After 12 years' slog, Croatia will join the European Union on 1 July. Foreign dignitaries will come to toast the EU's 28th member and watch the fireworks, The Economist reported in its latest issue.
In the article headlined "A new European Union member with old economic worries", The Economist said that a day later President Ivo Josipovic would play host to the presidents of the five non-EU western Balkan countries, to encourage their aspirations, adding however that the problem was that most Croats are not in the mood to party.
"This is hardly surprising. Since 2009 the economy has either contracted or stagnated. This year GDP is expected to shrink by 0.3%. In 2008 unemployment was 13.4%, this year it is likely to go over 20%. As elsewhere, youth unemployment is particularly high. Corruption remains a big problem. Foreign direct investment, which peaked at EUR 4.2 billion in 2008, was just EUR 624 million last year," the article said.
"For years Croats were told life would be better in the EU. Now, says Mr Josipovic, they are realists who understand the mere act of joining will not bring a magical formula for restoring the economy and heath. Still, EUR 11 billion of structural funds are earmarked for Croatia over the next decade. Croatia is better prepared for membership than Bulgaria and Romania were, notes a diplomatic source; yet once in, it is vital that reform does not fall away because it still faces 'a hell of a challenge'," The Economist said.
