The draft budget plans, which Croatia voluntarily submitted to the European Commission this year as a future member of the euro zone, are in line with the EC's fiscal recommendations, Executive Vice President Valdis Dombrovskis said on Tuesday in Strasbourg.

Croatia’s budget plans are in line with our fiscal guidelines. It is expected that in 2023 Croatia’s fiscal position will be largely neutral, Dombrovskis told a press conference at which he presented the autumn package of the European Semester.

A neutral fiscal position means that primary budget expenditures will not grow more than medium-term potential growth. Countries with low and moderate debt, including Croatia, should ensure that the growth of primary current expenditures financed by the state is aligned with the general neutral direction of the policy, the European Commission announced on Tuesday in its assessment of the budget plans of the 20 EU countries in the euro zone.

Dombrovskis added that Croatia has room for improvement in terms of measures to support the population in the fight against high energy prices because most of the measures adopted by the government are “not well directed towards the target groups.”

Croatia submitted its budget plans for the first time this year, although it did not have to because this obligation only applies to existing members of the euro zone. The Commission welcomed the move by Croatia, which will become the 20th member of the euro zone on 1 January, 2023.