The impact of public policies on the economic development of the Republic of Croatia is profound, especially when analyzing fiscal and investment policies. After joining the European Union in 2013, Croatia implemented a series of fiscal reforms aimed at stabilizing the economy and fostering sustainable growth. The government approached fiscal policy with a focus on reducing budget deficits and public debt, which led to a more favorable economic environment that attracted domestic and foreign investment. Investment policies, supported by access to EU funding and compliance with EU regulations, have changed the landscape for economic development. Through incentives such as grants, subsidies and the establishment of special economic zones, the Croatian authorities have succeeded in encouraging foreign direct investment, which is crucial for job creation and technological progress. Sector-specific policies, especially in tourism, renewable energy and infrastructure, illustrate the government’s strategic focus on areas of sustainable growth, directing resources towards sectors with high potential for economic contribution. However, the effectiveness of these public policies is tempered by challenges such as bureaucratic inefficiency, political instability and labor market constraints, which can hinder economic progress and investor confidence. To further enhance the positive effects of fiscal and investment policies, Croatia needs to prioritize continued reforms that simplify regulatory processes, strengthen institutional integrity and foster a skilled workforce. In short, the interplay of fiscal discipline and proactive investment strategies has laid the foundation for Croatia’s economic growth. Moving forward, a sustained commitment to improving public policies, addressing existing challenges and seizing EU opportunities will be key for the Republic of Croatia to achieve its long-term economic development goals and secure its position as a competitive player within the European Union.