Croatia does not yet have an integral industrial policy strategy, which is why the government last week entrusted the Economy Ministry with drafting one, said Olgica Spevec, chief of the task force for the said chapter.
She added that Croatia initially thought such a document would not be necessary and that the market would be able to settle everything.
"This screening has shown us that we need a comprehensive document with an analysis and assessment of the situation in the industry and with measures to help the industry while at the same time honouring regulations on protection of competitiveness, state subsidies, and trade measures," said Spevec.
She added it had transpired that the state could not withdraw entirely and leave everything to the market and that there existed a series of measures to help the industry, as in the European Union.
Most of the Croatian laws regulating entrepreneurship and industrial policy have been adjusted to European legal standards.
Croatia will have to incorporate into its legislation on small enterprises a new European definition of micro, small and medium-sized enterprises which will enable a higher number of companies to be ranked as small and medium-sized and thus be eligible for higher state subsidies.
Another provision Croatia will have to adopt is a directive on late payments, which also benefits small and medium-sized enterprises.