AGP Executive Report

Wildfires on Brac: A major blaze on Croatia’s island of Brač has forced the evacuation of more than 200 people near Milna as strong winds push flames toward homes and tourist areas; firefighters report the situation improved overnight, with Canadair planes and large crews working through the night. Croatian Transport & Trade: Rijeka Gateway marks its first year of commercial operations, saying it has built cooperation with Maersk and Hapag-Lloyd and handled hundreds of thousands of TEU since opening. Tourism & Aviation: Croatia’s airports logged a record summer, with July passenger numbers up year-on-year and Split remaining the busiest airport. Postal Market Shift: Croatia’s postal sector keeps moving toward parcels, with revenue rising to a record €115m in Q2 as e-commerce drives growth. Business & Investment: Porsche has completed its exit from Rimac, transferring its stakes in Rimac Group and Bugatti Rimac to a US-led consortium in a deal worth about €1bn. Sports (Croatia-linked): Croatian coach Stefano Vukov is again at the center of tennis chatter after Elena Rybakina’s US Open run, while Croatia’s Olivia Vukosa is highlighted as a rising basketball prospect after UConn star Sarah Strong praised her.

Porsche Exit Deal: Porsche has completed its €1bn sell-off, transferring its 21% stake in Rimac Group and 45% in Bugatti Rimac to a US-led consortium led by HOF Capital, with Rimac Group keeping 55% control of Bugatti Rimac. Postal Boom: Croatia’s postal market is shifting fast to parcels: Q2 revenue hit a record €115m (+16.1% y/y) as parcel volumes rose 13% to 18.4m, while traditional letters fell 9%. Aviation & Defense: Croatia’s Rafale jets trained with Germany’s Luftwaffe in a mid-air refuelling exercise, extending operational endurance and deepening NATO cooperation. Tech on the Streets: Europe’s first fully driverless robotaxi passenger testing launched in Zagreb on a 22 km route to Franjo Tuđman Airport, with plans to expand across the city. Tourism Reality Check: Croatia’s tourism still runs on summer peaks, with accommodation and food jobs showing the biggest seasonal swings in the EU. Local Life & Safety: A school stabbing in Zagreb left two wounded; the attacker was detained. Dubrovnik Culture: Gradac Park in Dubrovnik reopens Sept. 16 after a full renovation costing over €4.4m.

Robotaxi Rollout in Zagreb: Pony.ai and Verne have begun fully driverless passenger testing on public roads in Zagreb, running a 22 km route between Verne’s HQ and Franjo Tuđman Airport, with Uber bookings and no driver in the car. Tourism Jobs Warning: Croatia’s tourism remains a summer-only engine, with accommodation and food employment showing the biggest seasonal swings in the EU, even as arrivals and overnight stays keep rising. Defense Upgrade: Croatia’s Rafale jets carried out mid-air refuelling with Germany’s Luftwaffe, extending operational endurance and underlining deeper NATO-linked cooperation. School Violence in Zagreb: A student stabbed a classmate and a janitor at a Zagreb high school; the attacker was detained and victims were reported out of danger. Business & Inflation Tax Plan: Croatia is proposing a one-off 50% tax on “excessive” 2026 profit margins for companies seen as able to influence prices. Food Safety Crackdown: Croatia and Bulgaria blocked and destroyed over 35 tonnes of peppers after pesticide test failures. War Crimes Trial Restart: A new trial phase began in Bosnia and Herzegovina for crimes in Trusina near Konjic. EU Travel Rules Watch: The US published guidance and a list of 42 ESTA-eligible countries, including Croatia.

EU Housing Rules: A proposed EU “Affordable Housing Act” would let towns declare “housing stress” zones and restrict holiday-home purchases, potentially hitting Britons buying second homes in hotspots including Croatia. First-Home Support: Croatia reports 7,479 applications for state help to buy/build a first home, with 4,881 approved for payment and thousands still being processed. Robotaxi in Zagreb: Pony.ai and Verne have started fully driverless public robotaxi rides in Zagreb, booked via Uber, using Chinese Arcfox vehicles with remote monitoring. Energy Cost Relief: Croatia adopted an 11th package of measures worth nearly €260m to shield households and SMEs from higher energy prices from Oct 1 to Mar 31. EU-Serbia Tensions: Croatia’s parliament speaker warns Serbia it can’t count on Zagreb’s EU support if it continues the political line tied to Ratko Mladić’s funeral. Defense Deal: Croatia signed a €411.8m contract with Hanwha Aerospace for 18 Chunmoo K239 MLRS systems, expanding long-range artillery capacity. Safety & Crime: A student stabbed a classmate and a janitor in a Zagreb high school; the attacker was detained. Tourism by Air: Eurocontrol says Europe saw record summer air traffic, with Croatia among countries seeing strong growth. Sports: Swansea winger Zeidane Inoussa joins Gornik Zabrze on loan; Luka Modrić is named in Croatia’s Nations League squad.

School Safety in Focus: A student stabbed two classmates and a janitor at a Zagreb high school using a sharp object; the attacker was detained and the injured were treated, with police investigating the circumstances. Defense & Tech Upgrade: Croatia’s Defence Ministry, Thales and OIV launched the Ground-to-Air Networks (GAN) project to modernise Air Force encrypted communications across seven radio sites. Arms Deal: Hanwha Aerospace signed Croatia’s €411.8m contract for 18 Chunmoo multiple-rocket launchers, ammunition and support vehicles, with deliveries planned through 2030. Transport & Economy: Rail freight grew in Croatia in Q2 2026, with private operators gaining ground while state-owned HŽ Cargo slipped. Tourism & Daily Life: Croatia’s postal market hit a new quarterly revenue record as parcels surged; meanwhile, Croatia surpassed 5 million tourist arrivals in August. Regional Business Talk: BELTALKS in Belgrade pushed the idea that the Western Balkans should be integrated into Europe’s economy now, not only after EU accession.

Croatia’s Defence Upgrade: Croatia signed a €435.2m deal with South Korea’s Hanwha Aerospace for 18 Chunmoo K239 multiple rocket launchers, with delivery planned through 2029 and a separate Polish contract for command-and-control integration—aimed at boosting range, firepower and deterrence alongside existing systems. Tourism Watch: Tourism and Sports Minister Tonči Glavina says Croatia logged an “extraordinary” 2026 so far, with 17.5m arrivals and 90.5m overnight stays in Jan–Aug (+1%) and fiscalized revenue up 17.6% to €7.41bn. Dubrovnik in Numbers: Dubrovnik Airport kept momentum with 566,529 passengers in August (+4.14%) and 4,616 flights/operations (+1.36%). Local Nature Escape: The Ljuta River near Dubrovnik is being highlighted as a quick, crowd-free getaway with waterfalls, woodland and old mills. Business/Industry: Porsche has completed its exit from Bugatti Rimac, selling its remaining stake in a roughly €1bn sell-off that leaves Rimac in full control. EU Economy: Eurostat data shows EU farm output prices down 5.8% in Q2 2026, while Croatia is among the few with output price growth (+3.9%).

Toxic Waste Crisis: Tens of thousands of Croatians rallied in Zagreb and across the country demanding urgent cleanup after delays in removing hazardous waste, with protesters targeting illegal dumping and slow government action. Family Mobility Support: Croatia opened applications for a pilot scheme giving families with four or more children up to €15,000 (50% of a seven-seat vehicle’s price) to improve everyday transport. Dubrovnik in September: Travel + Leisure named Dubrovnik among the world’s best places to visit in September, highlighting calmer crowds and easy access to the Old City and nearby islands. Culture in the City: “Pictures at an Exhibition” returns to Dubrovnik with a music-and-art programme at the Dulčić Masle Pulitika Gallery starting Sept. 12. Aviation Remembrance: Croatia marked 50 years since the 1976 mid-air disaster near Zagreb that killed all 176 aboard two aircraft, with the cause linked to air-traffic control failures. Sports & Business: Porsche completed its exit from Bugatti Rimac and Rimac Group after regulatory approvals, while Roberto Soldic prepares for his UFC debut after leaving ONE Championship.

Croatia–EU Security & Defence: Croatia signed a €33.2m deal to upgrade the Croatian Air Force’s Rafale combat communications, with new secure ground-to-air networks planned from 2026 to 2030. Sports & Fans: HNS set ticket prices for Croatia’s Nations League home game vs Spain at Poljud (6 Oct): €30–€65, sold only via the federation’s mobile app. Business & Industry: Porsche has completed its exit from Bugatti Rimac and Rimac Group, expected to lift its 2026 cash flow outlook. Economy Watch: Croatia’s exports rose to €16bn in Jan–Jul 2026 (+9.8%), but imports jumped to €28.6bn, leaving a €12.6bn trade deficit. Public Services: Zagreb opened Bazen Špansko, a €36.3m sports centre with the city’s first municipal pool in the west, including pools, rehab facilities, and accessibility features. Education & Skills: A new OECD PISA report shows major declines in reading and maths across countries, with Croatia among those below the OECD average. Regional Politics: Serbia’s Marko Đurić attended King Harald V’s state funeral in Oslo, highlighting WWII-era ties and Serbia-Norway relations. International Spotlight: Croatia’s Luka Modrić is again in the Nations League squad, keeping him in the spotlight as he continues his international career.

Water Security Push: Croatia has poured €5.2bn into water management since 2016, with Prime Minister Andrej Plenković stressing climate-driven droughts and floods, plus big gains in water access and drainage upgrades. Toxic Waste Fallout: Tens of thousands protested in Zagreb and Gospić over hazardous waste dumping and cleanup delays, as USKOK-linked expert findings point to microplastics at sites near Benkovac and Gospić. EU Shopping Cost Shock: The EU plans a new €3 fee on small parcels from outside the bloc, which could raise costs for Croatian shoppers using Temu, Shein and AliExpress. Adriatic Fisheries Cooperation: GFCM set up a new technical unit hosted in Split to strengthen science-based, sustainable fisheries management across the Adriatic. Tourism Tech & Travel: A new “Meet Croatia” digital platform aims to centralize bookings with local providers, while Croatia also plans 40 high-tech fixed radars to improve road enforcement. Defense & Industry: South Korea’s defense minister will visit Croatia for the Chunmoo rocket launcher export signing, boosting bilateral defense ties.

Croatia’s Tourism Reality Check: Croatia is the EU’s most seasonal destination, with 54.5% of all tourist overnight stays in 2025 packed into July and August—far above the EU average of 31.1%, highlighting how hard it is to fully escape the summer-only model. Demographics (Good News): Makarska stands out as one of just six Croatian towns where births outnumber deaths: 146 babies born in 2025 versus 131 deaths, a natural increase of 15, with local officials pointing to kinder­garten capacity, school investment, and family-focused support. Regional Politics Shockwave: The fallout from Ratko Mladić’s funeral keeps spreading across the Balkans and into Brussels, with the EU criticizing Serbia over “glorification” and Bosnia and Herzegovina moving to expel Serbian diplomats after attending the event. Culture on the Move: More than 100 Croatian tambura musicians turned a Croatia Airlines flight into a surprise in-air performance for passengers, sending Croatian folk culture from Slavonia straight to Brussels. Sports Spotlight: Luka Modrić is set to continue for Croatia in the Nations League, while BRAVE CF made history by staging an MMA card inside Pula Arena.

EU Balkans Tensions: EU leaders called the funeral of convicted war criminal Ratko Mladić in Belgrade “shocking,” saying the presence of senior Serbian officials and military honours “deeply regrettably” contradict Serbia’s EU path. Regional Fallout: Bosnia and Herzegovina announced it will recall embassy staff and cut communication with Serbia to the “lowest possible level” over the glorification and official honours. Croatia Abroad Funding: Croatia’s Central State Office for Croats Abroad opened a €3.3 million call for non-profits to support projects for Croats outside Croatia, including identity, language, culture, and social/humanitarian help. Local Economy & Infrastructure: An Osijek company GAUSS plans to build an unmanned-systems facility in Vukovar (about €5m), aiming for operations next year. Transport Snapshot: Traffic on Croatian motorways is up 3% year-on-year, with 56.5m vehicles recorded to end of August. Agriculture Innovation: Scientists in Poreč are testing whether discarded sheep wool can be turned into pellets for organic fertiliser, tackling a long-standing waste problem.

Toxic Waste Protest: Tens of thousands marched in Zagreb demanding action over 34,000–37,000 tonnes of illegally stored waste near Gospić, after repeated government promises to speed up cleanup failed to turn into on-the-ground work. Tourism Shift in Dubrovnik Region: Župa Dubrovačka saw visitor arrivals rise in the first eight months of 2026, but overnight stays fell, with August showing fewer nights despite slightly more tourists. Nautical Tourism Softening: Dubrovnik’s nautical sector dipped in August, with overnight stays down about 7% year-on-year. Diplomacy Fallout Over Mladić: Bosnia and Herzegovina announced it will recall embassy staff in Belgrade and cut communication with Serbia to the lowest possible level after Mladić glorification. Croatia Football: Luka Modrić was named in Croatia’s Nations League squad; coach Slaven Bilić said he won’t be used in every match as Croatia opens against Czechia on Sept. 26. Defense Procurement: Croatia approved buying 18 South Korean Chunmoo K239 rocket launchers, with deliveries planned for 2026–2029.

Croatia Football & Nations League: Slaven Bilić named a 23+3 squad for September’s Nations League run, with Luka Modrić confirming he’ll keep playing for Croatia and the list mixing experienced leaders with fresh faces. Local Life & Education: Croatia’s school year kicked off with Education Minister Radovan Fuchs urging pupils to be curious, brave and persistent—and reminding them mistakes are part of learning. Tourism & Travel: Dubrovnik is seeing a calmer early-September vibe as crowds ease and sea temperatures stay warm, while Croatia’s tourist rental rules face fresh pressure from Brussels’ planned Airbnb crackdown. Health & Lifestyle: Eurostat data puts Croatia’s adult obesity rate at 16.5% in 2025, tied to diet shifts and lower activity levels. Business & Connectivity: Air China launched a new Zagreb–Beijing route, described as a “bridge of friendship” for travel, trade and culture. Sports Spotlight: BRAVE CF 108 brought a big Croatian hometown moment in Pula, with Andi Vrtacic stopping Bouafia in the main event. Regional Tensions: Belgrade saw large crowds at Ratko Mladić’s funeral, drawing EU backlash over alleged glorification.

Wildfire Smoke Over Dubrovnik: Dubrovnik woke under a smoky haze as wildfires burned across the Bosnia border; firefighters say flames aren’t threatening the city, but the area has endured 16 smoke days this summer. Hazardous Waste Protests: Tens of thousands marched in Zagreb demanding urgent cleanup of an illegal toxic waste dump near Gospić in Lika, where authorities say around 35,000 tonnes were involved and contamination risks are growing. Tourism Rules Under Pressure: Brussels moves to toughen short-term rental limits, while Croatia tightens tourist apartment rules—raising questions about who will bear the cost. Coast Access Dispute: An electrified fence on Croatia’s island of Vis was found blocking access to maritime public domain; the owner was ordered to remove it and a misdemeanour report was filed. Dubrovnik Travel Timing: Early September is pitched as a sweet spot for Dubrovnik—still warm, but with crowds easing as schools reopen. Crolibertas Toll Switch: Croatia plans to end toll booths in March 2027 with fully electronic free-flow tolling. Culture & Film: Croatia selected Hana Jušić’s “God Will Not Help” as its Oscar candidate for Best International Feature Film.

Hazardous Waste Crisis: Tens of thousands marched in Zagreb in the “Walk for Lika” protest, demanding urgent cleanup of an illegal toxic waste dump near Gospić in Lika, where authorities say more than 30,000 tonnes were buried and environmentalists warn it threatens soil and water. Public Health & Accountability: Protesters accuse the government of delays after investigations tied the scheme to imports from Italy, Germany and Slovenia, with police and Europol arrests reported, while officials dispute the extent of contamination. Sports Spotlight: Croatia captain Luka Modrić, now 41, has confirmed he will continue playing for the national team and is set to be included for UEFA Nations League matches against Czechia, Spain and England. Local Life & Travel: Dubrovnik residents reported a smoky haze after firefighters said smoke was drifting from a fire in Bosnia and Herzegovina, while a visitor complained about an “exploitative” Dubrovnik parking bill after missing a 15-minute purchase rule for a daily ticket. Back to School: Croatia’s new school year begins tomorrow, with Education Minister Radovan Fuchs noting thousands of first-graders had enrolment postponed and urging parents to rely on professionals rather than personal judgement.

Croatia Protest Wave: Tens of thousands marched through Zagreb demanding urgent cleanup of an illegal hazardous waste dump near Gospić in Lika, after authorities failed to remove more than 30,000 tonnes; protesters cite soil and groundwater contamination concerns, including heavy metals and PFAS, and want a clear plan, deadlines, and prosecutions. Modrić Nations League Call-Up: Luka Modrić, turning 41, ended retirement speculation by confirming he will stay available for Croatia’s UEFA Nations League matches against Czechia, Spain, and England under coach Slaven Bilić. Croatian in the Premier League: Brighton’s record signing Luka Vuskovic scored his first goal for the club as Brighton drew 1-1 with Leeds, heading in from Maxim De Cuyper’s corner to earn a point. Sport Spotlight: Croatia’s Matej Jukić won IRONMAN 70.3 in Baku, with the top finishers qualifying for the 2027 World Championships. Local Culture: Štrudlafest kicked off in Jaškovo near Ozalj, spotlighting traditional strudel craft and new festival workshops.