This paper provides an analysis of the practical implications of the concept of soli-darity economy and the elements of public policies that affect the solidarity economy in Croatia. In a broader sense, solidarity is a common component of economic behaviour. In a narrower sense, solidarity refers to a set of economic practices that meet the criteria of balancing economic, social and environmental sustainability, joint ownership and par-ticipatory governance. Solidarity economy supports the construction and maintenance of common economic goods, which may occur within legal entities, as well as in contractual relations or informal cooperation. Solidarity economy is close to the concept of social economy, and significantly different from collaborative (sharing) economy. Public policies that encourage solidarity-based economic practices have their origins in the welfare state regime and the level of solidarity in society, which is followed by ideologies, strategies and activities of political and economic actors. The social contributions of the solidarity economy and the risks to which it is exposed justify state intervention in this area, which can be reflected in regulation and institutional, financial and tax support to its actors and processes. Public policies in Croatia generally do not recognise the importance of the social and solidarity economy and its actors, such as cooperatives and social enterprises. Although the recognition of possible contributions of the social and solidarity economy to society and the economy in Croatia is growing, the incentive framework is incomplete and insufficient, which is reflected in the results and future prospects of this sector.
