Last updated in September 2008
Political relations
Relations between Germany and Croatia are close and good. This is due to two main factors: the cultural influence of Germany and Austria over the centuries and the large number of Croats living permanently in Germany (225,300 were registered in 2007) and the former guest workers, which means that many Croatians speak German; and the large number of German tourists that visit Croatia every year (approx. 1.6 million in 2007). Another important factor is the large volume of bilateral trade. There are close scientific and technological ties between the two countries’ institutions and people.
Mutual visits at political level are frequent. Federal Chancellor Merkel visited Croatia on 11 May 2007, and there were visits by German Bundestag President Lammert on 30 and 31 May 2007 and by Federal President Köhler from 14 to 16 April 2008. The Mixed Croatia-Bavaria and Croatia-Baden-Württemberg Commissions meet annually. There are also mutual exchanges between members of the German central and regional parliaments and Croatian parliamentarians and regular contacts among civil servants, business representatives, scientists and interested citizens.
The German Federal Government is conducting a large number of projects to help strengthen market mechanisms, modernize the administration, reform the judiciary and align Croatian legislation with European law. These mainly involve advisory and training measures, conducting studies and organizing visits and observer placements of Croat civil servants, business personnel and other experts in Germany. Humanitarian aid measures are also continuing with German support, including repairing houses destroyed in the war, reconstructing and modernizing infrastructure and clearing mines.
Economic relations
Germany is Croatia's second most important trade partner. Bilateral exchange shows an upward trend. Germany takes third place in foreign direct investment, after Austria and the Netherlands. Besides sizable German investments by Deutsche Telekom, Siemens, Krupp, Bayer, BASF, Daimler, Schott, Messer, WTE Wassertechnik, RWE Aqua and several banks, numerous small and medium-sized German companies have set up subsidiaries in Croatia.
A bilateral investment protection agreement entered into force in August 2000, and an agreement on the avoidance of double taxation in December 2006. There is also a road traffic agreement and an arrangement on the provisional application of a civil aviation accord. A shipping agreement is under negotiation.
Since Croatian independence, bilateral Financial and Technical Cooperation programmes have amounted to approx. EUR 150 million plus some EUR 22 million for humanitarian assistance and contributions from non-governmental agencies. Since 2003, a German-Croatian Chamber of Industry and Commerce has been operating in Croatia, and for a number of years the German Office for Foreign Trade (bfai) has been active there. In recent years, numerous German experts have been working in Croatia under various EU accession programmes.
Cultural relations
Bilateral cultural cooperation is based on the German-Croatian Cultural Agreement of 26 August 1994, which entered into force on 23 January 1998. Priority areas of cooperation are promoting mobility in the scientific and academic sector and maintaining and strengthening the prominent role of the German language in the Croatian education system (approx. 30 per cent of all Croat pupils learn German as their first or second foreign language). Also active in Croatia are the Goethe Institute, the German Academic Exchange Service (DAAD) with two academic teachers and a language assistant, and the Central Agency for Schools Abroad (coordinating the German Language Diploma (DSD) programme and providing a further six programme teachers in Croatian grammar schools). Another institution with a presence in Croatia is the Robert Bosch Foundation, which has an academic teacher, school interns and, from autumn 2008, a cultural manager working there. The Konrad Adenauer Foundation, the Friedrich Ebert Foundation, the Hanns-Seidel Foundation and the Heinrich Böll Foundation all have offices in Zagreb. The German International School in Zagreb with an integrated nursery school was founded in 2004. Since 2006, the German International School has been working together with the French School as part of a Eurocampus.
