The interview was published in the print edition of Slobodna Dalmacija on February 22, 2025, and is available HERE. Below is the full translation of the interview.

The first company registered in Croatia’s Lobbyist Register was Vlahović Group. Its founder and director, Natko Vlahović, took over the company in 2012 from his father, who had established it back in 1990.

Vlahović began his professional career in 1999 at the Croatian Embassy in Washington, working on promoting Croatia’s economy. From 2005 to 2011, he headed the Office of the Croatian Chamber of Trades and Crafts (HOK) in Brussels. In this role, he served as the Chamber’s chief representative and lobbyist in EU institutions, becoming the first lobbyist of any Croatian business association registered in the European Transparency Register in Brussels.

He also had an opportunity to learn from, as he likes to say, “one of America’s most famous lobbyists”, Thomas Hale Boggs, founder of the major legal and lobbying firm Patton Boggs (now Squire Patton Boggs).” His long-standing connections in the U.S. led to an invitation to attend Donald Trump’s presidential inauguration in Washington.

For years, Vlahović has been the loudest and most persistent advocate for bringing order to the practice of lobbying in Croatia. He was instrumental in establishing the Croatian Lobbyists Association in 2008. If you missed it, Croatia finally passed the Lobbying Act on March 14 last year, which came into effect on October 1. It has since become a key tool in implementing anti-corruption policies.

Has the Lobbying Act brought order and created an effective regulatory framework for the lobbying market in Croatia?

It’s still too early for a definitive assessment. The law has been in effect for just over four and a half months. As of January 30, the Lobbyist Register has 57 registrants.This number does not reflect reality. There is still a lack of awareness about the obligation to register before engaging in lobbying in Croatia. The register, maintained by the Commission for the Prevention of Conflict of Interest, is publicly accessible, but many entities that engage in lobbying remain unregistered. That is why continuous education is essential. Entering the Lobbyist Register is both a legal obligation and a step towards transparency—or as I like to say, “stepping into the sunny side of the street.”

More important than the number of registrants is ensuring that Croatia’s top economic players are included. Take the top five sectors in the U.S. by lobbying expenditure, which include healthcare, finance, telecommunications and energy. Not a single company from these sectors in Croatia has yet registered as a lobbyist. Let’s also add to that the agriculture and forestry sector, which is very relevant these days, where heated debates often arise over the rules for allocating subsidies and quotas.

Some sectoral associations have joined, which is a positive step. However, companies that are members of these associations should follow suit. It’s difficult to imagine that major businesses in these industries are not independently lobbying. It’s also crucial for publicly owned enterprises, whether state or locally owned, to recognize that they also engage in lobbying and must comply with the Lobbying Act. For example, if a local water utility seeks to influence Hrvatske Vode (Croatia’s water authority) or if a municipal waste management company negotiates with the Environmental Protection Fund over procurement plans, that is lobbying. Another issue is that public authorities are in a dual role—they act as both lobbyists and lobbying targets. This means they must carefully study and align their practices with the law.

The Lobbyist Register as a Step Toward “the Sunny Side”

Given the perception of widespread corruption in Croatia, can we see the Lobbying Act as a tool in the fight against corruption?

Absolutely. I want to emphasize that corruption and lobbying are completely incompatible. Lobbying is a legitimate activity, whereas corruption is punishable by imprisonment. The Criminal Code plays the most crucial role in combating corruption by enforcing sanctions and deterrence. However, from a structural perspective, I believe that education aimed at changing mindsets and business culture is even more important in fighting corruption. In other words, prevention is key. This is where the Lobbying Act comes into play. It has been a year since the law was passed, but it came into force with a delay.

In the meantime, I have had numerous discussions with representatives of the business sector, and the prevailing perception is still that entering the Register—or as I call it, “stepping into the sunny side of the street”—poses a certain reputational risk for them.The thinking is along the lines of: “Well, we are not really lobbyists, and we don’t want to be perceived that way.” However, the real risk is quite the opposite—lobbying without registration, following established patterns of behavior where what should be official and business communication is intentionally shifted into the private sphere, and so on.

The rule is that professional lobbying leaves a trace, that it takes place within institutions, and that lobbyists do not hide. The Lobbying Act should lead to a change in these behavioral patterns, promoting greater transparency. I think it is a missed opportunity that the law does not put more emphasis on the obligations of those being lobbied. For instance, Slovenia has a regulation requiring public officials to report their meetings with lobbyists. This would enable double verification, giving the public even greater insight into lobbying activities. Such measures are crucial for strengthening trust in decision-makers and demystifying the profession.

Your profession has been unjustly stigmatized by a part of the public, almost as the lobbyists are engaged in behind-the-scenes activities. Is that now a thing of the past? Have we “completed” that part of the transition too?

One of the reasons is that we waited far too long for the regulation of lobbying. This has been a topic of discussion in Croatia for almost twenty years, and we have finally reached that point. However, as you called it, this transition does not end here—we have now entered a new phase.

I am an optimist, and I reject the idea that everyone has a vested interest in keeping things the way they were, just so we can check a box and claim that we have passed a law. The law must come to life in practice. The public has the right to information about lobbying, just as we now have access to information about lobbying in the U.S., EU institutions, and elsewhere. Our Lobbying Act sets clear “rules of the game” for the first time. No one can be penalized for lobbying itself—only prohibited lobbying activities are subject to sanctions.

For most professional lobbyists, these regulations are not new, as they are already familiar with the methodologies and international standards. However, for the broader ecosystem in which lobbying operates, these changes are new. It will take time to establish a new standard of conduct in this ecosystem.

What are the advantages and disadvantages of working in this field in “small” Croatia?

Croatia may be small, but we are part of the EU and actively participate in decision-making and shaping the regulatory framework. This makes us a more important lobbying market than other countries of similar size that are outside the EU.

One of the advantages of this profession is the ability to see the bigger picture and provide timely and well-contextualized information to decision-makers. We closely monitor and analyze global geopolitical and business processes, assess political and regulatory opportunities and risks for the economy, and seek win-win solutions. This job is exciting and dynamic, requiring both in-depth analysis and creativity.

An essential aspect is building trust, which is gained and strengthened every day. One of the biggest risks or downsides of this profession is that there is virtually no tolerance for mistakes, as the job is based on reputation. Since lobbyists must be proactive and are often the ones who initiate communication, a great deal of energy needs to be invested.

The Importance of EU Lobbying

There are over 60 Croatian entities in the European Lobbyist Register, but many of them have not registered in Croatia. Why is that so?

There is no automatic connection between the two registers, but the comparison makes sense. It is possible that an entity is listed in the EU register simply because it focused on a specific legislative proposal at the EU level or attended a meeting in an EU institution. However, I believe that most of them recognize the importance of continuous engagement in EU legislation.

If that is the case, given that EU regulations are transposed into Croatian law, it is a legitimate interest to influence how national regulations will be shaped—especially when it comes to EU directives, which leave room for national legislators to determine how to meet shared objectives. 

By definition, this is lobbying, and it requires registration in the national register. I hope that the number of around sixty entities in the EU register will grow significantly. Our. businesses, industry associations, and NGOs should be much more numerous and vocal in EU lobbying, as most regulations are shaped in Brussels.

So far, no serious sanctions

What if someone from the pharmaceutical industry meets with the Minister of Health? What if a representative of the hospitality or hotel industry meets with the Minister of Tourism? Are these situations where we can talk about lobbying and the application of the law’s provisions? In some cases, the line can be quite thin, can’t it?

The person initiating contact must state the purpose of the meeting, making it clear whether it constitutes lobbying. Interest representatives must also disclose their client or the beneficiary of the lobbying effort. The lobbied person is obligated to check whether the individual requesting the meeting is registered in the Lobbyist Register. If they are not, further communication should be refused.

Lobbying includes all forms of communication, not just meetings. While meetings are the most traditional format, they are likely the most effective way to structure and convey information related to public decision-making, which is the legal definition of lobbying.

I believe that real lobbying interests are often disguised as courtesy meetings to facilitate easier access to institutions. This is now punishable, as the law demands maximum transparency from the start. The responsibility to reject covert lobbying attempts has been placed on the lobbied individuals. Unfortunately, there are no sanctions if a lobbied person fails to check whether a lobbyist is registered, does not report an unregistered lobbying attempt to the Commission, or proceeds with a meeting with an unregistered lobbyist.

To what extent does the Government use the services of lobbyists? Is there room to expand cooperation for mutual benefit?

Governments most commonly use the services of professional lobbyists or lobbying agencies in the United States, primarily due to the specific nature of the political system, as well as the tradition and strength of the lobbying industry.

Recently, it was reported that the European Union hired a lobbying agency in the U.S. to assist with trade and investment communication strategy, following the arrival of the new administration and Trump’s announcements, which some view as a potential trade war. This move is considered a precedent. It is a direct consequence of lessons learned from Trump’s first term, particularly in terms of engaging with the U.S. administration.

Currently, one neighboring country is paying for the services of three lobbying agencies in Washington. Croatia also used several lobbying firms in the 1990s. Ultimately, it is up to the Government to assess which of Croatia’s strategic interests could be advanced bilaterally with the help of lobbyists.

In any case, even when governments do not directly engage lobbyists, but private sector actors do, lobbyists remain a crucial source of information. They help officials see the bigger picture and make well-informed decisions.

Geopolitics and Business

Are there any business challenges you still want to pursue?

Recently, I launched the New Frontier Foundation with my colleagues. It is a think tank that deals with the impact of geopolitics on business, making us unique in Croatia in this field. Our work has been recognized by a respectable number of companies that support us in bringing very important topics to the agenda, such as cybersecurity challenges, energy security in this part of Europe, artificial intelligence, the investment potential of the Three Seas Initiative, and more. We have established strong cooperation with similar organizations in the Central and Eastern European region and the United States and continue to move forward. It is extremely interesting and dynamic, and at the moment, it completely fulfills me. I believe that in this way, we can make a significant contribution to bringing globally relevant and current topics closer to the Croatian public.

Testimonials

Before the entry into force of the Lobbying Act, a well-known Croatian lobbyist says: Our job is not corruption

In a few days, the Lobbying Act will enter into force, regulating this activity, which is often negatively perceived by the public, and on this occasion, the frist Croatian lobbying company, Vlahovic Group, commented on the following newspapers.

At the beginning of October, the Lobbying Act comes into force in Croatia, which for the first time in history will regulate relations between lobbyists and lobbied persons and regulate the market, which is worth about 145 million euros annually.

One of the biggest novelties of the Act is the introduction of a register of lobbyists, which, unlike the Brussels register, which is voluntary, will be mandatory. In addition, the register of lobbyists will be publicly available and will contain a list of professional lobbyists, as well as companies and associations that lobby for their interests, and the area of interest that the lobbyist is interested in, Vlahovic Group, the first lobbying company in Croatia, announced on the occasion of the entry into force of the new act.

We absolutely welcome the Act, and it’s no secret that I’ve been talking about the importance of lobbying regulation and the professionalization of this important profession for years.

Vlahović: We welcome the new law

Natko Vlahović, founder of Vlahovic Group, commented on what the new act brings and what consequences it will have.

“We absolutely welcome the Act, and it’s no secret that I’ve been talking about the importance of lobbying regulation and the professionalization of this important profession for years. Lobbying is not corruption, but a legal and legitimate activity that promotes and defends interests. We did this in order to demystify lobbying, make it completely transparent, and at the same time put an end to the gray zone, hunting in the dark, and practices where you lobby for someone but don’t say for whom,” says Vlahović.

In terms of the new law, lobbying, says Vlahović, is considered any written or oral communication to the lobbied person as part of a structured and organized promotion, advocacy or representation of certain interests and the transmission of information related to public decision-making in order to achieve the interests of the lobbying beneficial. According to the new law, a lobbyist is any domestic or foreign legal or physical person who is registered in the lobbyist register, which also represents the basic regulatory meaning of the new law.

“The registry of lobbyists is the most important segment of the new law, and the entire Croatian public will know at all times who the lobbyist is and with what mission it represents. According to a rough estimate, there are currently more than 200 lobbyists from various sectors operating in Croatia, but we will find out the exact number of those who want to declare themselves as lobbyists only after the Act enters into force. The conditions for enrollment are quite simple – the age of majority and confirmation that a lobbyist has not been convicted,” claims Vlahović.

“There are serious sanctions for violators”

The register of lobbyists will be under the jurisdiction of the Commission for the Resolution of Conflicts of Interest, which will impose penalties and report to lobbyists who violate the law and all those lobbyists who are not registered in the register and are lobbying.

“Sanctions exist and are very serious. A ban on lobbying can mean a key in the lock for someone, because you can no longer carry out your activity. Initiating a procedure before the Commission for a listed company with high regulation of internal processes can mean dismissal for the director who was put in such a situation, high reputational damage and a consequent decrease in the value of the company. A legal entity can be fined up to 20,000 euros if it lobbies and is not registered in the register. With the law on lobbying, Croatia joins the ranks of countries that have mandatory registration of lobbyists,” says Vlahović.

With the law on lobbying, Croatia joins the ranks of countries that have mandatory registration of lobbyists.

Before accepting contact with the lobbyist, the person being lobbied will be obliged to check whether the lobbyist is in the register. If it is determined that the lobbyist is not registered, has a ban on lobbying or has been deleted from the register and is trying to lobby or is lobbying, the person being lobbied should immediately notify the Commission. Otherwise, an administrative dispute may be initiated at the High Administrative Court based on the decisions of the Commission.

“All lobbyists, legal and natural persons, will have the obligation to submit a report on lobbying activities in the past year to the Commission once a year, because the law prescribes the content that will have to be included in the report, such as information about who the lobbyists met with, what was the agenda of the meeting and the goal of lobbying, who were the lobbied persons, what materials were provided to the lobbied person. However, it is stipulated that such information will not be publicly available. But if journalists in their investigative work ask the Commission for the Prevention of Conflicts of Interest to provide them with information on whether there have been lobbying activities in relation to a certain company or lobbied person, the Commission can decide to provide the requested information to the newsroom if it concludes that it is a so-called prevailing public interest”, says Vlahović.

The concept of lobbied person is introduced

In addition, the Act introduces the concept of a lobbied person, and it will include managing civil servants and officials of the executive and legislative authorities, including those at the local and regional levels, advisers and special advisers in ministries and heads of regional and local self-government, and certain persons in bodies with public authorities. Vlahović estimates that the Act will potentially cover up to 20,000 officials, i.e. three to four times more than are currently covered by the Act on Prevention of Conflict of Interest.

Vlahović explained how lobbying works in practice. He says he is aware that lobbying is often perceived negatively by the public – as influence peddling or bribery. However, he also claims that these are “scenarios from movies”.

“Lobbying is part of democratic trends in the West and an inseparable part of legislative and business procedures. When the law mentions communication with public authorities, we are not talking about communication in the corridor or in a cafe, but about the possibility to present the proposals and arguments of one side to the decision makers in a structured way. This is about exhaustive analyses, scientific papers, studies, expert opinions, legal interpretations that can benefit our goal, and it must not be against the public interest and the legal order. Communication with public authorities and its preparation is only a small part of our work, as we spend most of our work preparing materials and strategy, analyzing problems, communicating with a client…” Vlahović concluded.

Testimonials