6 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 44 | 2026 diversifying industries and fostering innovation in less developed areas, Croatia cannot leverage EU frameworks designed for its long-term development. Recommendations The transition to a greener economy in Croatia requires a shift from compliance to proactive innovation. With the EU Biodiversity Strategy for 2030 necessitating protection of at least 30% of marine ecosystems, Croatia must strive for long-term ecological results that preserve these ecosystems from tourism, agricultural expansion, fisheries, and pollution. By leveraging its position within the EU, Croatia can access technical, legislative, and financial support to build durable frameworks for economic resilience and global competitiveness. The most immediate priorities are strengthening human capital and improving coordination between entities. Together, these two pillars target the structural constraints identified earlier: fragmented governance and limited domestic capacity. The most critical barrier to effective implementation is the limited technical and administrative capacity of local actors. Farmers, tourism operators, and regional authorities are responsible for implementing complex EU environmental frameworks despite often lacking the training and resources to do so effectively. To address this gap, Croatia should expand investment in formal training and technical assistance to equip stakeholders with skills needed to manage ecosystems and comply with reporting conditions. By fostering community-based stewardship through training and compensation, environmental protection can be considered an opportunity for innovation rather than a burden. Through the European Social Fund, Croatia should continue establishing regional training centers in both the agriculture and tourism sectors. For farmers, this means simplifying Natura 2000 reporting and improving access to subsidies; for tourism providers, training should emphasize long-term business models that reduce dependence on seasonal demand (Pečurlić et al., 2025). Beyond resource management, support at the local level can facilitate adoption of innovative practices and technologies, strengthening local knowledge and business sophistication and closing some of Croatia’s persistent competitiveness gaps (World Bank, 2019; World Intellectual…, 2025). Improving capacity alone is insufficient without addressing Croatia’s fragmented governance. As discussed previously, overlapping responsibilities and weak enforcement mechanisms undermine policy effectiveness and reduce accountability. To strengthen governance, Croatia can streamline coordination across multiple ministries and establish a single, high-level coordinating body for environmental compliance, centralizing enforcement and creating a point of contact for the public. Similarly, increasing the capacity of environmental inspectorates, improving monitoring, and ensuring consistent sanctions will transform Croatia’s compliance efforts from a reporting exercise into enforceable strategies. Rebuilding institutional trust also requires greater public engagement and transparency. Expanding access to environmental data, improving communication between government institutions and local communities, and incorporating stakeholder input into decision-making can help restore public confidence. Broadening participation in enforcement, by including local players and industry representatives, can further strengthen accountability while maintaining a centralized coordination system. Conclusion Croatia’s journey from a post-Yugoslav centralized model to EU-aligned environmental governance has been characterized by smooth policy transfer but stalled implementation. Although the nation has successfully incorporated the EU acquis into law, it is trapped in a cycle of superficial compliance, slowing efforts toward environmental development. Stalled sustainability efforts suggest that EU membership provides institutional benchmarks and technological and financial support yet not guaranteed results. Whether Croatia’s ecological transformation is ultimately successful depends on how the nation leverages EU funds and guidance to foster domestic capacity rather than symbolic compliance. For Croatia to thrive, it must work proactively to develop original solutions for the nation’s unique challenges of coastal overtourism, inland depopulation, and regional inequalities. By investing in human capital, Croatia can bridge the gap that prevents local actors from successfully managing complex ecosystems. By utilizing EU resources to fund domestic initiatives, such as formal training programs and public engagement, Croatia has the potential to become a model for neighboring countries and post-Yugoslav nations. Ultimately, the green transition is not merely a technical or legislative challenge; it also is a structural one. The goal of the coming decade should be for Croatia to evolve from an adopter to a regional leader in sustainable governance. By re-engineering its agriculture and tourism sectors through the two-pillar strategy of human capital and institutional reform, Croatia can become a more resilient, green, and innovative economy.
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