1 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE The compliance trap: Croatia’s stalled path to sustainability Estefania Ravelo Reyna Croatia’s accession to the EU required adopting policy frameworks to meet European environmental standards. While successful in legal alignment, sustainability efforts remain constrained due to structural economic challenges, governmental distrust, and a persistent innovation gap. This article examines Croatia’s current “compliance trap” through the tourism and agriculture sectors, highlighting how limited capacity hinders progress. It argues that strengthening human capital and rebuilding institutional trust are essential for transitioning from compliance to leadership in sustainable governance. Introduction Croatia’s accession to the EU in 2013 marked a transformative departure from a post-Yugoslav, centralized government model toward a system defined by the EU acquis—the comprehensive body of EU laws, regulations, and standards that all member states must adopt and enforce. This integration deepened with Croatia’s entry into the eurozone and Schengen Area in 2023, reinforcing economic and regulatory alignment with EU institutions. This broader transformation, known as Europeanization, required the incorporation of EU cultural, political, and economic norms into domestic structures and policies to ensure compliance. Within this framework, emphasis was placed on the EU environmental acquis regarding environmental protection and sustainable resource management. A primary outcome of this shift was Croatia’s leading participation in Natura 2000, the largest coordinated network of protected areas (European Environment Agency, 2023), which all member states must implement. However, this rapid legislative alignment has created tension between high-level sustainability mandates and the nation’s heavy dependence on resource-intensive agriculture and tourism. Although Croatia has successfully incorporated EU benchmarks into its legal framework, the transition to a green economy remains stalled by structural economic constraints, institutional distrust, and a persistent innovation gap. This article argues that Croatia’s current model is characterized by compliance rather than proactive sustainability. To move beyond this “compliance trap,” the state must address the disconnect between the existing environmental policies and efficiency in local implementation by developing human capital and governmental trust nationwide and fostering domestic innovation in sustainability initiatives. Croatia’s EU policy transfer The EU’s approach to environmental protection is characterized by policy regulations, with an emphasis on individual member states’ abilities to achieve environmental objectives through reliable enforcement mechanisms, ensuring the participation of government authorities, industry leaders, farmers, and citizens alongside the support of EU institutions and resources (Alibašić & Atkinson, 2023). Prior to EU accession, the European Commission deemed Croatia’s environmental governance incompatible with EU standards. This status was a product of its post-Yugoslav model, characterized by strong centralization and an underdeveloped civil society. Environmental initiatives and tasks were spread across multiple entities, leading to fragmented efforts to sustainably manage the natural environment. The government lacked resources, a fully developed legislative framework, and the technical expertise necessary for effective policy implementation (Taylor, 2015). Croatia’s Europeanization began during accession negotiations, leading to the adoption and integration of EU norms, policies, and frameworks into domestic governance. To meet candidacy requirements, Croatia undertook extensive reforms, aligning national legislation with EU priorities and investing in institutional restructuring. These efforts were supported by EU financial and technical assistance, enabling a rapid and comprehensive policy transfer (Kay, 2014). Accession required full adoption of the EU environmental acquis (Alibašić & Atkinson, 2023), comprising over 200 legal acts covering environmental protection, climate change, and sustainable development. Croatia implemented key regulatory frameworks governing biodiversity conservation, water quality, and pollution control, under the Endoi:10.18275/pbe-v044-002
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