ZAGREB, 26 Nov (Hina) – The European Commission on Tuesday gave a positive assessment of Croatia’s National Medium-Term Fiscal-Structural Plan (MTP) for the 2025-28 period and the draft budgetary plan for 2025.

The Commission, during the final session in this term, published evaluations of member states’ MPTs as part of the European Semester Autumn Package.

Under the rules of the new, revised EU economic governance framework, which came into effect on 30 April, member states are required to submit their draft budgetary plans for the following year and MTPs to the Commission.

Croatia is among the majority of member states whose MTPs received positive evaluations. This indicates that their MTPs meet the requirements of the new Fiscal Framework and establish a credible fiscal trajectory ensuring debt reduction or maintaining debt at prudent levels.

As a country with a budget deficit below the upper limit of 3% of GDP and public debt below 60% of GDP, Croatia received in June a Technical Guidance defining its fiscal target for 2028 in terms of primary structural balance (-0.4% of GDP). This ensures that even 10 years after the conclusion of the MPT, the budget deficit and public debt will credibly remain below established reference values.

The MPTВ covers a four-year period, with a possible extension for an additional three years. It includes a macro-fiscal framework focusing on fiscal adjustments and targets, as well as the necessary reform and investment policies to achieve these goals. Member states will be required to report on the implementation of the document annually.

The Commission evaluates whether, based on MPTs, the net expenditure trajectory ensures that public debt remains below 60% of GDP for 10 years after the adjustment period or is placed on a probable downward trajectory by the end of the adjustment period.