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Croatia's chief negotiator comments on screening for chapter on freedom of movement of capital

BRUSSELS, Dec 21 (Hina) - Croatia's delegation which attended bilateralscreening for the chapter on freedom of movement of capital inBrussels on Wednesday did not assume any obligations regarding theopening of the Croatian real estate market to foreign nationals,Croatia's chief negotiator Vladimir Drobnjak said.
BRUSSELS, Dec 21 (Hina) - Croatia's delegation which attended bilateral screening for the chapter on freedom of movement of capital in Brussels on Wednesday did not assume any obligations regarding the opening of the Croatian real estate market to foreign nationals, Croatia's chief negotiator Vladimir Drobnjak said.

The scope and pace of opening of the Croatian real estate market to foreign nationals was not discussed at today's meeting with European Commission representatives.

"Today's bilateral screening was used for the analytical presentation of Croatia's regulations in the area of freedom of movement of capital," Drobnjak said.

According to Drobnjak, this question will be included in Croatia's official negotiating position on the chapter of freedom of movement of capital, which is expected in March.

It is difficult to say if bilateral issues such as relations with Austria and Italy with regard to gaining ownership of Croatian real estate will crop up as one of the topics during the negotiations.

The maneuvering space in the future talks on the opening of the Croatian real estate market to foreign nationals cannot be defined precisely as yet either, Drobnjak said.

"Every country is a separate case," Drobnjak said.

The situation will be clearer once the EC draws up a report on the results of screening for the chapter on the freedom of movement of capital and after the EU and Croatia present their negotiating positions.

The EC's report on the results of screening for the chapter on freedom of movement of capital is expected by the end of February at the earliest, while Croatia's negotiating position is expected to be known in March.

Concrete talks on freedom of movement of capital could be opened already during Austria's presidency of the EU in the first half of next year, Drobnjak said.

No special objections were presented at today's bilateral screening, Croatian negotiators said.

Deputy chief negotiator Boris Vujcic said that EC representatives were satisfied with how Croatia understood European legislation in the area of freedom of movement of capital and what it had done to adjust its legislation to that of the EU.

Croatian negotiators said there were still no indications as to whether any conditions would be set for the opening or closing of negotiations on this chapter (the so-called benchmarking).

Freedom of movement of capital is one of the four freedoms (of movement of goods, people, services and capital) on which the functioning of the European market is based, and it is divided in three parts - freedom of movement of capital, payment systems and the prevention of money laundering.

Croatia's legislation is mostly adjusted to European directives, but Croatia is expected to do more to enforce the relevant laws.

After the first, explanatory stage of screening for this chapter on November 25, Croatian negotiators were told that segments where Croatia was expected to adjust its legislation to that of the EU were greater freedom of capital transactions and stricter control of transactions indicative of money laundering.

Bilateral screening for the chapter on freedom of movement of capital is the last screening for this year.

This year Croatia has started screening for seven of the 35 chapters of the European legislation (acquis communautaire) that will be negotiated: for science and research, education and culture, public procurement, market competition, the right to establishment and freedom of provision of services, freedom of movement of capital, and agriculture and rural development.

Eighteen explanatory screenings and 14 bilateral screenings are expected to take place by the end of March.

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