Published 8 June 2021‌

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News release: Despite recent reforms, OECD says Croatia should take further action to improve corporate governance of its state-owned enterprise sector

Conclusion and recommendations:

 English

Croatian

The OECD Review of Croatia, launched on 8 June 2021, describes and evaluates the corporate governance framework of the Croatian state-owned enterprise sector relative to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the “SOE Guidelines”). It was developed at the request of the Croatian authorities under a project supported financially by the Directorate General for Structural Reform Support (DG REFORM) of the European Commission, and implemented with the active support of the Ministry of Physical Planning, Construction and State Assets.

The review takes place in the context of Croatia’s ambition to join the Eurozone and redress a set of widely recognised policy challenges. The country entered the European ERM-II Exchange Rate Mechanism on 10 July 2020 and has engaged to implement a number of post-entry commitments in relevant policy areas, including improving the governance of SOEs by revising and aligning national legislation with the SOE Guidelines.

The report is structured as follows: Part I provides background information on the Croatian SOE sector, including the applicable legal and regulatory framework, while Part II provides an assessment of Croatia’s existent legislation relative to the standards of the SOE Guidelines. The final section sets out the conclusions and recommendations for improving the corporate governance framework applicable to Croatian SOEs. The recommendations, which were endorsed by the Working Party in March 2021, aim at supporting Croatia’s ongoing reform efforts by suggesting potential avenues for legislative reforms in view of further aligning Croatia’s SOE framework with the SOE Guidelines and best international standards and practices.