At the beginning of the new European Semester, the European Commission on Thursday found that Croatia is a group of 16 countries for which a thorough macroeconomic situation analysis is needed to see whether macroeconomic imbalances are reduced or increased.
The results of the in-depth analysis will be announced by the Commission in February next year, along with an analysis of economic policies in all member states.
The Commission published the Annual Growth Survey in the EU, the Warning Mechanism Report and the Joint Employment Report on Thursday. The publication of these documents begins with the European Semester, a mechanism for coordinating economic policies within the EU to avoid repeating the financial and debt crisis.
In the Warning Mechanism Report, the Commission noted the risks for Croatia in terms of sustainability of external and public debt and labor market adjustment.
"Therefore, the Commission considers it useful to take into account the identification of excessive imbalances in February, to further analyze the persistence of macroeconomic risks and to monitor progress in reducing imbalances," the document says.
In February this year, the Commission concluded that Croatia has over-macroeconomic imbalances that require decisive political action and specific monitoring, particularly with regard to low-risk risks, high external liabilities and growing public debt, poor governance in the public sector and poor results in employment in the context of moderate growth.