republic of croatia ministry of justice programme: ipa 2010...1.2 programme: ipa 2010 1.3 twinning...

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Republic of Croatia

Ministry of Justice

Programme: IPA 2010

Partner country: Croatia

Area of Cooperation: Justice, Freedom and Security

TWINNING PROJECT FICHE

Improvement of the Enforcement system in the Republic of Croatia

Project budget: 1.600.000,00 EUR

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STANDARD TWINNING PROJECT FICHE

1. Basic Information

1.1 Publication reference: EuropeAid/ 134-861/M/ACT/HR

1.2 Programme: IPA 2010

1.3 Twinning Number: HR 10 IB JH 04

1.4 Title: Improvement of the Enforcement system in the Republic of Croatia

1.5 Sector: Justice, Freedom and Security

1.6 Beneficiary country: Croatia

2. Objectives

2.1 Overall Objective:

Efficient and effective enforcement system in the Republic of Croatia developed. 2.2 Project purpose:

Enforcement system improved in order to further contribute to the reduction of the court backlog.

2.3 Contribution to Accession Partnership/ Stabilisation and Association Agreement/ Program of the

Government of the Republic of Croatia for the Adoption and Implementation of the Acquis

Communautaire

On 12 February 2008, the Council adopted Croatia Accession Partnership (AP) that updated the first

Accession Partnership adopted in 2006 and identified new as well as remaining priorities for action. The

abovementioned Accession Partnership, under section 3.Priorities-Political criteria-Democracy and the

rule of law-Judicial system, contains key priorities which this project is based on:

- Substantially reduce the case backlog in courts and ensure an acceptable length of judicial proceedings,

- Rationalise the organisation of courts, including the introduction of modern information technology

systems,

- Take measures to ensure proper and full execution of court rulings.

Stabilization and Association Agreement (SAA) concluded between the Government of the Republic of

Croatia and the European Communities stipulates that the signatory parties should co-operate in the

promotion of the rule of law and that special attention should be given to independence of judiciary,

improvement of its efficiency and education of judiciary personnel.

The SAA entered into force in February 2005 and first Stabilization and Association Committee meeting

was held on 14 July 2005 covering, among other areas, progress made in the field of Judiciary.

Article 75 Reinforcement of Institutions and Rule of Law of the SAA stipulates: “In their cooperation in

justice and home affairs the Parties will attach particular importance to the consolidation of the rule of law

and the reinforcement of institutions at all levels in the areas of administration in general, and law

enforcement and the machinery of justice in particular. Cooperation in the field of justice will focus in

particular on the independence of the judiciary, the improvement of its effectiveness and the training of the

legal professions.”

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In relation to this project, Program of the Government of the Republic of Croatia for the Adoption and

Implementation of the Acquis Communautaire for 2013 does not contain any new information relevant

for the enforcement system in the Republic of Croatia. However, in the governmental Annual plan of

normative activities for 2013, under no. 29 a creation of a new act under the field of enforcement is

envisaged, “Act on conducting enforcement over movables and immovables”. It is expected that this Act

will be sent to governmental procedure in 3Q 2013.

The Strategy of the Development of the Judiciary in the Republic of Croatia for the period 2013-2018,

stating the strategic goals in achieving efficient judiciary, under section 2. Efficiency-2.3.Guidelines

“Monitoring of the effects of the enforcement system reform”, stipulates the following: “An insufficiently

efficient system of enforcement of valid court decisions is one of the reasons of inefficiency of judiciary.

The guideline implies comprehensive analysis of the present enforcement system and establishment of

efficient enforcement system”.

Monitoring report on Croatia’s accession preparations dated 26 March 2013, under section 2.2

Judiciary and fundamental rights, indicates the following: “During 2012, the courts overall managed to

solve more cases than the influx. The backlog of civil, commercial and enforcement cases continues to be

above the EU average. In its efforts to improve the efficiency of the judicial system in a sustainable manner,

the Ministry of Justice has successfully created an advanced tool for statistical analysis of the performance

of the judicial system, which is expected to enable it to allocate human and financial resources to resolve the

incoming workload and the backlog. The new statistical system can become operational nationwide as soon

as all courts are equipped with the Integrated Case Management System (ICMS).”

Under Priority action: Adopt the new enforcement legislation, in order to ensure the execution of court

decisions and reduce the backlog of enforcement cases, the following is stated: “Croatia has completed this

priority action. The new Enforcement Act and amendments to the Act on the Implementation of the

enforcement of monetary funds entered into force on 15 October 2012. The new system concentrates

enforcement in municipal courts and thus unburdens commercial courts. Municipal courts are responsible

only for non-monetary enforcement, while monetary titles are enforced directly and exclusively by the

Financial Agency (FINA). A decrease in the number of enforcement cases to be handled by the courts and

an improvement of the clearance rate is already noticeable. The Ministry of Justice upgraded the ICMS in

order to register and calculate the recovery rate, as a key indicator for the effectiveness of the enforcement

system. It has also started working on further reform measures to increase the transparency and efficiency of

enforcement on immovable property.”

In the Accession Treaty (signed on 9 December 2011), it is emphasized in Title IV, Other provisions,

Article 36 that “The Commission's monitoring shall focus in particular on commitments undertaken by

Croatia in the area of the judiciary and fundamental rights (Annex VII), including the continued

development of track records on judicial reform and efficiency...” As defined within ANNEX VII, specific

commitments undertaken by the Republic of Croatia in the accession negotiations refer inter alia: 1. To

continue to ensure effective implementation of its Judicial Reform Strategy and Action Plan. 2. To continue

to strengthen the independence, accountability, impartiality and professionalism of the judiciary. 3. To

continue to improve the efficiency of the judiciary.

As enforcement cases are taking a considerable part in overall case backlog in Republic of Croatia, further

efforts are evident to be necessary in order to reduce the number of case backlog in this specific field.

Having in mind the remaining case backlog before courts on one side, and the proven efficiency of

Financial Agency (hereafter referred as: FINA) in running the enforcement of monetary claims on the other,

this project is therefore focused in supporting two directions of enabling the enforcement of claims: 1)

giving additional support to courts and public notaries (who retain their role in the field of enforcement

given to them by the law) and 2) further development of the latest solution concerning FINA, which has

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showed, during the relevant period of time, to be working sufficiently good.

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3. Description

3.1 Background and justification:

Main goals of enforcement legislation are speed, efficiency and effectiveness of the enforcement system.

Achievement of these goals is enabled through establishment of quality legislation framework, especially

the Enforcement Act. Through this Act, the procedure of involuntary collection and securing of creditor’s

claims is regulated, as well as the procedure of voluntary judicial and public notary’s security of claims.

Enforcement Act also regulates the substantive law relationships arising from enforcement procedures and

security procedures.

Since 1996, when it was adopted, Enforcement Act has gone through several changes, of which the most

significant is the one from 2005, presenting a number of novelties and new institutes, in addition to the

introduction of the new procedural body - public notaries. Moreover, very important was the novelty from

2008, which enabled direct implementation of Regulation (EC) No. 805/2004 of the European Parliament

and of the Council of 21 April 2004 regulating a European Enforcement Order for uncontested claims, into

the Croatian legal system on the day of accession of the Republic of Croatia to full membership of the

European Union. Likewise, implementation of Directive (EC) No. 2000/35 of the European Parliament and

of the Council of 29 June 2000 regulating fights against late payments in business transactions was ensured.

The necessity for further improvements of the enforcement system resulted in adoption of new Enforcement

Act on 21 September 2012 (“Official Gazette”, 112/2012).

The new Enforcement Act, in addition to already existing enforcement before the court, is focused on

further strengthening of the extrajudicial enforcement by introducing an option of direct collection of claims

over debtor monetary assets through FINA, based on enforcement titles stipulated by law (enforcement

titles, settlements concluded before a court and an administrative body, where it imposes a certain

obligation or fulfilment of a pecuniary obligation confirmed by certificate of enforceability, apropos the

employer’s calculation regarding non-payment of salary, salary compensation or severance payment).

Likewise, exclusion of the procedural phase of ordering of enforcement for fulfilment of monetary claims

based on enforcement titles contributes to further speeding up of the enforcement procedure before courts

and enhancing its effectiveness.

In accordance to the provisions of the Enforcement Act, amendments to the Act on enforcement over

monetary assets (“Official Gazette”, 91/2010, 112/2012) were enacted, extending the titles for payments, in

relation to the enforcement titles as defined in Enforcement Act, based on which direct collection can be

made through FINA.

Ordering of enforcement on the basis of other enforcement titles (in relation to conducting enforcement of

enforcement titles put into FINA’s jurisdiction, as previously mentioned) as well as the phase of conducting

enforcement based on these enforcement titles is under jurisdiction of Municipal court, unless otherwise

stipulated by law. In this way, within the clearly defined procedural frame, conducting of unified and

concentrated enforcement procedures is ensured, and further specialization of judges and court officials in

enforcement procedures enabled as well.

The backlog of cases remains, with slight oscillations, high during years, especially in the field of

enforcement before courts (please refer to Annex 6).

In the phase of conducting enforcement in cases when it is run by courts, spotted difficulties are reflected

mostly in long procedure duration and subsequently, overall unsatisfactory efficiency of enforcement (low

percentage of claim collection).

Present system of control over enforcement proceedings has been conducted through legal remedies and by

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monitoring the work of public notary service and public commissioners1, as well as monitoring the

implementation of Act on enforcement over monetary assets (which is conducted by FINA, business

subjects, banks and credit unions). Review of the legality of decisions and work is entrusted to courts

through the institute of legal remedies, while other forms of monitoring are entrusted to the government

bodies (Ministry of Justice, Ministry of Finance, government offices, Croatian National Bank). Statistical

monitoring of courts is under the jurisdiction of the Ministry of Justice (MoJ), while Ministry of Finance

and Croatian National Bank are in charge of collecting reports, data and other information relevant for

monitoring in accordance to the Act on enforcement over monetary assets.

Therefore, in the enforcement system of the Republic of Croatia there are two different types of keeping

track of efficiency and effectiveness of enforcement:

monitoring by legal remedies which results in standardization of case law (the production of

guidelines for court bailiffs in enforcement procedures will contribute to further unification of their

work);

other types of monitoring oriented on statistical monitoring, reporting, monitoring of work and other

forms of monitoring over bodies ordering and conducting enforcement (public notaries, public

commissioners, FINA) with important aspect of availability of relevant data and reports with the

purpose of standardization of proceedings, elimination of irregularities and prevention of creating

backlogs.

Existing system of control over legality of the courts’ and other authorized institutions’ work regarding

enforcement procedure could mainly be evaluated as positive, but in spite of this, it requires certain

improvements. Regarding judicial control over legality of courts’ and public notaries’ work, the detected

problems are related to: 1) significant number of decisions against which appeals can be declared, 2)

numerous reasons for these appeals and consequently, 3) the problem of long-lasting period of deciding

upon these legal remedies.

With this Twinning project Ministry of Justice wants to provide additional support to institutions involved

in enforcement: courts (entitled to order and conduct enforcement, except for conducting enforcement on

monetary assets), public notaries (whose jurisdiction is limited to ordering enforcement on the basis of

authentic instrument) and institution proven to be effective in enforcement matters (FINA - legal person

conducting the enforcement procedure according to the provisions of the Enforcement Act and Act on

enforcement over monetary assets). Through this project it is expected that their jurisdiction and powers will

be further widened and the enforcement procedure will be even more simplified, all which should result in a

quicker and easier realization of creditors' claims.

In relation to all previously mentioned this project will also conduct analysis on the cost-benefit

interconnectivity of the existing IT systems and prepare functional specifications for upgrading the existing

IT systems with the purpose to achieve better interconnectivity and interoperability between stakeholders

within the enforcement system. Aim of this group of activities is to support current enforcement system with

proper IT aspect in order to make the procedure more efficient.

Due to the fact that no activity in the field of raising public awareness on enforcement system was initiated

in the recent years by the Ministry of Justice, and due to the fact that under Balkans enforcement reform

project (BERP) this type of activity was also not conducted (as previously planned), this project will also

contribute to raising awareness of general public on new enforcement legislation.

1 Public commissioner is a natural person or a legal person (entity) entrusted (under the condition of meeting certain requirements

stipulated by law) with selling movable assets seized during the enforcement process. Croatian Chamber of Commerce and

Ministry of Economy are involved in the procedure of signing the contract with selected commissioner.

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3.2 Linked activities:

World Bank Justice Sector Support Project started in 2010 and is envisaged to end in 2015.

The overall value of the project is EUR 27.9 million. The project is proposed to be financed from: (i) the

proceeds of Specific Investment Loan (SIL) on standard IBRD terms and (ii) government budgetary

resources. As a part of this project, a certain allocation is planned to further support the enforcement system

in Croatia but exact activities have not been determined yet. This IPA 2010 project will coordinate its

activities and respect all the outputs delivered through this World Bank project.

MATRA project “Enhancement of the Capacities of the Ministry of Justice” in bilateral cooperation

with Netherlands partners started in May 2010 and ended in December 2011.

Project purpose was to assist Ministry of Justice in regards to further strategic developments and to the

implementation of the Strategy for the Reform of the Judiciary and the Anti-Corruption Programme,

through institutional capacity building, staff training and organizational development of the Ministry of

Justice. Based on the recommendations of the High Level Advisor and the Croatian Ministry of Justice

demands, the following results were achieved:

1. Providing one-on-one advice and coaching to the State Secretary responsible for organization of the MoJ

2. Providing one-on-one advice and coaching to the Director of Secretariat

3. Practical two-week training course for 15 staff members of the Ministry of Justice at the European

Academy of Law and Legislation

4. Assistance to the Judicial Academy

5. Advice by High legal advisor (providing independent advice to the Minister).

Balkans enforcement reform project (BERP) started in May 2009 and ended in December 2011.

This regional project has been established as a common initiative of Center for International Legal

Cooperation (CILC - which is an NGO from the Netherlands) and International association of bailiffs with

the aim to support the reform of enforcement in Southeast Europe. In accordance with this general aim,

BERP assisted the relevant governmental structures, professional bodies and NGOs in the countries of the

Western Balkans involved in the area of enforcement, in the development and implementation of training

strategies and programs for judicial officers (from the private and public sector) entrusted with the

execution of court judgments. It also included development and implementation of training programmes for

the officers and institutions entrusted with the supervision over enforcement procedures, including training

at the regional level on topics like ethics and disciplinary issues, international aspects of enforcement,

public awareness and media, quality standards and training methodology. From May 2009 till December

2010 conferences were held in Dubrovnik, Skopje, Kolašin, Tirana (Drač) and Miločer with participation of

representatives from the Ministry of Justice.

PHARE 2006 “Support to the Court Administration and Case Management” started in November

2008 and ended in November 2010.

The project consisted of one service component. Main purpose was to establish reliable, efficient and

sustainable system for management of cases (based on the already developed ICMS pilot system)

implemented at 60 selected courts (county, commercial and municipal) and for general administration of the

court system. Analysis of the existing business process in courts was conducted. The project developed a

sustainable and re-usable system and materials for training of judges and court staff in using ICMS based on

the e-learning methodologies. Administrative capacity of court staff as a consequence of newly adopted

court management system (new business processes, procedures and IT system) were increased by proving

adequate education to key users and support to all users. ICMS has brought the transparency in the work of

courts by way of automatic assignments of cases to judges and monitoring of their work which will help to

reduce the possibility of corruption. It also provided a better and quicker access to relevant information.

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PHARE 2006 “Harmonization and Publication of Case Law” started in November 2008 and ended in

November 2010.

This project consisted of two components: service and supply. Purpose of this project was to increase the

accessibility and dissemination of national case law from 50 pre-selected courts (including county,

municipal and commercial courts) for all interested parties (on national and international level) in order to

contribute to unifying case law. As the main result of this project the upgraded application for publication of

case law was developed - SuPra Nova. Selected courts decisions of the High Misdemeanour Court were

also published through SuPra Nova system. Through supply component of this project IT equipment

(hardware and software) for SuPra Nova system was purchased.

Bilateral project with the French Republic “Developing a strategic study for enhancing enforcement

efficiency and creation of Public Enforcement Agents - Improvement of the Enforcement system in

the Republic of Croatia“ started in June 2008 and ended in July 2009.

The purpose of this project was to support the development of Strategic study for enhancing enforcement

efficiency aiming at taking off the workload from the courts, simplifying, expediting and making the

enforcements on immovable assets, movable assets and monetary claims on bank accounts more

efficient.

CARDS 2004 “Improving Court and Case Management at the High Misdemeanour Court and

Selected Misdemeanour Courts” started in September 2007 and ended in December 2009.

The project purpose was to support and enhance operation and functioning of the court case management at

High Misdemeanour Court and selected misdemeanour courts as well as IT education and training for

judges. Project consisted of two components: Twinning (HR/2004/IB/JH/08) and supply. Twinning project

was implemented by the Republic of Germany (the German Foundation for International Legal Cooperation

- IRZ) in cooperation with the Croatian Ministry of Justice, High Misdemeanour Court of the Republic of

Croatia and Croatian Judicial Academy as BC partners.

This project focused on five basic areas in relation to the misdemeanour sector: legislation, working

conditions, organisation including monitoring and training and Information Communication Technology

(ICT) support and it delivered a set of recommendations and documents to improve the functioning of

misdemeanour courts. Through this project Joint Case Management System (JCMS) compatible modules

were defined, together with the technical and functional specification. Through supply component of this

project IT equipment for Integrated Case Management System (eSpis) was purchased.

CARDS 2003 “Support to the Reform of the Croatian Court System” – phase II, started in June 2006

and ended in June 2008.

The project main purpose was to further enhance the operation and functioning of the Courts as a whole and

pre-selected Courts in particular through improving the management and information system, supporting

rationalisation of court networks in Croatia, developing standards in court produced documents and

ensuring modernisation/computerisation of courts. Project consisted of two components: Twinning

(HR/2003/IB/JH/04) and supply. Twinning project was implemented by the Republic of Austria. The main

results achieved were development of standardized templates and forms for court decisions and further

development of capacity for statistical monitoring of court performance. Through supply component, IT

equipment was delivered to the pre-selected courts that were involved in this project, with the purpose of

introducing the roll-out of ICMS.

CARDS 2002 “Reform of the Croatian Court System” started in 2004 and ended in February 2006.

Project purpose was to improve efficiency of Croatian courts, in order to achieve better quality of

judgments and backlog reduction per case and per judge, as well as to increase the Croatian public trust in

judiciary. The project consisted of two components: Twinning (HR/2002/IB/JH/02) and supply. Twinning

partner was the Republic of Finland. Project delivered several recommendations, introduced new

management and other working methods and also supported the future Integrated Court Management

System (ICMS) and IT development of Croatia under the four components: (1) Development of

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management procedures; (2) Organization and structure of the Croatian court system; (3) Judicial

proceedings and (4) Support to IT development.

3.3 Results:

COMPONENT I – Strengthening institutional and administrative capacities of stakeholder institutions

in regard to the enforcement monitoring system

Result 1.1. Recommendations for establishment of more efficient enforcement monitoring system and

detailed practical guidelines for bailiffs processes (based on the analysis of the technical and legal

execution in enforcement cases) prepared.

Indicators of achievement:

Legal framework regulating the enforcement system in the Republic of Croatia analysed and

corresponding report prepared

Technical execution of different types of enforcement procedures known by the Croatian

enforcement legislation analysed and corresponding report prepared

Comparative overview of enforcement monitoring systems in two MSs with similar features of

enforcement system as in the Republic of Croatia prepared

4 round tables for at least 20 participants from relevant institutions per round table organized

Recommendations for improvement of the enforcement monitoring system prepared

Detailed practical guidelines for bailiffs’ processes drafted and at least 300 guidelines for

bailiffs’ processes printed and disseminated

Result 1.2. Capacity of stakeholders involved in the enforcement monitoring system improved with the

purpose to establish more efficient monitoring of the overall enforcement system.


Training needs analysis (TNA) for the employees of institutions involved in monitoring of

enforcement conducted and TNA report prepared

Training programme and training materials prepared and distributed on trainings

4 in-service trainings for representatives of stakeholders (at least 15 participants in total)

involved in the enforcement monitoring system (including at least 10 employees of the Ministry

of Justice) conducted

Result 1.3. Capacity of stakeholders within the enforcement system taking into account their

jurisdiction and occurring implementation problems in the enforcement process strengthened.


Training needs analysis (TNA) for stakeholders of the enforcement system conducted and TNA

report prepared

Training curricula, training programme and training materials for training of stakeholders’ staff

prepared and training curricula, training programme and training materials for the train-the-

trainers (ToT) seminars prepared

At least 12 seminars for stakeholders based on their role in the enforcement process conducted

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and in total at least 80 judges, 160 judicial advisors, 100 bailiffs, 50 public notaries and 20

representatives from other stakeholders trained

At least 3 train-the-trainers (ToT) seminars for at least 4 participants per seminar conducted

COMPONENT II – Strengthening inter-institutional cooperation of stakeholders participating in the

enforcement system

Result 2.1. Recommendations for improvement of coordination and communication mechanisms and

general information flow protocol between stakeholders within the enforcement system prepared and

presented to all stakeholders.


Communication procedures and mechanisms for information exchange between relevant

institutions analysed and analysis report prepared

Comparative analysis of the roles and responsibilities of the enforcement system institutions in

two Member States conducted and corresponding report prepared

4 round tables for at least 20 participants from relevant institutions per round table organized

with the purpose to discuss solutions for improvement of cooperation between stakeholders

participating in the enforcement system

Recommendations for improvement of coordination and communication mechanisms between

stakeholders within the enforcement system prepared taking into account legal framework and

monitoring responsibilities

Working group established and general information flow protocol prepared

Workshop materials prepared and at least 4 joint workshops for at least 5 representatives per

institution organized with the purpose to present business processes related to implementation of

general information flow protocol

Result 2.2. Functional specifications for upgrading the existing IT systems with the purpose to achieve

better interconnectivity and interoperability between stakeholders within the enforcement system

prepared.


Overview of at least one EU Member State solution in relation to IT interoperability and

interconnectivity needed for efficient enforcement system prepared

Screening of the IT systems conducted and report with recommendations prepared

Cost benefit analysis of enhancing IT interconnectivity and interoperability prepared

Functional specifications of the specific IT solution for interconnectivity and interoperability

between stakeholders within the enforcement system prepared

COMPONENT III - Raising public awareness of the enforcement system

Result 3.1. Public awareness on enforcement system raised through conducting publicity and

information campaign for general public.


Consultations with stakeholders in relation to raising public awareness on enforcement system

conducted

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Communication Plan on the enforcement system (containing at least two models for raising

public awareness about the enforcement system) prepared

10 000 promotional leaflets on the enforcement system for general public designed and printed

1 000 booklets on the enforcement system for general public designed and printed

Public awareness raised through round tables in each county (20) throughout the Republic of

Croatia and in City of Zagreb

Result 3.2. Public relations in regard to enforcement system enhanced through establishment of the

Croatian enforcement web site and other modern approaches to general public


Materials on the enforcement system for publishing on the web site (in English and Croatian)

defined and web site content prepared

Layout and structure of the web site designed (as a part of the Ministry of Justice web site)

Enforcement website set up

Working group defined and one round table with the purpose of discussing the content and

features of IT application to be developed organised

IT application for mobile operating system (android/iOS based) developed and delivered

Training for at least 2 employees of the Ministry of Justice responsible for maintenance,

selection and publishing of materials on the website conducted

3.4 Activities:

COMPONENT I – Strengthening institutional and administrative capacities of stakeholder institutions

in regard to the enforcement monitoring system

1.1.1. Analysing the legal framework (laws and bylaws regulating the enforcement system in the

Republic of Croatia) and preparing corresponding report.

1.1.2. Analysing the technical execution (the overall process of involuntary collection of claims and

problems which occur during the procedure) of different types of enforcement procedures known by

the Croatian enforcement legislation and preparing report containing analysis results.

1.1.3. Preparing comparative overview of enforcement monitoring systems in two Member States

with similar features of enforcement system as in the Republic of Croatia.

1.1.4. Organizing 4 regional round tables for at least 20 participants per round table (representatives

from the Ministry of Justice, Chamber of Public Notaries, FINA, Ministry of Finance and County

courts2). Topics to be covered are: results of the analysis and overview prepared through activities

1.1.1-1.1.3 and suggestions for improvements.

1.1.5. Preparing recommendations for improvement of the enforcement monitoring system3 (with

defined monitoring indicators, evaluation criteria and models of reports regarding monitoring

activities).

2 County courts are in charge of monitoring the first instance enforcement decisions by acting upon legal remedies.

3 Institutions involved in monitoring of enforcement: Ministry of Justice, Ministry of Finance, Chamber of Public Notaries and, in

certain type of cases Croatian National Bank.

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1.1.6. Drafting comprehensive and detailed practical guidelines4 for bailiffs’ processes designed for

all different types of object of enforcement; printing and disseminating at least 300 guidelines for

bailiffs’ processes to Ministry of Justice and municipal courts5.

1.2.1. Conducting training needs analysis (TNA) on enforcement monitoring system for the

employees of institutions involved in monitoring of enforcement (defined under footnote no.2 and 3)

and preparing TNA report.

1.2.2. Preparing training programme and training materials which will be distributed on trainings

conducted under activity 1.2.3.

1.2.3. Organizing and conducting 4 in-service trainings on the enforcement monitoring system for

representatives of stakeholders (at least 15 participants in total) defined under footnote no. 2 and 3

(including at least 10 employees of the Ministry of Justice). Trainings should be based on the

recommendations for improvement of the enforcement monitoring system proposed through activity

1.1.5.

1.3.1. Conducting training needs analysis (TNA) for stakeholders of the enforcement system6

taking into consideration the jurisdiction and scope of work of each stakeholder and preparing TNA

report.

1.3.2. Preparing training curricula with detailed training programme and training materials for

training of stakeholders’ staff based on the TNA report and preparing training curricula with detailed

training programme and training materials for the train-the-trainers (ToT) seminars. Developed

materials should take into account different roles of each stakeholder in the enforcement system.

1.3.3. Conducting at least 12 seminars for stakeholders (defined under footnote no.6) based on their

role in the enforcement process (3 seminars in Zagreb, 2 seminars in Split, per 1 seminar in Zadar,

Rijeka, Osijek, Varaždin, Sisak, Pula and Slavonski Brod). In total, trainings are to be conducted for at

least 80 judges, 160 judicial advisors, 100 bailiffs, 50 public notaries and 20 representatives from

other stakeholders. The main topic of these seminars is the jurisdiction of each stakeholder, occurring

implementation problems in the enforcement process and methods to improve efficiency of the

enforcement system.

1.3.4. Preparing and conducting at least 3 train-the-trainers (ToT) seminars for at least 4

participants per seminar (future trainers from stakeholders defined under footnote no.6, with special

emphasis on future training of judges, judicial advisors and bailiffs).

4 Comprehensive and detailed practical guidelines should encompass all different kinds of enforcement processes conducted by

bailiffs by providing them additional help (practical advices and examples) in each specific phase of the enforcement process. 5 Publishing of the guidelines is envisaged to be financed through private sector input specified in the point 5. Budget of the

Twinning fiche. 6 Stakeholders of the overall enforcement system: Representatives from Municipal courts, Ministry of Justice and relevant

Directorates of the Ministry of Finance, Bar Association, Chamber of Public Notaries, Croatian Chamber of Commerce, Ministry

of Labor and Pension system, Ministry of the Interior and FINA.

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COMPONENT II – Strengthening inter-institutional cooperation of stakeholders participating in the

enforcement system

2.1.1. Analysing communication procedures and mechanisms for information exchange between

relevant institutions (defined under footnote no.6) in respect to the enforcement system and preparing

analysis report.

2.1.2. Conducting comparative analysis of the roles and responsibilities (business processes and

information flow among the parties) of the enforcement system institutions in two Member States

analysed under activity 1.1.3 and preparing corresponding report highlighting the best EU practices.

2.1.3. Organizing 4 regional round tables for at least 20 participants per round table (representatives

from stakeholders defined under footnote no.6). The main topic of the round table should be

discussion on solutions for improvement of cooperation between stakeholders participating in the

enforcement system based on the outputs produced under activity 2.1.1 and 2.1.2.

2.1.4. Preparing recommendations for improvement of coordination and communication

mechanisms between stakeholders within the enforcement system, taking into account legal

framework and monitoring responsibilities proposed through result 1.1.

2.1.5. Establishing working group (consisted of participants of relevant institutions defined under

footnote no.6) and preparing general information flow protocol (business processes for exchange of

information between stakeholders within the enforcement system).

2.1.6. Preparing workshop materials and organizing at least 4 regional joint workshops for

employees of relevant institutions (at least 5 representatives per institution defined under footnote

no.6) with the purpose to present to all stakeholders business processes related to implementation of

general information flow protocol.

2.2.1. Preparing overview of at least one EU Member State solution (one of MSs analysed under

activity 1.1.3) in relation to IT interoperability and interconnectivity needed for efficient enforcement

system (with recommendations of the best practices).

2.2.2. Conducting screening of the IT systems (analysis of IT structure and business processes from

IT aspect) regarding implementation of the enforcement system in stakeholders’ institutions and

relevant public administrative bodies (especially, but not limited to Croatian Institute for Health

Insurance and Croatian Institute for Pension Insurance7) and preparing report with recommendations

on at least two models which could be applied to Croatian enforcement system.

2.2.3. Preparing cost benefit analysis8 of enhancing IT interconnectivity and interoperability in line

with the recommendations produced through activity 2.2.2.

2.2.4. Preparing functional specifications of the specific IT solution for interconnectivity and

interoperability between stakeholders within the enforcement system (the functional specifications

will be prepared for the best applicable model in line with cost benefit analysis results).

7 These institutions have access to data regarding citizens' employment, health and pension incomes, which incomes can have

special treatment/exclusion from the enforcement procedure. 8 Such cost benefit analysis should show advantages and disadvantages of implementation of certain system in the Republic of

Croatia, meaning that it should provide information on the best solution for domestic enforcement system.

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COMPONENT III - Raising public awareness of the enforcement system

3.1.1. Conducting consultations with all stakeholders (defined under footnote no.6) in order to

gather useful information and proposals about raising public awareness on enforcement system.

3.1.2. Preparing detailed Communication Plan about the enforcement system based on activity

3.1.1. The Communication Plan should cover the following subjects to be presented to the general

public: main features of enforcement system in the Republic of Croatia, institutions involved and

their jurisdiction, protection of enforcement parties through legal remedies and main novelties in the

enforcement process. This Communication Plan should contain at least two models (approaches) for

raising public awareness about the enforcement system. The employees of Directorate for civil,

commercial and administrative law and Independent PR Service of the Ministry of Justice will

participate in preparation of models for raising public awareness.

3.1.3. Designing and printing 10 000 promotional leaflets9 about the enforcement system for

general public. The leaflets will be also available in electronic form on the enforcement website and

the paper version will be disseminated to the general public by relevant stakeholders (e.g. at local

offices and round tables organised through activity 3.1.5).

3.1.4. Designing and printing 1 000 booklets10

on enforcement system for general public. The

booklets will be also available in electronic form on the enforcement website and the paper version

will be disseminated to the general public by relevant stakeholders (e.g. at local offices and round

tables organised through activity 3.1.5).

3.1.5. Organizing round tables in each Croatian county (20) and in City of Zagreb with the purpose

to raise public awareness about the enforcement system. The participants of these roundtables will be

representatives from stakeholders defined under footnote no. 6 as well as the representatives of

interested parties/non-governmental institutions (e.g. consumer organizations, debtor protection

organizations etc.). It is expected that 50 participants will be present at each organized round table.

3.2.1. Defining materials regarding the enforcement system for publishing on the web site (in

English and Croatian) and preparing the web site content (textual and photo materials) in electronic

format on the basis of the determined website purpose and target groups.

3.2.2. Designing the layout and structure of the web site (as a part of the Ministry of Justice web

site).

3.2.3. Setting up the enforcement website.11

The website should be developed in a way to enable

the MoJ to independently update its content in the future.

3.2.4. Defining working group and organizing one round table for participants from the determined

target groups with the purpose of discussing the content and features of IT application to be developed

under activity 3.2.5.

3.2.5. Developing and delivering IT application for mobile operating system12

(android/iOS based).

9 Publishing of the leaflets is envisaged to be financed through private sector input specified in the point 5. Budget of the

Twinning fiche. 10

Publishing of the booklets is envisaged to be financed through private sector input specified in the point 5. Budget of the

Twinning fiche. 11

Production of the web site may be implemented through private sector input in case the MS does not have at disposal public

sector expert(s) with required expertise for implementing this activity. 12

This IT application will enable citizens (interested parties) to obtain certain information regarding enforcement procedure, if

initiated/conducted against them. Production of the IT application may be implemented through private sector input in case the

MS does not have at disposal public sector expert(s) with required expertise for implementing this activity.

15

3.2.6. Conducting training for at least 2 employees of the Ministry of Justice responsible for

maintenance, selection and publishing of relevant materials on the website. The purpose of this

training is to educate employees on PR approach when addressing the general public in certain

delicate issues.

Two visibility events will be organized in the course of the implementation of the project; Kick-off

meeting at the start of the implementation and the Final meeting at the end of the implementation of

the project activities.

3.5 Means/ Input from the MS Partner Administration:

3.5.1 Profile and tasks of the Project Leader

Profile of the Project Leader

Requirements:

University level education or equivalent professional experience of 15 years in civil justice

sector

9 years of experience in the field of enforcement

Working level of English language

Computer literacy

High – ranking official

Proven contractual relation to public administration or mandated body, as defined under

Twinning manual 5.4.5

Experience in project management

Assets:

Experience in EU funded projects related to development of enforcement system

Experience in developing institutional capacities regarding enforcement system

Tasks of the Project Leader:

Overall management and coordination of the project, in cooperation with RTA, RTA

counterpart and BC PL

Co-ordination of MS experts’ work and availability

Participation at the Steering Committee meetings

Assuring compatibility with EU requirements

Ensuring backstopping and financial management of the project in the MS

Project reporting

Supervising implementation of the project

Ensuring sound implementation of envisaged activities

Coordination and networking with relevant institutions in Croatia and in MS

16

3.5.2 Profile and tasks of the RTA

Profile of the Resident Twining Adviser

Requirements:


sector

8 years of experience in the field of enforcement


Computer literacy



Experience in project management

Assets:

Experience in developing institutional capacities regarding enforcement system

Experience in public relations

Experience in preparation of legal framework in the area of civil justice

Experience in conducting trainings

Tasks of the Resident Twining Adviser:

Support and coordination of all activities in the BC

Responsible for monitoring project implementation and proposing corrective management

actions if required

Provide technical advice and assist Croatian administration in the context of project work plan

Responsible for organization of PIU and Steering Committee meetings

Networking with stakeholders of the project in Croatia and in MS

Organization of visibility events (kick-off and final event)

Day-to-day management of the project in the Beneficiary institution

Organization of training activities

Executing administrative issues (e.g. assisting in reporting)

Duration of the RTA secondment will be 21 months.

3.5.3 Profile and tasks of the short-term experts

For each of the proposed experts in the submitted proposal of the Member State(s) is kindly

requested to indicate the expert’s profile.

Profile of the Short-term expert 1

Requirements:


sector

17

5 years of experience in the field of enforcement in civil justice sector


Computer literacy

Proven contractual relation to public administration or mandated body as defined under


Assets:

Experience in preparation of guidelines regulating enforcement system

Experience in developing monitoring indicators and evaluation mechanism related to the

enforcement system

Experience in preparation of comparative analysis of enforcement systems in different Member

States

Experience in preparation of information flow protocol between different institutions

Tasks of the Short-term expert 1:

Analyse the legal framework and prepare corresponding report

Analyse the technical execution of different types of enforcement procedures known by the

Croatian enforcement legislation and prepare a report containing analysis results

Prepare comparative overview of enforcement monitoring systems in two MSs with similar

features of enforcement system as in Republic of Croatia

Propose recommendations for improvement of the enforcement monitoring system

Draft comprehensive detailed practical guidelines for bailiffs’ processes designed for all

different types of object of enforcement

Analyse communication procedures and mechanisms for information exchange between

relevant institutions in respect to the enforcement system and prepare corresponding reports

Conduct comparative analysis of the roles and responsibilities of the enforcement system

institutions in two MSs analysed and prepare corresponding report

Provide recommendations for improvement of coordination and communication mechanisms

between stakeholders within the enforcement system, taken into account legal framework and


Establish working group and prepare general information flow protocol

Conducting training needs analysis, prepare training programme and materials and conduct

training, seminars, workshops and round tables (in cooperation with other short-term experts)

Participate in all relevant project activities in cooperation with other short-term experts

Profile of the Short-term expert 2

Requirements:

University level of education or equivalent professional experience of 10 years in civil justice

sector

3 years of experience in conducting trainings or preparing training programmes in civil justice

sector

Experience in conducting training needs analysis (TNA)


Computer literacy

Proven contractual relation to public administration or mandated body as defined under


18

Asset:

Experience in conducting trainings related to enforcement system


In cooperation with other short-term experts participate in all relevant project activities,

especially regarding the tasks to conduct training needs analysis (TNA) and prepare TNA

report, prepare training curricula, training programme and training materials for regular

trainings as well as training of trainers, prepare and conduct seminars, workshops, round tables

and trainings of trainers of relevant stakeholders

Profile of Short-term expert 3 - PR expert:

Requirements:

University level education or equivalent professional experience of 10 years in the field of

public relations (PR)

4 years of experience in implementing PR activities

Experience in organizing public awareness campaigns


Computer literacy



Assets:

Experience in preparation of visibility materials

Experience in defining materials for publishing on web site


Conduct consultation with all stakeholders

Prepare detailed Communication Plan about the enforcement system

Design promotional leaflets and booklets about the enforcement system for general public

Organize round tables (in cooperation with other short-term experts)

Define materials for publishing on the web site and prepare the website content in electronic

format on the basis of the determined website purpose and target groups

Define structure of the website (in cooperation with other short-term experts)

Conduct training for employees of the Ministry of Justice responsible for maintenance, selection

and publishing of relevant materials on the website (in cooperation with other short-term experts)


Profile of Short-term expert 4 - IT expert:

Requirements:

University level education or equivalent professional experience of 10 years in the field of

information technology (IT)

3 years of experience in the field of IT

19

Experience in IT business process analysis

Experience in preparation of functional specifications for IT systems


Computer literacy


twinning manual 5.4.5

Assets:

Experience in developing IT interconnectivity solutions (for systems that connect multiple

institutions)

Experience in developing mobile operating systems applications

Experience in developing IT systems in the field of enforcement


Prepare overview of at least one EU Member State solution in relation to IT interoperability and

interconnectivity needed for efficient enforcement system

Conduct screening of the IT systems regarding implementation of the enforcement system and

prepare report with recommendations on at least two models which could be applied to Croatian

enforcement system

Prepare cost benefit analysis of implementation of enhancing IT interconnectivity and

interoperability in line with the recommendations

Prepare functional specifications of the specific IT solution for interconnectivity and

interoperability between stakeholders within the enforcement system

Develop and deliver IT application for mobile operating system (android/iOS based)

Conduct training for employees of the Ministry of Justice responsible for maintenance, selection

and publishing of relevant materials on the website (in cooperation with other short-term experts)


Note 1:

The pool of experts should include at least one short-term expert who in addition to the respective

profile requirements has experience in drafting legislation regulating the enforcement system.

Note 2:

Production of web site (Activity 3.2.3) and IT application (3.2.5) may be implemented through

private sector input in case the MS does not have at disposal public sector expert(s) with required

expertise for implementing these activities.

20

4. Institutional Framework

The main beneficiary of this Twining project is Directorate for Civil, Commercial and Administrative

Law - Sector for regulations of civil and commercial law - Service for procedural law, enforcement

law and corporate law, within the Ministry of Justice. Other relevant stakeholders are courts, public

notaries, FINA and employers, Croatian Pension Insurance Institute (and other payers of fixed

payments who participate, based on their jurisdiction stipulated by law, in implementation of

enforcement), Ministry of Finance, Croatian National Bank, Bar Association, Chamber of Public

Notaries, Croatian Chamber of Commerce, Ministry of Labor and Pension system and Ministry of

Interior. It is not expected that after the project finalization the institutional framework of the current

enforcement system will be modified.

Directorate for Civil, Commercial and Administrative Law is an organizational unit of the Ministry of

Justice that performs administrative and professional tasks related to preparing draft proposal of acts

and implements acts and other regulations from the Directorate’s scope.

Sector for regulations of civil and commercial law (10 employees) deals with administrative and

professional tasks related to: preparation of draft proposal of acts, laws and bylaws, implementation of

regulations in the field of civil substantive and procedural law, enforcement law, commercial and

corporate law, bankruptcy law and procedure of entry into court register. It performs analysis and

provides recommendations for alignment of these regulations with those of the EU acquis, prepares

expert opinions on draft of proposals of regulations, made by other central bodies of state

administration and other tasks within Sector’s scope of work.

Service for procedural law, enforcement law and corporate law (7 employees) deals with

administrative and professional tasks related to preparation of draft proposals of laws, bylaws and

other regulations in the field of civil procedural law, mediation, enforcement law, commercial and

corporate law, bankruptcy law, procedure of entry into court register, analyses and provides

recommendations for alignment of these regulations with those of the EU acquis, prepares expert

opinions on draft of proposals of regulations made by other central bodies of state administration,

performs administrative and other expert tasks related to mediation and other activities under its scope

of work.

Department for procedural law, enforcement law and mediation performs administrative and

professional tasks related to preparation of draft proposals of laws, bylaws and other regulations in the

field of civil procedural law, mediation, enforcement law, conducts analysis and provides

recommendations for alignment of these regulations with those of the EU acquis, implements these

regulations when under the scope of its duties, prepares expert opinions on draft of proposals of

regulations made by other central bodies of state administration and performs other duties under its

scope of work.

The new legal regulation of enforcement system in Republic of Croatia for the most part has kept

judicial enforcement model implementation. Courts are key authorities for determination and

implementation of enforcement, as well for controlling of legalities which is realized through the

institute of legal remedy. Besides their jurisdiction for determination of enforcement for

implementation of monetary and non-monetary claims based on enforcement title, courts are for the

most part competent for enforcement implementation of almost all objects of enforcement.

Exemptions from jurisdiction of enforcement implementation are prescribed by the Act.

In relation to exemptions of special matters for efficiency of the enforcement it is important to

emphasize the possibility of collecting monetary claims through the Financial Agency, on the basis

of the specific types of enforcement title (enforceable judgement and settlement of domestic courts,

21

administrative department, employer accounts).

Since the year 2005 public notaries have been introduced in the enforcement system as the

competent authority for determining enforcement on the basis of the authentic instrument (bills,

public documents and excerpts from business books). An appeal against enforcement order on the

basis of the authentic instrument delivered by public notary may be submitted to the public notary

who has issued writ of enforcement. An appeal decision will be provided by a competent court (in

terms of jurisdiction).

Since the year 2011 Financial Agency, as an implementing authority is competent for

implementation of enforcement on monetary funds of the enforcement debtor, according to his/her

personal identification number, without his/her approval. Financial Agency (FINA) is the state

owned operator of the financial infrastructure. It is a key partner of the State in the field of public

finances, the pension reform, payments and control of obligatory contributions, taxes and surtaxes

as well as in all State Treasury affairs. It also offers the service of keeping records of payments for

all public contributions and functions as a state statistics service.

Employers, Croatian Pension Insurance Institute and other payers of fixed monetary payments to

enforcement debtor participate in implementation of enforcement when the enforcement is

determined on the wage, or on other permanent income of debtor (pension, claims instead of wage,

compensation for part time working hour, compensation for the salary reduction, etc.).

The beneficiary institution will dedicate all necessary human and financial resources in order to

guarantee an effective implementation of the respective project. In particular, the beneficiary

institution will insure the availability of the following provisions:

Adequately equipped office space for the RTA and the RTA assistant for the entire duration of their

secondment (in particular a desk, a telephone line, PC with e-mail account and internet access,

possibility to use fax & copy services).

Adequate conditions for the STEs to perform their work while on mission to the BC.

Training and conference venues as well as presentation and interpretation equipment.

Costs for travel by BC participants from their capitals to a MS or between MS (study visits).

Its active involvement in preparation of the PIU and Steering Committee meetings and participation

of its members on the same.

The availability of the BC human resources (BC experts) during the implementation of the activities.

5. Budget

Improvement of the Enforcement

system in the Republic of Croatia

IPA Community

Contribution

National Co-

financing TOTAL

Twinning Contract

93%

1.488.000,00 EUR

7%

112.000,00 EUR

1.600.000,00 EUR

The total amounts of the IPA Community Contribution and National Co-financing stipulated in the

above table represent the total maximum amounts and therefore, they may be reduced at the level of

the Twinning contract, while the relevant ratio (percentages) should be maintained as fixed.

The co-financing requirement foreseen under IPA will be considered fulfilled according to the

provision of the relevant Financing Agreement.

22

Interpretation costs will be reimbursed from the budget only for the purpose of workshops and

seminars, up to 7% of the Contract amount can be used for translation and interpretation purposes.

In addition to the above-mentioned, provisions with the maximum total amount of 9.500 EUR should

be included in the budget for the following purposes:

Publishing of the guidelines for bailiffs’ processes (Activity 1.1.6): minimum 300 guidelines (approx.

70 pages per guidelines) - Total: 3.000 EUR.

Publishing of promotional leaflets about the enforcement system for general public (Activity 3.1.3):

minimum 10 000 leaflets – Total: 5.000 EUR.

Publishing of booklets on enforcement system for general public (Activity 3.1.4): minimum 1000

booklets (approx. 15 pages per booklet) – Total: 1.500 EUR.

6. Implementation Arrangements

6.1 Implementing Agency responsible for tendering, contracting and accounting

Central Finance and Contracting Agency (CFCA)

Ulica grada Vukovara 284

10000 Zagreb, Croatia

Ms Nataša Mikuš Žigman, Director of the CFCA

Phone: + 385 1 4591 245

Fax: +385 1 4591 075

E-mail: [email protected]

Twinning Administrative Office

Central Finance and Contracting Agency


10000 Zagreb, Croatia

Ms Nirvana Sokolovski

Phone: +385 1 4591 245

Fax: + 385 1 4591 075


6.2 Main counterpart in the BC

Senior Programme Officer (SPO):

Mr. Damir Kaufman, Secretary General

Ministry of Justice

Ulica grada Vukova 49

10 000 Zagreb, Croatia

Telephone: +385 1 3714-550

Fax: +385 1 3714-551


mailto:[email protected]



23

BC project Leader:

Ms. Sandra Artuković Kunšt, Deputy Minister

Ministry of Justice


HR -10000 Zagreb

Telephone: +385 1 3714 501


RTA counterpart:

Mrs. Mirjana Matov, Head of Service for Procedural Law, Enforcement Law and Corporate Law

Directorate for Civil, Commercial and Administrative Law

Ministry of Justice

Ulica grada Vukovara 49, 10 000 Zagreb, Croatia

Phone: +385 1 3714 158


6.3 Contracts

It is envisaged that the Project will be implemented through one Twinning contract, with an

indicative amount of 1.600.000,00 EUR.

7. Implementation Schedule (indicative)

7.1 Launching of the call for proposals:13

3Q 2013

7.2 Start of project activities: 2Q 2014

7.3 Project completion: 1Q 2016

7.4 Duration of the execution period (number of months): 24 months.

The execution period will end 3 months after the implementation period of the Action (work plan)

which will take 21 months.

8. Sustainability

Due to the enhanced system of enforcement it is expected that the number of enforcement cases before

courts will be decreased and will result in an increased financial discipline. Hence, the enforcement

procedure in general will be improved. Namely, organizing the ToT (seminars) intended for further

education of employees of all main institutions involved in certain phase of enforcement process (with

special emphasis on judges, judicial advisors and bailiffs) but also other stakeholders within the

system, which will lead to enhancement of expert skills and constant findings for new solutions of

practical problems when occurring. Also, defining detailed rules on enforcement procedures for every

single type of action and defining monitoring criteria for enforcement activities will enable overview

of the implementation of the enforcement legislation and could be used for further improvements or

13

Member States submitting proposals for Twinning projects implemented in Croatia, as well as the beneficiary institutions, will

be requested to finalise drafting of the contracts in maximum four months regardless of the period of the year during which the

drafting will take place.


24

corrective measures, if needed. Additionally, IT systems among relevant institutions are to be analysed

and new IT solution prepared in order to put the existing inter-institutional cooperation between

relevant stakeholders on a higher level.

Results planned to be achieved throughout this project, accompanied by raising public awareness

activities, are seen to set a solid ground for the final goal, establishing future successful, speedy and

transparent overall enforcement process.

9. Crosscutting issues

Based on the fundamental principles of promoting equality and combating discrimination,

participation in the project will be guaranteed on the basis of equal access regardless of sex, racial or

ethnic origin, religion or belief, disability, age or sexual orientation.

10. Conditionality and sequencing

Twinning contract of this project can be implemented immediately.

ANNEXES TO PROJECT FICHE

1. Logical framework matrix in standard format

2. Detailed implementation chart

3. Contracting and disbursement schedule by quarter for full duration of programme

(including disbursement period)

4. List of relevant Laws and Regulations

5. Organisation chart of the MoJ Civil, Commercial and Administrative Law Directorate

6. Statistics on enforcement cases 2011-IQ 2013 (per type of dispute on municipal and commercial

courts)

25

ANNEX 1: Logical framework matrix in standard format

IMPROVEMENT OF THE ENFORCEMENT SYSTEM IN THE REPUBLIC

OF CROATIA

Programme name and number:

IPA 2010

Ministry of Justice Contracting period expires:

3 years following the date of conclusion of

the Financing Agreement

Disbursement period expires:

3 years following the end date for contracting

Total budget: 1.600.000,00 EUR

IPA financing: 1.488.000,00 EUR (93%)

National co-financing: 112.000,00 EUR

(7%)14

Overall objective Objectively Verifiable Indicators Sources of Verification

Efficient and effective enforcement

system in the Republic of Croatia

developed.

Efficient and effective enforcement

system established

Accelerated enforcement proceedings

Ministry of Justice reports & statistics

MoJ reports on reduction of enforcement

cases backlog in the courts

Progress report

Court statistics

Successful continuation of the reform process.

Project purpose Objectively Verifiable Indicators Sources of Verification Assumptions

Enforcement system improved in order to

further contribute to the reduction of the

court backlog.

Stakeholders involved in the

enforcement system trained

Coordination and communication

mechanism between stakeholders

improved

Functional specifications for

upgrading IT system prepared

Public awareness on enforcement

system raised

Court backlog reduced in the period

of 1 year after the implementation of

project

MoJ documentation

MoJ reports

Project reports

Court statistics

List of participants on trainings

Guidelines

Information flow protocol

Functional specifications

Communication Plan

Leaflets and booklets

Web site

IT application

Human resources for the project are assured.

Successful continuation of the reform in the

judiciary.

Readiness of all institutions involved in the

enforcement system to participate in relevant

activities of this project.

Relevant laws on enforcement adopted.

14

The total amounts of the IPA Community Contribution and National Co-financing stipulated in the above table represent the total maximum amounts and therefore, they may be reduced at the level of the Twinning contract, while the

relevant ratio (percentages) should be maintained as fixed. The co-financing requirement foreseen under IPA will be considered fulfilled according to the provision of the relevant Financing Agreement.

26

Results Objectively verifiable indicators Sources of Verification Assumptions

COMPONENT I – Strengthening

institutional and administrative

capacities of stakeholder institutions in

regard to the enforcement monitoring

system

Result 1.1. Recommendations for

establishment of more efficient

enforcement monitoring system and

detailed practical guidelines for bailiffs

processes (based on the analysis of the

technical and legal execution in

enforcement cases) prepared.

Result 1.2. Capacity of stakeholders

involved in the enforcement monitoring

system improved with the purpose to

establish more efficient monitoring of the

overall enforcement system.

Legal framework regulating the

enforcement system in the Republic of

Croatia analysed and corresponding

report prepared

Technical execution of different types

of enforcement procedures known by

the Croatian enforcement legislation

analysed and corresponding report

prepared

Comparative overview of enforcement

monitoring systems in two MSs with

similar features of enforcement system

as in the Republic of Croatia prepared

4 round tables for at least 20

participants from relevant institutions

per round table organized

Recommendations for improvement of

the enforcement monitoring system

prepared

Detailed practical guidelines for

bailiffs’ processes designed and at

least 300 guidelines for bailiffs’

processes printed and disseminated

Training needs analysis (TNA) for the

employees of institutions involved in

monitoring of enforcement conducted

and TNA report prepared

Training programme and training

materials prepared and distributed on

trainings

Twinning report on project implementation

Twinning project documentation

Training programmes and training materials

List of participants on trainings

Publications and statistics of MoJ

Detailed practical guidelines

General information flow protocol

Functional specifications

Leaflets

Booklets

Web site

IT application

Human resources for the project are assured.

Commitment of the MoJ and the Directorate

for Civil, Commercial and Administrative

Law and other relevant institutions (involved

in the enforcement system) to engage in the

project.

27

Result 1.3. Capacity of stakeholders

within the enforcement system taking into

account their jurisdiction and occurring

implementation problems in the

enforcement process strengthened.

COMPONENT II – Strengthening

inter-institutional cooperation of

stakeholders participating in the

enforcement system

Result 2.1. Recommendations for

improvement of coordination and

communication mechanisms and general

information flow protocol between

stakeholders within the enforcement

system prepared and presented to all

stakeholders.

4 in-service trainings for

representatives of stakeholders (at

least 15 participants in total) involved

in the enforcement monitoring system

(including at least 10 employees of the

Ministry of Justice) conducted

Training needs analysis (TNA) for

stakeholders of the enforcement

system conducted and TNA report

prepared

Training curricula, training

programme and training materials for

training of stakeholders’ staff prepared

and training curricula, training

programme and training materials for

the train-the-trainers (ToT) seminars

prepared

At least 12 seminars for stakeholders

based on their role in the enforcement

process conducted and in total at least

80 judges, 160 judicial advisors, 100

bailiffs, 50 public notaries and 20

representatives from other

stakeholders trained

At least 3 train-the-trainers (ToT)

seminars for at least 4 participants per

seminar conducted

Communication procedures and

mechanisms for information exchange

between relevant institutions analysed

and analysis report prepared

Comparative analysis of the roles and

responsibilities of the enforcement

system institutions in two Member

28

Result 2.2. Functional specifications for

upgrading the existing IT systems with

the purpose to achieve better

interconnectivity and interoperability

between stakeholders within the

enforcement system prepared.

States conducted and corresponding

report prepared

4 round tables for at least 20

participants from relevant institutions

per round table organized with the

purpose to discuss solutions for

improvement of cooperation between


enforcement system

Recommendations for improvement of

coordination and communication

mechanisms between stakeholders

within the enforcement system

prepared taking into account legal

framework and monitoring

responsibilities

Working group established and

general information flow protocol

prepared

Workshop materials prepared and at

least 4 joint workshops for at least 5

representatives per institution

organized with the purpose to present

business processes related to

implementation of general information

flow protocol

Overview of at least one EU Member

State solution in relation to IT

interoperability and interconnectivity

needed for efficient enforcement

system prepared

Screening of the IT systems conducted

and report with recommendations

prepared

Cost benefit analysis of enhancing IT


prepared

Functional specifications of the

specific IT solution for

29

COMPONENT III – Raising public

awareness of the enforcement system

Result 3.1. Public awareness on

enforcement system raised through

conducting publicity and information

campaign for general public.

Result 3.2. Public relations in regard to

enforcement system enhanced through

establishment of the Croatian

enforcement web site and other modern

approaches to general public



enforcement system prepared

Consultations with stakeholders in

relation to raising public awareness on

enforcement system conducted

Communication Plan on the

enforcement system (containing at

least two models for raising public

awareness about the enforcement

system) prepared

10 000 promotional leaflets on the

enforcement system for general public

designed and printed

1 000 booklets on the enforcement

system for general public designed

and printed

Public awareness raising implemented

through round tables in each county

(20) throughout the Republic of

Croatia and in City of Zagreb

Materials on the enforcement system

for publishing on the web site (in

English and Croatian) defined and

web site content prepared

Layout and structure of the web site

designed (as a part of the Ministry of

Justice web site)

Enforcement website set up

Working group defined and one round

table with the purpose of discussing

the content and features of IT

30

application to be developed organised

IT application for mobile operating

system (android/iOS based) developed

and delivered

Training for at least 2 employees of

the Ministry of Justice responsible for

maintenance, selection and publishing

of materials on the website conducted

Activities Means Specification of costs Assumptions

COMPONENT I – Strengthening

institutional and administrative

capacities of stakeholder institutions in

regard to the enforcement monitoring

system

1.1.1. Analysing the legal framework

(laws and bylaws regulating the

enforcement system in the

Republic of Croatia) and

preparing corresponding report.

1.1.2. Analysing the technical execution

(the overall process of

involuntary collection of claims

and problems which occur during

the procedure) of different types

of enforcement procedures

known by the Croatian

enforcement legislation and

preparing report containing

analysis results.

1.1.3. Preparing comparative overview

of enforcement monitoring

systems in two Member States

with similar features of

enforcement system as in

Republic of Croatia.

1.1.4. Organizing 4 regional round

tables for at least 20 participants

per round table (representatives

from the Ministry of Justice,

Chamber of public notaries,

FINA, Ministry of Finance and

Analysis

Consultations

Comparative overview

Round tables

1.600.000,00 EUR

Human resources for the project are assured

Commitment of the MoJ and the Directorate

for Civil, Commercial and Administrative

Law to engage in the project

31

County courts). Topics to be

covered are: results of the

analysis and overview prepared

through activities 1.1.1-1.1.3 and

suggestions for improvements.

1.1.5. Preparing recommendations for

improvement of the enforcement

monitoring system (with defined

monitoring indicators, evaluation

criteria and models of reports

regarding monitoring activities).

1.1.6. Drafting comprehensive and

detailed practical guidelines for

bailiffs’ processes designed for

all different types of object of

enforcement; printing and

disseminating at least 300

guidelines for bailiffs’ processes

to Ministry of Justice and

municipal courts.

1.2.1. Conducting training needs

analysis (TNA) on enforcement

monitoring system for the

employees of institutions

involved in monitoring of

enforcement (defined under

footnote no.2 and 3) and

preparing TNA report.

1.2.2. Preparing training programme

and training materials which will

be distributed on trainings

conducted under activity 1.2.3.

1.2.3. Organizing and conducting 4 in-

service trainings on the

enforcement monitoring system

for representatives of

stakeholders (at least 15

participants in total) defined

under footnote no. 2 and 3

(including at least 10 employees

of the Ministry of Justice).

Trainings should be based on the

Preparation of documentation

Analysis

Consultations

Trainings

32

recommendations for

improvement of the enforcement

monitoring system proposed

through activity 1.1.5.

1.3.1. Conducting training needs

analysis (TNA) for stakeholders

of the enforcement system taking

into consideration the jurisdiction

and scope of work of each

stakeholder and preparing TNA

report.

1.3.2. Preparing training curricula with

detailed training programme and

training materials for training of

stakeholders’ staff based on the

TNA report and preparing

training curricula with detailed

training programme and training

materials for the train-the-trainers

(ToT) seminars. Developed

materials should take into account

different roles of each stakeholder

in the enforcement system.

1.3.3. Conducting at least 12 seminars

for stakeholders (defined under

footnote no.6) based on their role

in the enforcement process (3

seminars in Zagreb, 2 seminars in

Split, per 1 seminar in Zadar,

Rijeka, Osijek, Varaždin, Sisak,

Pula and Slavonski Brod). In

total, trainings are to be

conducted for at least 80 judges,

160 judicial advisors, 100 bailiffs,

50 public notaries and 20

representatives from other

stakeholders. The main topic of

these seminars is the jurisdiction

of each stakeholder, occurring

implementation problems in the

enforcement process and ways to

improve efficiency of the

enforcement system.

Analysis


Consultations

Seminars

33

1.3.4. Preparing and conducting at least

3 train-the-trainers (ToT)

seminars for at least 4

participants per seminar (future

trainers from stakeholders

defined under footnote no.6, with

special emphasis on future

training of judges, judicial

advisors and bailiffs).

COMPONENT II – Strengthening

inter-institutional cooperation of


enforcement system

2.1.1. Analysing communication

procedures and mechanisms for

information exchange between

relevant institutions (defined

under footnote no.6) in respect to

the enforcement system and

preparing analysis report.

2.1.2. Conducting comparative analysis

of the roles and responsibilities

(business processes and

information flow among the

parties) of the enforcement

system institutions in two

Member States analysed under

activity 1.1.3 and preparing

corresponding report highlighting

the best EU practices.

2.1.3. Organizing 4 regional round tables

for at least 20 participants per

round table (representatives from

stakeholders defined under

footnote no.6). The main topic of

the round table should be

discussion on solutions for

improvement of cooperation

between stakeholders

participating in the enforcement

system based on the outputs

Analysis

Consultations


Round tables

34

produced under activity 2.1.1 and

2.1.2.

2.1.4. Preparing recommendations for

improvement of coordination and

communication mechanisms


enforcement system, taking into

account legal framework and


proposed through result 1.1.

2.1.5. Establishing working group

(consisted of participants of

relevant institutions defined

under footnote no.6) and

preparing general information

flow protocol (business processes

for exchange of information


enforcement system).

2.1.6. Preparing workshop materials

and organizing at least 4 regional

joint workshops for employees of

relevant institutions (at least 5

representatives per institution

defined under footnote no.6) with

the purpose to present to all

stakeholders business processes

related to implementation of

general information flow

protocol.

2.2.1. Preparing overview of at least

one EU Member State solution

(one of MSs analysed under

activity 1.1.3) in relation to IT

interoperability and

interconnectivity needed for

efficient enforcement system

(with recommendations of the

best practices).

2.2.2. Conducting screening of the IT

systems (analysis of IT structure

and business processes from IT

Consultations

Overview


Analysis

35

aspect) regarding implementation

of the enforcement system in

stakeholders’ institutions and

relevant public administrative

bodies (especially, but not limited

to Croatian Institute for Health

Insurance and Croatian Institute

for Pension Insurance) and

preparing report with

recommendations on at least two

models which could be applied to

Croatian enforcement system.

2.2.3. Preparing cost benefit analysis of

enhancing IT interconnectivity

and interoperability in line with

the recommendations produced

through activity 2.2.2.

2.2.4. Preparing functional

specifications of the specific IT

solution for interconnectivity and

interoperability between

stakeholders within the

enforcement system (the

functional specifications will be

prepared for the best applicable

model in line with cost benefit

analysis results).

COMPONENT III – Raising public

awareness of the enforcement system

3.1.1. Conducting consultations with all

stakeholders (defined under

footnote no.6) in order to gather

useful information and proposals

about raising public awareness on

enforcement system.

3.1.2. Preparing detailed

Communication Plan about the

enforcement system based on

activity 3.1.1. The

Consultations


Round tables

36

Communication Plan should

cover the following subjects to be

presented to the general public:

main features of enforcement

system in Republic of Croatia,

institutions involved and their

jurisdiction, protection of

enforcement parties through legal

remedies and main novelties in

the enforcement process. This

Communication Plan should

contain at least two models

(approaches) for raising public

awareness about the enforcement

system. The employees of

Directorate for civil, commercial

and administrative law and

Independent PR Service of the

Ministry of Justice will

participate in preparation of

models for raising public

awareness.

3.1.3. Designing and printing 10 000

promotional leaflets about the

enforcement system for general

public. The leaflets will be also

available in electronic form on

the enforcement website and the

paper version will be

disseminated to the general public

by relevant stakeholders (e.g. at

local offices and round tables

organised through activity 3.1.5).

3.1.4. Designing and printing 1000

booklets on enforcement system

for general public. The booklets

will be also available in

electronic form on the

enforcement website and the

paper version will be

disseminated to the general public

by relevant stakeholders (e.g. at

local offices and round tables

37

organised through activity 3.1.5).

3.1.5. Organizing round tables in each

Croatian county (20) and in City

of Zagreb with the purpose to

raise public awareness about the

enforcement system. The

participants of these roundtables

will be representatives from

stakeholders defined under

footnote no. 6 as well as the

representatives of interested

parties/non-governmental

institutions (e.g. consumer

organizations, debtor protection

organizations etc.). It is expected

that 50 participants will be

present at each organized round

table.

3.2.1. Defining materials regarding the

enforcement system for

publishing on the web site (in

English and Croatian) and

preparing the web site content

(textual and photo materials) in

electronic format on the basis of

the determined website purpose

and target groups.

3.2.2. Designing the layout and

structure of the web site (as a part

of the Ministry of Justice web

site).

3.2.3. Setting up the enforcement

website. The website should be

developed in a way to enable the

MoJ to independently update its

content in the future.

3.2.4. Defining working group and

organizing one round table for

participants from the determined

target groups with the purpose of

discussing the content and

Consultations


Round table

Training

38

features of IT application to be

developed under activity 3.2.5.

3.2.5. Developing and delivering IT

application for mobile operating

system (android/iOS based).

3.2.6. Conducting training for at least 2

employees of the Ministry of

Justice responsible for

maintenance, selection and

publishing of relevant materials

on the website. The purpose of

this training is to educate

employees on PR approach when

addressing the general public in

certain delicate issues.

Preconditions:

Successful continuation of the reform process.

39

ANNEX 2: Detailed implementation chart

Improvement of

the Enforcement

system in the

Republic of

Croatia

2013

2014

2015

2016

Month J A S O N D J

F M A M J J A S O N D J F M A M J J A S O N D J F M

Twinning T T T T C C C C C A/I I I I I I I I I I I I I I I I I I I I I R R R

T – Call for proposals and evaluation

C – Contracting

A/I – Arrival of the RTA/ Start of the implementation of activities

I – Implementation of activities

R – Report

40

ANNEX 3: Contracting and disbursement schedule by quarter for full duration of programme (including disbursement period)

Improvement of the Enforcement system in

the Republic of Croatia

Cumulative contracting schedule by quarters in

EUR (provisional)

2014

I II III IV

Twinning 1.600.000,00

TOTAL (EUR): 1.600.000,00

Improvement of the

Enforcement system in

the Republic of Croatia

2014 2015 2016

I II III IV I II III IV I II

Twinning 731.428,57 708.571,43

160.000,00

TOTAL (EUR): 731.428,57 1.440.000,00

1.600.000,00

41

ANNEX 4: List of relevant Laws and Regulations

1. Enforcement Act (“Official Gazette”, 112/2012)

2. Act on enforcement over monetary assets (“Official Gazette”, 91/2010, 112/2012)

3. Regulation on the form and content of a debenture note (“Official Gazette”, 115/2012)

4. Regulation on the form and content of a blank debenture note (“Official Gazette, 115/2012)

5. Regulation on register of debenture notes and blank debenture notes (“Official Gazette, 115/2012)

6. Regulation on establishing the amount paid for liability insurance of public commission agents

(“Official Gazette”, 115/2012)

7. Regulation on the content and method of keeping a register of real estate and movable assets being

sold as part of the enforcement procedure (“Official Gazette”, 115/2012)

8. Regulation on the form and content of a request for direct payment (“Official Gazette”, 115/2012)

9. Regulation on the tariff of the compensation of costs and remuneration for performing the activity

of public commission agent (“Official Gazette”, 115/2012),

10. Regulation on the tariff of fees and compensation of costs of public notaries in the enforcement

procedure (“Official Gazette”, 114/2012)

11. Regulation on ways and procedures of conducting enforcement on monetary funds (“Official

Gazette”, 6/2013),

12. Regulation on conducting enforcement on bank monetary funds (“Official Gazette”, 6/2013)

13. Regulation on types and amounts of reimbursement for conducting activities stipulated by Act on

enforcement over monetary assets (“Official Gazette”, 105/2010, 124/2011, 52/2012 and 6/2013)

14. Regulation on technical conditions and adjustment procedure to the Act on enforcement over

monetary assets (“Official Gazette”, 96/2010, 130/2010, 99/2011 and 115/2012)

42

ANNEX 5: Organisation Chart of the MoJ Civil, Commercial and Adminsitrative Law Directorate

43

ANNEX 6: Statistics on enforcement cases 2011 - IQ 2013 (per type of dispute on municipal and

commercial courts)

Type of Court Type of a dispute

Number of

received cases

Number of

resolved cases

Number of cession by delegation

Number of pending

cases

Municipal court year 2011.

Enforcement on real estates 29.699 29.225 4 24.425

Enforcement on monetary claim 92.142 75.215 11 43.322

Enforcement on movable assets 23.479 34.959 14 33.613

Enforcement on securities 299 303 0 236

Enforcement on vessel/aircraft 58 50 0 62

Enforcement on motor vehicle 2.536 2.050 2 3.146

Other - Enforcement for payment of monetary claims 7.798 5.670 0 4.099

Enforcement complaint by a public notary (Ovrv) 4.692 13.217 2 3.498

Enforcement - family relationship/handing/taking away a child 172 146 0 183

Enforcement by divison of things 46 34 0 100

Enforcement to obtain a claim on performance, tolerance or non-performance

499 489 0 982

Enforcement for vacating and handover of immovable assets 1.068 1.048 0 1.625

Enforcement to return of an employee to work apropos service 119 98 0 175

Judicial penalties 41 43 0 32

Enforcement for handover and delivery of movable assets 36 35 0 66

Security by preliminary measures 183 177 0 80

Security forced by establishing of a lien on real estate 7.283 7.405 1 1.033

Security by interim measures 1.174 1.215 0 640

Security by a lien based on agreement of the parties 4 4 0 2

Security by transfer of ownership of property and transfer of rights

10 13 0 5

Security by preliminary enforcement 14 11 0 5

Other - Security 166 174 0 54

TOTAL 171.518 171.581 34 117.406

Municipal court year 2012.


Enforcement on monetary claim 95.917 101.444 12.174 29.012




Enforcement on motor vehicle 2.554 2.240 66 3.526






428 466 1 955

Enforcement for vacating and handover of immovable assets 975 988 5 1.656




44



Security by interim measures 962 1.057 15 565



9 6 0 10



TOTAL 171.336 180.975 13.601 99.353

Municipal court 1. quarter of

2013.


Enforcement on monetary claim 19.086 23.607 1.018 24.773




Enforcement on motor vehicle 729 766 1 3.528






115 168 0 912

Enforcement for vacating and handover of immovable assets 291 357 0 1.607






Security by interim measures 237 301 3 501



3 3 0 10



TOTAL 35.167 42.769 1.065 92.729

Commercial court year 2011.

Enforcement on real estate 1.145 1.151 0 365

Enforcement on movable assets(except motor vehicles, vessels and aircrafts)

4.673 4.798 0 4.418

Enforcement on motor vehicles 1.389 1.278 0 877

Enforcement on vessel 105 93 0 30

Enforcement on aircraft 4 2 0 2

Enforcement on monetary claims 9.524 10.233 1 1.764

Enforcement on securities, business shares and stocks 125 101 0 55

Enforcement for vacating and handover of immovable assets 15 13 0 8

Enforcement for realization of claim on action, tolerance or refrainment from an action

2 2 0 1

Enforcement to return of an employee to work or service 4 4 0 0


Procedures by objects received from public notary 656 661 0 41

45

Enforcement for execution of punishment through Tax Administration

3 3 0 0

Enforcement by temporary attachment 183 279 0 50

Enforcement by providing judicial penalties 7 5 0 4

Preliminary enforcement 13 9 0 8

Enforcement - other 923 1.900 0 1.085

TOTAL 18.788 20.542 1 8.719

Commercial court year 2012.

Enforcement on real estate 1.062 1.276 0 216


4.019 4.897 0 3.710

Enforcement on motor vehicles 1.137 1.237 0 822



Enforcement on monetary claims 7.011 8.051 0 1.035




2 3 0 0

Enforcement to return of an employee to work or service




0 0 0




Enforcement - other 412 989 0 534

TOTAL 14.157 17.058 0 6.439

Commercial court I. quarter

2013.

Enforcement on real estate 77 159 0 146


185 779 0 3.155

Enforcement on motor vehicles 47 176 0 706



Enforcement on monetary claims 593 1.053 0 668




Enforcement to return of an employee to work or service







Enforcement - other 71 179 0 437

TOTAL 1.053 2.453 0 5.216

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