AGP Executive Report

Infrastructure & Trade Links: The Kvanj Tunnel on Bosnia and Herzegovina’s Corridor Vc motorway section has reached a breakthrough, boosting the north-south route that runs via Croatia to the Adriatic port of Ploče. Environmental & Waste Crisis: Tens of thousands marched in Zagreb and Lika over delays in clearing 30,000+ tonnes of illegally stored hazardous waste near Gospić; USKOK-linked findings also point to microplastic contamination in groundwater and other pollution risks at waste sites. Maritime & Logistics Industry: MacGregor secured a major RoRo equipment order for TT-Line’s new battery-hybrid LNG Green Ship 2.0 ferries, aimed at cleaner Baltic Sea cargo and passenger transport. Tourism & Local Economy: Dubrovnik’s nautical tourism cooled in August, with arrivals down about 3% and overnight stays down around 7% year-on-year. EU Consumer Costs: A new EU handling fee on small parcels imported from outside the bloc is set to start on 1 November 2026, potentially raising costs for online shopping in Croatia. Defense Procurement: Croatia approved the €544m purchase of 18 Chunmoo K239 multiple-rocket launchers from South Korea, with deliveries planned for 2026-2029.

Waste Cleanup Pressure: Tens of thousands marched in Zagreb demanding urgent removal of illegally dumped hazardous waste near Gospić in Lika, after delays over a site holding roughly 30,000+ tonnes and concerns about metals and PFAS in soil and groundwater. EU Housing Rules: Brussels moves toward tougher limits on short-term holiday rentals, while Croatia tightens tourist apartment rules—raising the question of who absorbs the hit when housing pressure is already high. Aviation & Trade Links: Air China launched a year-round Beijing–Bucharest–Zagreb route, three times weekly, positioning it as a “bridge of friendship” that should cut logistics costs and boost tourism and business ties. Energy Policy Watch: Croatia is preparing an autumn package that includes a non-binding information process on nuclear options, including small modular reactor technologies, before any decision. Industrial Efficiency: EcoCortec promoted VpCI packaging that can eliminate washing and degreasing steps in metal processing, cutting energy use and waste. Tourism Friction: A Dubrovnik visitor was charged €175 after missing a 15-minute purchase window for a discounted daily parking ticket, spotlighting how local rules can surprise travelers.

Waste Cleanup Crisis: Tens of thousands rallied in Zagreb for the “Walk for Lika,” demanding urgent removal of more than 30,000 tonnes of illegally dumped hazardous waste near Gospić, with protesters citing fears for drinking water and pointing to PFAS and heavy-metal concerns raised by prior expert work. Tourism Housing Rules: Brussels is preparing tougher limits on short-term holiday rentals as Croatia tightens its own tourist apartment rules, raising the question of who will absorb the hit when housing pressure is already high. Dubrovnik Parking Backlash: A visitor was charged €175 after missing a 15-minute purchase condition for a €40 daily ticket at a Dubrovnik garage, reigniting complaints about how tourist fees are applied. Energy Policy Watch: Croatia’s government is moving ahead with a structured, non-binding information process on nuclear options, including small modular reactor technologies, as it prepares an autumn package to cushion energy-price pressure. Food & Local Supply Chains: A French chef in Zagreb highlighted Croatian ingredients—especially paprika and ajvar—showing how local producers can feed higher-end menus. Industry & Mobility: Zagreb’s ZET is adding 62 electric buses as the city accelerates fleet electrification. Health Data: Eurostat reports Croatia’s adult obesity rate at 16.5% in 2025, slightly above the EU average.

Toxic Waste Cleanup Pressure in Croatia: Tens of thousands rallied in Zagreb’s main square for the “Walk for Lika,” demanding urgent removal of more than 30,000 tonnes of illegally dumped hazardous waste near Gospić, after police and Europol arrests in 2026 and renewed public anger over delays and fears for drinking water and soil. Urban Transport Electrification: Zagreb’s ZET rolled out 62 new low-floor electric buses (30 standard, 26 articulated, 6 midi) plus new charging infrastructure in Podsused, with EU and city funding under the recovery plan. Energy Policy Watch: The Croatian government is preparing an autumn package of measures that includes a non-binding information process and talks with nuclear technology suppliers, potentially covering small and advanced modular reactors. Manufacturing Efficiency: EcoCortec introduced Cortec VpCI packaging that helps plants skip washing and degreasing steps, cutting energy use, waste, and hazardous solvent exposure. Local Business & Travel Costs: A Dubrovnik visitor was charged €175 after missing a 15-minute purchase window for a cheaper daily parking ticket, highlighting how rules can hit tourism spending. Education & Services: Croatia’s new school year starts as planned, despite thousands of first-grade enrollments being postponed, while officials say no official heat-related delay is expected.

Toxic Waste Cleanup Protests: Tens of thousands rallied in Zagreb in the “Walk for Lika” protests, demanding urgent removal of more than 30,000 tonnes of illegally dumped hazardous waste near Gospić, after police and Europol arrests in a cross-border dumping scheme and new public pressure over alleged risks to soil and drinking water. Public Transport Electrification: Zagreb’s ZET rolled out 62 new electric buses (30 standard, 26 articulated, 6 midi) plus a new Podsused charging facility, with EU and city funding pushing about one-fifth of the fleet to electric. Energy Costs at the Pump: Croatian drivers may see diesel prices jump sharply next week as Iran-related disruptions keep oil markets volatile, with RTL Danas citing potential increases for multiple fuel categories. Defence Industry Deal: Croatia approved major defence spending including 18 South Korean K239 Chunmoo rocket launchers and command-and-control systems, part of a broader modernization package worth hundreds of millions of euros. Maritime & Fisheries Cooperation: A new Adriatic Sea Technical Unit under the UN FAO’s GFCM was inaugurated in Split to strengthen science-based fisheries management and regional cooperation. Aviation & Routes Watch: Global aviation coverage highlights new route launches and network expansion momentum, with Croatia-linked developments appearing alongside broader industry shifts.

Public Transport Electrification: Zagreb’s ZET is rolling out 62 new low-floor electric buses (30 standard, 26 articulated, 6 midi) plus a new Podsused charging facility with 67 double chargers, supported by EU funds and the City of Zagreb, pushing about one-fifth of the fleet to electric. Energy & Transport Costs: Croatia may see a sharp jump in fuel prices next week, with diesel forecasts rising up to 22 cents per litre as Iran-related tensions keep oil markets volatile. Defence Procurement: The Croatian government approved major modernisation steps, including a €544.05m (incl. VAT) package to buy 18 South Korean Hanwha K239 Chunmoo launchers and integrated command-and-control, with delivery planned from 2028. Aviation & Tourism Links: Air China launched a year-round Beijing–Bucharest–Zagreb route three times weekly, adding a direct gateway for business and tourism between China and Croatia. Maritime & Fisheries Science: A new FAO GFCM Adriatic Sea technical unit was inaugurated in Split to strengthen science-based fisheries management across Adriatic countries. Digital Mobility Watch: Croatia’s robotaxi project faces scrutiny over EU-funded targets, as London’s Uber/Wayve robotaxi rollout highlights how regulation shapes deployment pace. Agriculture & Water Security (Regional): Hungary’s drought pressure is worsening, with irrigation covering less than 3% of arable land—fueling calls for rule and subsidy reforms rather than more tariffs.

Croatia’s Defence Modernisation: The Croatian government has approved a €544.05m (VAT incl.) deal to buy 18 South Korean Hanwha K239 Chunmoo multiple rocket launchers, with deliveries planned 2026–2029 and integration via Poland’s WB Electronics command-and-control. Aviation & Trade Links: Air China launched a new year-round Zagreb–Bucharest–Beijing route (3x weekly), adding a direct gateway between Croatia and China and boosting airport connectivity. Tourism Infrastructure Watch: Dubrovnik’s Kupari resort is officially a construction site for a Four Seasons project, but major works are not yet underway because key utilities (substation and sewage pumping) still operate inside the future development. Maritime Science: A new Adriatic Sea fisheries unit was inaugurated in Split to strengthen science-based fisheries management across the region. EU Budget Politics: Senior EU officials in Dublin pushed for new Europe-wide taxes to fund the next long-term budget, clashing with “frugal” states’ scepticism. Rural Development: FAO’s chief called for systemic support for generational renewal in rural areas, stressing land, finance, tech, housing and services for young farmers. Energy & Industry Support Abroad: Ottawa announced $11.6m for Saskatoon firms to help them handle tariff pressure, including Croatia Industries Ltd.

Defense Procurement: Croatia is finalizing a €435.2m deal with South Korea’s Hanwha Aerospace for 18 K239 Chunmoo multiple launch rocket systems, with WB Group TOPAZ command-and-control integration and deliveries starting in 2028—boosting long-range strike capacity and replacing older Vulkan/Grad launchers. AI & Industry Policy: Nine CEE countries, including Croatia, signed the Prague AI Declaration to deepen cooperation on AI rules and connect “AI factories/gigafactories,” aiming to strengthen their EU influence. Autonomous Mobility: Uber launched supervised autonomous taxi rides in London using Wayve tech and fewer than 20 Ford Mustang Mach-E vehicles, while the company’s Nigeria exit is already sparking driver and passenger concerns. Energy Market Setup: North Macedonia asked MEMO to prepare plans for a natural gas market operator, using the existing electricity operator as a base for a combined electricity-gas model. Croatian Economy Watch: Croatia’s industrial output grew 7.2% year-on-year in July, the fastest pace in eight months, led by intermediate goods and energy. Transport & Tourism: Jadrolinija reported 9.3m passengers and 2.8m vehicles in the first eight months of 2026, and Dubrovnik Airport hit a new August record with 566,259 passengers. Agriculture & Rural Renewal: FAO urged systemic support for generational renewal in rural areas—land, finance, knowledge, housing, connectivity, and services.

Aviation & Tourism: Dubrovnik Airport keeps breaking records, topping 566,000 passengers in August and pushing total 2026 traffic to 2.35 million, while Dubrovnik-Neretva County logged 2.07 million overnight stays in August with UK visitors leading. Transport & Shipping: Jadrolinija reported 9.3 million passengers and 2.8 million vehicles in the first eight months of 2026, adding new Adriatic routes and extra sailings to handle peak demand. Industry & Macroeconomy: Croatia’s industrial output grew 7.2% year-on-year in July, the fastest pace in eight months, with energy and intermediate goods driving gains. Urban Development: Zagreb has started a €3.4m pedestrian transformation of historic Stara Vlaška Street, reshaping it into promenade, square and park areas by end-2026. Finance: Croatia’s bank profits fell 5.5% year-on-year in the first half of 2026 as lending and liquidity dynamics shifted. Energy & Policy: EU fuel aid for commercial fishers was approved under a crisis framework, and geothermal experts highlighted faster, more predictable permitting as the key to scaling projects. Tech & Mobility: Uber launched autonomous rides in London with Wayve after Zagreb, while Croatia’s robotaxi funding faces scrutiny as Verne offered to repay €89.7m if targets aren’t met. Culture & Media: Croatia selected Hana Jušić’s “God Will Not Help” for the Oscars’ Best International Feature Film race.

Autonomous Mobility in Focus: Uber and Wayve have launched London’s first self-driving taxi service, with fewer than 20 Wayve-powered Ford Mustang Mach-E cars initially available in the app; a licensed operator will stay inside at first while full driverless approval is still pending. Croatia’s Robotaxi Funding Under Scrutiny: Croatia’s finance minister says the state will assess whether EU-backed robotaxi funds can be recovered or redirected after Verne offered to repay €89.7mn if contractual targets aren’t met. Energy & Climate Pressure: A new early-September heat dome is set to push parts of the Mediterranean and Balkans to 40°C+, with Croatia’s summer already flagged as extremely warm and dry in DHMZ analysis, raising risks for agriculture and water. Agriculture Support for Croats Abroad: Croatia allocated €2mn to back agricultural development for the Croatian community in Serbia, funding 257 holdings across 33 settlements. Maritime Industry Deal: MacGregor won a major RoRo equipment order for TT-Line’s two China-built 240m battery-hybrid LNG ferries for Baltic routes, supporting greener transport capacity. EU Fisheries Aid: The European Commission approved Portugal’s fuel aid plan for commercial fishers after Middle East-related oil price spikes hit operating costs.

Maritime Industry: MacGregor landed a major RoRo equipment order with China Merchants Jinling Shipyard for TT-Line’s two Green Ship 2.0 battery-hybrid LNG ferries, boosting sustainable Baltic Sea cargo/passenger capacity on Sweden–Germany–Poland–Lithuania routes. Urban Infrastructure & Public Safety: Dubrovnik’s historic Villa Palma police HQ reopened after a €2.6m energy renovation funded by EU money, with conservation-friendly works and improved conditions for officers and residents. Autonomous Mobility: Croatia’s Verne robotaxi project says it’s ready to repay €89.7m in NRRP advance funding if final evaluation finds unmet targets, as authorities review voucher access, disability-adapted autonomous vehicles, and specialised infrastructure. Waste Management: Croatia plans faster cleanup at the troubled Gospić illegal waste site, including covering the dump, removing surface waste, and preparing removal of 32,000–33,000 tonnes of buried ash. Energy & Transport Policy: Croatia is preparing new electric vehicle subsidies for citizens (call expected in autumn), with €20m earmarked for EVs and plug-in hybrids excluded. Agriculture & Food Supply: Heatwaves are hitting European farming hard, with Croatia reporting major fruit/grape drops and widespread olive groves lacking irrigation, adding pressure from higher fertiliser and energy costs. Economy Watch: Croatia’s inflation picked up in August to 4.1% y/y as energy costs and services prices accelerated.

Croatia Recovery Watch: Croatia is nearing the finish line of its €10bn EU recovery package, with €7.3bn already paid out and the final combined ninth and tenth request (another €2.7bn) due after the end of September, pending completion of remaining targets. Energy & Industry: Croatia’s households can now apply for a €38m renewable energy subsidy scheme that adds battery storage for the first time, supporting heat pumps, rooftop solar and storage (up to 50%—or 70% for energy-poverty risk). Inflation & Costs: Croatia’s inflation picked up again in August to 4.1% y/y as energy prices jumped 17.4% and services rose 7.2%, keeping pressure on household budgets. Tourism Operations: Croatia’s Adriatic tourism model is shifting toward shorter stays and more last-minute bookings, with demand more sensitive to forecasts and changing visitor mix. Urban Greening: Dubrovnik is expanding its “Green Ring” with 57 new trees near the old city, including palm and other species along Uz Posat. EU Policy Push (Central Europe): At the Bled forum, Croatia and regional leaders urged stronger Central European coordination to defend competitiveness and cohesion in the next EU budget talks. Transport & Logistics: Croatia’s grid access reforms aim to reduce connection delays, targeting smoother energy delivery for businesses.

Energy & Industry Finance: Croatia’s inflation ticked up again in August to 4.1% y/y, with energy prices up 17.4% and services up 7.2%, after three months of easing—another reminder that household pressure is still being driven by utilities. EU Funds & Infrastructure: Croatia is nearing the finish line of its €10bn EU recovery package, with €7.3bn already paid out; the final combined ninth and tenth payment request (another €2.7bn) is planned after the remaining 153 targets are completed. Renewables for Homes: A €38m government-backed scheme opens for households to install heat pumps, PV systems and, for the first time, battery storage—up to 50% (or 70% for energy-poverty risk) of eligible costs. Urban Greening in Tourism Cities: Dubrovnik is building a “Green Ring” around the historic centre, planting 57 new trees along Uz Posat to strengthen resilience while redesigning the gateway area. Regional Economic Voice: Croatia’s PM Plenković joined Central European leaders at the Bled Strategic Forum to argue the region should play a bigger role in shaping EU policy. Agri-Food Resilience: European farmers are pushing for a more resilient CAP as weather extremes damage crops and livestock and higher input costs squeeze profitability. Tourism Demand Shift: Croatia’s tourism model keeps changing: shorter stays, more last-minute bookings and growing post-season travel as visitors try to avoid crowds.

Renewables Push: Croatia opens a €38m household renewable subsidy scheme, now including battery storage alongside heat pumps and PV, with support up to 50% (70% for energy-poverty risk) and applications via FZOEU starting 2 Sept. Energy Transition & Industry: Croatia’s electricity demand is being stressed by heatwaves, while a separate policy debate in the region looks at how CBAM is reshaping Western Balkan power trade corridors toward Ukraine. Geothermal Pipeline: Hungary’s leaders will join the 14 Sept Budapest Geothermal Energy Summit, aiming to move geothermal from ambition to scalable projects. EU Competitiveness: Central and Eastern European PMs at the Bled Strategic Forum urged EU reform, faster enlargement, and a rethink of “forced green” rules that they say are shifting industry abroad. Transport & Logistics Pressure: Western Balkans truckers protest Schengen entry/exit limits (90/180 rule), warning of border blockades unless exemptions are found. Tourism Season Shift: Booking.com research says 58% of Croatians plan post-season travel to dodge crowds and secure better value. Sports Infrastructure: Croatia’s HNS is building a new €35m national-team camp in Velika Gorica with four pitches and a combined business-sports headquarters. Local Agriculture Heritage: A 200-year-old Tepka pear tree near Varaždinske Toplice still fruits every other year, keeping a rural food tradition alive.

Luxury Shipping Watch: Two mega-superyachts worth about €200m each have been spotted off Dubrovnik near Cavtat, with the nearby “Moonrise” and “Avantage” gathering attention for who may be aboard. Transport & Border Policy: Truck drivers across Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia are protesting Schengen entry/exit limits for professional drivers and warn of border blockades unless the 90/180-day rule is adjusted. Croatia Digital Regulation: Croatia is rolling out digital age verification for online alcohol sales via m-Građani, with retailers given until mid-September to implement the QR-based check. Energy & Grid Demand: Croatia hit a new summer electricity peak as tourism and heat push demand to record levels, while solar capacity continues to expand. Industrial Safety Impact: A major fire at an industrial site in Mala Švarča (Karlovac) triggered a temporary swimming ban downstream on the Mrežnica and Korana rivers. EU Industry Policy: The European Commission approved Italy’s €285m fuel aid plan for fishing, aquaculture and agriculture, following elevated fuel costs. Film Industry Networking: Montenegro Film Rendezvous wrapped with pitching and master classes, positioning the event as a growing regional hub.

Fuel & Aid: The European Commission approved Italy’s €285m plan to offset higher fuel costs for commercial fishing, aquaculture and agriculture after disruptions tied to the Middle East crisis. Energy & Grid Resilience: JA Roadshow 2026 is set to tour Europe with integrated energy solutions, putting battery storage systems at the center as grid constraints and electrification drive demand for flexibility. Croatia Digital Retail Rules: Croatia is rolling out digital age verification for online alcohol sales via m-Građani, with retailers given until 15 September to implement QR-based checks; the same law package also bans energy drinks for under-18s. Power Demand & Tourism: Croatia hit a new summer electricity consumption peak, with peak demand now higher in summer than winter as tourism and air-conditioning push evening loads. Agriculture Support: Zadar County is preparing up to €250,000 over three years to expand Marasca cherry orchards, including irrigation and soil prep support. Public Health: Zagreb confirmed West Nile virus in dead crows and is intensifying mosquito-control measures, including larval and adult targeting. Oil & Sanctions: OFAC extended operating licenses tied to Serbia’s NIS and Croatia’s JANAF to keep regional oil flows running while ownership talks continue. EU Politics: Iceland rejected restarting EU accession talks in a referendum, citing fisheries control and geopolitical concerns.