The subject of this thesis is the fiscal policy of the Republic of Croatia in the EU environment through the analysis of the post-pandemic recovery and current challenges. For the study, the relevant scientific and professional literature was analyzed and discussed, and data analysis was performed using appropriate statistical methods. The paper primarily defines fiscal policy, which is a deliberate change in all government revenues and expenditures to achieve the macroeconomic goals of economic policy. The main research objectives pursued refer to the attempt to find a way to achieve internal economic equilibrium in terms of full employment and price stability, and external equilibrium in terms of competitiveness of the national economy in the European environment, under the conditions of economic growth and development. In the Republic of Croatia, with its accession to the European Union, a series of changes and reforms are taking place in the area of tax policy, the structures of which are changing and becoming more similar to the structures of tax policy in other member countries. Globalization through increased mobility and the possibility of open trade has a positive effect on economic growth (this can be said of all countries), but facilitated mobility has increased the possibility of transmission of infectious diseases, which was evident in the sudden development of the pandemic COVID -19. In addition to the strain on health care systems, the pandemic had an extremely negative impact on the economy, leading to the implementation of numerous measures aimed at preserving jobs and businesses threatened by the pandemic. Epidemiological closure measures that successfully suppressed the spread of infection led to reduced mobility and a decline in economic activity, resulting in a decrease in budget revenues as well as a significant increase in spending, a decrease in consumption, and an increase in the government's public debt. Fiscal sustainability has been significantly constrained by the unfavorable performance of the primary budget balance, lower economic growth, the growing interest burden, and the need for significant financial support, which reduces the government's ability to meet its obligations and further complicates fiscal sustainability policies. In addition to a range of public health policies, unprecedented discretionary fiscal actions were taken around the world, which had an important impact on mitigating the economic crisis and ensuring fiscal sustainability.