Decentralization in the Republic of Croatia - A City Budget in the Period from 1996 to 2000

This paper deals with the global decentralization issues, i.e. it explores how, when and why decentralization occurs, the preconditions for a successful decentralization and its advantages. It also examines the situation at the lowest levels of government in Croatia i.e. in a city, with the purpose of presenting the current financial situation and recognizing the key problems connected with decentralization at this level of government. It has been established that Croatia has made a remarkable progress in its decentralization process, although there are still many shortcomings that need to be removed.decentralization, Croatia, city, budget

Croatian Accession to the European Union: Economic and Legal Challenges

This paper analyses the EU tax system and its main components qua conditions for the accession of the Croatia to the European Union as well as the current degree of adjustment of Croatian taxation regulations with the corresponding regulations in the EU. As a result of this analysis, proposals for further procedures on the part of the creators of taxation policy in Croatia are made. After the tax reforms started in the 1990s, after the achievement of independence, the Croatian tax system was comparable with the tax systems of EU member countries. All the essential taxes correspond conceptually to the same kinds of taxes in EU countries. However, there is still space for further adjustment, above all in connection with value added tax, and it is desirable that this should be carried out as soon as possible. However, adjustments in the area of profit tax and adjustments of some rates of excise duties should be put off until the moment when they will have to be done for the sake of joining the Union, because the maintenance of the current situation, which is not in line with the provisions of European regulations, but nevertheless not in contravention of general rules regulating the area of taxation, is in the interests of Croatia. In the area of the taxation of income no adjustment or coordination is needed, for members are allowed to settle the taxation of income in their countries independently, as long as the fundamental principles of the single market are not threatened (the free movement of goods, people, services and capital).European Union, Croatia, taxes, profit tax, income tax, value added tax,excise duties, adjustment, harmonisation