Spokesman: FinMin to Comment on his Decision Thursday, Government Stable
ZAGREB, 6 July 2022 - Government spokesman Marko Milić said on Wednesday that Finance Minister Zdravko Marić would speak about the reasons for his resignation in greater detail on Thursday, before or after a government session, and that his departure had not shaken the government or the ruling coalition, which were stable.
In an interview with the N1 broadcaster, Milić said that Marić had informed Prime Minister Andrej Plenković of his plan to leave the government a few weeks ago and that he attended today's meeting of the inner cabinet and would address members of the parliamentary majority and HDZ party leadership later today.
"He had an emotional address before the government and said that his decision was difficult for him," Milić said, noting that with regard to the reasons and circumstances of his departure, Marić would be available for comment on Thursday, before or after the regular government session.
Milić said that the government would "continue to work as it has so far", adding that the choice of Marić's successor - Marko Primorac of the Zagreb Faculty of Economics, "is a message of stability and continuity".
He said that Primorac's appointment would be completed by the start of the parliament's summer recess, July 15.
Meanwhile, Minister Marić will travel to Brussels to attend a session of the Economic and Financial Affairs Council (ECOFIN), which will complete the process of Croatia's accession to the euro area. ECOFIN's decision is expected on 12 July.
Asked if Marić had told the PM the reason for his decision to leave the government, Milić did not give an explicit answer, calling for calming down and "not generating panic or chaos."
The government spokesman does not believe Marić's decision to leave is reason for an early election, adding that the Opposition "should pray God we do not go to elections" considering the state it is in.
He said that the government was grateful to Marić but that it had to move on because the challenges were big, with a difficult yet not cataclysmic autumn ahead.
Speaking of Croatia's having lost an arbitration case brought by MOL, which alleged that the Croatian government did not honour its obligations from a gas business agreement, Milić said the report about the loss of the case was not carried in its integral form and that a large part of MOL's demands had been rejected, that the potential financial damage of $1.1 billion had been reduced to €184 million, and that with interest it amounted to just above $200 million.
Milić said the government accepted the arbitration decision but would continue to use the legal instruments at its disposal and that the payment of damages to MOL would not pose a major problem for the state budget.
As for a possible new set of measures to help citizens and the business sector with rising prices, Milić said the government would "be with citizens and the business sector as long as necessary" but that it was not the only market actor and that others, too, had to shoulder some of the burden.
In that context, he announced the continuation of talks with small fuel distributors, describing their announcement that they would have to close down as an instrument of pressure.
The government's decree on fuel wholesale prices is not a blow to small distributors but will affect their profit, he said.
For more, check out our politics section.
World Bank Official Confirms Partnership, Support to Croatia
ZAGREB, 6 July 2022 - Visiting Croatia on July 4-5, Gallina A. Vincelette, World Bank Regional Director for the European Union, held high-level meetings with key stakeholders to discuss the country's development priorities, the World Bank's support, latest macro-fiscal developments, and evolving global challenges.
Vincelette, who was accompanied by Jehan Arulpragasam, World Bank Country Manager for Croatia, and members of his team, met with Deputy Prime Minister and Minister of Finance, Zdravko Marić, Minister of Labor, Pension System, Family and Social Policy, Marin Piletić, Minister of Justice and Public Administration, Ivan Malenica, and key representatives from the Ministry of Economy and Sustainable Development, the World Bank said in a statement.
"The Government of the Republic of Croatia must be commended for its economic and fiscal performance in managing the recent challenging global developments. The authorities are also continuing to deepen integration with the EU by fulfilling all economic criteria for joining the euro area in January 2023," said Vincelette, expressing satisfaction with the government's progress in implementing the agenda outlined in its National Recovery and Resilience Plan.
"Effective implementation of reforms would enable Croatia to create better foundations for long-term growth and lead to a more resilient, greener, and inclusive society. The World Bank is committed to continuing to support Croatia in achieving these goals."
During her visit, Vincelette also participated in the opening of the new Land Registry Office of the Zagreb Municipal Civil Court, financed by the Integrated Land Administration System Implementation Project, which is supported by the World Bank. The renovation was part of a program of support provided for the modernisation of the Croatian land administration and management system, with the aim of improving its efficiency, transparency and cost effectiveness.
"The most visible result of our joint work has been the enhancement of land registry services. Croatian citizens now benefit from reduced time for processing land transactions, and can conduct numerous services online. Fifty five percent of requests for land services are currently made online. The modernized system will also support the sharing of land-related information among government agencies to address key development challenges, including private sector development, climate change adaptation, and disaster risk mitigation," she said.
The World Bank official also expressed satisfaction that the World Bank was able to help Croatia in connecting historic buildings, such as the new Zagreb Land Registry Office, with modern and smart architecture and design through reconstruction.
"This paves the way for a modern and reformed judicial system and land registry, truly benefiting Croatian citizens and the whole economy," she said.
The World Bank has been a partner to Croatia for 29 years. During this period, the Bank has supported more than 50 projects, totaling almost $5 billion, produced numerous studies, and provided technical assistance to help strengthen institutions and support the design of policies and strategies. The Bank's current program focuses on mitigating the economic and social impacts of COVID-19, post-earthquake reconstruction, education, social policy and pensions, transport, justice, innovation, business environment, land administration, circular economy, solid waste management, science and technology, and economic development of the Pannonian region, the World Bank recalled in its statement.
For more, check out our business section.
Croatia Loses Arbitration Case on INA to MOL
ZAGREB, 6 July 2022 - Croatia has lost an arbitration case regarding INA brought by the Hungarian oil company MOL, in which MOL alleged that the Croatian government did not honour its obligations from a gas business agreement, the Večernji List daily said on Wednesday.
According to unofficial information, having lost the case, Croatia will have to pay between 250 and 300 million US dollars, including interest. Croatia's objections regarding corruption during the purchase of INA by MOL from the Croatian state were rejected as well.
The case was dealt with by the International Court for Settlement of Investment Disputes (ICSID) in Washington.
It was launched in 2013 by MOL, which claimed that Croatia had not honoured its obligations from a master agreement on gas business and its annexes.
Under that agreement, signed in 2009, INA was to divest a part of its (nonprofitable) gas business by having the state take over the underground gas storage facility at Okoli, which the state did, but it did not take over gas trade as well, which was the reason for MOL's lawsuit.
This is the second arbitration case Croatia has lost to MOL. The first one was dealt with by the UN Commission for International Trade Law (UNCITRAL).
Prime Minister Andrej Plenković in late 2016 said that Croatia would buy back MOL's stake in INA and the process is still under way.
MOL is the single largest shareholder in INA, holding 49.1% of the stock (4,908,207 shares), while the Croatian government holds 4,483,552 shares, or 44.8%. Private and institutional shareholders hold 608,241 shares, or 6.1%.
For more, check out our business section.
Alen Halilović Signs with Rijeka in Effort to Revive Football Career
July 6, 2022 - The youngest-ever debutant for the Croatia national team and once considered the most promising young talent in Europe is looking to revive his career. Alen Halilović returns to Croatia as a new member of Rijeka.
Alen Halilović is a new player of HNK Rijeka, the club announced on Wednesday. Halilović underwent a medical examination this morning and signed the contract afterward, reports Rijeka.
After playing in the second division of English football for two years, first for Birmingham and then for Reading, who did not offer him a new contract, Halilović decided to return to Croatia to revive his football career.
At only 17 years old, he made a career transfer by moving from Dinamo to Barcelona, though things didn't quite go to plan. The Catalan club sold him to German club HSV, who in turn sent him on loan to Las Palmas. In the summer of 2018, he signed for another European giant, Milan.
Unfortunately, he didn't manage to find his way there either. He went from loan to loan again, first to Standard Liege and then to Heerenveen, but in October 2020, the Italians decided to end their cooperation with the Croatian footballer.
"I have been in contact with Rijeka for a long time. I wanted to return to Croatia this season. I am satisfied and happy to be here in Rijeka. We talked and talked for a long time and I know the club well and that's why I decided to take that step," said Alen Halilović, who wore the Barcelona shirt in 2014.
Upon his arrival, Alen had the opportunity to tour the camp and see for himself the excellent working conditions in Rijeka, and the football challenges soon began.
"I followed HNL last season, more than ever, it was very interesting and that's an even bigger motivation for me. A good team is coming together this season, there is a good atmosphere and I insisted that I come as early as possible and that we start working as soon as possible," said Alen Halilović.
You can watch his video interview below:
To read more about sports in Croatia, follow TCN’s dedicated page.
Following News of FinMin's Resignation, Opposition Says Time for New Elections
ZAGREB, 6 July 2022 - The news of Finance Minister Zdravko Marić's unexpected resignation on Tuesday was followed by the first reactions of opposition politicians who in their comments told Prime Minister Andrej Plenković that the time was ripe for new parliamentary elections.
Social Democratic Party (SDP) political secretary Mirela Ahmetović said in a Twitter post that "the last time Marić resigned, his boss fled the country and the company folded," a reference to former Agrokor company owner Ivica Todorić.
When the most popular minister leaves, that means the government has fallen and Plenković just does not want to admit it. Enough of this agony, let's go to elections, Ahmetović said.
Bridge party vice-president Nikola Grmoja said in a Facebook post that "the first officer of Plenković's Titanic, holed by corruption, scandals and inflation, is fleeing."
If health reasons are not the reason, and I hope they are not, there are only two options - either he has found himself under investigation - he was involved in many scandals which, admittedly, left him unscathed - or he is leaving the government aware of the kind of economic Armaggedon that is about to hit us, Grmoja said, calling for new elections.
The head of the parliamentary committee on European affairs, Domagoj Hajduković of the Social Democrats, also commented on Marić's decision.
"I wonder if 'personal reasons' have to do with the implementation of euro introduction about which I have been warning for some time. True, we got a positive decision, but someone must also implement it, and we are very irresponsible in that regard," Hajduković said.
Other comments by opposition politicians were announced for Wednesday.
Also, Prime Minister Andrej Plenković will inform the inner cabinet and parliamentary majority of Marić's decision and introduce Marko Primorac as the candidate for his successor. Primorac's nomination will be discussed by the parliament as early as next week.
For more, check out our politics section.
Daily Claims First Lady Called Publisher to Stop Article
ZAGREB, 5 July 2022 - Jutarnji List daily said on Tuesday that First Lady Sanja Musić Milanović had called Hanza Media owner Ana Hanžeković Krznarić in an attempt to stop an article on her contacting the headmistress of her son's secondary school about raising his grades.
According to the daily, President Zoran Milanović said an "absolute lie" when he claimed earlier today that Hanžeković Krznarić had called his wife yesterday afternoon, before the article was released, and told her that an article was being prepared and it would be good if she responded.
The President's Office has not yet replied to Hina's query about the paper's latest accusations against the president.
Jutarnji List said earlier today that Musić Milanović had pressured headmistress Zdravka Martinić Jerčić so that, a week after school ended, two of her son's Bs be changed to As.
The paper published Musić Milanović's letter to the headmistress in which she warns about irregularities in the work of the math teacher.
In the letter, Musić Milanović says she never asked that the grades be changed to As, but only requested "an explanation of all the irregularities noticed which shortchange students both in terms of knowledge and grades."
The education ministry said an inspection was launched in this case.
For more, check out our politics section.
Strong Export Growth Gives Rise to Relative Optimism in Challenging Times
ZAGREB, 5 July 2022 - Weathering the challenges, Croatia's commodity exports have achieved a strong growth, and the number of exporters increased by 1,700 in 2021, giving rise to relative optimism in the current challenging times, it was said at a conference in Zagreb on Tuesday.
Croatian commodity exports are at the level of 2019, and despite the challenges, they achieved €7.5 billion in the first four months of this year, which is 35% more compared to the same period last year, it was said at the 9th edition of the conference "mart people know what exports are for".
"In times that are fraught with problems, starting with the covid pandemic, unfavourable circumstances caused by Russia's aggression against Ukraine, rising energy prices and difficulties in obtaining raw materials, exports still remain to be good news, something that is positive and is recording strong growth rates," State-Secretary in the Ministry of Economy and Sustainable Development Nataša Mikuš Žigman assessed.
The data are extremely good and positive, and were glad to see that the manufacturing industry contributes to the export growth rate with a share of 80%, says Mikuš Žigman.
It is the government's task to make it possible for these rates to remain stable or continue to rise, she said, adding that the government's activities are focused on several segments - on measures to ensure enough energy and other raw materials so that the economy can function normally and to continue conducting structural reforms. The focus is also on digitisation and the green economy, she said.
Mikuš Žigman also informed that the share of exporters in recipients of EU support is over 50% and that exporters use the opportunities available from the EU budget to the largest extent.
She also stated that 1,700 more exporting companies were recorded in 2021 than in 2020 and underscored that even in these challenging times there is room for "relative optimism."
The President of the Management Board of Podravka, Martina Dalić, said that this year turned out to be much more difficult, challenging and uncertain than they thought last year while making financial plans. The consequences of the pandemic have led to disruptions in the market that triggered off an increase in the price of raw materials, transport, and energy while the war in Ukraine led to new risks and a new price hike, Dalić elaborated.
It will be fair to say that regardless of which measures have been taken by the government to protect us, we in the enterprise sector cannot fend off the effects of this crisis as this is a a crisis of global nature and has been caused by extreme shocks on the side of the supply, said Dalić adding that both for businesses and consumers challenging and hard times are ahead.
For more, check out our business section.
Aminess Khalani Beach Hotel - First Makarska 5 Star Facility Opens
July the 6th, 2022 - The stunning Makarska Riviera is known for its jaw-dropping panoramic views, rugged and imposing mountains, gorgeous beaches and of course - the sparkling Adriatic Sea that draws millions of visitors to Croatian shores from across the world. There's now a brand new Makarska 5 star facility on offer, as well.
As Poslovni Dnevnik writes, in the presence of more than 300 guests, the very first Makarska 5 star facility - Aminess Khalani Beach Hotel - was officially opened. This new hotel is otherwise a large greenfield investment worth more than 50 million euros, providing 200 new jobs for locals from the Makarska Riviera, and in addition to luxurious accommodation, it also offers top gourmet experiences, an impressive spa and wellness centre, modern conference halls, a gaming room for children and much more.
Aminess hotels and camps are already located in Novigrad (Istria), on the islands of Korcula and Krk, as well as on the Peljesac peninsula.
This expanding hotel group now has an impressive thirteen hotels under its belt, as well as four camping resorts with more than 450 mobile homes, 92 apartments, as well as 80 villas all over the beautiful Croatian Adriatic coast.
This brand new Makarska 5 star facility can accommodate 900 guests in 299 accommodation units spread over a total of eight floors, boosting not only Makarska's tourism offer but that of Central Dalmatia as a whole.
"We're very proud that Aminess hotels and camps entered the project initiated through a greenfield investment, which is still a rarity here on the Croatian market, especially when it comes to facilities with more than a hundred accommodation units. We believe that in the coming tourist seasons, the Aminess Khalani Beach Hotel will have a favourable impact on the tourism results of the entire region, especially the Makarska region," said Zrinka Bokulic, President of the Management Board of Aminess Hotel and Camps.
Renowned Croatian architect Jerko Rosin is responsible for the hotel's sleek exterior, while Studio Argentaria from Sarajevo in neighbouring Bosnia and Herzegovina was the company responsible for the hotel's interior design. From 2023 onwards, this brand new Makarska 5 star facility will be open to guests all year round.
For more on Croatian hotels and other accommodation, make sure to check out our dedicated travel section.
Croatian Nautical Tourism Sector Enjoyed Excellent 2022 Pre-Season
July the 6th, 2022 - The Croatian nautical tourism sector is absolutely booming and represents an extremely strong branch of the country's most lucrative earner - tourism. The sector enjoyed an excellent pre-season, and it looks as if the very height of the summer season is going to be a great one as well.
As Poslovni Dnevnik writes, Croatia is the first on many lists, and that can be either good or bad. It's the record holder for people leaving the homes of their parents and becoming independent last, but it's also very often the first when it comes to beach rankings. We suppose its up to you to decide whether to see a glass which is half full or half empty.
Maybe you didn't know, but Croatia has the most boats for rent in the entire world, reports RTL. The country boasts about 4,500 yachts and other vessels for rent in the fleet - which ensured Croatia the title of the world's nautical superpower.
The Punat marina on Krk has 850 moorings in the sea and 500 on land - and this is where the largest amount of nautical traffic within the Croatian nautical tourism sector in all of Kvarner is realised.
A couple from Austria chose it as their base: "In earlier years, I rented a boat in Croatia. I saw this area and the marina and I really liked it! Now we bought our own boat and decided to come to this marina," recounts Nadine Walcher.
This marina continues to record some truly excellent results, even though we're only at the beginning of the peak summer season. "The marina is full, we're already doing better now as far as 2019 is concerned in terms of occupancy and when we're talking about it financially," explained Robert Skomersic, an employee of the marina in Punat.
A Slovenian family has been loyal to Krk's Punat marina for years. They stay there until the end of July, but they come regularly from spring to autumn! "Slovenia is close and there is a sea like this... it doesn't exist anywhere else," said Gregor Preseren.
Of all the charter vessels in the world, i.e. those that are for rent, 40 percent are here in Croatia, making this country a world superpower in that segment. Since the beginning of this year, the Croatian nautical tourism sector has achieved one million and one hundred thousand overnight stays.
"This year, the pre-season has already achieved significant results, which we're satisfied with. Within the entire ACI system, which includes 22 marinas across the Adriatic, transits, i.e. daily berths, are at the level of what was recorded back in the record year of 2019,'' said the head of corporate communications of ACI marina, Adriana Miskovic.
Along with the extreme south of Croatia, Kvarner is also becoming more and more popular when it comes to Croatian nautical tourism. In the last five years, there has been a 65 percent increase in the number of overnight stays being realised by boaters, and the revenue is also growing.
"Guests from within the Croatian nautical tourism sector are also the type of guests who spend more than the average guest does, about 130 euros per day, or 170 if we're talking about a charter, and the total earnings in the ports within the Croatian nautical tourism umbrella last year amounted to around 160 million kuna,'' says the director of the Kvarner Tourist Board, Irena Persic Zivadinov.
For more on the blossoming Croatian nautical tourism sector, make sure to check out our dedicated travel section.
Golden Key Awards: Best Croatian Exporters Announced!
July the 6th, 2022 - The Golden Key awards (Croatian: Zlatni kljuc) are awarded to the best Croatian exporters each year, and this year, with continued challenges owing to the war in Ukraine which broke out following Russian invasion back in February this year, things continue to be demanding for businesses.
As Poslovni Dnevnik writes, the Golden Key awards for the best of Croatia's largest exporters went to Koncar - Distribution and special transformers, the best of the medium Croatian exporters is Dok-Ing, and the Q agency has been declared the best of the small and micro Croatian exporters for this year.
The president of the Croatian Exporters (HIZ) pointed out that these strange times in which business is being conducted are extremely challenging and complicated due to the coronavirus pandemic and Russian aggression.
"The world's gross export back in 2021, if we're looking solely at goods, fell, but services and the total in that sense actually increased. Exports from Croatia have increased, which means that we're in a good position compared to the rest of the world. The shortfalls that occurred here for the Croatian economy were then offset by a successful tourist season.
The export of goods and services to the EU is traditionally in the negative, and with CEFTA in the plus, whether that refers to goods or services. For years, the structure of our largest trade partners has been the same, consisting of five countries including Italy, Germany and Slovenia," said Darinko Bago. He repeated that Croatian exporters employ the majority of employees and generate the largest share of the country's GDP, and according to the calculations of the Financial Agency (Fina), Croatian exporters contribute on average to the budget and GDP by as much as 40 percent more than other companies.
Prime Minister Andrej Plenkovic also spoke about the challenges currently being faced by the Croatian and European economy, and he emphasised that we are living in a time of several parallel crises, the likes of which have not been seen for decades. The unprecedented coronavirus pandemic halted society as a whole, caused severe damage to the global economy and reduced the global GDP by double-digit values, and now we have a war on European soil.
"The second crisis is the Russian aggression against Ukraine, which disrupted the energy market and consequently led to inflationary trends throughout Europe and the world. The third crisis is the climate crisis, which, connected with the events in Ukraine, leads to a global food crisis. Therefore, he warned, we all have to sit down together and see how to deal with these parallel crises," Plenkovic pointed out as Croatian exporters were rewarded for their efforts.
For more, make sure to check out our dedicated business section.
