Germany is Croatia's key trade partner and Croatia is open to further investment by German companies, Prime Minister, Andrej Plenkovic, said on Tuesday after meeting with a delegation of the German Eastern Business Association.

The meeting discussed the strengthening of Croatian-German economic cooperation and the main areas for the further investment by German companies in Croatia, the government said in a press release. Germany remains Croatia’s number-one foreign trade partner and trade in 2021 totaled €6.4 billion, it added.

The meeting at the government was also attended by Foreign Minister Gordan Grlic-Radman and Economy Minister Tomislav Coric. The German Eastern Business Association is a regional initiative of the German economy for 29 countries in Central, Eastern and Southeastern Europe, the South Caucasus and Central Asia,. It has around 350 member companies.

Plenkovic informed the delegation of Croatia’s strong economic recovery in 2021 and the government’s plans to further stimulate growth, the utilisation of European funds as part of the National Recovery and Resilience Plan and the new EU budget, and upcoming steps to join the Schengen and euro areas.

The prime minister also informed the delegation of tax relief measures as well as those to advance the investment and business climate in Croatia.

He also commented on the Russian aggression in Ukraine, Croatia’s measures to help Ukraine, and the war’s repercussions on energy and food supplies.

The German companies presented their existing and potential projects in Croatia, confirming their willingness to continue to cooperate and invest.

To date, German companies have invested €3.9 billion in Croatia, making Germany one of the biggest investors, the government said.