Croatia has made great strides in strengthening its regulatory policy framework. Improving the entire regulatory policy cycle will ensure that regulations are built on a foundation of solid evidence and public participation and are designed to improve the security, health and well-being of citizens at a reasonable cost. This report assesses the country's regulatory management capacity by taking stock of regulatory policies, institutions and tools, including administrative simplification policies, ex ante and ex post evaluation of regulations, stakeholder engagement practices, multi-level regulatory governance arrangements and tax regimes for small businesses. The review describes trends and recent developments, identifies gaps in relation to good practices and offers policy recommendations based on best international practices to strengthen the government's capacity to manage regulatory policy.