AGP Executive Report

Croatia-Serbia Tensions Over Mladić Funeral: Prime Minister Andrej Plenković warned Serbia that granting Ratko Mladić full state and military honours could damage its EU path, as Mladić’s death in The Hague has reignited disputes over how the 1990s legacy is handled. Croatia Economy & Cost of Living: Croatia’s inflation hit 4.1% in August, with energy prices still driving pressure, while the finance minister said a quick drop is unlikely without de-escalation in the Middle East. EU Recovery Fund Progress: Croatia says it has received €7.3bn of its €10bn EU recovery package, with final payments expected after the remaining targets are completed by late September. Demography Update: The government highlighted a rise in births—924 more in the first seven months of 2026 than last year—while stressing long-term trends still matter. Local Development on Pelješac: A new rehabilitation and hippotherapy centre on Pelješac secured co-financing, aiming to expand specialised support for children and people with disabilities.

Croatia-Serbia EU row: Prime Minister Andrej Plenković warned that if Serbia gives Ratko Mladić a “highest state and military honours” burial, it will effectively shut the door on Serbia’s EU path. Regional EU security: The European Commission said any interference in Montenegro’s EU accession process would be unacceptable, after Montenegro’s PM hinted at “hybrid” actions tied to regional states. Croatia-Hungary energy talks: Hungary’s PM Péter Magyar said Budapest is ready to negotiate with Croatia on the INA–Mol relationship, while dodging a clear answer on extraditing Mol CEO Zsolt Hernádi. Croatian justice reform: Croatia plans life imprisonment for 15 criminal offences from Jan. 1, 2027, including the most serious environmental pollution crimes. Local governance & infrastructure: Split is moving ahead with an €80m urban mobility plan, including about 1,300 new parking spaces, to ease congestion. Road safety pressure: Near Dubrovnik, the DC8 through Župa dubrovačka is carrying 33,000 vehicles a day—well above its ~22,000 capacity—raising safety concerns. EU enlargement debate: Central and Eastern European leaders at the Bled Strategic Forum pushed for EU reform and faster enlargement. Sports in Croatia: Dubrovnik hosted the first World Aquatics Water Polo 4x4 Open Championships, blending sport and tourism.

EU Reform Debate in the Balkans: Hungary’s PM Péter Magyar used the Bled Strategic Forum to warn Brussels is in a “leadership crisis,” arguing the EU must decide whether it wants to “survive or win,” and he criticized EU bureaucracy and migration fines. Croatia–BiH Official Visit: Croatia’s Prime Minister Andrej Plenković is set to visit Mostar on Sept. 1, meeting university and hospital leadership and attending a contract award ceremony in Potoci. Schengen Rules Spark Driver Protests: Western Balkan truckers in Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia protested the 90/180-day Schengen stay limits for professional drivers, threatening border blockades on Sept. 14 unless exemptions are agreed. Croatia–Italy Ferry Boost: Jadrolinija extended its new Zadar–Ancona fast ferry service until Sept. 6 after strong early demand, adding sailings and keeping promotional fares. EU Enlargement and Climate Tensions: Central and Eastern European leaders at Bled called for EU enlargement and competitiveness, while also debating the costs of the “green transition” and how to handle climate policy. International Spotlight: Lionel Messi announced his retirement from Argentina’s national team after 207 caps and 125 goals, ending a 21-year international career.

War Crimes & Justice: Ratko Mladić, the “Butcher of Bosnia” convicted over the Srebrenica genocide, died in The Hague while serving a life sentence, renewing debate across the region about accountability and how societies remember wartime leaders. EU Enlargement Politics: Iceland’s referendum rejected restarting EU accession talks, a setback for Brussels and a boost for eurosceptics, with the vote framed around fisheries control versus geopolitical security. Croatia-Serbia Tensions: Croatian police in Split detained a Serbian influencer over Chetnik tattoos displayed publicly, with court-ordered detention followed by deportation and a five-year entry ban. Energy & Sanctions: OFAC extended an operating license for Serbia’s NIS until Sept. 30, while also extending related waivers involving Croatian pipeline operator JANAF and negotiations tied to Russian stake sales. EU Climate Policy: The European Commission endorsed Greece’s €4.8bn Social Climate Plan to protect vulnerable households and support the clean transition, including heat pumps, renovations, and social housing. Regional Security/Disaster Risk: Nepal and China met to improve flood and glacier hazard monitoring, but Nepali officials complained about insufficient data sharing.

Energy Sanctions & Licensing: The U.S. Treasury’s OFAC extended a key operating license for Serbia’s NIS until Sept. 30, while also extending related permissions tied to MOL’s talks with Gazprom Neft and confirming a license for Croatia’s JANAF pipeline operator. EU Politics: Iceland voters rejected restarting EU accession talks in a referendum, with the “no” side winning on sovereignty and fisheries control. Regional Security & Law: A German lawmaker argues Croatia should extradite a Ukrainian suspect linked to Nord Stream sabotage, framing any delay as evidence of state involvement. Croatian Sports Spotlight: Croatia’s Filip Hrgović won the vacant IBF heavyweight title by stopping Moses Itauma in the ninth round, while Itauma was taken to hospital for checks. Tourism Pressure in Istria: Cape Kamenjak faces ongoing environmental strain despite fewer vehicles entering the protected area than last year, prompting traffic closures in busy spots. Public Infrastructure: Dubrovnik Airport rolled out new 3D security scanners, ending the need to remove liquids and electronics from hand luggage.

Border Tech & Travel: Dubrovnik Airport is rolling out new 3D security scanners so passengers won’t have to remove liquids or electronics from cabin bags, aiming for faster, less stressful screening. EU Border Rules: The EU’s summer pause on biometric fingerprint/face scans at crowded borders is set to end on September 6, raising the prospect of longer queues unless Brussels extends the waiver. Energy & Sanctions: JANAF secured a US OFAC extension to keep transporting crude oil for Serbia’s NIS until September 30, 2026, protecting a key energy supply route. Public Finance: Croatia’s crafts chamber (HOK) is pushing changes to proposed tax rules for flat-rate entrepreneurs in the €40,000–€60,000 brackets during the public consultation. Culture & City Life: Dubrovnik hosted José Carreras in front of the Cathedral, with Mayor Mato Franković calling culture central to the city’s identity. Heritage & Science: Speleologists explored a Biokovo pit and found traces of an old ice-harvesting craft, while Šibenik marked 131 years since its first alternating-current electricity system came online. Sports Spotlight: Filip Hrgović beat Moses Itauma in London to win the vacant IBF heavyweight title, making him Croatia’s first heavyweight world champion.

Croatia–Serbia Energy Ties: JANAF secured a new US sanctions licence extension, keeping crude oil transport to Serbia’s NIS running until Sept 30, 2026—an important continuity move for regional energy supply. Dubrovnik Infrastructure & Tourism: Dubrovnik Airport is rolling out advanced security scanners so passengers won’t have to remove laptops and liquids from cabin bags, while the Old Harbour prepares for a world-first 4×4 water polo championship with county backing. Local Governance & Economy: Croatia’s flat-rate entrepreneurs are pushing back on proposed tax changes, with the Croatian Chamber of Trades and Crafts asking for higher expense recognition in key revenue bands and keeping the current contribution coefficient. Public Life & Heritage: Šibenik marks 131 years since its first alternating-current electricity system went live, linking the milestone to the Jaruga hydro plant and the city’s Light is Life event. Sports Spotlight: A major heavyweight title fight headlines the weekend in London, with Croatia’s Filip Hrgović facing Moses Itauma, while Croatia’s Illia Kovtun adds to the country’s medal momentum after a European gold haul.

African Swine Fever Update: Croatia’s government has partially eased African swine fever protection and surveillance zones after no new outbreaks among domestic pigs were detected since August 4, though the virus remains in wild boars and restrictions are being lifted gradually. Health & Tourism Investment: A new Thermal Hotel Wrello opened in Zagorje under a €17.6m EU-backed project tied to the Special Hospital for Medical Rehabilitation Stubičke Toplice, adding year-round wellness facilities and 36 rooms plus apartments. Regional Security & War Crimes Memory: Coverage continues to ripple across the Balkans after the death of Ratko Mladić, with renewed focus on Srebrenica and the long political aftershocks for Bosnia and the wider region. International Sports in Croatia: The inaugural World Aquatics Water Polo 4×4 Open Championships will be held in Dubrovnik, bringing a new global format and U.S. coaching appointments to the Croatian venue. Local Heritage & Identity: A feature revisits Ploče’s unusual naming history, showing how the town changed its name four times in 45 years.

African Swine Fever Update: Croatia partially eased African swine fever protection and surveillance zones after no new outbreaks among domestic pigs were detected since Aug. 4, though the virus remains in wild boars; about 5,000 pigs have been culled this year out of a national herd of roughly 900,000, with 130 farm outbreaks confirmed as of Aug. 26. Split Urban Mobility: Split unveiled an €80m plan to cut car traffic into the centre via Park & Ride Lovrinac and Park & Walk Turska kula, adding 1,317 parking spaces plus bus/taxi areas, EV charging, car-sharing, and cycling links. Croatia-Linked International Sports Governance: The ITIA sanctioned tennis players for anti-corruption rule breaches, including Croatian coach Marino Jakic, as investigations continue. Regional Justice Shock (Serbia/Bosnia): Ratko Mladić, convicted over the Srebrenica genocide, died in The Hague; Serbia’s officials signaled plans for burial with state honours, while the UN and regional leaders reiterated the gravity of the crimes. Dubrovnik Hosts New Water Polo Event: A USA assistant coach was selected for the inaugural 2026 World Aquatics Water Polo 4×4 Open Championships in Dubrovnik, running Aug. 31–Sept. 6.

Croatia–EU Finance: The European Investment Bank approved €9.2bn in new financing, including €4.3bn for companies in Croatia and other EU states, with support routed via local banks for SMEs in security/defence, space, energy and agriculture, plus grid, solar and district-heating projects. Regional Security & EU Path: Montenegro PM Milojko Spajić warned of “hybrid” destabilisation attempts tied to the EU accession process, saying coordinated actions could involve representatives from at least two regional countries and parts of the media—without naming them. Sports & Politics Spillover: Croatia’s Dominik Livaković has left Fenerbahce for Barcelona on a four-year deal, while Croatia’s Mario Hezonja helped the national team beat Latvia 115–80 in FIBA World Cup qualifiers. War Crimes Legacy: Ratko Mladić, convicted over Srebrenica genocide and other atrocities, has died in UN custody in The Hague, closing a major Yugoslav-war tribunal case. Culture & Tourism: Dubrovnik Summer Festival ended after 73 performances and about 30,000 visitors, reporting strong ticket demand and a 110% jump in souvenir sales. Sports Business: United Airlines announced its biggest-ever international expansion with 10 new cities, including Ljubljana, and new routes across Europe and Asia.

War Crimes & Memory: Ratko Mladić, the Bosnian Serb general convicted for genocide over the 1995 Srebrenica massacre and for atrocities including the siege of Sarajevo, has died at 84 in a UN prison hospital in The Hague; the UN court said it has ordered a full inquiry into the circumstances, while his death follows earlier denials of an early-release request on humanitarian medical grounds. Regional Security & Migration: Authorities reported 61 irregular migrants found along the Bosnia–Croatia border during a joint patrol, with people from Pakistan, Bangladesh, Nepal, Sri Lanka and India detected without valid documents. Energy Policy: Croatia’s government adopted draft Electricity Market Act amendments to fix grid-access rules and protect renewable projects delayed by unresolved connection charges, aligning domestic rules with EU market requirements. Local Infrastructure: Dubrovnik Mayor Mato Franković inspected a new €4.5m sports hall in Orašac nearing completion, funded partly via the National Recovery and Resilience Plan. Sports & Culture: BRAVE CF brings MMA to Pula Arena on Sept 5 with BRAVE CF 108, while Dubrovnik’s Old Harbour is being turned into a 4x4 water polo world championship arena.

EU Enlargement Reform: Commissioner Marta Kos outlined a mid-October EU expansion model built on “gradual integration,” tighter checks on democracy and rule of law, and faster decision-making—potentially reducing veto power for states like Croatia and Bulgaria. Croatia-Serbia Security: Zagreb warned that Serbia’s arms purchases could support offensive operations, while Belgrade rejected the criticism, keeping tensions high since the Yugoslav wars. Adriatic Fisheries: Croatia is set to cut sardine fishing days in Adriatic zone A from 20 to five per month, citing historically low stocks and high fishing mortality; the plan goes to public consultation. Energy & Prices: Croatia’s fuel price rises are milder than the EU average, but drivers still face higher costs; separately, Europe’s heat and drought are pressuring crops and fodder, with Croatia among affected areas. Public Safety & Climate: Croatia’s firefighters received six new forest-fire vehicles, while reporting highlights that many fires start on neglected private land. War Crimes Court: The UN tribunal rejected Ratko Mladić’s early release request on humanitarian grounds. Local Transport: Dubrovnik unveiled 12 new electric buses (with EU funding) to accelerate electrification of its public transport network.

Croatian Fisheries Policy: Croatia is moving to cut sardine fishing days in the Adriatic after a new assessment found stocks at historically low levels, proposing a drop for purse seiners in zone A from 20 to five days per month until the winter ban, with the plan now out for public consultation. Climate & Agriculture: A new EU Commission Joint Research Centre bulletin warns that persistent heat and low rainfall over the past two months are hurting summer crops and fodder across western and central Europe, with Croatia among countries reporting reduced maize yield expectations. Environmental Cleanup: Croatia is advancing remediation of a major illegal waste site in Gospić, with two bids received for the first two cleanup phases covering about 4,500 tonnes of mixed hazardous waste and roughly 650 tonnes in “big bags,” after an earlier tender drew no bidders. EU Enlargement Reform: EU Enlargement Commissioner Marta Kos outlined a reform package built on transitional measures, internal EU changes, safeguards, and gradual integration, aimed at preparing the bloc for the next enlargement wave. Regional Security Tensions: Zagreb says Serbia is buying weapons that could support offensive operations, not just defense, as Croatia presses Western allies to pay closer attention.

Croatia Residence Rules: Croatia has published a clear policy barring a specific group of third-country nationals from long-term residence—those whose asylum or subsidiary protection was later revoked. EU Enlargement Overhaul: EU Commissioner Marta Kos used a Zagreb address to push a new “Helsinki Moment” for enlargement, calling for internal EU reforms, stronger safeguards, and gradual integration while warning against “Trojan horses.” EU Climate Pressure on Agriculture: The European Commission says extreme heat and drought have cut summer harvest forecasts across much of Europe, with impacts ranging from moderate in parts of the Adriatic region to severe losses in central and western areas. Regional Politics Watch: Bosnia heads toward an October 4 election with no functioning state-level majority and a stalled EU path, amid a deepening constitutional crisis. Croatia in the EU Spotlight: Kos’s remarks come as Croatia hosts the Conference of Ambassadors, Consuls General, Consuls and Military Attachés, underscoring Zagreb’s role in EU policy debates.

EU Enlargement Overhaul: Commissioner Marta Kos told Croatia’s ambassadors conference that the EU must reform enlargement for a “Helsinki moment” era—protecting member-state interests, speeding internal decision-making, tightening rule-of-law safeguards, and moving candidates through gradual integration and transitional measures. Croatia Tourism Watch: Dubrovnik hit 3 million overnight stays in 2026 on Aug. 22—about a day earlier than last year—driven by foreign visitors and continued strong UK and US demand. Croatia Sports & Identity: Ukrainian-born gymnast Illia Kovtun began competing under the Croatian flag by winning two European golds in Zagreb, adding parallel bars to his all-around title. Regional Politics: Bosnia heads to an Oct. 4 election with no state-level governing majority and a stalled EU path amid constitutional strain, as OSCE/ODIHR ramps up monitoring. Tech & Mobility (EU angle): Waymo says it will start robotaxi groundwork in Munich next year, aiming for public commercial service by end-2027.

EU Enlargement Overhaul in Zagreb: Commissioner Marta Kos used the Croatian Ambassadors Conference to preview a revived EU enlargement plan built on gradual integration, tougher candidate vetting, and a new methodology—framing it as a new “Helsinki Moment” ahead of October talks. Housing for Young Families in Osijek-Baranja: A county programme (“Our Slavonia and Baranja – Our Home”) will fund new homes via long-term rentals (10+ years) with a buy option after a decade, aiming to tackle demographic decline. Dubrovnik Tourism Push: Dubrovnik is nearing 900,000 arrivals in 2026, with eVisitor figures showing slight growth versus last year and key markets led by the UK and US. Dubac Cemetery Expansion: Dubrovnik’s Dubac Cemetery is moving into its final phase, targeting about 1,700 new plots by early 2027 and possible expansion toward 3,500. Public Health at the Coast: Dubrovnik-Neretva County reports excellent sea quality at 125 beaches, with all tested sites meeting bathing-water standards. Healthcare Upgrade in Rijeka: KBC Rijeka performed its first robot-assisted gynaecology surgeries, funded fully from the state budget.