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  • 2014 being the sixth consecutive year of recession, the first year of Croatia's membership in the European Union was marked by the entry into the Excessive Deficit Procedure and Government's attempts to consolidate public finances, which however have not prevented further deterioration of both the budget deficit and public debt to GDP ratio. Despite the negative GDP growth, modest increase in industrial production and export, especially to the EU, was recorded.

    In June, new Labour Act was finally adopted, bringing further flexibilisation of the working time, dismissal procedures and temporary agency work. Beside the Labour Act itself, the Government also faced significant public opposition for the planned concession of motorways and outsourcing of non-core services in the public sector, with public initiatives for referendums on both issues collecting more than half million signatures each.

    Industrial relations in public sector were again marked by Government's attempt to cut down budget expenditure for wages, focusing on elimination of provisions on different additions on wages in public sector collective agreements. In private sector, strikes due to non-payment of wages continued to occur. Tripartite social dialogue deteriorated, as the Economic and Social Council (GSV) was not operating for most of the year, resuming its work only in October.