Croatia: Regional leader or EU laggard?

After EU entry in July and despite five years of recession and a worrying local court ruling on foreign-currency mortgages, Croatian banks are in surprisingly good shape. The state even hopes to sell one of its biggest lenders.

This should have been a year of triumph for Croatia. In July, the nation of 4.3 million finally achieved its long-held ambition of joining the European Union, becoming the first of the post-conflict countries of the western Balkans to do so and the first new entrant to the bloc since 2007.

Unfortunately, things have not gone quite according to plan. Far from being a year of celebration, 2013 has been one of stagnation and frustration for Croatia.

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