Croatia’s political transformation was shaped by institutional tensions. Personal animosity between Prime Minister Andrej Plenković and President Zoran Milanović weakened coordination, particularly in foreign and security policy. A super-election year reaffirmed the dominance of the ruling party, which secured a third term despite corruption scandals and criticism of judicial independence. Electoral districts were redrawn following a Constitutional Court ruling, while Milanović’s bid for the premiership was blocked to uphold the separation of powers.
Croatia’s economic transformation benefited from eurozone and Schengen accession. The government maintained fiscal stability, reduced public debt and improved its credit rating. Inflation declined, though price perceptions remained high. Low unemployment persisted alongside rising labor migration, and property prices continued to increase.
EU funding supported administrative reforms, digitalization and green energy investments, but corruption and judicial inefficiency continued to undermine institutional trust. Waste management deficits persisted in major cities. Internationally, Croatia supported Ukraine and Bosnia and Herzegovina’s EU accession path, while relations with Serbia remained strained.
