As a part of the regular dialogue in the framework of the Stabilisation and Association Agreement, a meeting of the Stabilisation and Association Committee between the EU and Croatia took place in Brussels on 9 December 2009

The Stabilisation and Association Committee between the EU and Croatia met on 9 December 2009 for the fifth time since the entry into force of the Stabilisation and Association Agreement on 1 February 2005. The meeting took place at a time when accession negotiations with Croatia have entered a final phase. So far, negotiations were opened on twenty-eight chapters and provisionally closed on fifteen.

The meeting was chaired by Mrs Alexandra Cas-Granje, Director in the European Commission Directorate General for Enlargement. Mr Davor Božinović, State Secretary for Political Affairs in the Ministry of Foreign Affairs and European Integration of the Republic of Croatia headed the Croatian delegation.

The meeting was held in a very positive and productive atmosphere. The two Parties held an exchange of views on the latest advancement with regard to the political and economic criteria as well as on Croatia’s progress in alignment with the Community acquis. The European Commission referred to its recent 2009 Progress Report. With regard to political criteria, the Committee notes the progress made in reforming the judiciary and stressed that further sustained efforts were needed to overcome some of its weaknesses, improving its independence and efficiency, including reducing the backlog of cases. The Committee also underlined the importance of putting further impetus into public administration reform. Progress in fighting against corruption and the results achieved so far by the Office for the Fight Against Organised Crime and Corruption were noted; at the same time, the Committee stressed the need for increased efforts to fight against organised crime and corruption at all levels. The Committee reiterated that full cooperation with the ICTY remained essential.

The Committee welcomed the Agreement of 4 November between the Croatian and the Slovenian Prime Ministers on the border issue and its ratification by the Croatian Sabor of on 20 November 2009, as well as the agreement with Montenegro to refer the border issue to the International Court of Justice. It stressed the importance of regional cooperation and good-neighbourly relations.

As regards economic criteria, recent economic developments, and Croatia's response to the financial crisis, were discussed as well as the need for Croatia to continue prudent fiscal policies and accelerate structural reforms.

The Committee reviewed progress with regard to the Implementation of the Stabilisation and Association Agreement and approximation with the acquis in negotiations chapters. It noted progress in legislative alignment in most of the areas of the EU acquis and in developing the necessary administrative capacity. EU side encouraged Croatia to review some fiscal measures affecting the business environment and called on Croatia to remove trade measures affecting EU exports.

The general conclusion of the Stabilisation and Association Committee was that Croatia made significant progress in its road towards EU membership and that the overall reform process should continue, focussing in particular on fulfilling obligations under the Stabilisation and Association Agreement and on meeting the requirements to fulfil all the membership criteria.

Background: The Stabilisation and Association Committee is a joint body comprising representatives from the European Commission and the EU Member States, on one side, and representatives from the Government of Croatia, on the other. The main task of the Stabilisation and Association Committee is to review the implementation of the Stabilisation and Association Agreement, which had entered into force on 1 February 2005 and is a comprehensive agreement which provides the contractual framework for relations between the EU and Croatia during the pre-accession period. It establishes a political dialogue, provides for the creation of a free trade area for industrial products and most agricultural products, foresees the approximation of Croatian legislation to the Community acquis, and wide-ranging cooperation in all areas of Community policies, including in the area of justice and home affairs.