GEOFIN Working Paper No. 5

Mikuš, M. (2019) Financialization of the state in Croatia: a preliminary analysis. GEOFIN Working Paper No. 5. Dublin: GEOFIN research, Trinity College Dublin.


This working paper offers a brief preliminary analysis of the financialization of the state in Croatia based on the analysis of secondary quantitative data and relevant literature. In general, Croatia tended to follow the dominant patterns and trends of financialization in East-Central Europe (ECE) but with the levels of multiple indicators of state financialization well above the regional average. This refers in particular to high levels and high-risk forms of sovereign public debt. The paper situates this development in the wider peripheral financialization of the Croatian political economy, characterized by the dependence on capital inflows promoting debt, consumption and imports, macroeconomic asymmetries, and marked vulnerability to external shocks due to the openness of the economy, the lack of independent monetary policy, and the dominance of foreign financial capital.

Keywords: Croatia; financialization; the state.

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