As regards the political criteria, the European Commission issued a press release on its web site reading that "Croatia continues to meet the Copenhagen political criteria and the political situation has continued to improve."
"Implementation of strategies for reforming the judiciary and fighting corruption has begun. Croatia has moved forward on minorities and refugee return, albeit at a slow pace. Full cooperation with ICTY has continued. The conduct of war crimes trials in Croatia has improved. Croatia continues to play a positive role in regional cooperation," reads the document.
According to the press release, issued on the occasion of the publication of the European Commission's Croatia progress report, "reform is at an early stage and there is considerable scope for improvement in the judiciary, public administration and in the fight against corruption. Further progress is essential in the protection of minorities, in refugee return, and in the conduct of war crimes trials, including witness protection. Further regional cooperation is vital, as are efforts to solve outstanding bilateral problems with neighbours, especially on border demarcation."
"As regards economic criteria, Croatia can be regarded as a functioning market economy. The country should be able to cope with competitive pressures and market forces within the Union in the medium term, provided that it vigorously implements its reform programme to remove the significant remaining weaknesses. Inflation is low, the exchange rate stable, fiscal consolidation has continued and growth has accelerated slightly. Private investment has risen, the banking sector has continued to grow and unemployment has declined. Road infrastructure has improved and competition increased in the telecommunication sector."
Regarding macroeconomic stability, the press release reads that "significant and rising imbalances in the trade and current accounts and a high external debt constitute potential risks to macroeconomic stability. The pace of structural reforms has generally been slow. Subsidies to loss making enterprises continued, while state intervention in the economy remained significant. Reforms need to be implemented vigorously."
Croatia has been commended for improving its ability to take on membership obligations. In most areas there has been some progress, mainly in terms of legislative alignment. Implementing capacity has also been improved.
"However, in many cases enforcement is weak and administrative capacity remains uneven. Progress has varied considerably between different policy areas. As regards the overall level of alignment and administrative capacity, much remains to be done. Considerable and sustained efforts will be needed in a number of chapters such as free movement of capital, competition policy, public procurement, agriculture, justice freedom and security, judiciary and fundamental rights and environment."
The European Union pledges to continue providing significant pre-accession financial assistance to Croatia. A total of 40 million euros has been allocated to Croatia in 2006.
Apart from the reports on progress in Croatia and other candidate countries and potential aspirants, the European Commission also published a document on a strategy for the Union's expansion, as well as a report on the Union's integration capacity.
"Today the Commission has adopted a strategy for the EU"s enlargement policy, which includes a special report on the Union"s integration capacity. The Commission concludes that the Union must be able to maintain and deepen its own development while pursuing its enlargement agenda. The current enlargement strategy, combined with ways and means to ensure the EU"s capacity to integrate new members, form the basis for a renewed consensus on enlargement," according to a press release issued on this matter.
"The EU"s integration capacity is determined by the EU"s own capacity to maintain the momentum of European integration; the candidate countries' ability to fulfil rigorous conditions; and better communication on enlargement. Hence, it is a functional issue."
The Commission rules out that in the future there may be expensive enlargement waves to several countries to be admitted at once.
The next wave of expansion can be expected in the next three to five years or later.