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EUROPEAN COMMISSION ANNUAL REPORT ON SAP PROGRESS IN CROATIA

BRUSSELS, March 26 (Hina) - The political situation in Croatia is stable, the overall situation in the country is satisfactory, but despite positive developments, results in areas such as cooperation with the U.N. war crimes tribunal (ICTY), the return of refugees and the Law on the Croatian Radio Television (HRT) are insufficient, says a report of the European Commission on Croatia's progress in the past year.
BRUSSELS, March 26 (Hina) - The political situation in Croatia is stable, the overall situation in the country is satisfactory, but despite positive developments, results in areas such as cooperation with the U.N. war crimes tribunal (ICTY), the return of refugees and the Law on the Croatian Radio Television (HRT) are insufficient, says a report of the European Commission on Croatia's progress in the past year. #L# The political situation in the country remains generally stable, the overall situation is satisfactory and democratic development has been consolidated, says a summary of the European Commission's report on Croatia. The European Commission on Wednesday adopted the second annual report on the Stabilisation and Association Process (SAp) which encompasses five countries of the Southeast of Europe -- Croatia, Bosnia, Serbia and Montenegro, Macedonia and Albania. The European Commission's public relations office has so far only issued a summary of the report. The entire report will be available later in the day. The summary notes that the Croatian government continues to show determination in its efforts to establish full democracy regarding the rule of law. Regional cooperation has been intensified, a constitutional law on national minorities has been adopted and legislative changes facilitating the return of refugees have been introduced. However, despite the positive development, not enough has been done in fulfilling short-term priorities identified in last year's report, says the summary. The Croatian parliament in February passed a law on the HRT. But, the law does not fully protect the HRT from possible direct and indirect influence of political and state bodies. The government's stance on cooperation with the ICTY remains tepid, says the report. Only limited progress has been achieved in practice in the return process and the actual integration of the Serb minority, the European Commission states. It adds that efforts in the judiciary and the struggle against corruption and organised crime need to be stepped up. The economic situation continues to improve, but the high rate of unemployment in Croatia is still a primary problem, says the summary. Overall progress in structural reforms has slowed down in the past period, reflecting a frail government coalition and the opposition of the public to some unpopular government measures, the report says. Progress has been achieved in the rationalisation of social transfers and in the implementation of the second pillar of pension insurance, in the launching of fiscal decentralisation, including the establishment of a single state treasury, the report says. On the other hand, it adds, reforms are slow in some other areas, such as privatisation, education and health. Also, a reform of the labour legislature has not yet been implemented, which would increase the flexibility of the labour force, the European Commission says in its report. (hina) lml sb

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