Concerning the political criteria, which refer to Croatia's fulfillment of the Copenhagen political criteria on the stability of institutions, the rule of law and human and minority rights, the Commission notes that the Croatian parliament functioned in accordance with its constitutional role and that the government "continued to function effectively".
"The Presidential elections went smoothly and complied with OSCE standards. However, efforts are still necessary to address outstanding issues such as consolidating and harmonising the legal framework, reforming the election administration and updating the voter register," reads the report.
Limited progress can be reported with public administration reform, and "the legal basis for building a modern and professional civil service is still incomplete."
The largest share of the political criteria is covered by the policy area Judiciary and Fundamental Rights.
The Commission reports that "implementation of judicial reform has continued, although the main expected results of the reform process are yet to be seen."
The report commends improvement in the procedure of appointment of the Judicial Appointment Council.
"A new selection procedure and improved criteria for selecting judges and prosecutors have also been introduced, including the establishment of a school for judicial officials," reads the report, adding that "however, the new system has yet to be tested in practice."
As regards the backlog of cases, judicial efficiency has improved with the reduction of such cases before the courts by further 10 percent, "including good progress on reducing the number of cases older than three years".
"However, the backlog of cases has been reduced unevenly across the various courts and overall remains high. Problems with enforcement of court rulings continue to hamper the efficient working of the judicial system," reads the report.
When it comes to war crimes trials, "a more balanced approach" has continued.
More cases involving Croat perpetrators, including members of the Croatian armed forces, were pursued and measures have been taken to protect witnesses, according to the Commission.
"However, impunity for war crimes remains a problem, especially where the victims were ethnic Serbs or the alleged perpetrators were members of the Croatian security forces."
"Overall, the reform of the judiciary has continued, but significant challenges remain, in particular application of objective and transparent criteria for the appointment of judges and prosecutors, reduction of the case backlog, the excessive length of proceedings and enforcement of court decisions."
The Commission notes progress in Croatia's efforts to fight corruption and also mentions limited progress in the prevention of corruption.
"Overall, good progress has been achieved in the fight against corruption, which is receiving greater attention than in the past. However, corruption remains prevalent in many areas. A track record of effective investigation, prosecution and court rulings remains to be established, especially for high level corruption. Preventive measures such as improved transparency in public spending need to be strengthened," reads the report.
Commenting on freedom of expression, including freedom and pluralism of the media, the Commission says that it "is provided for in Croatian law and is generally respected".
"However, editors and journalists continue to report undue political pressure. There has been limited progress with investigating threats against journalists working on cases of corruption and organised crime, with the notable exception of one prominent murder case. Problems with the independence of local media remain. The public broadcaster HRT continues to face serious managerial difficulties following several unsuccessful attempts by the HRT Programme Council to elect a new director of HRT. This is affecting HRT's functioning."
As regards the protection of minorities, there have been fewer reports of ethnically motivated attacks against ethnic Serbs, and police investigations into such incidents have improved, according to the document.
"Members of the Serb minority, both returnees and those who remained in Croatia during the war, face difficulties gaining access to employment, especially in the war-affected areas. Discrimination continues, particularly in the public sector at local level," reads the document.
Progress is noted in the return of refugees and in providing them with housing.
"However, many problems remain for refugees and returnees. Lack of housing remains a key obstacle to sustainable return," reads the document.
"Overall, the position of minorities in Croatia is continuing to improve. However, many problems remain for the Serb and Roma minorities. Some progress was made on outstanding refugee return issues, but efforts to provide housing and ensure the sustainability of returns need to be accelerated," the Commission says.
It goes on to say that Croatia has continued to cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY).
"This is a key Accession Partnership priority. Problems with access to important documents remain. The special task force set up by the government needs to continue its work to locate or determine the fate of missing artillery documents requested by the Office of the ICTY Prosecutor," according to the report.
"Overall, Croatia is continuing to cooperate with the ICTY, although problems with access to important documents remain. Croatia is continuing to participate actively in regional cooperation. Relations with neighbouring countries have improved, although outstanding issues remain, in particular settlement of border disputes, property issues and returns of refugees," it is concluded in the Political Criteria section of the report.