THIS month Dubrovnik, Croatia’s picturesque Adriatic port city, has been a favorite destination not only of the habitual cruise-ship tourists but also of foreign dignitaries. Within a few days, Angela Merkel, Germany’s chancellor, senior officials from Russia, China, America and New Zealand and almost every single regional foreign minister and president dropped by. Credit for the flurry of visitors goes to Vesna Pusic, Croatia’s foreign minister, who is seen at home as a candidate for secretary-general of the UN.Yet, however popular a travel destination, Croatia is not well. The economy is now in its sixth consecutive year of recession. When Zoran Milanovic, the Social Democratic prime minister, took over in December 2011, his government promised painful but necessary reforms. Since then little has happened. Joining the European Union a year ago did not result in the hoped-for boost, partly because the reforms Croatia still needs to do were not the ones required to join the EU, says Senada Selo Sabic, an analyst.Ever since the end of the war in 1995, successive governments have pledged to cut Croatia’s…
The Economist: Europe