CROATIA ON THE THRESHOLD OF THE EUROPEAN UNION: A CHALLENGE OR A PROBLEM COMPETITIVENESS OR HOW TO BE BETTER

For the last decade the Republic of Croatia has been preparing to enter and become a full member of the European Union (EU). The negotiations began in the context of political and social issues (the degree of democratization of society, respect for human freedoms and rights, etc.). Then in the framework of 35 negotiating chapters the focus shifted to economic factors. The freedom of market competition, the example of shipbuilding, stimulus and protection of agriculture production, trade relations and a preferential relationship compared to the neighboring countries outside the EU became the dominant questions in the continued process of negotiation and harmonization. At the same time, Croatia first began to understand and then the media set out to treat more significantly and consider the question of our (national) competitiveness. In this context and at that time (the past decade) the National Competitiveness Council was established. In the past decade the Council has played a crucial role in creating public awareness of why competitiveness is important in achieving the (ultimate) goal – creation of national prosperity as a permanently sustainable condition. This is a goal that can be achieved only through economic success, within national boundaries, within the EU, and increasingly within a stronger global economy. All of these questions, and the search for (correct) responses, are more strongly present in the conditions of the global economic crisis on one hand, and the impending accession (measured in months) of the Republic of Croatia to full membership in the EU. Following from the above, the research and analytical interest of the work is to see how one transition country can succeed on this path; what it must and must not do; what are the specific conditions and limits; and what are the requirements and limiting values of those successful countries to whom the Croatian economy must draw closer and which is must respect in the long term.