Croatia eyes 5‑billion euro industry boost amid debate over excess‑profit tax

The Croatian Employers’ Association warned that introducing a tax on "excess" corporate profit would send a negative signal to domestic and foreign investors as the country finalises its OECD accession. Irena Weber, HUP director, argued that such a levy would punish companies that invest in technology, automation, R&D and energy efficiency, discouraging productivity‑driven growth and potentially prompting capital to move to markets with more predictable tax regimes.

Separately, the government unveiled a National Industrial Development Plan for 2027‑2034, allocating €5 billion to expand processing industries and fund research. The plan is tied to strict EU Commission conditions for fund disbursement. Economists expressed skepticism, noting that the money alone will not resolve low technological development, profit outflows, or shortages of skilled labour, and that the key challenge is building an effective implementation system to avoid the plan becoming an unused document.