AGP Executive Report

Diplomacy Clash: Croatia’s president Zoran Milanović refused to approve a new Israeli ambassador, citing Israel’s current government policies and accusing it of naming the nominee before approval—while Croatia’s conservative government has taken a more pro-Israel line. World Cup Focus: Croatia’s own football story keeps rolling—Luka Modrić is in the 26-man squad for his fifth World Cup, and Ghana’s camp is buzzing with Carlos Queiroz’s push for results, plus a late call-up for young Jerry Afriyie ahead of a Mexico friendly. Immigration & Demography: Parliament approved tighter Foreigners Act rules, including a basic Croatian language/Latin alphabet exam within a year, while the government points to a small birth-rate rise and higher maternity/parental payouts as early signs of demographic recovery. Local Life: Zagreb’s historic funicular reopened after its first major restoration in over 50 years, and Croatia also began a second round of compulsory basic military training for 900 recruits.

Croatia-Israel Diplomatic Clash: President Zoran Milanović has rejected Israel’s proposed ambassador, saying the nominee “has not received, nor will he receive” his consent over the policies of Israel’s current government, and accusing Israel of breaking an “unwritten rule” by announcing the post before approval. World Cup Focus: Luka Modrić is back in Croatia’s preliminary World Cup squad after cheekbone surgery, with Zlatko Dalić naming a 26-man roster and Group L opponents England, Panama and Ghana. Schengen & Borders: A new EU Schengen report and Frontex data point to fewer irregular crossings, but persistent border risks remain. Tourism Pressure Builds: Croatia’s summer debate is heating up—tourism taxes, rising coffee prices, and worsening traffic chaos are all shaping how visitors experience the season. Public Health Warning: WHO says the world is not keeping up with pandemic risk, as outbreaks become more frequent and more damaging. Local Economy: MHP Pet Food opened Croatia’s first wet pet food facility in Zlatar Bistrica, a €43m investment.

World Cup Focus: Croatia’s coach Zlatko Dalić has named Luka Modrić as captain for his fifth World Cup, putting the 26-man squad into Group L against England, Panama and Ghana, with Josko Gvardiol returning and a deep mix of veterans and stand-bys. Diplomatic Tension: President Zoran Milanović has refused Israel’s proposed ambassador for seven months, saying the nomination won’t get his consent and pointing to Israel’s current policies. Aviation Watch: Croatia Airlines is under investigation after an A220 veered off the runway during take-off in Split; no injuries were reported and investigators are analyzing the flight recorders. EU Border Pressure: New Eurostat figures show refusals of entry to the EU/Schengen rose in 2025, with Croatia among the countries recording higher numbers. Business & Food: BOSQAR INVEST signed to buy 100% of PIK Vrbovec, expanding its food division, while MHP Pet Food opened Croatia’s first wet pet food plant in Zlatar Bistrica with a €43m investment.

Croatia–Israel Diplomatic Standoff: Croatia’s president has blocked approval of Israel’s new ambassador for seven months, leaving the appointee to arrive as chargé d’affaires and highlighting a deep split between the presidency and the government. World Cup Build-Up: Ghana’s goalkeeper Benjamin Asare says he’s ready for elite forwards in Group L with England, Croatia and Panama, while coach Carlos Queiroz warns that “ambition” won’t be enough—sacrifice and discipline will. Dubrovnik Motorway Setback: Just days after the government named the Dubrovnik motorway a national priority, two major tenders were cancelled after bids came in far above the budget. Transport Watch: Croatia Airlines’ A220 veered off the runway during a rejected takeoff in Split; no injuries were reported. Economy & Safety: Croatia’s inflation rose to 5.8% in April, and a new study credits Croatia with a 66% drop in alcohol-related road deaths since 2011. Regional Tensions: Montenegro’s independence anniversary sparks fresh friction with Serbia after Vučić said he won’t attend.

Dubrovnik Motorway Shock: Croatia’s government had just declared the full motorway to Dubrovnik a national priority, but Croatian Motorways has now cancelled two key international tenders (Rudine–Slano and Slano–Mravinjac) after bids came in far above the planned budget—another blow to a project already under intense public scrutiny. WWII Cleanup Near Korčula: Police in southern Croatia are preparing a major underwater operation to remove a WWII-era aerial bomb found in Luka Bay; access to parts of the area will be temporarily restricted on May 18. Cost-of-Living Pressure: Croatia’s inflation rose to 5.8% in April, with transport (+13.1%) and housing-related costs (+12.1%) hitting hardest as the tourist season approaches. Road Safety Win: A new Europe-wide study credits Croatia with a 66% drop in alcohol-related road deaths from 2011 to 2021. Eurovision Afterglow: Croatia’s LELEK finished 15th in Vienna, while Bulgaria’s Dara won with “Bangaranga” amid a week of boycotts and protests.

Eurovision Aftershock: Bulgaria’s Dara won Eurovision 2026 in Vienna with “Bangaranga,” beating Israel’s Noam Bettan by a record margin as the contest stayed politically charged by boycotts over Israel’s Gaza role; Croatia’s LELEK finished 14th with 124 points, while the UK’s Look Mum No Computer scored just 1 point after a quirky “Eins, Zwei, Drei” performance. Croatia on the Move: A Croatia Airlines Airbus A220-300 aborted take-off in Split after veering onto grass; all 137 people onboard escaped safely, with runway damage being assessed. Public Safety: A bus crash near Slavonski Brod killed 10 and injured at least 45 early Sunday; the bus had Kosovo plates and was on a Germany–Pristina route. Regional Politics: Seven EU states urged faster Western Balkan accession, while warning candidates must still meet EU rules. Sports Spotlight: Filip Hrgović crushed Dave Allen in Doncaster, keeping his heavyweight title-shot hopes alive.

Aviation Incident in Split: A Croatia Airlines Airbus A220-300 veered off the runway during takeoff at Split Airport on Saturday, aborting departure for flight OU412 to Frankfurt; 132 passengers and 5 crew were evacuated safely and no injuries were reported, while technical teams work to remove the damaged plane and authorities await initial inspections. Tourism Pressure: With peak crowds returning, Croatian islands are again warning about strained water, sewage, waste and power systems, while the sector still says it can’t hire enough seasonal workers even after bringing in thousands from abroad. EU Enlargement Push: Seven EU states—including Croatia—back faster Western Balkan accession, but stress candidate countries must still meet EU rules. Transport Cuts: Croatia Airlines plans to cancel about 900 flights next quarter amid higher jet-fuel costs, and Jadrolinija is cutting 15 sailings on the Split–Ancona route during the tourist season. Eurovision Tonight: The 2026 Grand Final is set in Vienna with Croatia among the 25 finalists, amid widespread boycott fallout.

Middle East Truce: Israel and Lebanon have extended their ceasefire for 45 days, while Iran’s top line is distrust of the U.S. in negotiations—keeping pressure on the fragile deal. Eurovision Fallout: In Vienna, the final is set with Croatia’s LELEK in the running order and Look Mum No Computer performing after a week of boycotts and protests tied to Israel’s participation. Croatia Watch: Parliament adopted amendments to Croatia’s Foreigners Act, aiming to balance easier hiring for foreign workers with tighter oversight of migration and employers. Archaeology: Eastern Croatia’s Mohovo site has yielded 302 Roman coins, pointing to a Danube frontier watchtower from the late Roman era. Travel/Transport: Ryanair says it’s axing routes that will remove 700,000 seats, blaming airport charges—while a new summer rail link will bring Czech travelers direct to the Adriatic via Rijeka and Koper. World Cup Build-up: FIFA faces mounting ticket-sale fears as some matches reportedly haven’t sold out, fueling talk of a fan revolt over prices.

Eurovision in Vienna: Croatia’s LELEK has locked in a spot in Saturday’s grand final, with the running order now set and the contest still shadowed by protests over Israel’s participation. EU Justice Push: Thirty-six countries backed a special tribunal to prosecute Vladimir Putin for the crime of aggression, with the “point of no return” message landing as the Hague-based mechanism moves from pledge to legal reality. Croatia’s Domestic Pressure: New data show Croatia’s inflation has jumped to 5.4%, keeping the wage gap with Western Europe painfully wide even as pay rises continue. Zagreb Moves Streets: The city launched a public survey for a permanent expansion of the central pedestrian zone, turning more streets into traffic-calmed space. Regional Watch: Ukraine expanded simplified citizenship rules to include Hungary, a shift with major implications for ethnic Hungarians in Transcarpathia.

Eurovision Shockwave: Australia booked its place in the Eurovision final as Delta Goodrem lit up Vienna with “Eclipse,” while the second semi-final also sent Croatia through—alongside Israel, Greece, Finland and others—leaving five countries out after the latest eliminations. Croatia in the Spotlight: Croatia’s act reached the grand final as the contest’s 70th edition plays out under heavy political tension, with Israel-related protests and boycotts still casting a long shadow. Regional Cooperation: Croatia’s engineering community signed a cooperation MoU with Azerbaijan’s Engineering Academy, aiming to expand joint projects, conferences and knowledge exchange. Health & Science: KBC Split’s “Split Protocol” atrial fibrillation study has been published in the New England Journal of Medicine, boosting Croatia’s medical profile internationally. Defense Modernisation: Croatia moved forward with €1.7bn defence procurement under the EU SAFE instrument, including major equipment plans.

Defence & EU Funding: Croatia has moved forward with €1.7 billion in defence procurement under the EU SAFE instrument, paving the way for major joint buys including Leopard 2A8 tanks, Caesar howitzers and heavy military trucks. Science & Health: KBC Split’s “Split Protocol” for early atrial fibrillation treatment has been published in the New England Journal of Medicine, boosting Croatia’s medical profile internationally. Regional Politics & Memory: Plenković thanked Slovenia for handing over the remains of 500 post-WWII killing victims, as Croatia continues exhumations and dignified reburials. Media Ownership Watch: United Group plans to sell independent Serbian media to Euronews-linked owners, raising fresh questions about cross-border influence in the Balkans. Security & Diplomacy: Greece is pressing Ukraine after a suspected Ukrainian explosive drone was found near Lefkada, warning the Mediterranean must not become a “theater of military operations.” Economy & Wages: Zagreb’s average net salary rose to €1,753 in February, while the city’s labour market keeps outpacing the national average.

EU Funds Pressure: Brussels is pushing Croatia to speed up recovery and cohesion spending, warning that slow project execution could stall transport, energy and regional development. Housing Split: Croatia’s market is increasingly “two realities” — pricey coastal homes detached from local incomes, while inland demand stays weaker and structurally fragile. Railway Revival: Quiet but major rail upgrades are gathering pace, with EU-backed reconstruction aiming to shift Croatia toward greener transport. Transport Upgrade: A €29.6m contract was signed for a third lane on the Zagreb bypass, with more works on the Bregana–Zagreb zapad stretch starting next week. Eurovision Spotlight: Croatia’s LELEK reached the Eurovision final with “Andromeda,” drawing both praise and controversy over historic symbolism. World Cup Build-Up: Croatia’s football talent export remains strong, ranking 11th globally for players abroad, as the 2026 tournament countdown intensifies.

EU Justice Push: The EU is set to join the Special Tribunal for the Crime of Russian Aggression against Ukraine, with Denmark also joining—bringing the count to 34 countries ahead of a Council of Europe vote in Moldova on May 15. Croatia’s Innovation & Industry: Šibenik opened ADRIA TECH, Croatia’s first specialised marine technology centre, built to test and commercialise underwater and surface drone tech in real sea conditions. Energy Diplomacy: Foreign Minister Gordan Grlić Radman met Greece’s counterpart in Athens, stressing energy resilience and cooperation across defence, shipbuilding, IT and tourism. Tourism Pressure: Plenković warned Croatia’s tourism boom may be hitting capacity limits, urging “smart pricing” as rivals cut costs. World Cup Countdown: With 30 days to go, Croatia’s squad planning continues as Ghana weighs adding home-based players. Eurovision Tension: Israel’s Noam Bettan advanced to the final amid Vienna protests and “stop the genocide” chants, with security removing a disruptor during the performance.

Eurovision Fallout: Eurovision’s opening in Vienna turned into a political flashpoint as Israel advanced to the final while five countries boycotted over the Gaza war, with protests and heightened security marking a tense start. Croatia in the Mix: Croatia qualified for the grand final amid the wider broadcaster pullouts, keeping the contest’s biggest stage firmly in play for Croatian viewers. EU Energy Pressure: EU energy ministers are set to debate domestic gas drilling in Cyprus as prices and supply worries return, with indigenous gas framed as a tool for stability. Bosnia Power Shift: The US says Bosnia’s next international peace envoy will have a more limited mandate, signaling a change in how the High Representative role operates. Croatia Spotlight: Zagreb-based Ericsson Nikola Tesla CTO Jelena Jurišić was named Engineer of the Year 2026, underscoring Croatia’s STEM push.

Migration & Borders: Croatia launched a €9.9m EU-backed project to expand accommodation and security infrastructure for third-country nationals, aiming to speed up screening and border procedures under the EU Pact on Migration and Asylum. Food Security Shock: FAO warned that Strait of Hormuz disruptions are tightening fertilizer markets, threatening lower yields later in 2026 and into 2027. Dubrovnik Remembers: A new memorial in Gruž honors 15 children killed in Croatia’s Homeland War, with officials calling it a permanent reminder of interrupted childhoods and the value of peace. Tourism Signals: Dubrovnik Airport reported April passenger growth despite global uncertainty, while local coastal upgrades in Župa Dubrovačka push ahead with beach improvements and clearer visitor information. EU Politics in the Background: Bosnia’s High Representative Christian Schmidt confirmed he will resign, keeping regional governance questions in focus.

Eurovision Fallout: Vienna’s Eurovision 2026 opens amid a record political backlash, with five broadcasters boycotting and five countries absent over Israel’s participation—turning a music event into a live test of Europe’s fault lines. Bosnia Power Shift: High Representative Christian Schmidt says he will step down after nearly five years, with tensions still centered on Republika Srpska leader Milorad Dodik and the future of Bosnia’s stability. World Cup Build-Up: FIFA’s 2026 tournament planning keeps rolling—Bosnia names its squad with Edin Džeko and Kerim Alajbegović, while Ghana’s Carlos Queiroz demands “absolute focus” as preparations tighten. Croatia Tourism Push: Croatia’s national tourist board approved €8.6m for 274 projects to boost continental and less-developed destinations in 2026. Regional Mobility Shock: Ryanair is cutting winter capacity in Greece—closing Thessaloniki’s base and removing 12 routes—blaming airport charges and lost seats.