The European Union calls on Croatia to resolutely carry on with the reform programme so as to decrease its structural weaknesses and increase its competitiveness and to improve its investment climate through the strengthening of the efficient public administration and judiciary, according to a draft preparatory document for a meeting of the Stabilisation and Association Council, scheduled for June 6 in Brussels.
The draft was drawn up by the enlargement task force and is likely to be adopted by the Committee of Permanent Representatives (COREPER), which is made up of heads or deputy heads of mission from the EU member states in Brussels, later this week.
The document reads that the global financial and economic crisis badly affected Croatia's economy in 2009 and since then the country's economic activity and Gross Domestic Product have been on the decline.
The Economic Recovery Programme, devised to create a climate that will support sustainable economic growth, including the creation of a more dynamic labour market, has not produced the desired results. Employment keeps falling and foreign direct investments have nearly ceased. The European Union encourages Croatia to actively implement measures from the programme, according to the draft.
Brussels calls on Croatia to improve the business climate, notably the efficiency of the administrative and judicial systems in order to stimulate private investment.
As for the political criteria, the European Union calls on Croatia to update its voter registers.
The Union welcomes the Croatian parliament's declaration on promoting European values in southeastern Europe, in which Croatia emphasises that bilateral issues, such as border disputes, should not mar candidates' accession.
The EU encourages Croatia to continue searching for mutually acceptable solutions to all outstanding bilateral and regional issues with its neighbours, including the issue of succession to the former Yugoslav federation, and to continue working on reconciliation among people in the region.
As for alignment with the acquis communautaire, the EU notes that Croatia has achieved a considerable degree of legislative alignment in most areas, however, a limited number of areas require further efforts.
The EU encourages the Croatian authorities to take all necessary measures to ensure the country's full preparedness for EU membership as of 1 July 2013.
It calls on Zagreb to see to it that a privatisation contract for the Brodosplit shipyard is signed soon and that solutions are found for the Rijeka-based 3. Maj shipyard and for the Brodotrogir shipyard of Trogir.
As for the judiciary, impunity for war crimes remains "a great challenge".
Concerning the struggle against corruption and organised crime, Croatia has set up an appropriate legal and institutional framework. The EU emphasises the importance of the effective prosecution of high-profile corruption cases and the anti-corruption drive at the local level.
As for minority rights, the draft notes the improvement, but underlines that the Roma minority is faced with very difficult living conditions.
The EU notes that in general civil and political rights are well respected in Croatia, and calls on the country to continue making results in the implementation of anti-discriminatory laws.
The EU recommends accelerating the work on new border crossings and calls on the government to revoke special taxes on providers of mobile telephony services.
Croatia is advised to try together with Slovenia to find a joint solution for the storage of nuclear waste from the jointly-owned Krsko nuclear power plant.