The Croatian Football Federation was fined €80,000 by UEFA on Tuesday for racist chants directed at Italy striker Mario Balotelli by their fans.
"The Croatian Football Federation (HNS) has been fined €80,000 for the setting-off and throwing of fireworks, and the improper conduct of supporters (racist chants, racist symbols) at the match against Italy," UEFA said.
UEFA said an appeal can be lodged by Croatia, who were eliminated from the tournament after defeat in their final group game by Spain, within three days.
"It is certainly a drastic fine for us. Unfortunately, the behaviour of a tiny group of people immensely tarnishes our reputation and inflicts a huge financial damage," the secretary-general of the Croatian Soccer Federation (HNS), Zorislav Srebric, told Reuters.
"It is difficult to deal with such individuals and we would need stronger preventive measures and a help from our supporters in isolating them."
The Croatian federation was fined €25,000 by UEFA last week for spectator incidents, including the setting off of fireworks and a pitch invasion, in the match against Ireland in Poznan.