Croatia's potential as a new member of EU

Tauno OljuExecutive directorEY Advisory Services in Croatia

Page 2 Croatia's potential as a new member of EU

Potential impact of EU accession

► In the three years following EU accession, 10 new member states had a growth advantage of 3.1% over the EU15, compared with 1.7% in the three years preceding EU entry

2001 2002 2003 2004 2005 2006 2007

-6

-4

-2

0

2

4

6

8

10

12

0.2-0.3 0.0

1.8

4.04.4

2.1

3.44.1 4.0

3.4

6.1

7.5

3.9

0.8

2.1

0.0

1.91.2 1.3

-3.5

3.94.4

6.4

4.45.0 5.2

6.2

5.2

4.03.4

5.8

7.8

9.6

6.3

0.6

2.1

1.0

2.1

3.9

5.7

6.9

0.1

1.4

-0.9

1.5 1.2

3.2 3.2

Annual economic growth % difference with UK

Czech RepublicEstoniaHungaryLithuaniaLatviaSlovak RepublicSlovenia

%

Page 3 Croatia's potential as a new member of EU

EY research on FDI and entrepreneurship

EY annual FDI attractiveness surveys

Page 4 Croatia's potential as a new member of EU

Croatia's position

Most important factors in deciding the location in which to establish operations

Transport and logistics infrastrucure

Labor cost

Stability and transparency of political and regulatory environment

Market size of a country or a region

25%

28%

36%

39% Four hours from more than 95 million people

Harmonized with EU, numerous improvement initiatives

More than two times lower than UK or EU in average

One of the Europa's highest quality road network

Page 5 Croatia's potential as a new member of EU

Thank you