
4,400,000
Further development and extension of the unique information system for border surveillance.
IPA 2007
1,900,000
Capacity building in the Criminal Police Directorate and the Crime Investigation Centre in prevention of drugs smuggling and use and capacity building in sample investigation. Creation of technical preconditions, preparation and capacity building of the Border Police for efficient surveillance of the maritime state border. Training the border police for the adoption of measures for the implementation of the acquis
IPA 2008
4,600,000
PHARE 2005
3,300,000
Total Justice, Freedom and Security
19,005,500
698
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
25. Science and Research Ministry of Science, Education and Sports, Zagreb Brodarski Institute, R. Bokovi Institute - Zagreb, BICRO Croatian Business Innovation Centre, Zagreb Ministry of Science, Education and Sports Technology Development Project Loan by the International Bank for Reconstruction and Development (World Bank) 31,000,000 The projects consists of three priorities: 1) restructuring of the science and research institutions 2) financing of the technological development by institutional strengthening of the Croatian Business Innovation Centre (BICRO) 3) Unity through Knowledge Fund which will promote cooperation with Croatian scientists living abroad.
Capacity Building in Institutions Dealing with Technology Transfer Aiming at Promotion of Research Commercialisation Science and Innovation Investment Fund in the Framework of the Regional Competitiveness OP (Priority Axis 2. Enhancing the Competitiveness of the Croatian Economy, Measure 2.2. Technology Transfer and Support Services for Knowledge Based Start-ups) FP7 (Seventh Framework Programme) 2007-2013
PHARE 2006 PPF
191,550
Support to emerging activities in the area of technology transfer in Croatia. Activities refer to provision of assistance through continuous training of persons (professionally) dealing with technology transfer.
Ministry of Science, Education and Sports
750,000
Development of entrepreneurial skills and skills for management of intellectual property rights, providing support for commercialisation of research activities and development in the public sector and further development of technology transfer in the higher education institutions and public research organisations. The operation will be implemented through a procurement contract (implementation will start in 2009) and a grant scheme (implementation will start in 2010).
IPA
49,400,000
Main instrument in the EU for financing scientific research and technological development 2007-2013 and further development of the European Research Area, an important element in implementation of the Lisbon Strategy for growth and competitiveness, economic development and knowledge society in Europe.
Total Science and Research
81,341,550
699
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
26. Education and Culture Ministry of Culture Culture 20072013 Co-financing of national contribution from Phare/IPA programmes (for period 20072010) PHARE 2005 425,000 European Union programme intended for cultural projects. The Croatian Parliament has ratified the Memorandum of Understanding between European Community and the Republic of Croatia on Participation of the Republic of Croatia in the Culture 2007-2013 Programme on 15 June 2007 (Official GazetteInternational Agreements 7/07). Improve quality control and high standards in the education system in accordance with the goals set in the Development Plan for Education Sector (2005-2010). Introduce European supervision standards aiming at establishing external evaluation and self-evaluation within national education system. Strengthen the framework for efficient development and implementation of the adult education strategy with emphasis on establishment of a database, support to the institutional development and development of skills among staff, and financing mechanisms. Enable modernisation of programmes and lecturers with emphasis on the basic skills development programme for adults with low qualifications. Increase social awareness about importance of adult education in order to secure higher percentage of participants in adult education programmes in the long term.
Ministry of Science, Education and Sports, Education and Teacher Training Agency Ministry of Science, Education and Sports, Agency for Adult Education
Integrative Supervision in the Education and Teacher Training Agency Adult Education
167,890
CARDS 2004
1,486,490
Ministry of Science, Education and Sports, Ministry of Family, War Veterans and Intergenerational Solidarity and Agency for Mobility and EU Programmes
Preparatory Measures for Participation in the Lifelong Learning Programme and the Youth in Action Programme
IPA 2007
857,775
Improvement and control of efficiency during preparation of Croatia for participation in the Community Programmes: the Lifelong Learning Programme (MSES competency) and the Youth in Action Programme (MFWVIS competency) The project is implemented in 3 phases: preparation of the Agency as the National Agency which will manage the said programmes (capacity building), information campaign for potential beneficiaries (translation and publication of main documents, publication of brochures, seminars) and participation in pilot activities of individual mobility in 2009. Promotion of the reform of higher education institutions with the aim of improving the quality and management of the academic system in accordance with EU criteria The project consists of four priorities: 1) Creation of Schools of Knowledge; 2) Improvement in monitoring and evaluation in education; 3) Strengthening of management in education; 4) Support to regional development and innovation.
Ministry of Science, Education and Sports Ministry of Science, Education and Sports
TEMPUS IV
IPA
3,000,000
Education Sector Development Project
Loan by the International Bank for Reconstruction and Development (World Bank) IPA IV
67,800,000
Inclusion of Pupils with Disabilities in Vocational Education
1,994,200
The project consists of two contracts: a service contract and a grant contract. It is intended for support, designing and implementation of educational programmes for children with disabilities as well as capacity building for employers to accept and educate such children in the framework of practical classes.
700
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Further Development of the Croatian Qualifications Framework
IPA IV
1,317,500
The project objective is to redefine existing programmes of acquiring qualifications, and to draft guidelines for their implementation. The legal framework will be analysed and amendments to existing legislation drafted. A train-the-trainer programme (for members of the operating team on the national level and members of the working groups) will be developed in order to be able to further inform wider public on the importance of the Croatian Qualifications Framework for the educational system and the economy in Croatia. The project is intended to provide expert support, strengthen institutional capacity and comprehensive training of the Agency staff (in the areas of planning, management and quality assurance).
Agency for Vocational Education and Training
Comprehensive Strengthening of Capacities in the Agency for Vocational Education and Training (AVET) Implementation of New Curricula
IPA IV
1,275,000
IPA IV
4,335,000
The project consists of two contracts: a service contract and a grant contract. Its objective is to introduce new curricula and an approach which will promote innovative culture in secondary schools in line with the needs of the labour market and to develop professional capacities in the vocational system. The project is intended to contribute to quality design and application of projects to be financed from an IPA grant scheme, and in the future from the Structural Funds (ESF - European Social Fond). The project objective is to develop educational institutions and educational policy, self-assessment of schools on the micro level (vocational schools), to further improve the VET information system (VETIS), and to ensure systematic exchange of information on quality assurance in the vocational education and training. The project objective is to further improve the role of the sector councils and methodology for development of qualifications/curriculum frameworks. The project will strengthen capacities of key participants/key stakeholders and will implement activities linked to further work on the chosen groups of occupations.
Development of Quality Assurance in the Vocational Education and Training Strengthening of Institutional Framework for Development of Occupational Standards/ Qualifications and Curricula in Vocational Education Comprehensive Strengthening of the Agency for Adult Education
IPA IV
1,479,000
IPA IV
1,593,500
Agency for Adult Education
IPA IV
1,700,000
The project objective is to improve specific elements of general institutional strengthening and to improve the role of the Agency in comprehensive staff training aiming at development and modernisation of the adult education system in Croatia in order to facilitate adaptation to the structural changes in economy and harmonisation with the EU acquis in relevant areas. The project consists of two contracts: a service contract and a grant contract. Its objective is to strengthen the institutional framework of adult education institutions by means of programmes for entrepreneurial and other basic skills, to strengthen capacity of selected institutions, to procure equipment for institutions in selected counties and in the areas of the special state concern. The project will provide staff training on project application in the framework of the grant contract and on project management.
Agency for Adult Education
Regional Network of Local Educational Institutions
IPA IV
4,250,000
Total Education and Culture
91,681,355
701
Beneficiary
27. Environment Croatian Environment Agency
Project Title
Programme Title
Total Value in 1
Activities
Strengthening of the European Environmental Information and Observation Network (EIONET) in the Western Balkan Countries Development of the Croatian Soil Monitoring Programme with a Pilot Project Integration of Water-related Tables and Concepts into a Croatian Reporting Structure of the National Environment Information System, CROW Computing and Mapping of Critical Loads of Air Pollution on Selected Locations of Surface Waters in Croatia (SIDA) Upgrading of the Cadastre of Emissions into Environment Knowledge of Ecological Networks (KEN) - involving stakeholders in practical implementation of the ecological networks Conservation of the Long-fingered Bat, Myotis capaccinii, for the Conservation of Karstic Habitat in Croatia
Regional CARDS (Croatia, BiH, Serbia, Monte Negro, Macedonia, Albania)
2,000,000
Development of a system aiming at fulfilment of the obligations regarding environmental reporting in line with the requirements of the European Environmental Agency (EEA) and various international conventions.
LIFE III - Third Countries
800,000
Development of the Soil Monitoring Programme, as a foundation for a harmonised process of gathering information on soil conditions. The project finishes in March 2009. Updating overview of regulations with analysis of the existing Croatian reporting obligations regarding continental waters quality; drafting of a reporting manual; drafting of reporting tables and supporting IT application. The project finishes in March 2009.
Bilateral Cooperation - Belgium (Flanders)
144,000
Bilateral Cooperation - Sweden 20062008
148,345
Sampling on 3 pilot areas for monitoring and computation of critical loads of air pollution on surface waters; gathering and preparation of data for national and international data bases; assessment of critical pollution. The project if finished.
Bilateral Cooperation the Netherlands (G2G short) Ministry of Agriculture of the Netherlands; European Nature Protection Centre
94,108
Review of the draft Rule Book on the Cadastre of Emissions in Environment; assistance in drafting operating instructions for work with the Cadastre; training of the staff of the Croatian Environment Agency (train the trainers). The project is finished. Promotion of practical cooperation and development of joint positions within and among stakeholders involved in practical implementation of the ecological networks, including organisations and various sectors.
10,350
Whitley Fund
34,000
Continuation of the research into spread and ecology of the long-fingered bat in Croatia, and evaluation of quality of its habitat. A series of activities linked to monitoring of situation, cooperation with various interest groups, education and awareness raising has also been foreseen.
State Institute for Nature Protection
Development of environmental network along the Sava River Implementation of NATURA 2000 in Croatia
LIFE III, Swiss Development and Cooperation Agency PHARE 2005
60,000
The project provides support regarding biodiversity data, identification of insufficiently researched sections, development of ecological network, professional training regarding Birds and Habitats Directives, management of the environmentally significant areas. Main project activities are the following: administrative capacity building, drafting of a NATURA 2000 programme and establishment of a Nature Protection Information System
1,611,750
702
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Ministry of Culture/State Institute for Nature Protection
WWF Dinaric Arc EcoRegion Project
Dinaric Arc Initiative includes the Dinaric Mountains in the territory of Slovenia, Croatia, Bosnia and Herzegovina, Montenegro and Albania FFEM (Funds Franais pour Environnement Mondial) and other private and international foundations
4,000
The project objective is to create favourable conditions for implementation of the Biodiversity Convention Programme concerning protected areas in the Dinaric Arc countries. Basic data will be collected, knowledge of the region will be developed, and engagement and capacities of authorities in the said areas will be increased.
FFEM Project - Strategic Partnership for the Mediterranean Sea Large Marine Ecosystem pilot project for Croatian maritime protected areas (MedPan) WWPMedPO, RAC/SPA Ministry of Culture Establishment of the system for managing protected areas and areas of the ecological network, establishment of the Nature Protection Information System in Croatia (PAMS III) Capacity building of the county public institutions in charge of management of protected natural heritage in view of harmonisation with the EU acquis Ministry of Regional Development, Forestry and Water Management Capacity Building and Guidelines Development for the Implementation of the EU Water Framework Directive Pilot Plan for Management of the Sava River Catchment Area
641,050
Increase in efficient protection of biodiversity in valuable coastal and maritime areas by establishment of a coordinated network of protected maritime areas and drafting of management plans for the following maritime parks: the Kornati National Park, the Mljet National Park, the Brijuni National Park, the Telaica Nature Park and the Lastovo Nature Park.
Bilateral cooperation with the Kingdom of Norway
123,000
Main project activities are production of spatial data and establishment of a GIS server for data from the Nature Protection Information System (including the data in the National Ecological Network) for the purpose of data exchange, which will facilitate management of protected nature sites managed by the county public institutions. The project is implemented in cooperation with the Norwegian Cadastre Directorate.
Bilateral cooperation between the Kingdom of Sweden and Croatia
150,000
The main project objective is to increase the level of competence in county public institutions in charge of management of ecological network areas. Target groups are county bodies coordinating activities in the area of nature protection, agriculture, forestry, water management, hunting, and tourism, and regional NGOs involved in nature protection.
CARDS 2004
1,200,000
Implementation of the EU Water Framework Directive in the Republic of Croatia. The project started in September 2007 and will continue until June 2009. It is implemented as a twinning project in cooperation with German and Dutch partners.
Regional CARDS 2003
2,300,000
Capacity building for preparation of integral plan for management of the Sava river catchment area; testing of guides for implementation of WFD produced on the level of EU on the pilot areas (in Croatia it is the Sava river catchment area); support to the capacity building of the Commission for the Sava River Catchment Area in the activities referring to water management. The project was successfully finished in January 2008.
703
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Project pipeline for the Instrument for Pre-Accession (IPA) in the Environment Sector
ISPA 2006
853,135
Project refers to the preparation of the tender documentation for water supply projects in Koprivnica-Krievci and Bjelovar-Bilogora Counties, and project documentation for wastewater disposal projects for the towns of akovo and Nova Gradika, all in accordance with the EU directives and regulations. The implementation of a contract for drafting of project documentation for the water supply project started on 26 September 2008. The contract for drafting project documentation for the wastewater disposal project was signed on 15 September 2008, and the start of its implementation is expected in the first half of October 2008. Preparation of project proposals to be nominated for financing in the framework of the new Instrument for Pre-Accession Assistance - IPA, regarding drafting/reviewing of the tender documentation for contracts of the following three projects: Mariina in the PrimorjeGorski Kotar County, Katijun in the Istria County and Leevica in the Split-Dalmatia County. This fulfils preconditions for implementation of the objectives set in the IPA Environment Protection Operational Programme, as a framework for utilisation of IPA funds, and at the same time fulfils the objectives set in the Waste Management Plan of the Republic of Croatia. In May 2008 a preliminary approval was obtained. A shortlist is being drafted at the moment and tenders collected. After the selection, a contract will be concluded with the best bidder and implementation of the project will commence (towards the end of 2008). The primary objective of the project is protection and increase in quality of water in the wider Karlovac region, and safe potable water supply in accordance with the EU standards. The total investment amounts to 36.000.000 EUR, out of which ISPA financing amounts to 22.500.000 EUR; and national co-financing amounts to 13.500.000 EUR (MRRFWM 3.500.000 EUR, EBRD LOAN 10.000.000 EUR) The project is implemented through 6 contracts: 1. Service contract for professional assistance with preparation of tender documentation for works contracts; 2. Service contract for supervising engineer; 3. Supply contract for technical support equipment (equipment for leaks detection, network modelling and purchase of software); 4. Supply contract for equipment for maintenance of the sewerage system; 5. Works contract for reconstruction of the water and sewerage system; 6. Works contract for construction of the waste water treatment plant. Construction of a new regional waste management centre according to the EU standards, which will border the existing Bikarac waste disposal site, and its transformation into a regional waste disposal site for the ibenik-Knin County (with simultaneous restoration and closing of the existing waste disposal site); implementation of a pilot project of waste sorting and recycling in the Town of ibenik, and restoration and closing of the Pirovac waste disposal site. The Towns waste disposal company will also be provided with technical assistance in the implementation of the project. Beginning of project implementation is expected in the first half of 2009.
Ministry of Environmental Protection, Physical Planning and Construction
498,033
Ministry of Regional Development, Forestry and Water Management/ Karlovac Municipal Service for Water Management and Sewerage
Water and Waste Water Programme in Karlovac
ISPA 2005
22,500,000
Ministry of the Environmental Protection, Physical Planning and Construction and ibenik Waste Disposal Company
Bikarac Regional Waste Management Centre
ISPA 2006
6,000,049
704
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Ministry of Environmental Protection, Physical Planning and Construction
PHARE Horizontal programme for Environment Protection and Enlargement for the Acceding and Candidate Countries (Croatia, Bulgaria, Romania and Turkey) Capacity Building for Implementation and Law Enforcement in Environment Protection through ECENA and IMPEL Network (Bulgaria, Croatia, Romania and Turkey) Support to the Approximation of Croatian Legislation to the Acquis in the Field of Environmental Protection
PHARE Horizontal Programme (the amount refers to all four countries and all three projects)
3,600,000
Project activities are the following: capacity building for implementation and enforcement of the Environmental Acquis through the ECENA and IMPEL Networks; institution building of environmental administrative bodies by means of best practice transfer and training as support to efficient utilisation of financial sources; capacity building for the implementation of the environmental acquis on the local and regional level.
PHARE 2006 Horizontal Programme (the amount refers to all four countries and all three projects)
600,000
Capacity building of environmental inspectors and decision-makers in the candidate countries in implementation of the environmental regulations, and their continuous participation in the activities of the IMPEL and ECENA network.
CARDS 2004
1,924,720
The project objective is to strengthen relevant bodies, primarily MEPPPC, and companies to implement the requirements set by the Directive 1996/61/EC on integrated pollution prevention and control (IPPC), to develop national action plan and system of trading in greenhouse gases and to establish a greenhouse gases emissions register in accordance with the obligations of the Kyoto Protocol, and to increase national absorption capacity regarding investment projects in the area of environment protection in the framework of the IPA financing of waste management. Adjustments of the Environmental Protection Inspection necessary for improvements to the structure, equipment, professional training and specific specialisations, as well as reports on and co-operation with relevant institutions for the implementation of provisions prescribed by existing and future legal acts in the area of environmental protection aligned with EU legislation, and particularly provisions of the IPPC and Seveso II directives and RMCEI recommendation. Establishing and equipping of 12 air quality monitoring stations; Chemical laboratory upgrading and equipment; Development and implementation of measurement protocols, transmission, acquisition, quality assurance and quality control systems for air quality data; Development and implementation of a system for data collection, transmission and acquisition, development of a database and tools; Improved quality and frequency of information on the air quality; Training and workshops on users of air quality monitoring data/information. The final contracting date is 30 November 2008, and final implementation date according to the Financing Agreement is 30 November 2010.
Adjustments of the Environmental Protection Inspection Necessary for the Implementation of the New Legislation Establishment of Air Quality Monitoring and Management System
PHARE 2005
2,060,000
PHARE 2006
2,387,000
705
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Development of the Hazardous Waste Management System Including Identification and Management of the Hot Spot Sites in Croatia Support to the Implementation of Requirements from the EU Directive 2001/81/EC on the National Emissions Ceilings for Certain Atmospheric Pollutants Technical Assistance to Croatia in Implementation of the Kyoto Protocol: Emission Trade and Other Cost Efficient Measures of Reduction in Emissions Establishment of the National Halon Bank
PHARE 2006
2,425,000
The objective is to establish a hazardous waste management system in line with the Waste Management Strategy, regarding identification, categorisation and further management of the hot spots as well as capacity building of the relevant state and local administration bodies to apply and enforce the acquis communautaire in the area of waste management.
Cooperation Programme between Flanders and Croatia
172,581
The project finished on 31 July 2008. The project produced projections of pollutant emissions (SO2, NOx, HOS and NH3) for the period 2010-2020 and proposed scenarios for emission reduction. After the project has finished, the transposition of the directive into the national legislation is expected by the end of 2008.
European Commission
135,000
Identification of a cost efficient policy and measures for fulfilling Croatian obligations according to the Kyoto Protocol. Defining cost efficient measures for reduction in emissions in the sectors of energy, industry, transport, construction and services. This project provides assistance to the Republic of Croatia for implementation of measures in priority areas utilisation of solar energy and energy efficiency in housing which have not been significantly encompassed so far (2007-2008).
Multilateral Fund for the Implementation of the Montreal Protocol Multilateral Fund for the Implementation of the Montreal Protocol
51,391
Establishment of a halon management system in the Republic of Croatia. The establishment of the national halon bank will enable halon collection and disposal in Croatia, and simultaneously it will ensure sufficient halon quantities for critical utilisation after complete abolishment of halon consumption (2003-2008). Enable a timely, sustainable and economically justifiable abolition of CFC consumption by implementing a set of interrelated measures which include: support to the improvement of technical conditions for the training of refrigeration and climate control device technicians, setting up of a network of refrigerating substances consumption, passing of relevant legislation, and drafting of a Code of Best Practice. Identification of big chillers of the centrifugal type using CFC in Croatia and informing final beneficiaries of the said chillers about the possibility of utilisation of other substances and chillier replacement, financing of the chillier replacement in selected companies. (1997-2008) Monitoring the consumption of substances that deplete the ozone layer, raising public awareness about ozone layer protection, coordination of projects aimed at the abolition of the consumption of substances that deplete the ozone layer. The request for a 2-year follow-up project (2009-2011) was submitted. The approval by the Multilateral Fund of the Montreal Protocol is pending.
Complete Abolition of CFC (Freon) Consumption in the Republic of Croatia
325,224
Pilot Project of Chillier Replacement
Multilateral Fund for the Implementation of the Montreal Protocol Multilateral Fund for the Implementation of the Montreal Protocol
282,375
Building Institutional Capacity Aimed at the Implementation of the Montreal Protocol in the Republic of Croatia
365,269
706
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Plan of Full Abolition of HCFC (Freon) Consumption in the Republic of Croatia
Multilateral Fund for the Implementation of the Montreal Protocol
105,000
Collecting data on the HCFC quantities installed in refrigerator and air-conditioning devices and on consumption in the foam production sector. Drafting of a study and organising workshops for service shops, companies producing foam, importers, exporters and distributors of the said substances and final beneficiaries. Public awareness raising regarding abolition of HCFC consumption and possibilities for utilisation of substitutes which do not pollute the ozone layer and do not have a negative effect on the climate change. The project will commence in 2008. Total project value: Protection of Water Pollution in the Coastal Area, item C1: Strengthening of Coastal Water Monitoring Network is 5,000,000 1, out of which the IBRD Loan No. 7226/HR amounts to 2,500,000 1, and the remaining 2,500,000 1 are financed from the State Budget. 4,000,000 1 were allocated for consultancy services, of which 2,000,000 1 were financed from the IBRD Loan No. 7226/RH, and the remaining 2,000,000 from the State Budget. 1,000,000 1 is allocated for procurement of equipment necessary for monitoring, of which 500,000 1 is allocated in the IBRD Loan No. 7226/RH and the remaining 500,000 1 in the State Budget. The project purpose is to develop a system for the safe management of dangerous chemicals which is fully harmonised with the EU acquis, including development of administrative and institutional capacity for efficient protection of human health and the environment from dangerous chemicals at the central and local levels. The project will be implemented through two components: 1) a twinning component - focusing on assistance in establishment of a competent body for safe management of chemicals and control of major incidents, and building of adequate institutional capacity; 2) a technical assistance component - which will ensure systematic development of human resources by means of targeted staff training and adequate IT support. Construction of a new regional waste management centre according to the EU standards, which will border the existing Bikarac waste disposal site, and its transformation into a regional waste disposal site for the ibenik-Knin County (with simultaneous restoration and closing of the existing waste disposal site); implementation of a pilot project of waste sorting and recycling in the Town of ibenik, and restoration and closing of the Pirovac waste disposal site. The Towns waste disposal company will also be provided with technical assistance in the implementation of the project. Beginning of project implementation is expected in the first half of 2009.
Protection against Pollution in the Coastal Area Project - IBRD 7226/ HR , item C1: Strengthening of Coastal Water Monitoring Network
Loan Contract between the Republic of Croatia and International Bank for Reconstruction and Development
5,000,000
Chemical Safety - Strengthening of Legal and Institutional Framework for Protection against Dangerous Chemicals
IPA 2007 Component I
1,750,000
Ministry of the Environmental Protection, Physical Planning and Construction and ibenik Waste Disposal Company
Bikarac Regional Waste Management Centre
ISPA 2006
6,000,049
Total Environment
66,355,428
707
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
28. Health and Consumer Protection Ministry of the Economy, Labour and Entrepreneurship Further Capacity Building in the Area of Consumer Protection CARDS 2004 1,250,000 Project activities are the following: Analysis of differences, determining harmonisation priorities, preparation/ review/ amendments to the draft bill Development of a market supervision system and system for rapid data exchange (RAPEX) Training needs analysis, study visit Review of the national information system network, joining regional offices in a national information system and IT training for staff employed in the national information system network Public relations campaign and training Consulting NGOs on effective institutional/administrative structures. Capacity building in the Croatian Institute for Occupational Health as a source of reliable information, for industrial medicine services and physicians, and support to the occupational health services in improvement to the quality of implementation of programmes promoting health, as well as standards and procedures in the safety at work. Objectives: 1. Strengthening Croatian Institute for Occupational Health aiming at provision of quality occupational health services in accordance with EU regulations and recommendations. 2. Croatian Institute for Occupational Health has developed an internet portal intended for occupational health services aiming at ensuring continuous and efficient flow of information for occupational health staff. 3. Physicians and other occupational health services are informed about: EU directives and guidelines, new safety and health regulations, important topics in the area of professional medicine, good practices in professional medicine in accordance with the EU recommendations.
Participation of the Republic of Croatia in the Community Programmes in the Area of Public Health
IPA
108,000
Total Health and Consumer Protection
1,358,000
708
ANNEX B
Beneficiary
29. Customs Union Ministry of Finance - Customs Administration
Project Title
Programme Title
Total Value in 1
Activities
Interoperability of IT Systems with the EU Customs Systems Integration of the Croatian Customs Information Systems with the EU Customs Information Systems Customs Laboratory Development
Phare 2005
7,075,000
The project provides support in establishing interoperability of Croatian customs system with the EU customs system. The project provides support in achieving complete compatibility and connectivity of the Croatian Customs Administration information system with the EU IT system on the operational level; and establishing electronic supervision and controls of the movement of goods in line with requirements necessary for full EU membership. The project provides support for procurement of equipment for customs laboratory in accordance with the EU standards and for implementation of the twinning project aiming at administrative and operational capacity building of the customs laboratory. The project provides support with the procurement of equipment for mobile units of the Customs Administration aiming at combating smuggling.
Phare 2006
5,275,000
IPA 2007
2,275,000
Procurement of Equipment for Mobile Antismuggling Units of the Customs Administration
IPA 2007
3,450,000
Total Customs Union
18,075,000
30. External Relations Ministry of Foreign Affairs and European Integration Support to National Capacities for Development Co-operation in Croatia UNDP 100 000 USD The project provides support in drafting of national strategy for development cooperation, organisation of a round table, i.e. discussion on the draft strategy, public opinion polls regarding development cooperation and a public awareness campaign.
Total External Relations
100 000 USD
32. Financial Control Ministry of Finance Support to the Independent Internal Audit Department in the Ministry of Finance Regarding Internal Audit of EU Funds Development of Internal Financial Control System in the State Treasury MATRA-FLEX 2008 100,000 Project activities refer to establishment of a coherent audit framework for the IPA system (and possibly for the Structural and Cohesion Funds) which includes: further development of methodology and standards for internal audits of the EU funds, drafting of risk assessment and audit plans, and further training of internal auditors. The framework should be applicable to the entire IPA structure and take into account specificities of all components and external auditors recommendations. Project activities refer to description of business processes and procedures in the State Treasury, identification of risks and designing of steps for their elimination, including staff training in the area of financial management and controls.
Phare 2006 - PPF
230,000
Total Financial Control
330,000
709
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
33. Financial and Budgetary Provisions Ministry of Finance Improving Budgetary Procedures for the Purpose of Effective Financial Management Phare 2006 3,071,250 Project activities refer to: Modernisation of the budget processes; Integration of the FMIS State Treasury system and the information systems of the budget users; Establishment of the Master Data Management solution; and training of relevant staff of the MoF and line ministries in the area of budget management.
Total Financial and Budgetary Provisions
3,071,250
35. Other Issues State Geodetic Directorate and Ministry of Justice Development and Implementation of the Land Cadastre and Land Register Business Plan in the Republic of Croatia MATRA 120,000 Development of the new Land Cadastre and Land Register record-keeping framework with the purpose of securing property and its transactions in the Joint Information System. This objective can be reached under the condition that the registers in Croatia are accurate, reliable and updated. The New Framework described in the business plan must enable achievement of these objectives. 1. Analysis of the actual state of the Land Cadastre and Land Register. Detecting obstructions and providing recommendations. 2. Development of a business plan for the Land Cadastre and Land Register. 3. Analysis and recommendations for JIS management system. 4. Analysis and recommendations for system hosting. 5. Analysis of impact of JIS on Croatian economy. Further support to the reform of the cadastre system with emphasis on capacity building in the State Geodetic Directorate and Croatian Geodetic Institute in their activities necessary for establishment of Land Parcel Identification System for the needs of Ministry of Agriculture and further support to the Croatian Geodetic Institute in establishment of GIS for geographic names. The third phase of cooperation is dealing with development of an efficient cadastre system in the Republic of Croatia. The project consists of 5 components: 1) support to the project of systematisation of land registry and cadastre; 2) Ilok pilot project introduction of a new type of cadastre office which only provides services to the clients; 3) Zadar pilot project registration of buildings; 4) development of communal information system for the needs of local authorities; 5) drafting of a study on real-estate appraisal.
State Geodetic Directorate and Croatian Geodetic Institute
CroatianNorwegian Geo-information Project - Phase V Support to LIPIS Establishment Technical cooperation project between FR Germany and Republic of Croatia on Development of a Cadastre System in Croatia.
Technical Assistance of the Kingdom of Norway in 2007 - Statens kartverk Technical Assistance of FR Germany for 2006 - GTZ
648,060
State Geodetic Directorate
500,000
Total Other Issues
1,268,060
710
ANNEX B
Beneficiary
Economic Criteria State Geodetic Directorate
Project Title
Programme Title
Total Value in 1
Activities
Establishment of the Spatial Data Management System Modernisation of Land Register Administration in 324 Municipalities in Slavonia Support to the Land Cadastre and Land Registry Reform Phase 2
PHARE 2006
192,650
Establishment of a transparent system for utilisation of spatial data of the State Geodetic Directorate as support to archiving and distribution to final beneficiaries. Support for the process of modernisation and harmonisation of the Land Register administration in the Republic of Croatia, with the purpose of improving efficiency, as well as harmonisation of Land Register administration in 324 municipalities in Slavonia. Further support for the reform of the land and property system referring to: Further development of a multipurpose spatial IT system (internet functionalities); Development of digital orto photo maps and digitalisation of cadastre registers; Further strengthening of the legal and technical capacity of the institutions involved in the project; Providing information to the public. Implementation of contracted activities is continuing and a new cycle of education and training, second phase of geoportal, development of orto photo maps and vectorisation of cadastre registers are being contracted. Project refers to development of real estate registration; development of a cadastre system, inter-institution support and information technology; project management, training and monitoring.
State Geodetic Directorate
PHARE 2005
5,165,000
State Geodetic Directorate and Ministry of Justice
CARDS 2004
4,420,000
State Geodetic Directorate and Ministry of Justice
Land Cadastre and Land Register Systematisation Project
World Bank
26,000,000
Total Economic Criteria
35,777,650
711
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Administrative Capacity Building and Strengthening National Foundation for Development of Civil Society Regional Development and Capacity Building in the Civil Society Organisations Zadar European Centre for Crosssector Partnership Ministry of Finance, Central Office for Development Strategy and Coordination of EU Funds (CODEF) Ministry of Finance, Central Office for Development Strategy and Coordination of EU Funds (CODEF) Central Office for Development Strategy and Coordination of EU Funds (CODEF) Technical Assistance to the CFCU and the National ISPA Coordinator Charles Stewart Mott Foundation 75,000 Support to establishment of local community foundations which will promote cross-sector cooperation, provision of services by civil society organisations and sustainable development.
UNDP- Resident Representative Office in Croatia ISPA 2006
50,000
Continuation of the project of the European Centre for Cross-sector Partnership as a centre of excellence for training of staff from business, public and non-profit sector for the countries of South-Eastern Europe. Assistance to the CFCU in preparation and control of the tender and contract documentation and procedures, as well as the management and monitoring procedures. Assistance to the National ISPA Coordinator in implementation of the publicity measures.
262,335
Support to the Supervision of Decentralised Projects Implementation (Administrative Capacity Building Project) Non-allocated Amount for Administrative Capacity Building Support to Administrative Capacity Building and Project Preparation Facility Non-allocated Amount for Administrative Capacity Building Technical Assistance Facility
CARDS 2004
1,500,000
Support to the public administration bodies in charge of implementation of the Decentralised Implementation System (DIS) - capacity building for the National Fund, the Central Finance and Contracting Unit and the National EU Aid Coordinator
PHARE 2005
1,600,000
Support to the administrative capacity building of the institutions in order to meet requirements related to specific immediate and unpredicted needs identified during the negotiations process. Support to the programming, coordination and implementation of the projects in Croatia with the objective of accelerating the harmonisation of the legislation with the acquis.
PHARE 2005
4,915,000
Phare 2006
2,628,750
Support to the administrative capacity building of the institutions in order to meet requirements related to specific immediate and unpredicted needs identified during the negotiations process. Technical Assistance Facility provides support in preparation of suitable programmes and projects for the IPA programme. It will contribute to strengthening of institutional capacity for management of pre-accession assistance and management of EU Structural Funds. Providing flexible technical assistance to the public administration bodies by means of projects (twinning, twinning light, technical assistance) resulting from accession negotiations and preparation of projects for implementation of IPA programme, as well as strengthening of institutional capacity for management of IPA programme.
IPA 2007
4,000,000
Project Preparation Facility and Strengthening of Administrative Capacity
IPA 2008
3,392,000
712
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Public Administration Bodies
Scholarships for Post-graduate European Studies Administrative Capacity Building for the Members of the Negotiating Team Administrative Capacity Building for the Members of the Negotiating Team
Bilateral Technical Assistance Great Britain Bilateral Technical Assistance Luxembourg Bilateral Technical Assistance Norway Bilateral Technical Assistance Germany Bilateral Technical Assistance Belgium Bilateral Technical Assistance France Bilateral Technical Assistance Ireland
192,000
10 scholarship holders at the University of Sussex in the academic year 2008/09
20,000
Seminars taking place in Croatia on various topics linked to the process of Croatian legislation harmonisation with the EC acquis; specialised seminars taking place in Maastricht and/or Luxembourg Seminars taking place in Croatia on various topics linked to the process of Croatian legislation harmonisation with the EC acquis; study visits to Brussels and Oslo.
135,000
10,000
Co-organisation of the Learning EU International Conference Seminars for civil servants on various EU related topics Study visits to Brussels for civil servants Study visit of EI coordinators to the public administration bodies of the Kingdom of Belgium Seminars on specific topics - transfer of best practices in the process of European integration. Study visit for officials and senior civil servants to Strasbourg-Luxembourg-Brussels Seminars on specific topics for civil servants Stages in public administration bodies of the Republic of France A series of seminars on specific EU related topics in Dublin Scholarships for civil servants on post-graduate studies
10,000
20,000
60,000
UniDem Project
Bilateral Technical Assistance - Council of Europe Bilateral Technical Assistance
20,000
Seminars for civil servants in Trieste Summer school for civil servants in Trieste
International Francophonie Organisation
30,000
French language courses for civil servants involved in the EU integration process Individual French language courses for officials in Belgium, Spa Seminars on specific EU related topics A series of seminars on specific EU related topics in the counties
Public Administration (Local and Regional Government and Self-government)
Capacity Building of the Regional and Local Government and Self-government for Utilisation of EU Pre-accession Funds MTEC (ADEPT Seminars)
Bilateral Technical Assistance Great Britain
100,000
Public Administration (Local Government and Self-government)
Bilateral Technical Assistance - the Netherlands
40,000
Specialised seminars taking place in the Netherlands, participation of app. 20 civil servants from Croatia
Total Administrative Capacity Building and Strengthening
19,060,085
713
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Public Administration Reform Central State Office for Administration Development of Human Resources Phase II Danish Assistance Development of Human Resources Phase II (741.750DKK) NEW PROJECT Danish PreAccession Assistance (2007-June 2010) Total - 12 million HRK World Bank Grant 99,486 The project supports establishment and full operation of a training centre for public administration, development of training techniques and methods, and establishment of a comprehensive human resources development system in the public administration.
Development of administrative capacity in the public sector
32,329
The project supports establishment and full operation of the Centre, development of training techniques and methods, and a establishment of a comprehensive human resources development system in the public administration.
Swedish Assistance
642,085
Project activities are the following: Drafting the Bill on Civil Servants Salaries; Assessment of the salary and remuneration system in the public service; Preparing the Act on Public Servants Salaries; Local self-government salary system analysis; Carrying out a functional audit; Restructuring of ministries based on the functional audit; Revising the methodology and training for the social impact analysis.
Total Public Administration Reform
773,900
714
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
Democracy and Human Rights Office for Cooperation with NGOs Good Governance and the Rule of Law, Civil Society Development Grant Scheme Civil Society Development CARDS 2004 587,350 Promote good governance and the rule of law in Croatia and strengthening of democracy and civil society as main constituent parts of the democratic order and rule of law.
CARDS 2004
2,802,592
Improving the provision of social services by the third sector, increase the participation of civil society organisations in promoting democracy, human rights and environmental protection. Evaluate project proposals which arrived in orderly and timely manner in the framework of the CARDS 2004 grant scheme. Support to the civil society organisations in the area of environment protection and sustainable development and provision of social services by the non-for-profit sector, and proper monitoring of implementation of the grant schemes including projects comprising CARDS 2003/2004 project of Good Governance and Rule of Law, and technical support to the beneficiaries of the said projects. Enabling the Civil Society for Active Contribution in the Pre-accession Process in the area of democratisation and human rights, in the area of environment protection and youth participation. Evaluation of project proposals which arrived in orderly and timely manner in the framework of the PHARE 2006 grant scheme. Strengthen capacities of the Council for Development of Civil Society and the Government Office for Cooperation with NGOs for sectoral planning of IPA pre-accession funds utilisation.
Enabling the Civil Society for Active Contribution in the Pre-accession Process Capacity Building of the Council for Civil Society Development and the Government Office for Cooperation with NGOs - Technical Assistance Europe for Citizens Programme participation in national contribution
PHARE 2006
3,000,000
PHARE 2005
39,400
PHARE 2006
142,137
Promoting co-operation between EU Member States in various areas linked to the joint policies of the European Community, strengthening citizens participation, strengthening the European identity, developing a sense of ownership of the European Union among citizens and promoting intercultural dialogue among citizens.
Total Democracy and Human Rights
6,571,479
715
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
716
ANNEX B
Beneficiary
Project Title
Programme Title
Total Value in 1
Activities
717

National Programme F. Croatia - 2009

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National Programme F. Croatia - 2009

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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009

Publisher Republic of Croatia Ministry of Foreign Affairs and European Integration

Print run 100 copies

Press Denona d.o.o.

Zagreb, April 2009

INTRODUCTORY NOTE INTRODUCTION

Ivo Sanader, PhD Prime Minister of the Republic of Croatia

INTRODUCTORY NOTE TABLE OF CONTENTS LIST OF ABBREVIATIONS INTRODUCTION I. POLITICAL CRITERIA

II. ECONOMIC CRITERIA

III. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP

COMPANY LAW 3.6.1 Company Law 3.6.2 Accounting 3.6.3 Audit

FINANCIAL SERVICES 3.9.1. Banking 3.9.2. Insurance 3.9.3. Capital market

STATE ADMINISTRATION ORGANISATIONS

SGD NPRD MHSC SI

SIPO DZM SONS CBS SIRP

CENTRAL STATE OFFICES

CSOPA CSAOeC CSAOSPM CODEF

SOA FINA HAKOM APPP

SAP SAA UN COE SAC CFSP ESDP WTO CB

RELATIONS BETWEEN THE REPUBLIC OF CROATIA AND THE EU

SETTING KEY PRIORITIES FOR 2009

STRUCTURE OF THE NATIONAL PROGRAMME

ANNEXES TO THE 2009 NATIONAL PROGRAMME

MONITORING AND IMPLEMENTATION OF THE NATIONAL PROGRAMME

1.2. DEMOCRACY AND THE RULE OF LAW

1.2.1. Judicial Reform

Institutional development of the Judicial Academy

International co-operation European Judicial Training Network (EJTN)

1.2.2. Anti-corruption measures

1.2.3. State Administration Reform

1.3.1.1. Improvement of the prison system

1.3.1.3. Right to information

1.3.1.4. Gender equality

1.3.1.5. Protection of the rights of the child

1.3.1.7. Persons with disabilities

1.3.1.8. Hate crimes

1.3.2. Minority Rights and the Protection of National Minorities

1.5. RETURN OF REFUGEES 1.5.1. Legal and institutional framework

1.5.4. Repossession of occupied private property

1.5.5. Reconstruction of the housing stock damaged or destroyed in the war

1.5.7. Co-operation with neighbouring countries to accelerate the return of refugees

1.7. REGIONAL CO-OPERATION 1.7.1. Multilateral co-operation

1.7.2. Bilateral co-operation

II. ECONOMIC CRITERIA

II. ECONOMIC CRITERIA

2.2. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA

2.3. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 2.3.1. Current economic developments

2.3.2 Monetary and fiscal policy

August 2008 in comparison with December 2007.

2.3.3. Product Market Functioning

Weights in the RPI/CP index

AprJun 3 567 2 701 866 102 4 80 18 153

3 724 2 775 949 218 4 119 95 223

2.3.4. Financial Sector

2.4.2. Reforms and Liberalisation of Network Industries

2.4.3 Structural Progress in the Economy

State ownership TOTAL Number

Private ownership Number

Joint ownership Share (%)

Mixed ownership Number

2.4.4 State Interventions in the Economy

2.4.5 Trade Integration