National Programme f. Croatia - 2009

7/31/2019 National Programme f. Croatia - 2009

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


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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


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NATIONAL PROGRAMME FOR THE ACCESSION OF THE

REPUBLIC OF CROATIA INTO THE EUROPEAN UNION - 2009


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NATIONAL PROGRAMME FOR THE ACCESSION OF THE REPUBLIC OF CROATIA INTO THE EU - 2009


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INTRODUCTIONINTRODUCTORY NOTE

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 ofsubordinate 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


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TABLE OF CONTENTS


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TABLE OF CONTENTS

TABLE OF CONTENTS

INTRODUCTORY NOTE 5

TABLE OF CONTENTS 9

LIST OF ABBREVIATIONS 19

INTRODUCTION 24

I. POLITICAL CRITERIA 311.1. INTRODUCTION 31

1.2. DEMOCRACY AND THE RULE OF LAW 32

1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 49

1.4. OMBUDSMAN 64

1.5. RETURN OF REFUGEES 65

1.6. CO-OPERATION WITH THE INTERNATIONAL CRIMINAL TRIBUNAL FOR FORMER YUGOSLAVIA 71

1.7. REGIONAL CO-OPERATION 74

II. ECONOMIC CRITERIA 912.1. INTRODUCTION 91

2.2. MID-TERM PRIORITIES IN THE ECONOMIC POLICY OF THE REPUBLIC OF CROATIA 92

2.3. EXISTENCE OF A FUNCTIONING MARKET ECONOMY 93

2.4 CAPACITY TO WITHSTAND COMPETITIVE PRESSURES AND MARKET FORCES WITHIN THE EU 104

2.5. MAASTRICHT CRITERIA 113

III. ABILITY TO ASSUME THE OBLIGATIONS OF EU MEMBERSHIP 116

3.1. FREE MOVEMENT OF GOODS 116

3.1.1. Horizontal issues 116

3.1.2. Old Approach Directives 137

3.1.3. New Approach Directives 144

3.1.4. Procedural matters 160

3.2. FREEDOM OF MOVEMENT FOR WORKERS 166

3.2.2. Co-ordination of social security systems 168

3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 171

3.3.1. The Right of Establishment 171

3.3.2. Freedom to Provide Cross-Border Services 173

3.3.3. Postal services 176

3.3.4. Mutual Recognition of Qualifications 178


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3.4. FREE MOVEMENT OF CAPITAL 181

3.4.1. Movement of capital and current payments 181

3.4.2. Payments and collections 1823.4.3. Prevention of money laundering 182

3.5. PUBLIC PROCUREMENT 187

3.5.1. Public Procurement 187

3.5.2. Concessions 190

3.5.3. Public Private Partnerships 192

3.6. COMPANY LAW 194

3.6.1 Company Law 194

3.6.2 Accounting 196

3.6.3 Audit 1973.7. INTELLECTUAL PROPERTY RIGHTS 199

3.7.1. Copyright and Related Rights 199

3.7.2. Industrial Property 200

3.7.3. Enforcement of Intellectual Property Rights 203

3.8. COMPETITION POLICY 209

3.8.1. Anti-trust and merger control 209

3.8.2. State Aid 210

3.9. FINANCIAL SERVICES 215

3.9.1. Banking 2153.9.2. Insurance 221

3.9.3. Capital market 225

3.10. INFORMATION SOCIETY AND MEDIA 227

3.10.1. Electronic communications 227

3.10.2. Information society services 231

3.10.3. Audiovisual policy 233

3.11. AGRICULTURE AND RURAL DEVELOPMENT 236

3.11.1. Agricultural policy and horizontal measures 236

3.11.2. Rural development policy 239

3.11.3. Livestock breeding 240

3.11.4. Plant production 241

3.11.5. Quality policy 243

3.11.6. Organic production 244

3.11.7. Vertical legislation 244

3.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 246

3.12.1. Food safety 246

3.12.2. Veterinary policy 248

3.12.3. Zootechnics 252


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3.12.4. Phytosanitary policy 252


3.13. FISHERIES 2613.14. TRANSPORT POLICY 264

3.14.1. Road transport 264

3.14.2. Railway transport 267

3.14.3. Combined transport 269

3.14.4. Inland navigation 269

3.14.5. Air transport 270

3.14.6. Maritime transport 272

3.14.7. State aid 276

3.15. ENERGY 2783.15.1. Energy product market and security of supply 278

3.15.2. Energy efficiency and renewable energy sources 280

3.15.3. Nuclear safety and radiation protection 282

3.16. TAXATION 285

3.17. ECONOMIC AND MONETARY POLICY 294

3.17.1. Priorities in legislative alignment 294

3.17.2. Co-ordination of economic and fiscal policies 294

3.17.3. Monetary and exchange rate policy 295

3.18. STATISTICS 2963.18.1. Support to statistical data, technical infrastructure 296

3.18.2. Demographics and social statistics 297

3.18.4. Agriculture, forestry and fisheries 305

3.18.5. Multi-sector statistics 306

3.18.6. Sources and management 307

3.19. SOCIAL POLICY AND EMPLOYMENT 308

3.19.1. Labour legislation 308

3.19.2. Health and safety at work 311

3.19.3. Social dialogue 313

3.19.4. Employment and the European Social Fund 315

3.19.5. Social inclusion 329

3.19.6. Social security 331

3.19.7. Anti-discrimination and equal opportunities 333

3.20. ENTERPRISE AND INDUSTRIAL POLICY 335

3.20.1. Enterprise 335

3.20.2. Industrial policy 340

3.20.3. Industrial sectors 340

3.20.4. Tourism 343


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3.21. TRANS-EUROPEAN NETWORKS 346

3.21.1. Transport networks 346

3.21.2 Energy networks 3473.22. REGIONAL POLICY AND CO-ORDINATION OF STRUCTURAL INSTRUMENTS 348

3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 354

3.23.1. Judicial reform 354

3.23.2. Anti-corruption Measures 365

3.23.3. Fundamental rights 370

3.24. JUSTICE, FREEDOM AND SECURITY 374

3.24.1. Asylum 374

3.24.2. Migration 376

3.24.3. Visas 3793.24.4. Border Management and Schengen 383

3.24.5 Police Co-operation and the Fight against Organised Crime 387

3.24.6. Terrorism 399

3.24.7 Co-operation in the Area of Drugs 400

3.24.8 Judicial Co-operation in Criminal and Civil Matters 402

3.24.9. Customs Co-operation 405

3.25. SCIENCE AND RESEARCH 407

3.26. EDUCATION AND CULTURE 414

3.26.1. Education and training 4143.26.2. Culture 425

3.27. ENVIRONMENT 427

3.27.1. Horizontal legislation 427

3.27.2. Air quality 435

3.27.3. Waste management 438

3.27.4. Water quality 440

3.27.5. Quality of the sea and marine environment 443

3.27.6. Nature protection 444

3.27.7. Industrial pollution control and risk management 449

3.27.8. Chemicals and GMOs 452

3.27.9. Noise protection 455

3.27.10. Forestry 455

3.28. CONSUMER AND HEALTH PROTECTION 456

3.28.1. Consumer protection 456

3.28.2. Health Protection 461

3.29. CUSTOMS UNION 465

3.30. EXTERNAL RELATIONS 468

3.31. FOREIGN, SECURITY AND DEFENCE POLICY 473


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TABLE OF CONTENTS

3.31.1. Introduction 473

3.31.2. Co-operation with international organisations 474

3.31.3. Arms control 4833.31.4. Implementation of restrictive measures and economic sanctions 491

3.31.5. Croatias contribution to anti-terrorism efforts 492

3.31.6. European Security and Defence Policy 493

3.31.7. Peace missions and operations 493

3.31.8. Visa regime 496

3.32. FINANCIAL CONTROL 498

3.32.1 Public Internal Financial Control System 498

3.32.2 External Audits State Audit Office 501

3.32.3. Protection of EU financial interests 5023.33. FINANCIAL AND BUDGETARY PROVISIONS 506

ANNEX A

I. POLITICAL CRITERIA 511

1.1. DEMOCRACY AND THE RULE OF LAW 511

1.3. HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 514

1.3.1. Civil, political, economic and social rights 514

1.6. CO-OPERATION WITH THE ICTY 5153.1. FREE MOVEMENT OF GOODS 516

3.1.1. Horizontal issues 516

3.1.2. Old Approach Directives 521

3.1.3. New Approach Directives 528

3.1.4. Procedural matters 536

3.3. THE RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES 538

3.3.2. Freedom to provide cross-border services 538

3.3.3. Postal services 540

3.4. FREE MOVEMENT OF CAPITAL 5413.4.2. Payments and collections 541

3.5. PUBLIC PROCUREMENT 542

3.6. COMPANY LAW 543

3.7. INTELLECTUAL PROPERTY RIGHTS 544

3.8. COMPETITION POLICY 546

3.8.1. Competition law 546

3.8.2. State aid 548

3.9. FINANCIAL SERVICES 549

3.9.3. Securities market and investment services 549


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3.10. INFORMATION SOCIETY AND MEDIA 552

3.10.1. Electronic communications 552

3.10.2. Information society 5543.10.3. Audiovisual policy 555

3.11. AGRICULTURE AND RURAL DEVELOPMENT 556

3.11.1. Agricultural policy and horizontal measures 556

3.11.2. Rural development policy 557

3.11.3. Livestock breeding 558


3.11.5. Quality policy 561

3.11.6. Organic production 563

3.11.7. Vertical legislation 5643.12. FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY 566

3.12.1. Food safety 566

3.12.2. Veterinary medicine 567

3.12.3. Zootechnics 575

3.12.4. Phytosanitary policy 576


3.13. FISHERIES 585

3.14. TRANSPORT POLICY 588

3.14.1. Road transport 5883.14.2. Railway transport 589

3.14.3. Combined transport 590

3.14.4. Inland navigation 591

3.14.5. Air transport 592

3.14.6. Maritime transport 594

3.15. ENERGY 596

3.16. TAXATION 598

3.18. STATISTICS 600

3.19. SOCIAL POLICY AND EMPLOYMENT 6023.19.1. Labour legislation 602

3.19.2. Health and safety at work 604

3.19.3. Social dialogue 604

3.20. ENTERPRISE AND INDUSTRIAL POLICY 605

3.20.2. Industrial policy 605

3.21. TRANS-EUROPEAN NETWORKS 606

3.21.1. Transport networks 606

3.22. REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS 607


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3.23. JUDICIARY AND FUNDAMENTAL RIGHTS 609

3.23.1. Judicial reform 609

3.23.2. Anti-corruption measures 6113.24. JUSTICE, FREEDOM AND SECURITY 612

3.24.2. Migration 612

3.24.3. Visas 613

3.24.4. Border management and Schengen 614

3.24.5. Police co-operation and the fight against organised crime 617

3.24.7. Co-operation in the area of drugs 620

3.24.8. Judicial co-operation in criminal and civil matters 621

3.25. SCIENCE AND RESEARCH 623

3.26. EDUCATION AND CULTURE 6243.26.1. Education and training 624

3.27. ENVIRONMENT 625

3.27.1. Horizontal legislation 625

3.27.2. Air quality 626

3.27.3. Waste management 627

3.27.4. Water management 628

3.27.6. Nature protection 630

3.27.7. Industrial pollution control and risk management 631

3.27.8. Chemicals and GMO 6323.27.9. Noise protection 634

3.27.10. Forestry 635

3.28. CONSUMER AND HEALTH PROTECTION 636

3.28.1. Consumer protection 636

3.28.2. Health protection 638

3.29. CUSTOMS UNION 640

3.30. EXTERNAL RELATIONS 641

3.31. FOREIGN, SECURITY AND DEFENCE POLICY 642

3.31.3. Arms control 642

3.32. FINANCIAL SUPERVISION 643

3.33. FINANCIAL AND BUDGETARY PROVISIONS 644

ANNEX B

TABLE OF PLANNED BUDGET FUNDS 647

PLANNED FOREIGN ASSISTANCE FUNDS 673


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LIST OF ABBREVIATIONS


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MINISTRIES

MF - Ministry of Finance

MF TA - Ministry of Finance Tax Administration

MF CA - Ministry of Finance Customs Administration

MF FEI - Ministry of Finance Foreign Exchange Inspectorate

MF FP - Ministry of Finance Financial Police

MELE - Ministry of the Economy, Labour and Entrepreneurship

MC - Ministry of Culture

MSTI - Ministry of the Sea, Transport and Infrastructure

MT - Ministry of Tourism

MFVAIS - Ministry of the Family, Veterans Affairs and Intergenerational Solidarity

MD - Ministry of Defence

MJ - Ministry of Justice

MRDFWM - Ministry of Regional Development, Forestry and Water Management

MAFRD - Ministry of Agriculture, Fisheries and Rural Development

MI - Ministry of the Interior

MFAEI - Ministry of Foreign Affairs and European Integration

MEPPPC - Ministry of Environmental Protection, Physical Planning and Construction

MSES - Ministry of Science, Education and Sports

MHSW - Ministry of Health and Social Welfare

STATE ADMINISTRATION ORGANISATIONS

SGD - State Geodetic Directorate

NPRD - National Protection and Rescue Directorate

MHSC - Meteorological and Hydrographic Service of Croatia

SI - State Inspectorate


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SIPO - State Intellectual Property Office

DZM - State Office for Metrology

SONS - State Office for Nuclear Safety

CBS - Central Bureau of Statistics

SIRP - State Institute for Radiation Protection

CENTRAL STATE OFFICES

CSOPA - Central State Office for Public Administration

CSAOeC - Central State Office for e-Croatia

CSAOSPM - Central State Office for State Property Management

CODEF - Central Office for Development Strategy and Co-ordination of EU Funds

AGENCIES

CGREA - Croatian Government Real Estate Agency

CCA - Croatian Competition Agency

PDPA - Personal Data Protection Agency

AEIP - Agency for Export and Investment Promotion

HAGENA - Croatian Agency for the Supervision of Pension Funds

HAMAG - Croatian Agency for Small Business

HANFA - Croatian Financial Services Supervisory Agency

HZMO - Croatian Pension Insurance Institute

SAO - State Audit Office

CARNet - Croatian Academic and Research Network

HAA - Croatian Accreditation Agency

HZN - Croatian Standards Institute

CEA - Croatian Environment Agency

CDA - Central Depository Agency

CERA - Croatian Energy Regulatory Agency


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SOA - Central Intelligence Agency

FINA - Financial Agency

HAKOM - Croatian Post and Electronic Communications Agency

APPP - Agency for Public Private Partnerships

GENERAL

CBA - Croatian Bar Association

CCE - Croatian Chamber of Economy

CEA - Croatian Employers Association

CPF - Croatian Privatisation Fund

HROK - Croatian Registry of Credit Obligations

TAIEX - Technical Assistance Information Exchange Office

ICTY - International Criminal Tribunal for the Former Yugoslavia

CP - Croatian Parliament

GRC - Government of the Republic of Croatia

SAO - State Attorneys Office

USKOK - Office for the Suppression of Corruption and Organised Crime

SCSPPP - State Commission for the Supervision of Public Procurement Procedures

HBOR - Croatian Bank for Reconstruction and Development

CRS - Croatian Register of Shipping

CSA - Croatian State Archives

OHR - Office for Human Rights

OCNDA - Office for Combating Narcotic Drugs Abuse

EC - European Commission

EMU - Economic and Monetary Union

EP - European Parliament

EU - European Union

EC - European Council

EC - European Community

CNB - Croatian National Bank

SSC - Stabilisation and Association Committee


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SAP - Stabilisation and Association Process

SAA - Stabilisation and Association Agreement

UN - United Nations

COE - Council of Europe

SAC - Stabilisation and Association Council

CFSP - Common Foreign and Security Policy of the EU

ESDP - European Security and Defence Policy

WTO - World Trade Organisation

CB - Closing benchmark


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INTRODUCTION


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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 submit-

ted 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 announce-

ment 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 ad-

ditional 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 repre-sentatives, 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 dur-

ing 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 theupgrading 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 decidedlyentering 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 negotia-

tions 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 implement-

ing 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.


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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 obliga-

tions 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 fundsNPAEU 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 strengthen-

ing 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.

TheTable of planned budget fundsshows 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 acces-

sion 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 imple-

mentation 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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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 proc-

esses 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 in-

novations 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 opera-

tion 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 beenformed. 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

TheAct 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 Officeswas 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 timeat 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 Court-

based 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 juris-

diction 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 activi-

ties 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 develop-

ment 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 re-

ceived 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 officesand

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 moreeffective 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 Court-

based 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 stand--

ard 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 cen--

tres 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 informa--

tive seminars, to compile folders with all materials for training and with other relevant materials and to make them available toall 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 theapplication. 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 theRepublic 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) strength-

ening 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 anti-

corruption, reform of the preliminary procedure, the introduction of new forms of swifter procedure and the improvement of pro-

cedural 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 (whistleblow-

ers). 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 Ministryof 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 as-

sured, 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, defin-

ing 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 pre-

venting 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 under-way. 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 May2008. 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 measuresaimed 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, whichhas 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 addition-

ally 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 restric-

tion of the rights of civil servants who report acts of corruption. At the same time, amendments to the Criminal Code will improvethe 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 im-

plementation 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 enablemore 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 forthe 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, PETZVJEDICA, 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 deliv-

ered, 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 be-

tween 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 rati-

fied, 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 imple-mentation 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

Documents

National Programme f. Croatia - 2009