AGP Executive Report

Wildfire Crisis on Brač: A large wildfire on Croatia’s Adriatic island of Brac has forced evacuations of hundreds, with authorities reporting nearly 700 people moved away from the Milna area as flames spread over about 3,500 hectares; firefighters defended homes and tourist facilities overnight, using air support including Canadair planes, while injuries were reported (including a woman evacuated by boat who was later hospitalized). Housing Rules in Focus: Croatia’s rental policy is set to tighten from Jan. 1, 2027, with limits on rent hikes (once per year) and faster eviction procedures, plus a requirement that rental contracts be concluded before a notary. Tourism Numbers: Croatia welcomed around five million tourists in August, generating 31.3 million overnight stays, while the nautical sector saw a slight dip. Defence Deal: Croatia signed a €435.2m contract for South Korean K239 Chunmoo multiple rocket launchers and a command-and-staff system, with delivery planned through 2029. Zagreb Pay Update: Zagreb’s average monthly net salary rose to €1,765, with the median at €1,519. Mljet Investment: Mljet National Park approved over €1.6m for projects aimed at protecting nature and strengthening wildfire defences.

Wildfire Crisis on Brac: Croatia’s Adriatic island of Brač is dealing with a major wildfire near Milna, with strong winds driving the flames across about 3,500 hectares; authorities evacuated roughly 230 people overnight by sea and road, while firefighters protected homes and tourist areas and reported no deaths, though a 76-year-old woman was hospitalized in critical condition. Tourism Update: Croatia welcomed around five million tourists in August, generating about 31.3 million overnight stays—an increase of 0.5% year-on-year—according to eVisitor data. Defence Ties with the US: Croatia marked 30 years of defence cooperation with Minnesota, with discussions ahead of HIMARS deliveries expected in 2028 and plans to complement it with Chunmoo missiles. Local Nature Investment: Mljet National Park approved over €1.6 million for projects aimed at protecting dunes, improving wildfire defences, and upgrading visitor transport and coastal infrastructure. Sports Spotlight: In Scotland’s Old Firm Cup quarter-final, Rangers beat Celtic 3-0, with Croatian goalkeeper Ivor Pandur starring in goal. Croatian in the Spotlight Abroad: Marcelo Brozović has signed with Qatar’s Al Sadd on a one-season deal after his Al Nassr contract ended.

US Open Tennis: Elena Rybakina’s calm, low-key approach helped her reach world No. 1 after winning the US Open, with fresh attention on her private life and ongoing speculation around her Croatian coach Stefano Vukov. Croatian Business & Tech: Croatia’s postal market keeps shifting toward parcels as e-commerce drives record revenue of €115m in Q2 2026, while Porsche exits Rimac in a deal expected to bring about €1bn to Porsche and reshuffle leadership at Bugatti Rimac. Public Safety: A major wildfire on Brač has intensified near Milna, with strong winds complicating firefighting and emergency guidance changing as conditions worsen. Dubrovnik & Culture: Gradac Park in Dubrovnik is set to reopen Sept. 16 after a full renovation, and a free American choir concert is planned at the Franciscan Monastery the same week. Transport & Travel: Croatian airports logged a record summer, with July passenger numbers up 1.7% year-on-year.

Dubrovnik Culture & Tourism: Gradac Park in Dubrovnik is set to reopen on Wednesday, Sept. 16 after its first full renovation in over 120 years, a €4.4 million project adding new paths, lighting, facilities and hundreds of trees; the city will mark the reopening with music and performances starting 6:00 p.m. Public Safety: A school stabbing in Zagreb left two wounded (a student and a janitor) after an attacker used a sharp object; the suspect was detained. Tech & Mobility: Pony.ai and Verne have begun fully driverless robotaxi passenger testing on public roads in Zagreb, with rides booked via Uber and a planned expansion across the city. Defense & Training: Croatia’s Rafale jets carried out mid-air refuelling with Germany’s Luftwaffe, boosting operational endurance and deepening NATO cooperation. Economy & Housing: Croatia’s first-home support scheme has drawn 7,479 applications, with thousands already processed and payments approved. Business & Policy: Croatia is proposing a one-off 50% tax on “excessive” 2026 profit margins for firms deemed able to influence inflation. Sports Spotlight: Martin Baturina starred as Como beat RB Leipzig 4-1 in their historic Champions League debut.

Tourism Boom: Croatia logged 17.5 million arrivals and 90.5 million overnight stays in Jan–Aug 2026, with tourism revenue up to €7.41bn, as the government calls it another “extraordinary tourism year.” Public Safety: A student stabbed a fellow student and a janitor at an Electrical Engineering School in Zagreb; the injured were taken to hospital and the attacker was arrested. Energy & Cost of Living: Croatia approved a new package of measures worth nearly €260m (Oct 1, 2026–Mar 31, 2027) to cushion households and businesses from higher energy prices. EU Politics: Parliament speaker Gordan Jandroković warned Serbia it can’t count on Croatia’s support for EU membership if it continues its “unacceptable” political path after Ratko Mladić’s funeral. Waste Policy: Croatia is the only EU country without a waste incinerator, raising fresh pressure after the Lika waste scandal. Transport Tech: Pony.ai and Verne started fully driverless robotaxi rides in Zagreb with bookings via Uber. Defense Deal: Croatia signed a €411.8m contract for 18 South Korean Chunmoo K239 rocket launchers, expanding long-range artillery capacity. Housing Support: 7,479 applications have been filed for first-home state support, with payments already approved for 4,881 cases. Retail Growth: A new 14,000 sq m shopping retail park opened near Samobor, bringing 23 brands and around 100 jobs.

Consumer Relief: Croatia adopted an 11th package of measures to shield households and businesses from energy-price pressure, worth nearly €260m and running Oct 1, 2026 to Mar 31, 2027. EU Politics: Parliament speaker Gordan Jandroković warned Serbia it risks losing Croatia’s support for EU membership after the “completely unacceptable” Ratko Mladić funeral. Defense Deal: Croatia signed a €411.8m contract with South Korea’s Hanwha Aerospace for 18 K239 Chunmoo multiple-rocket launchers, with deliveries through 2030, plus command-and-control integration. New Investment Option: A Croatian Investment Account is set to launch Jan 1, 2027, offering tax-free gains and withdrawals under conditions, with up to €200,000 per person (plus a long-term bonus). Security at School: A student stabbed another student and a janitor in Zagreb; the attacker was detained and classes were postponed. Economy & Logistics: Croatia’s postal market hit a quarterly revenue record as parcels surged, while letters continued to decline. Tourism/Travel: Dubrovnik is among Air Canada’s new summer 2027 destinations, as the airline expands routes across Europe.

Tourism Boom: Croatia hit a record August with over 5 million arrivals and 31.4 million overnight stays, pushing 17.5 million arrivals and 90.5 million overnight stays in the first eight months. Waste Crisis Response: The government unveiled a plan for the Lika hazardous waste scandal, saying about 650 tonnes will be burned in cement plants within 45 days. Jobs Snapshot: Croatia recorded 1.72 million employed in Q2 2026, with unemployment down to 3.5% in administrative data. Toll System Watch: Croatian Motorways says the new Crolibertas toll system won’t miss its legal deadline despite procurement appeals. Defense Deal: Croatia signed contracts with Hanwha Aerospace for 18 Chunmoo rocket launchers, boosting artillery range and firepower. Dubrovnik Cruise Fees: New proposals would charge cruise ships from €265 up to €5,308.91 per call from 2028. Dubrovnik Travel Demand: Dubrovnik Airport handled 566,529 passengers in August (+4.14%). Sports & Culture: Dinamo Zagreb gave a debut to Ghanaian youngster Fuzy Taylor; Como’s Champions League debut featured Croatian midfielder Martin Baturina scoring.

Defense Modernisation: Croatia signed a €435.2m deal with South Korea’s Hanwha Aerospace for 18 Chunmoo K239 multiple rocket launchers, with delivery planned through 2029, plus a separate Polish contract for command-and-control integration—part of a broader push to boost range, firepower and deterrence. Military Industry & Ownership: Porsche has completed its €1bn exit from Bugatti Rimac, selling its stakes to a consortium led by HOF Capital; Rimac Group keeps a 55% majority in Bugatti Rimac as the new ownership chapter begins. Tourism Pulse: Croatia reported an “extraordinary” 2026 so far—17.5m arrivals and 90.5m overnight stays in Jan–Aug (+1%), with Dubrovnik seeing a 56% jump in Booking.com searches for autumn stays. Healthcare Milestone: Dubrovnik General Hospital implanted its first Micra leadless pacemakers, marking a major cardiology upgrade. Public Safety & Environment: After a major wildfire near Omiš, damage estimates now top €110m as authorities assess claims. Business & Tech: Infobip marks 20 years with continued growth and a shift toward AI-driven operations, with 53% of revenue tied to the US.

Toxic Waste Fallout: Tens of thousands of Croatians rallied in Zagreb and across the country demanding action over hazardous waste illegally dumped in Lika, with police arrests tied to years of imports and alleged “forever chemicals” and microplastic concerns. Transport & Infrastructure: Croatian Motorways says the Crolibertas toll system is still on track for launch within legal deadlines, despite procurement delays after DKOM annulled parts of the selection process. Ports & Trade: Rijeka Gateway reports strong early performance, with 370,000 TEU handled in its first commercial year and expectations to reach about 650,000 TEU capacity in 2027. Sports & Tourism: Croatia’s HNS set ticket prices for the Nations League clash vs Spain at Poljud (online pre-sale Sept 18–Oct 5; €30–€65; all tickets via the HNS mobile app). Local Life: Zagreb opened Bazen Špansko, a €36.3m municipal sports centre with two pools, accessibility features, and facilities for clubs and residents. Economy Watch: Croatia’s exports rose to €16bn in Jan–Jul 2026, but imports jumped to €28.6bn, leaving a €12.6bn trade deficit.

Business & Industry: Porsche has completed its exit from Croatia’s Bugatti Rimac and Rimac Group, generating about €1bn and lifting its 2026 cash flow outlook as it refocuses on core auto operations. Defense & Security: Croatia signed a €33.2m deal to upgrade Rafale combat communications, building a secure ground-to-air network with seven radio sites and support for future F4 standards. Trade & Economy: Croatia’s exports rose to €16bn in the first seven months of 2026, but imports jumped to €28.6bn, leaving a €12.6bn trade deficit. Tourism & Lifestyle: Zagreb opened Bazen Špansko, a €36.3m sports centre with the city’s first municipal pool in the west, while Dubrovnik-Neretva sea tests found 122 beaches rated “excellent.” Environment & Public Pressure: USKOK released new expert findings on microplastics and environmental impact at waste-linked sites near Benkovac and Gospić, as protests continue over hazardous waste cleanup delays. Sports & Culture: Burger Festival Zagreb shifted to Sept. 12–22 due to weather, and Luka Modrić is confirmed available for Croatia’s Nations League.

Waste Crisis: Tens of thousands of Croatians marched in Zagreb demanding action over illegal toxic waste in Lika, with protesters calling for cleanup in Gospić and a temporary halt to waste imports. EU Values & Serbia Talks: Croatia’s officials said glorifying Ratko Mladić is contrary to EU values and urged Serbia talks to be suspended, as EU leaders condemned the Belgrade funeral. Dubrovnik Connectivity: Air Canada is set to launch a Dubrovnik–Montreal route in May 2027, boosting North American access for the city. Tourism Reality Check: New data from Župa Dubrovačka shows more arrivals but fewer overnight stays, hinting at shorter holidays becoming the new norm. Culture & Heritage: Zagreb’s Croatian National Theatre is moving into renovation planning after nearly 57 years, with bids now in for parts of the conceptual design. Defense Deal: South Korea’s defense minister will visit Croatia to discuss bilateral ties and attend the Chunmoo rocket artillery export signing. Sports Spotlight: Luka Modrić is confirmed for Croatia’s Nations League squad, while FC Dallas forward Petar Musa joins the Croatian national team.

Croatian Tourism: Croatia is Europe’s most seasonal destination, with 54.5% of all tourist overnight stays in 2025 concentrated in July and August—far above the EU average of 31.1%. Demographics: Makarska posted a rare natural population gain in 2025, with 146 births versus 131 deaths, one of only six Croatian towns to record more births than deaths. Energy Costs: The government blocked a potential diesel jump of up to 14 cents per litre, freezing petrol at €1.67 and diesel at €1.79 while cutting fuel duties and margins. Jobs Snapshot: Croatia’s employment indicator rose again, with 1.8 million people registered with the pension insurance system (1,797,071 insured persons). Dubrovnik Smoke: Dubrovnik woke under drifting wildfire smoke from Bosnia and Herzegovina, with firefighters stressing there are no active fires in the Dubrovnik area. Health & Community: Dubrovnik lit up the Great Onofrio Fountain red for World Duchenne Awareness Day, while the city’s TUP youth complex ran summer workshops for 250+ young people. Military Modernisation: Croatia approved the purchase of 18 South Korean Chunmoo K239 rocket launchers in a €544.1m package, with deliveries planned from 2026 to 2029. Regional Politics: Bosnia and Herzegovina expelled two Serbian diplomats over alleged involvement in the funeral of convicted war criminal Ratko Mladić, escalating tensions with Serbia.

EU Accession Fallout: Bosnia and Herzegovina is recalling embassy staff from Belgrade and suspending bilateral meetings with Serbia, cutting ties to the “lowest possible level” after the state-backed funeral of convicted war criminal Ratko Mladić. Domestic Politics: A new CRO Demoskop poll for RTL shows HDZ sliding to its weakest support in two years amid public anger over the Lika hazardous-waste scandal. Waste Cleanup Protests: Tens of thousands marched in Zagreb demanding action over illegal toxic waste stored near Gospić, with organizers saying cleanup delays have turned promises into stalled reality. Housing & Tourism Pressure: The EU is moving to curb short-term rentals like Airbnb in housing-stressed tourist areas, while Croatia’s own tourism data shows more visitors but fewer overnight stays in Župa Dubrovačka and a drop in Dubrovnik nautical tourism. Economy & Infrastructure: Croatian motorways saw 3% more traffic than last year; Zagreb new-build prices keep climbing. Security & Defense: Croatia approved the purchase of 18 South Korean Chunmoo rocket launchers to replace older systems. Sports: Luka Modrić was named in Croatia’s Nations League squad; Rijeka thrashed Osijek 4-1 with Daniel Adu-Adjei starring.

Education & Safety: Zagreb police are checking bomb threats after anonymous messages targeted 20 faculties and academies, with threats also mentioning firearms. Football: Luka Modrić has been named in Croatia’s Nations League squad under Slaven Bilić, with Croatia opening Group A at Czechia on Sept. 26. Housing Market: New-build apartment prices keep climbing: Croatia averaged €2,994 per sq m in Jan–Jun 2026 (+8.7% y/y), while Zagreb hit €3,518 (+18.9%). Defense Modernisation: Croatia approved major purchases of South Korean Chunmoo rocket systems—18 launchers for about €435m (replacing older Soviet-era systems). Environment & Health: USKOK expert findings flag microplastic contamination and other risks at waste sites in Varaždin and the Gospić area. Travel & Tourism: Dubrovnik’s new school-year start is expected to ease crowds as September heat continues, while smoke from Bosnia wildfires has pushed Split back into the red air-quality category. EU Consumer Watch: A new EU handling fee on small parcels could raise costs for frequent online shoppers in Croatia from Nov. 1.

MMA in Pula: Andi Vrtacic electrified the hometown crowd at BRAVE CF 108, stopping Frenchman Sofian Bouafia by referee stoppage after a knockdown and heavy ground strikes at Pula Arena. Wildfire smoke hits Dubrovnik: Dubrovnik woke under a smoke haze for the 16th day this summer, but firefighters say flames are across the border in Bosnia and Herzegovina, not threatening the city. Tourism rules under pressure: Brussels is moving toward tougher limits on short-term rentals as Croatia tightens tourist apartment rules—raising the question of who will pay the price amid housing strain. Toxic waste protests: Tens of thousands marched in Zagreb demanding urgent cleanup of illegal hazardous waste near Gospić, with protesters citing health and groundwater risks and calling for a clear national plan. Public access dispute: An electric fence on Croatia’s maritime public domain on the island of Vis was ordered removed after authorities found it blocked beach access. Health and lifestyle: Eurostat data puts Croatia’s adult obesity rate at 16.5% in 2025, slightly above the EU average. Football spotlight: Luka Modric confirmed he’s available for Croatia’s UEFA Nations League matches against Czechia, Spain and England.

Toxic Waste Uprising: Tens of thousands marched in Zagreb demanding urgent cleanup of an illegal hazardous waste dump near Gospić in Lika, where about 35,000 tonnes (including medical and electronic waste) were allegedly buried after imports from Italy, Germany and Slovenia; protesters want a moratorium on new waste imports and a nationwide waste plan within 20 days. Coast Access Row: An electrified fence on Croatia’s island of Vis (Vela Čavojnica Bay) sparked questions over public maritime access; authorities ordered the owner to remove it and filed a misdemeanour report. Tourism Rules in Focus: Brussels is moving toward tougher limits on short-term holiday rentals as Croatia tightens its own tourist apartment rules—raising the question of who pays the price amid the housing crunch. Sports Spotlight: Luka Modrić, now 41, is set to continue for Croatia in the UEFA Nations League, and BRAVE CF 108 in Pula delivered big wins for local fighters including Andi Vrtačić and Lasha Abramishvili. Culture & Film: Croatia selected “God Will Not Help” as its Oscar candidate for Best International Feature Film. Weather Watch: A major shift is coming after a hot spell, with cooler, unsettled conditions expected next week.