AT midday, the main food market in Croatia’s picturesque capital is a feast of color, sounds and smells.

    By mid-afternoon, when vendors pack up their stalls, the European Union’s newest member shows its flip side; the poor move in to collect fruit and vegetables discarded on the concrete floor.

    “I see more and more of this,” said fruit-seller Nada. “What’s even sadder is that it’s not just pensioners and homeless, it’s young people now too.”

    Croatia has seen none of the boom enjoyed by the Class of 2004 — 10 states, mostly ex-communist and eastern European, that joined the EU a decade ago when world business was booming.

    It missed that entry point due largely to the authoritarian government that took hold in Zagreb just before the wars that broke up Yugoslavia. Croatia has since regained its democratic credentials but struggled to replace lost markets and had to give up its subsidized ship-building to meet EU entry criteria.

    Poverty is not unusual in Croatia’s Balkan neighborhood, or in pockets of the EU’s wealthy west six years after the onset of the global financial crisis. But the depth of Croatia’s decline stands out, backlit by the fireworks and fanfare that accompanied its accession to the EU last year.

    In 2004, the bloc’s wealthy core powered growth in its newest members. Not any more.

    With an economy 13 percent smaller than it was in 2008, Croatia’s fall is second only to debt-laden Greece, fuelling speculation that the ex-Yugoslav republic— not yet a member of the euro zone — may have to seek European financial aid.

    Signs of poverty are everywhere, from the rise of thrift stores to the growing number of abandoned, boarded-up shops in the heart of Zagreb — a stark contrast to the popular image of Croatia as a tourist trap for beachgoers and island-hoppers.

    “You can see people are counting every penny,” said a newspaper vendor who gave her name as Ana. “They buy the cheapest newspapers, cheapest cigarettes, cheapest pre-paid mobile phone cards.”

    Croatia is in its sixth year of recession, and risks a seventh in 2015. “The Croatian political elites don’t understand economics, nor has it been their priority,” said Velimir Sonje, owner of financial consultancy ArhivAnalitika. “They have no modern management skills or people capable of implementing reforms.”

    Western analysts admit to being puzzled by Croatia’s inability to make the most of its EU membership, which offers more than 10 billion euros (US$13 billion) from the bloc’s funds for viable infrastructure and rural development projects until 2020. (SD-Agencies)