US Ambassador to Croatia Kenneth Merten said a transparent adoption of regulations was key for a good business climate because every investor took into account the return rate and risks, which is why changing the rules without consulting the business community can markedly endanger investing.
Potential investors should be sent positive signals and the effects of each measure should be clearly defined, said Merten.
He noted that Croatia's Foreign Ministry had announced major changes to regulations, for example the law on games of chance. Such announcements worry investors, including two companies which have invested in betting shops in Croatia, and such decisions might affect other investors too, he said.
Investors do not want to do business in unstable conditions caused by frequent changes to legislation, which are frequent in developing societies, said Croatian Chamber of Commerce (HGK) president Nadan Vidosevic. He warned about the intermittent changes to Croatia's Constitution.
Abiding by the law is lacking in Croatia because when a law is not respected, a new one is passed, he said.
Transparency has a key role, said Mark Tallarico, senior counsel for legislation at the US Department of Commerce.
Explaining how laws are adopted in the US Congress, he said there were 60 days for a public discussion, or up to 180 in specific cases so that citizens can voice their remarks on a bill. The final version of the bill must take into account the comments and include them or explain why they were dismissed. This enables the public to take part in rulemaking. All laws can be disputed in court and the plaintiffs can try to prove that an act will be detrimental to them if enforced, said Tallarico.
The U.S. Congress draws up a law and the public can see what is being done and how, while lobbyists try to influence representatives to push for certain solutions, he added.
The seminar was held at the HGK and was organised by the American Chamber of Commerce in Croatia, the HGK and the US Embassy.