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Viewing cable 08ZAGREB646, ZAGREB WEEKLY ACTIVITY REPORT - SEPTEMBER 10, 2008

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Reference ID Created Released Classification Origin
08ZAGREB646 2008-09-11 10:28 2011-08-25 00:00 UNCLASSIFIED Embassy Zagreb
VZCZCXRO0557
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0646 2551028
ZNR UUUUU ZZH
P 111028Z SEP 08
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 8613
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS ZAGREB 000646 
 
SIPDIS 
 
FOR EUR/SCE, EUR/PPD, EUR/RPM AND EUR/ERA 
OSD FOR POPOVICH 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ETRD ECON HR
SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - SEPTEMBER 10, 2008 
 
1.  (U) WITH A SLOWED PACE OF REFORMS, CROATIA DROPS IN 
"DOING BUSINESS 2009" RANKINGS: 
In its "Doing Business 2008" report a year ago, the World 
Bank ranked Croatia 2nd among top reformers worldwide and 
97th for overall ease of doing business.  In "Doing Business 
2009," however, Croatia does not rank among the top ten 
reformers and has slipped to 106th overall among the 181 
countries assessed. Among the factors considered in the 
study, Croatia's worst performance was in dealing with 
construction permits, where it ranked 163rd.  Construction 
permits was one of just two areas in which Croatia 
implemented reforms over the past year, but the reform led to 
an administrative backlog that actually lengthened the time 
required to obtain a permit by 20 days.  As this backlog 
decreases the time needed to deal with the permits should 
decline significantly.  One other area of reform in Croatia 
over the past year was trading across borders, where 
improvements to port infrastructure sped handling of exports 
by two days.  In a statement about the report, Andras Horvai, 
World Bank country manager for Croatia, said he was confident 
continued reform would improve Croatia's ranking in the 
future. (SLitke) 
 
2. (U) EUR DAS JONES VISITS CROATIA: 
In his first visit to Croatia since joining the EUR Front 
Office, EUR DAS Stu Jones had a brief, but very positive, 
visit to Croatia on September 10.  In his meeting with DAS 
Jones, FM Gordan Jandrokovic described the bilateral 
relationship as "great" and thanked the US for all of its 
support to Croatia.  Jandrokovic described the GoC's 
priorities as NATO membership, EU accession, and good 
relations with all of its neighbors.  The majority of 
discussion then focused on recent developments in the region. 
 Full report will be sent septel.  (RHoltzapple) 
 
3.  (U) MEDIA SPECULATION BEGINS ON POTENTIAL CANDIDATES FOR 
CROATIAN PRESIDENT IN 2010: 
Several media outlets have begun speculation on who might be 
leading candidates in the race to replace current Croatian 
President Stipe Mesic in early 2010.  Influential dailies 
Vecernji List and Novi List have argued that PM Ivo Sanader 
is the HDZ's only strong candidate for the position and 
perhaps the only one who could defeat leading opposition 
candidates.  Other dailies argue Sanader should not run for 
President in 2010, as the prime ministerial position has much 
broader powers and any vacancy there could lead to a damaging 
intra-party competition.  Sanader has been playing it cool 
regarding a potential bid for the presidency, saying only 
that "everyone in politics has ambitions," but that his 
current ambitions were to conclude negotiations on NATO and 
EU accession, ensure the HDZ wins municipal elections next 
year, and curb inflation.  Sanader has also been coy, 
however, about who an HDZ presidential candidate might be, 
other than dismissing suggestions that the HDZ could back 
Miroslav Tudjman, son of Croatia's first president and HDZ 
founder Franjo Tudjman, referring to Miroslav as a political 
loser.  COMMENT:  With local elections in May 2009 as the 
more pressing concern for all parties, speculation on 
presidential candidates is somewhat premature.  Still, public 
fascination with the Sanader-Mesic relationship, and the fact 
that no obvious candidates currently exist, means that the 
question of who might be Mesic's successor will be the 
subject of keen discussion.  END COMMENT. (DMeges) 
Bradtke