The Transition Report was presented at the Zagreb Stock Exchange earlier this week by the bank's chief economist for Croatia, Maria Vagliasandi.
According to the report, which focused on the state of the infrastructure in 27 transition countries, the biggest progress in the implementation of structural reforms was achieved this year by three European Union admission candidates -- Croatia, Bulgaria, and Romania.
Croatia made significant headway in launching the judicial and state administration reforms, notably in reforming and liberalising the financial sector.
Judged by accomplishments, Croatia is right behind the countries which joined the EU this year and can serve as a transition model to other countries, said Vagliasandi.
She added, however, that even in areas which met the three aforementioned reform criteria, such as the telecommunications sector, further adjustment was necessary. She described Croatia's mobile phone market as pleasant duopoly which gave the impression that there was no genuine will to let a third operator enter the market, which she added raised costs and diminished users' benefits.
Speaking of the principal challenges before Croatia in the infrastructure area, Vagliasandi mentioned the privatisation of communal companies and the strengthening of the role of supervisory bodies, notably the Market Competition Protection Agency.
She said this would attract investors, increase private sector participation, bring the state more money for further investing in the infrastructure, and provide consumers with less expensive but better quality service. She added this referred in particular to strategically important sectors such as the production and distribution of electricity.
Vagliasandi underlined the importance of higher private sector participation, which she said need not be achieved only through privatisation but also through management contracts and concession companies, as is the case in Croatia's transport infrastructure.
The new head of the EBRD's Zagreb office, Charlotte Ruhe, announced the bank's future activities in Croatia, including cooperation in the modernisation of the southern port of Dubrovnik and the privatisation of the Croatia Osiguranje insurance company.