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Economy / Croatia

Croatia

January 2012 | Risk Summary

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Croatia and Slovenia have agreed upon the makeup of an EU-sponsored tribunal appointed to arbitrate a border disagreement that stalled Croatia's EU accession bid in 2009. The disagreement relates to Piran Bay in the Adriatic Sea dating back to the disintegration of Yugoslavia. Gilbert Guillaume has been named the president of the arbitration court who will work alongside Bruno Simma and Vaughan Lowe. We expect a resolution to the decades-old dispute to be negotiated smoothly on the Croatian side, however, see scope for the Slovenes to hold firm on their position as they attempt to garner public support in Slovenia, which is still in the midst of trying to form a government.