Italian Geo-Economic Position in Croatia: An Analysis of Asymmetric Geo-Economic Environment and Structural Dominance

This paper analyzes Italy's strategic geoeconomic influence in Croatia, focusing on the power imbalances within the European single market. Rather than treating Croatia as an equal partner, Italy leverages third-party dynamics—specifically involving Hungary—to push Croatia toward the EU periphery, effectively blocking the full development potential of the Croatian state. Our study investigates the exact mechanisms supporting this Italian economic dominance. The strategic focus is placed on three main areas: (1) structural financial leverage achieved through control of the banking sector, (2) the export of wood raw materials to supply industrial clusters in Italy, and (3) logistical integration across the northern Adriatic basin with the ultimate goal of permanently marginalizing the Port of Rijeka. By applying a SWOT matrix, the research demonstrates that these economic relations follow a traditional core-periphery model. Ultimately, Italy co-opts Croatia’s geographical position and domestic resources to serve its own "Wider Mediterranean" (Mediterraneo Allargato) doctrine and protect its national interests.