Sixty per cent of the respondents cited red tape as the main obstacle, while more than 40 per cent complained of corruption and Croatian laws, which are often not adjusted to EU legislation, said Peter Hasslacher, director of the Austrian Foreign Trade Office in Zagreb, which conducted the survey.
Presenting the results of the survey in Zagreb on Tuesday, Hasslacher said that about 20 per cent of the respondents complained about public procurement and public tender procedures, illegal work, taxes and land books. He noted that progress had been observed with regard to land books.
The survey covered 315 firms from 12 EU countries accounting for 72 per cent of direct foreign investment projects in Croatia since 1993. Respondents were also asked about the business environment in Croatia and the country's advantages.
As Croatia's greatest advantages, respondents cited the country's geographical position (61 per cent), candidate status for EU membership (44 per cent), the pace and level of economic growth (over 30 per cent), qualifications and commitment of business associates and political stability (over 20 per cent).
In answer to the question to compare the economic situation in Croatia in 2005 to that in 2004, over 60 per cent of the respondents described it as "better" or "much better", while 10 per cent said it was "worse" or "much worse".
As far as expectations for this year are concerned, results are even more optimistic -- 72 per cent expect "much better" or "better" business results, as opposed to 6.67 per cent who expect "worse" or "much worse" results.