Outsourcing in Croatia

Overview

Capital: Zagreb

Official EU language(s): Croatian

EU member country: since 1 July 2013

Currency: euro. Croatia has been a member of the euro area since 1 January 2023.

Schengen: Croatia has been a member of the Schengen area since 1 January 2023.

Figures: Geographical size – population – gross domestic product (GDP) per capita in PPS

Political system

Croatia operates as a parliamentary republic where both the prime minister, as head of government, and the president, as head of state, represent executive power domestically and internationally. The government structure is based on the separation of legislative, executive, and judicial powers. The Parliament holds legislative power and oversees the executive, with its members elected for four-year terms.

Trade and economy

In 2020, Croatia’s economy was primarily driven by key sectors including wholesale and retail trade, transport, accommodation, and food services (20.1%), industry (19.2%), and public administration, defense, education, human health, and social work activities (18.1%).

Internally, 67% of Croatia’s exports are traded within the EU, with Germany (13%), Italy (12%), and Slovenia (10%) being the primary destinations, while outside the EU, 9% of exports are directed to Bosnia & Herzegovina and 5% to Serbia.

Regarding imports, 77% originate from EU Member States, with Germany (15%), Italy (12%), and Slovenia (11%) being the main sources, while outside the EU, 5% come from China and 3% from Bosnia & Herzegovina.

Croatia in the EU

European Parliament

Croatia is represented by 12 members in the European Parliament.

Council of the EU

Croatian government representatives participate in the Council of the EU to adopt EU laws and coordinate policies, depending on the addressed policy area.

Presidency of the Council of the EU

Croatia held the Presidency of the Council of the EU from January to June 2020.

European Commission

Dubravka Šuica serves as the Commissioner nominated by Croatia to the European Commission, holding the position of Vice-President for Demography and Democracy. The Commission maintains a representation in Croatia.

Croatia has 9 representatives on the European Economic and Social Committee, providing consultation on proposed laws affecting work and social situations.

European Committee of the Regions

Croatia is represented by 9 delegates on the European Committee of the Regions, ensuring regional perspectives are considered in proposed laws.

Permanent representation to the EU

Croatia communicates with EU institutions through its permanent representatives based in Brussels, ensuring effective pursuit of the country’s interests and policies in the EU.

Budgets and Funding

Croatia contributes to the EU budget fairly, based on its means, to support programs and projects across all EU countries.