Government: Fitch's A- Rating Confirmation Proof of Responsible Policy
Fitch agency confirmed Croatia's investment-grade credit rating at A- with stable outlook, which the Government hailed as validation of its economic policy.
Fitch agency confirmed Croatia's investment-grade credit rating at A- with stable outlook, which the Government hailed as validation of its economic policy.
The Government of the Republic of Croatia announced on Saturday, August 1, 2026, that the confirmation of the credit rating by Fitch Ratings is clear evidence of responsible economic policy management. The agency had, a day earlier on Friday, July 31, maintained Croatia's rating at investment grade A- with a stable outlook.
"This is yet another confirmation that the Croatian Government, despite continuously challenging circumstances marked by global crises and uncertainties, is conducting responsible economic policy, with stable GDP growth, rational management of public finances, and quality absorption of European funds through the NPOO and the Multiannual Financial Framework," the Government announced on platform X.
In a statement carried by Hina, they further emphasized that a high credit rating brings concrete benefits to Croatian citizens and the economy. "At the same time, it represents an important signal to international investors that Croatia is a reliable and attractive investment destination," the Government's post reads.
On the same day, the Entrepreneurs' Voice Association (UGP) also spoke out. While welcoming some solutions in the proposed amendments to the Personal Income Tax Act, it sharply criticized the planned increase in tax burden for a portion of lump-sum taxpayers.
"The proposal contains some good solutions. We welcome the tax relief on pensions and the introduction of a Croatian investment account, which should make it easier for citizens to invest and reduce administrative burdens. But behind that, there is again a new tax burden for entrepreneurs," UGP stated.
According to the government's proposal, lump-sum taxpayers with annual receipts exceeding €40,000 would see their recognized expenses reduced. For receipts between €40,000 and €50,000, they would drop from 85% to 70%, and for those between €50,000 and €60,000, to 55%. The Government argues that some lump-sum taxpayers are engaged in disguised dependent work.
"If someone cheats, the state should find and punish them. It should not punish everyone else," UGP said. The association noted that no data on the actual scale of abuses or an impact assessment of the proposed changes on small businesses has been presented.
"Entrepreneurs have been encouraged for years to grow, increase turnover, and develop their businesses. This proposal sends a message that growth itself becomes a reason for new tax burdens. Even more absurd is that these changes are presented as part of an anti-inflation package," the association assessed.
UGP will, during the e-consultation, seek the withdrawal of this model, clear criteria for determining disguised work, and targeted inspections of those who abuse the system. "We do not dispute the state's right to adjust the tax system, nor do we claim that the existing system cannot be improved. However, any tax reform must be based on analyses, impact assessments, and clearly explained reasons why the proposed model is the best solution," UGP concluded.
Prime Minister Andrej Plenković on Saturday co-signed a letter from 22 European Union leaders addressed to EU institutions, demanding a coordinated response in protecting external borders, following events in Ceuta. Croatia highlighted its own results in curbing illegal migration.
According to data published by the Government on X, the number of illegal border crossings in Croatia fell by 44% last year, while the number of prevented illegal crossings increased by 53%. During the past year, 1,076 smugglers were arrested, and since the beginning of this year, 645, which is attributed to the work of the Ministry of the Interior and all institutions.
