european-semester-documents-croatia

European Spring Package 2026

The European Semester is an annual exercise that coordinates the EU's economic and social policies. Based on the analysis conducted every year by the Commission, each Member State receives a set of Country Specific Recommendations (CSRs), where policy action is needed. In Croatia, these include:

Croatia’s growth streak has narrowed the gap to the EU living standards. Diversifying into high-value industry and services and upskilling workers would future-proof growth.
Public spending faces pressures from increased expenditure on social assistance, public wages, energy and defence, with further costs ahead from climate and ageing. Spending reviews, broader property taxes and reduced ineffective tax breaks would free up funds for investments.
Business dynamism is strong, and digitalisation efforts are reducing red tape. Simplifying licences, deepening capital markets and clearing judicial bottlenecks would unleash SME growth.
Croatia has expanded its renewables capacity. Upgrading grids, expanding battery storage and rolling out smart meters would help reduce energy costs, and decrease fossil fuel reliance.
Reforms to education and vocational training are underway. Strengthening work-based learning would build a future-ready workforce and address remaining skills gaps.
Labour market participation remains uneven. Removing barriers to work, upskilling workers, and better targeting active labour market policies would broaden economic inclusion.
Housing costs outpace wages in tourist hubs. Expanding affordable and social housing would ease pressures and reduce regional inequalities.

European Semester Spring Package 2026 - Two-page summary

Country report

Published as part of the Spring Package, country reports provide a detailed analysis of each Member State’s economic and social developments and challenges and assess the extent these are addressed by national policies. Additionally, the reports review the implementation of country-specific recommendations from previous Semester cycles.

2026 Country Report - Croatia

Country-specific recommendations

Published as part of the Spring Package, the Country-specific recommendations (CSRs) provide tailored guidance to each Member State, suggesting socio-economic and fiscal policy actions to be taken over the next year. The Commission develops the CSRs based on the country reports and its review of the national policy plans submitted by Member States. The draft recommendations are then further discussed by the Council which reaches consensus on a final version over the summer.

The recommendations focus on policy areas that face persistent challenges or are only partially addressed by national policy plans. CSR can cover a wide range of topics, including public finances, pension system reforms, education, innovation challenges, job creation or addressing unemployment.

2026 European Semester:
Country Specific Recommendations / Commission Recommendations

Draft budgetary plan

By mid-October, eurozone Member States are required to submit their draft budgets for the following year to the Commission and the Eurogroup. The Commission assesses their compliance with the CSRs, the agreed net expenditure path and the requirements of the Stability and Growth Pact.

Draft budgets that do not align with past CSRs are addressed in the Opinions on the Draft budgetary Plans, published as part of the Autumn Package. Member States adopt their new national budgets at the end of the year.

Draft budgetary plans 2026

National reform programme (until 2023)

After receiving guidance from the Autumn Package, Member States submit their national policy plans for assessment ahead of the Spring Package. The national reform programme outlines the structural economic reforms that the Member State intends to implement, with a focus on future policies to strengthen employment and growth and prevent or correct macroeconomic imbalances. The programme should also indicate how the planned policies comply with the country-specific recommendations of previous European Semester cycles.

As of 2024, the national reform programmes will be replaced by the medium-term fiscal structural plans.

General publications (26 April 2023):
Croatia - National Reform Programme 2023