AGP Executive Report

Toxic Waste Crisis: Tens of thousands marched in Zagreb demanding action over 34,000–37,000 tonnes of illegally stored waste near Gospić, after repeated government promises failed to turn into on-the-ground cleanup. Regulatory Pressure: USKOK findings flagged environmental risks at waste sites in Varaždin and Gospić, including microplastics in groundwater, adding fuel to the protests. Croatian Housing Boom: New-build apartment prices keep climbing—Croatia averaged €2,994/m² in Jan–Jun (+8.7% y/y), while Zagreb surged to €3,518/m² (+18.9%). EU Online Shopping Costs: The EU plans a new handling fee for small parcels from outside the bloc, potentially raising costs for frequent low-value online shoppers in Croatia from 1 Nov 2026. Tourism Shift: Župa Dubrovačka saw arrivals rise (+1.6%) while overnight stays fell (-1.66%), and Dubrovnik’s nautical tourism cooled in August (overnights down ~7%). Aviation & Trade Links: Air China launched a year-round Beijing–Bucharest–Zagreb route (3x weekly), positioning it as a bridge for tourism and business ties. Defense Procurement: Croatia approved a €544m deal for 18 Chunmoo rocket launchers from South Korea, with deliveries planned for 2026–2029.

Education & Youth: Croatia’s Education Minister Radovan Fuchs kicked off the new school year urging pupils to be “curious, brave and persistent,” telling them mistakes are part of learning and praising teachers as a pillar of the country’s future. Tourism Regulation: Brussels is moving toward tougher rules on short-term rentals as Croatia already tightens tourist apartment controls, raising the question of who will pay the price as housing pressure grows in hotspots. Transport & Infrastructure: Croatia is set to replace motorway toll booths with Crolibertas from March 1, 2027, using fully electronic free-flow collection while keeping distance-based tolls by vehicle category. Environment & Public Pressure: Tens of thousands protested in Zagreb over illegal toxic waste stored near Gospić in Lika, with claims of around 35,000 tonnes and alleged €4m profits from falsified documents; protesters demand a national waste plan within 20 days and an import moratorium. Local Business & Consumer Costs: A Dubrovnik visitor was charged €175 for parking after missing a 15-minute window to buy a €40 daily ticket, reigniting complaints about how the system is communicated. Aviation & Connectivity: Air Canada announced new international expansion including a first direct Montreal–Dubrovnik link from May 11, 2027, ending decades without a nonstop Canada route. Sports & Entertainment: Croatia’s Andi Vrtačić won by TKO at BRAVE CF 108 in Pula, while Lasha Abramishvili also secured a major win in the same event.

Hazardous Waste Crisis: Tens of thousands marched in Zagreb demanding urgent cleanup of an illegal toxic waste dump in Croatia’s Lika region near Gospić, where about 35,000–37,000 tonnes of medical and electronic waste are alleged to have been imported from Italy, Germany and Slovenia; protesters want a national waste-management plan within 20 days, a temporary halt on waste imports, and clear remediation deadlines after soil contamination and “forever chemicals” (PFAS) were flagged. Tourism & Housing Rules: Brussels is preparing tougher EU-wide limits on short-term holiday rentals as Croatia already tightens tourist apartment rules—raising the question of who pays the price as property affordability worsens in tourism hotspots. Road Toll Tech: Croatia plans to replace toll booths with fully electronic Crolibertas from March 1, 2027, keeping distance-based charging but aiming to cut queues and emissions. Aviation & Trade Links: Air China launched year-round Beijing–Zagreb service, while Air Canada expands Canada–Dubrovnik nonstop flights from May 11, 2027. Business & Industry: EcoCortec says its VpCI packaging can cut plant washing steps, lowering energy use and waste. Regional Business Watch: The Israeli Chamber of Commerce opened an office in Banja Luka, strengthening ties with Republika Srpska amid wider international criticism of Israel’s Gaza war.

Toxic Waste Crisis: Tens of thousands marched in Zagreb demanding urgent cleanup of hazardous waste illegally dumped near Gospić, with protesters calling for a moratorium on imports and a national waste plan within 20 days amid claims of soil and groundwater contamination. Energy & Industry Policy: The Croatian government is preparing an autumn package of measures, with nuclear power among topics, after August inflation picked up to 4.1% driven by energy prices. Public Transport Electrification: Zagreb rolled out 62 new electric buses for ZET (30 standard, 26 articulated, 6 midi) plus expanded charging infrastructure, with EU and city funding covering nearly €56.8m. Fuel Costs Watch: Croatia’s diesel prices could jump sharply next week as oil markets react to renewed Iran-related shipping and supply risks. Business & Trade: Croatia’s bank profits fell 5.5% as a strong first quarter unwinds, while fiscalised receipts in August rose to €6.56bn, signaling continued consumer spending momentum. Global Business Spotlight: Air Canada announced a major 2027 expansion including a new seasonal Montréal–Dubrovnik route starting May 11, 2027. Sports & Media Business: BRAVE CF 108 in Pula added a vertical 9:16 live broadcast format and a sportsbook partnership, showing how sports promotions are monetizing new viewing habits.

Environmental Crisis in Croatia: Tens of thousands marched in Zagreb demanding urgent cleanup of the illegal hazardous waste dump near Gospić in Lika, where authorities say more than 30,000 tonnes were buried and protesters fear contamination and “forever chemicals” in soil and groundwater. Public Transport Electrification: Zagreb’s ZET rolled out 62 new electric buses (30 standard, 26 articulated, 6 midi) plus expanded charging infrastructure at Podsused, with EU and city funding totaling nearly €56.8m. Energy Costs: Croatia’s fuel market faces a potential diesel jump next week as Iran-related tensions keep oil prices volatile, with diesel forecast to rise sharply at the pump. Aviation & Tourism Links: Air Canada announced major 2027 expansion, including a new seasonal nonstop Toronto–Dubrovnik route from May 11, boosting direct Canada connectivity after decades. Defense Modernisation: Croatia approved a €544m deal for 18 South Korean Chunmoo K239 multiple rocket launchers as part of wider military upgrades. Business & Jobs (Canada, Croatia Industries): Ottawa pledged $11.6m for tariff-response projects in Saskatoon, including Croatia Industries, aimed at automation, new markets and job support.

Fuel & Energy: Croatian motorists may see diesel jump sharply next week, with RTL Danas’ unofficial estimates pointing to up to a +€0.22/l rise for Eurodiesel as Iran-related tensions keep oil markets jittery. Aviation & Tourism: Air China launched the first scheduled Beijing–Bucharest–Zagreb passenger service, running three times weekly year-round, a new long-haul gateway for Croatia’s tourism and business links. Air Connectivity Expansion: Air Canada also unveiled its biggest-ever summer 2027 expansion, adding routes including Toronto–Dubrovnik and Vancouver–Guangzhou, aiming to boost jobs and GDP impact. Defense Procurement: The Croatian government approved a €544m deal to buy 18 South Korean Chunmoo K239 rocket launchers (with command-and-control), as part of broader armed forces modernisation. Legal/Politics: A Croatian court postponed the extradition hearing of a Ukrainian Nord Stream suspect after Germany updated the arrest warrant classification; meanwhile, police removed men who glorified Ratko Mladić from Croatia and moved to revoke permits. Tech & Mobility: Uber began offering supervised autonomous taxi rides in London via Wayve, with a similar Zagreb-linked partnership model. Business & Economy: Croatia’s August fiscalised receipts rose to €6.56bn, while bank profits fell 5.5% as the strong first quarter unwinds. Local Economy & Culture: Boogie Lab opened its first New York artisan bakery, exporting the Zagreb concept to Washington Heights.

Aviation & Tourism Links: Air China launched the first scheduled Beijing–Bucharest–Zagreb route, running three times a week year-round, giving Croatia its first regular China connection and a new long-haul gateway for tourism and business. Airline Expansion: Air Canada announced its biggest-ever summer 2027 network push, adding new intercontinental destinations including Dubrovnik and Guangzhou, with more nonstop capacity across Europe and Asia. Croatian Defence Modernisation: The Croatian government approved a €544m deal to buy 18 South Korean Chunmoo K239 multiple rocket launchers (with command-and-control from Poland), as part of a wider military upgrade programme. EU Budget Fight: Senior EU officials renewed calls for new Europe-wide “own resources” taxes to fund the next long-term budget, clashing with scepticism from “frugal” member states. Local Economy & Trade Support: Ottawa pledged $11.6m to help eight Saskatoon businesses respond to Canada–U.S. tariff pressure, including productivity and supply-chain diversification projects. Regulation & Transport: Zadar taxi drivers raised concerns about foreign-registered vehicles allegedly operating as taxis without proper authorisation, prompting calls for stronger enforcement. Business & Growth: Valcon appointed Dirk Schuite as Managing Partner for its Dutch unit, aiming to steer operations as AI and digital transformation accelerate. Tech & Mobility: Uber began offering supervised autonomous taxi rides in London via Wayve’s AI-equipped electric cars, with a safety driver still onboard.

Uber & Robotaxis in London: Uber launched supervised autonomous rides in London with fewer than 20 all-electric Ford Mustang Mach-E vehicles using Wayve AI; riders can switch to a conventional Uber before pickup, while a licensed human driver monitors and can intervene. Corporate Restructuring: Uber also cut about 3,300 corporate jobs globally as it simplifies operations and boosts investment in future tech. Croatia’s Defense Deal: Hanwha Aerospace is set to sign Croatia’s first Chunmoo multiple rocket launcher export contract worth about €435.2m for 18 launchers and guided rockets, with deliveries starting in 2028. AI Cooperation in CEE: Croatia joined nine Central and Eastern European countries in Prague to deepen AI policy coordination and link computing capacities under the “Prague AI Declaration.” Croatia Economy Pulse: Fiscalised receipts and invoices in Croatia rose in August, with the value up 17% year-on-year to €6.56bn, led by trade and hospitality. Tourism & Connectivity: Wizz Air expanded its network with new/added airports including Rijeka and Zadar in Croatia, while Jadrolinija reported 9.3m passengers and 2.8m vehicles in the first eight months of 2026. Work Rules: Croatia published categories of third-country nationals allowed to work without a permit, and Switzerland listed countries whose citizens can work there without a permit under freedom-of-movement rules. EU & Balkans Politics: Ireland’s EU minister said a state funeral for Ratko Mladić, or Serbian officials’ participation, would be unacceptable to the EU.

Aviation & Tourism Boost: Air Canada announced a major Summer 2027 expansion, adding new long-haul links including Dubrovnik–Montréal (from May 11, 3x weekly) plus Oslo, Shannon, Basel and Guangzhou, aiming to grow international demand and jobs. Dubrovnik Demand Signals: Dubrovnik-Neretva County logged 2.07 million overnight stays in August (439,881 arrivals), with British visitors leading, reinforcing the region’s tourism momentum. On-the-Ground Transport Capacity: Jadrolinija carried 9.3 million passengers and 2.8 million vehicles in the first eight months of 2026, while expanding routes such as Zadar–Ancona and the Kvarner Bridge network. Retail & Fiscal Pulse: Croatia’s fiscalised receipts hit €6.56bn in August (+17% y/y), with tourism and hospitality driving strong growth. Industry Watch: Croatia’s industrial output rose 7.2% y/y in July, the fastest pace in eight months, led by intermediate goods and energy. Banking Snapshot: Croatian bank profits fell 5.5% y/y in the first half of 2026 as earlier gains faded. Labour Mobility Rules: Croatia published categories of third-country nationals allowed to work without a permit, while Switzerland, the Netherlands and Iceland also released permit-free work lists for eligible citizens. Tech & Regulation: Uber and Wayve launched London’s first public robotaxi rides with a safety operator onboard, while the EU scrutiny around Croatia’s robotaxi funding continues. Environment & Governance: A Zagreb protest is planned over illegal waste dumping in Gospić and PFAS concerns, pushing for faster remediation and clearer accountability.

Robotaxi Rollout in London: Uber and Wayve launched London’s first public robotaxi service with fewer than 20 Ford Mustang Mach-E EVs, but rides still include a human safety driver and full autonomy approvals remain pending. Croatia in the Autonomous Race: The launch comes as Europe watches regulation closely; Zagreb already has robotaxis run by Croatian firm Verne using Pony.ai tech. Uber Under Pressure: Uber drivers filed a major collective legal action in Amsterdam alleging an AI pay algorithm breaches data protection and suppresses earnings. Croatian Business Abroad: Croatia allocated €2m to support agricultural development for Croats in Serbia, funding 257 holdings across 33 settlements. Adriatic Connectivity: Jadrolinija extended its high-speed Zadar–Ancona ferry season to Sept 6 after strong demand. Dubrovnik Economy & Infrastructure: Dubrovnik’s tourism is slightly ahead year-on-year (nearly 960k arrivals, 3.1m overnights) and Villa Palma police HQ received a €2.6m energy renovation. Energy Prices Watch: Romania’s day-ahead electricity price jumped in August, driven by low river flows and higher reliance on imports and fossil generation.

Dubrovnik Infrastructure Upgrade: The €2.6m energy renovation of the historic Villa Palma has restored the Dubrovnik-Neretva Police HQ, funded via EU money, with interior works now finishing before officers return. Tourism Watch: Dubrovnik is slightly ahead of last year, with 959,776 arrivals and 3.1m overnight stays (to Aug 26); Brits lead overnight stays, while Americans top arrivals. Luxury Lodging in Cavtat: Hotel Vallum is carving out a distinct, privacy-first luxury identity and pushing Cavtat toward a more year-round tourism model. EV Subsidies: Croatia plans new citizen support for zero-emission vehicles, with a call expected in October and €20m earmarked for electric cars; plug-in hybrids won’t be eligible. Waste Cleanup Acceleration: In Gospić, the government is speeding up remediation of a major illegal waste site, including covering waste and preparing removal of large buried quantities. Robotaxi Funding Risk: Verne says it will repay €89.7m if final evaluation finds targets missed, after completing key autonomous-vehicle verification and testing. Local Tourism Finance: Bjelovar launched a €1.25m co-financing programme to spur new tourist accommodation ahead of its Wellovar thermal spa project. Business & Jobs: Hrvatski Telekom appointed Marina Burazer as Director of Corporate Communications. Mobility Disruption: Uber plans to cut about 3,300 jobs globally to simplify operations.

Croatian Inflation Watch: Croatia’s consumer prices picked up in August, with inflation rising to 4.1% year-on-year (from 3.9% in July) as energy costs jumped 17.4% and services grew 7.2%, while monthly prices rose 0.3%. EU Money & Growth: Croatia is nearing the finish line of its roughly €10bn EU recovery push, with €7.3bn already paid out, as the economy keeps expanding for a 22nd straight quarter. Digital Age Verification: Croatia is rolling out digital age verification for online alcohol sales, tightening how age is checked for e-commerce. Robotaxi Funding Risk: Croatia’s robotaxi project linked to Mate Rimac’s Verne has formally ended, but the key step is still the final evaluation—if obligations weren’t met, Verne may have to return €89.7m in advance NPOO payments. Tourism & Accessibility: Dubrovnik’s Dubrovnik Pass is in the final of a European sustainable cultural tourism award, while Pelješac secured funding for a new rehabilitation and hippotherapy centre for children and people with disabilities. Business & Markets: A Croatian entrepreneur is building a platform connecting hobbyists across Croatia, adding to the small-business push. Regional Policy Push: Central European leaders at Bled urged stronger regional coalitions to defend competitiveness and cohesion in the next EU budget talks.

Croatia Economy Watch: Croatia’s GDP grew 1.7% in Q2, extending 22 straight quarters of growth, with exports and government spending among the key drivers. Inflation Update: Consumer prices accelerated in August to 4.1% year-on-year (from 3.9% in July), driven by higher energy costs and stronger services inflation. EU Recovery Funds: Croatia has received €7.3bn of its €10bn EU recovery package, with the final €2.7bn payment request due after remaining targets are completed. Energy & Households: Applications opened for a €38m renewable energy subsidy scheme for households, now including battery storage alongside heat pumps and solar. Tourism Shift: Croatia’s tourism model is changing fast—shorter stays, more last-minute bookings, and more volatile demand across the Adriatic. Digital ID for Alcohol (Policy): England and Wales are moving toward allowing digital ID age checks for alcohol sales, with detailed guidance published. Regional Business & EU Role: Croatia, Czechia and Slovenia argue Central Europe should use its growing weight to shape EU policy direction. Central Europe Farming Pressure: European farmers are pushing for a more resilient CAP as weather extremes hit crops and livestock. Pelješac Social Investment: A new rehabilitation and hippotherapy centre on Pelješac secured co-financing, aiming to expand specialized support for children and people with disabilities. Entrepreneurship: A Croatian hobby platform, Hobinjak.eu, is bringing together hobby communities, local events and second-hand gear in one place.

Croatian Tourism Demand Shifts: Booking.com research shows 58% of Croatians plan to travel in the post-season, mainly to dodge crowds (80%) and save money (55%), a sign operators may need to extend the season beyond July-August. Croatia Legal Reform: From Jan 1, 2027, Croatia will introduce life imprisonment for 15 of the most serious offences, including ecocide and other severe crimes, with conditional release after 25 years. Adriatic Transport Boost: Jadrolinija extended its new Zadar–Ancona fast ferry service until Sept 6 after strong early demand, adding sailings and offering promotional fares (adult €80). EU Politics & Enlargement: Central and Eastern European leaders at Slovenia’s Bled Strategic Forum urged EU reform and faster enlargement, while also criticizing the “forced green transition.” Western Balkans EU Friction: Truck drivers protested Schengen stay limits for professional drivers, warning of border blockades if exemptions aren’t found. Identity & Compliance Tech: Croatia’s digital age verification for online alcohol sales is rolling out, while broader EU/identity policy debates continue across Europe. Business Growth Spotlight: FT1000 Europe’s Fastest-Growing Companies 2027 opens entries (deadline Nov 30, 2026), targeting revenue growth from 2022–2025.

Schengen Pressure on Balkans Truckers: Drivers from Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia protested EU entry/exit limits for non-Schengen stays (the 90/180-day rule) and warned of border blockades on Sept. 14 unless Brussels offers exemptions or bilateral deals. Croatia Digital Rules: Croatia introduced digital age verification for online alcohol sales via the m-Građani app, with retailers given until Sept. 15 to implement QR-based checks; the same package also bans energy drink sales to under-18s. Adriatic Connectivity: Jadrolinija extended its new Zadar–Ancona fast ferry service until Sept. 6 after strong early demand, adding sailings and keeping promotional fares. Transport Infrastructure in Gorski Kotar: A new 1-km bypass opened in Fužine to divert heavy traffic and forestry routes away from the town centre, cutting congestion and noise. EU Enlargement Debate at Bled: Central and Eastern European leaders, including Croatia’s PM Andrej Plenković, pushed for EU reform and faster enlargement, arguing competitiveness and migration management must move in parallel. Croatian Economy Watch: Coverage points to Croatia’s growth cooling to around 1.7% in Q2, keeping attention on how policy and demand are holding up. Property Cost Shock in Dubrovnik: New apartment prices in Dubrovnik are reported above €8,000/m², squeezing locals and shifting demand toward wealthier buyers.

Croatian Economy Watch: Croatia’s retail sales kept rising in July for the 40th straight month, with retail consumption up 1.4% vs June and 3.6% year-on-year, led by food, drinks and tobacco (+3.9%) and non-food (+4.5%), while fuel sales fell (-2.8%). EU Energy & Sanctions: The U.S. OFAC extended operating licenses tied to regional energy deals, including a new license for Serbia’s NIS until Sept. 30 and a separate extension for Croatia’s JANAF, as negotiations around Gazprom Neft’s stake in NIS continue. Adriatic Science: Croatian researchers launched an early-warning effort to track non-native species in the Adriatic, focusing on how arrivals (often via ships) can become invasive and affect fisheries and marine ecosystems. Regional Politics: Iceland’s voters rejected restarting EU accession talks in a referendum, a setback for Brussels’ enlargement push that also highlights the bloc’s limited “pull” since Croatia joined in 2013. Sports & Business Spotlight: Croatia’s Filip Hrgović won the vacant IBF heavyweight title by stopping Moses Itauma in the ninth, making him Croatia’s first heavyweight world champion—another reminder of how global attention can quickly spill into national branding and tourism.