Croatia's economy was hit by the global financial crisis in 2009 and is currently in its 6th consecutive year of recession. The country was also affected by the Eurozone crisis, with Croatia dependent on the EU economy. Around half of Croatia's trade is with the Eurozone, namely Germany, Italy, Slovenia and Austria, and the Eurozone is the basis for around 75% of foreign direct investment. (IDE) in Croatia. Today, the Croatian economy still needs foreign investment and demand for its exports. Additionally, the Croatian economy is exposed to the Eurozone crisis through foreign banks present in the country. Croatia is still struggling to emerge from the crisis and achieve economic growth. Furthermore, the neoliberal model of the Croatian economy may not lead to the stabilization of the economy, but rather to an economic depression. Between 2000 and 2007, the Croatian economy grew steadily on average by 4.6%. In 2008 growth slowed sharply to 2.1%, in 2009 the economy contracted by 6.9% and since then economic growth has stagnated every year. In 2010 the downward trend continued and the economy contracted by 1.3%, in 2011 the economy contracted by 0.2%, which may have appeared as a slight recovery , but in 2012 the economy contracted by 1.9% due to the passive and stagnant recovery of the global economy. economy. In 2013, the economy contracted by 1.0% and remained in recession for the fifth consecutive year. The European Bank for Reconstruction and Development (EBRD) said that growth in the Croatian economy would not occur before 2014. During 6 years of recession, Croatia has already lost 12.3% of its production. Slow progress on structural reforms and Croatia's dependence on the European Union economy have led to a growth... middle of paper ...... labor market, which has declined their chances of re-employment. Social policy on poverty aims to prevent short-term unemployment from turning into long-term unemployment. Unsurprisingly, the deterioration of public finances has led to annual deficits and an increase in public debt. Croatia's public deficit reached 5% of GDP in 2012 and overall public debt stood at 55.5% of GDP. In 2013, the deficit increased to 5.5% of GDP, reflecting low revenues, the fiscal costs of EU membership and the debts of state-owned enterprises. The Croatian government forecasts that the public deficit will remain above 3% of GDP over the period 2013-2016; the debt/GDP ratio will reach 62% in 2014 and will continue to increase in 2015-2016. Fiscal policy is now subject to the European Union's excessive deficit procedure in accordance with Article 126 of the EU Treaty..