HGK commentary: new Physical Planning Act is good news for Croatian economy

“The Government has submitted the new Physical Planning Act to the Croatian Parliament, which brings what the economy lacks: clear rules, faster processes and a stable investment framework, and it establishes a modern, European planning system that increases Croatia’s competitiveness and opens the door to new investments,” President of HGK Luka Burilović said.

The new Act has been presented several times to members of the Construction Association at HGK, who supported the Act that removes discrepancies and clearly answers the questions on spatial conditions for project implementation. The investors now receive definite answers instead of the previous legal uncertainty and various interpretations and arbitrary assessments.

“As a Chamber dedicated to interests of the entire economic sector, we are aware of the significance of spatial planning. The fact is that the current procedures have not been clear enough, which is why we consider it extremely positive that the new Act, for the first time, obliges both the competent development authority and the expert developer to carry out comprehensive spatial planning with all prescribed contents,” the President of HGK pointed out.

Space is no longer planned according to individual will, but according to rules protecting the public interest. Regarding the economic sector, the public interest is reflected in responsible and systematic spatial planning. Such integral planning, through a digital platform, significantly shortens project preparation time and lays the foundations for a more modern and efficient spatial development.

This Act, after many years of waiting, represents a decisive step forward towards a green and digital Croatia and, after a period of inconsistent interpretations, slow procedures and uncoordinated spatial plans, it establishes clear rules, faster procedures and greater legal certainty - prerequisites for a strong investment cycle.

Croatia is becoming a reliable and enabling environment for national and foreign investors, so the Croatian Chamber of Economy fully supports this Act.

Source: HGK

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