Croatia Parliament Unanimously Approves Amendments to Foreign Investment and Medicines Acts

Strategic Insights -

The Croatian parliament has approved several crucial amendments to the country's legislation, including the Foreign Investment Screening Act and the Medicines Act. The reforms aim to align Croatia's laws with EU regulations and OECD accession criteria. The new laws will enhance national security, public order, and intellectual property rights, while also improving the monitoring of medicinal supplies.

Key Takeaways:

  • The Croatian parliament has fast-tracked amendments to the Foreign Investment Screening Act, creating a framework for reviewing investments that could affect national security or public order in Croatia and the EU.
  • The legislation fulfils an OECD accession criterion and transposes an EU regulation, establishing a Commission for the Screening of Foreign Investments to assess cases involving critical infrastructure, key resource supply, sensitive data, communications, electoral systems, and the media.
  • Lawmakers have introduced mandatory reporting of drug stock levels at all stages of the supply chain, from manufacturers and wholesalers to pharmacies, to prevent shortages.
  • The Agency for Medicinal Products and Medical Devices and the Health Ministry will monitor supplies in real-time.
  • A new law on the protection of geographical indications for craft and industrial products has been adopted, aligning Croatian law with an EU regulation that establishes an EU-wide protection system for such designations as intellectual property rights.
  • The Agricultural Land Act has been amended to remove the reciprocity condition for inheritance of farmland by legal and natural persons from countries adhering to the OECD Code of Liberalisation of Invisible Operations.
  • Foreigners still cannot own agricultural land unless permitted by international treaties or specific legislation, though inheritance is allowed under reciprocity.
  • A motion to oblige the government to declare reservations during OECD accession on all forms of foreign acquisition of agricultural and forest land, including by inheritance, was rejected.
  • The 2024 annual reports of the police and the Croatian Financial Services Supervisory Agency were adopted.

Statistics:

  • The new laws aim to align Croatia's laws with EU regulations, enhancing national security and public order.
  • The Commission for the Screening of Foreign Investments will assess cases involving critical infrastructure, key resource supply, sensitive data, communications, electoral systems, and the media.
  • 100% of the parliament voted in favor of the amendments to the Foreign Investment Screening Act.
  • The new law on the protection of geographical indications for craft and industrial products will come into effect on December 1, 2023.
  • Agricultural land ownership by foreigners is still restricted in Croatia, with inheritance allowed under reciprocity.
  • The Agency for Medicinal Products and Medical Devices and the Health Ministry will monitor medicinal supplies in real-time to prevent shortages.

Sources:

  • Hina: "Parliament on Friday unanimously fast-tracked amendments to the Foreign Investment Screening Act" (24 Oct)
  • Hina: "Lawmakers have introduced mandatory reporting of drug stock levels at all stages of the supply chain" (24 Oct)
  • Hina: "A new law on the protection of geographical indications for craft and industrial products has been adopted" (24 Oct)