Croatia becomes new member of European Union

Croatia joined the European Union at midnight Sunday as the bloc’s 28th member and the second from the once war-torn former Yugoslavia.

“We are here on this historic night. It was your desire to join EU, and your hard work has made this possible,” the president of the European Commission, Jose Manuel Barroso, told thousands of revellers in central Zagreb, congratulating in English and Croatian.

Prime Minister Zoran Milanovic focused on Croatia’s “new role” in the region and toward countries with which it has been in conflict – Serbia, Montenegro and Bosnia.

“It is up to us to extend a hand to these countries (and help them) in their adoption of European criteria,” Milanovic said.

President Ivo Josipovic stressed that Croatia is now a “fully accepted and equal member of the most successful union of European states that ever existed.” With its battered economy, Croatia has joined the EU amid concerns whether the country is fully prepared to face the fierce competition of the open market.

At a diner with foreign and local guests, Milanovic on Sunday evening dismissed comparisons of EU entry to boarding a sinking ship, pointing out economic problems in both Croatia and the bloc.

“The presence of all of you fills me with pride and inspires me to raise this glass with an even stronger conviction that it is half-full, not half-empty,” he toasted.

Among guests of Croatia’s government were 28 heads of government or state, EU leaders and officials of dozens of countries, as well as nearly all Croatian presidents and prime ministers since the country declared independence 22 years ago. The only exception was two-time prime minister Ivo Sanader, presently serving a 10-year prison sentence for corruption, with more trials ongoing.

Despite assurances from Croatian leaders that the country has met the standards to join the bloc as its 28th member, doubts linger as to whether it really is fully ready. Many Croatians say they do not expect their lives will improve.

The economy has been battered by the ongoing financial crisis and owing to structural weaknesses that yet need to be addressed by reforms, to say nothing of stiff competition from the rest of the EU.

Deputy Premier Milanka Opacic acknowledged that problems remained but said Croatia must handle them.

“Joining the EU, Croatia opens new opportunities. We must prepare together to seize those opportunities and resolve some problems,” she said in Vukovar.

Croatia’s key problems are unemployment and low wages, Opacic said, warning that “it is our problem, and the EU will not solve it for us.” She said painful reforms must be carried out rapidly.

Opacic dismissed doubts at home and abroad that Croatia was not prepared to join, insisting that the EU “gets a lot of good with a new quality member, better prepared than some old members.” European Parliament President Martin Schulz welcomed Croatia but said that membership, amid the recession, offers “no magic solution” to the crisis.

“But it will help to lift many people out of poverty and modernise the economy. Croatia will receive funds to build roads, clean up the environment and increase research and development,” Shulz said in a statement before he arrived in Zagreb.

Many Croats, however, worry that tough EU competition will shut down or buy out parts of the national economy. There is concern about whether EU membership will lure immigrants seeking work, which could put the reeling labour market under even more pressure.

Croatia negotiated with the EU for more than six years after the bloc agreed to take it in.

The process was delayed until Zagreb fully complied with a demand to cooperate with the UN tribunal prosecuting war crimes from the wars linked to the breakup of the former Yugoslavia and until it resolved a border dispute with Slovenia.

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