November the 13th, 2021 - The Croatian company Infobip, the country's first ever unicorn, now also has the largest number of shareholders. This Vodnjan-based company has gone from strength to strength and made truly remarkable progress, and it seems that isn't slowing down yet.

As Novac/Bernard Ivezic writes, the Croatian company Infobip has moved one step closer to the stock market. It is no longer just the first Croatian unicorn and the largest domestic startup to date, but also the one with the most shareholders of all. Infobip has also now launched its own ESOP programme for all of its employees, more than 3300 of them.

This impressive cloud communications company has announced that it will automatically apply the employee shareholder programme to all of its future employees.

Silvio Kutic, the co-founder and CEO of the Croatian company Infobip, says that ESOP is the most important initiative that rewards employees for their contribution to the evolution of the company through compensation in addition to their salaries.

''ESOP is a key part of the value offer of employees and that's why it's my honour to have the privilege to state that we've reached the point where we can make all employees part of our story of growth as shareholders,'' explained Kutic.

The Croatian company Infobip has had an ESOP before, but it's questionable as to whether it can be called that given the fact that it was very limited in scope. It was valid only for individual, key employees, estimated to number about 800. Now, however, the programme has become a company-wide standard and has included an additional 2,500 employees.

ESOP (Employee Stock Ownership Plan) is a programme by which companies add the option of acquiring an ownership share to employees' salaries. It is used as a form of reward and a tool for retaining staff.

Although one of Podravka's is considered to be one of the most successful ESOP programmes in all of Croatia, this type of employee reward programme is currently the most popular in the entire IT industry. According to a survey which was conducted last year, as many as thirty domestic IT companies have embarked on various ESOP programmes. Infobip was the first to do so, followed by Nanobit, while Rimac Automobili announced that they were moving in that direction as well.

Nanobit also made an ESOP but also of a limited scope. As was learned last year, Nanobit allocated 5.57 percent of the ownership stake to 30 percent of the company's employees. The programme, as Alan Sumina, the co-founder and CEO of Nanobit, explained at the time, rewarded people who proved to be key to the company's growth as well as a motive for attracting potential staff from elsewhere to come and work for the company, especially in the City of Zagreb.

For the listed companies, the option to acquire an equity stake is usually activated in preparation for the IPO. The Croatian company Infobip is planning its IPO for the end of 2022, ie the beginning of 2023. Then, just before being listed on the stock exchange, employees can convert their options into ownership shares and thus become "real" shareholders of the company after the IPO, meaning that they can then sell the shares they have thus acquired and thus generate additional income.

It should be emphasised that there are numerous variations of the ESOP programme, and some companies share such options with their employees, while some, as is the case with the IT company Span, which recently went public on the Zagreb Stock Exchange, have offered their employees the option to purchase shares on preferential terms. Regardless of which ESOP implementation model both companies and employees have chosen, this is a more tax-profitable way of increasing additional income in Croatia.

From Infobip, they explained that their ESOP plan is designed as an addition to the current employee compensation packages, and this means that it is the so-called optional ESOP model. Infobip launched the programme four years ago and back at that time, a 10 percent stake in the company was allocated to reward employees, but the entire package was not distributed at the time, as the ESOP was applied to a limited extent.

Kutic explained that this is a confirmation that the organisation is now in the next phase of the path of exponential growth, and if we quickly recall, it's worth noting that Infobip's revenue jumped 57 percent last year to 1.25 billion dollars or 7.74 billion kuna.

After receiving a 300 million US dollar investment from the US fund One Equity Partners in 2020 and taking over OpenMarket for that same sum, this year it bought the Split conference franchise Shift, and then the world's leading SMS firewall service provider, the Irish Anam Technologies. The value of these transactions hasn't yet been disclosed.

Recently, the Croatian company Infobip also took out a 500 million dollar loan from funds managed by Ares Management Corporation and funds managed by BlackRock, it also took over one of the largest alternative telecoms in the USA, Peerless Network. The company has made it clear that it will continue to take over and merge with others in the coming period.

''Our goal is to ensure that everyone is fully active in the implementation of our ambitious growth plan that we intend to carry out over the next few years, because in this way, employees will create value not only for the organisation but also for themselves as individuals,'' concluded Silvio Kutic.

For more, check out our dedicated business section.

November the 13th, 2021 - Croatian GDP growth has been a topic on the lips of many ever since the coronavirus pandemic struck and caused untold and unprecedented negative trends on a global scale. Predictions and expectations have been shared by many and have been varied, but Brussels has some encouraging expectations indeed, with only two EU member states ahead of Croatia in this regard.

As Ana Blaskovic/Poslovni Dnevnik writes, the European Commission's (EC) recent forecasts for economic developments for the Republic of Croatia have brought growth expectations closer to most local expectations. Brussels expects 8.1 percent Croatian GDP growth this year (their expectation previously stood at 5.6 percent), which is close to the Croatian National Bank's expectations of 8.5 percent, but still more cautious than the Croatian Government's 9 percent. This prediction, if it materialises, would also make Croatian GDP growth the third fastest in the entire bloc.

The European Commission's autumn forecasts generally predict a faster pace of recovery from the coronavirus crisis than the spring one did, after all, corrections leaning towards higher percentages as the year draws to a close were also given by numerous Croatian experts. The European leader with the highest GDP in 2021 will be Ireland with a projected 14.6 percent, followed by Estonia with 9 percent.

The ranking next year, of course if there is no correction, could look even better with growth of 5.6 percent, just behind Malta. "The recovery of the Croatian economy continued in 2021, mostly thanks to strong private consumption and better-than-expected results in the tourism sector. Favourable economic trends have spilled over into the labour market, which is experiencing strong employment dynamics,'' they said from the EC. A good outlook for the economy is expected in the next two years, and essentially, there are no major surprises in Brussels' latest autumn forecasts.

The engine of growth remains domestic demand driven by a good labour market situation. During the coronavirus crisis, the accumulated savings and the growth of consumer lending will give their momentum to the economic momentum. A positive contribution will also come from the direction of public spending, but its momentum will slow down due to the targeting of the deficit and public debt within the introduction of the euro in Croatia at the beginning of 2023, if all goes as planned.

Investment momentum should accelerate on the wings of European Union money as part of the National Recovery and Resilience Plan in addition to the regular EU budget and as payments from the Earthquake Solidarity Fund begin to be paid out. The European Commission expects that over time, these funds will encourage additional private investment in Croatia, which will further facilitate favourable financing conditions.

Finally, NPOO reforms (on which future generous payments depend) should support business confidence, according to the EC.

Exports are an item of GDP that should grow in line with the improving situation in major trading partners. After this year's surprising jump in the export of services, primarily tourism, the continuation of solid trends is expected, the preconditions for which are favourable conditions in emitting markets and the final total normalisation of travel.

Although the Croatian economy is projected to grow strongly in terms of exports of goods, its import dependence will result in a gradual deterioration of the trade balance, a picture that essentially reflects the vulnerabilities and competitive weaknesses of the domestic economy. Finally, an unavoidable factor in the uncertainty of these forecasts is the low vaccination rate of only 44.9 percent of all residents of Croatia. Such figures "could lead to tougher measures to combat the pandemic and delay in post-earthquake recovery."

Positive ''risks'' are Croatia's possible entry into the Schengen area and the Eurozone. Inflation is expected to accelerate due to rising energy and food prices, reaching 2.2 percent this year, after which it should then gradually stabilise. The budget deficit should drop down to 4.1 percent of GDP in 2021, and to 2.9 percent next year, and a downward trajectory is also projected for public debt; from 82.3 percent this year to 79.2 percent next year. Employment should return to pre-crisis levels this year, and the unemployment rate should drop to a record low of 5.8 percent in 2023.

For more information on Croatian GDP growth and much more, check out our politics section.

ZAGREB, 12 Nov 2021 - Croatian Health Minister Vili Beroš tweeted on Friday that in the last three days more than 50,000 citizens had received an initial dose of vaccination against coronavirus, and called on vaccine hesitant people to get immunised.

In the last three days, more than 50,000 citizens have received a first dose. They are a part of the society of more than two million citizens who have made their decision on vaccination, based on scientific facts. I call on the hesitant to follow their example, he wrote on his Twitter profile.

He also informed the general public about places where they can get information and advice if they are not sure about vaccination.

For more news, CLICK HERE.

ZAGREB, 12 Nov 2021 - Croatian President Zoran Milanović travels to the Vatican on Monday for an official visit, during which he will have a private audience with Pope Francis, the President's Office announced in a press release on Friday.

The President will be accompanied by his wife, Sanja Musić Milanović.

Milanović is scheduled to meet with the Secretary of State of the Holy See, Cardinal Pietro Parolin, and the Secretary for Relations with States within the Holy See's Secretariat of State, Archbishop Paul Richard Gallagher.

He will visit the the Pontifical Croatian College of St Jerome, where he is due to meet with the Rector, Don Marko Đurin, and Croatian students of Catholic universities in Rome.

The former Croatian President, Kolinda Grabar-Kitarović, met with Pope Francis in 2015 and presented him with a Croatian national football team jersey. She invited him to visit Croatia.

Pope Francis has never been to Croatia during the eight years of his pontificate.

For more on politics, CLICK HERE.

ZAGREB, 12 Nov 2021- Croatia on Friday received two letters of formal notice from the European Commission as part of its regular package of infringement decisions, and one concerns waste disposal  while the other relates to the transposition of new EU-wide rules for VAT on e-commerce.

Landfilling

The Commission called on Croatia, Bulgaria, Greece, Romania and Slovakia to correctly apply the Landfill Directive and the Waste Framework Directive.

The Landfill Directive sets standards for landfills to prevent adverse effects on human health, water, soil and air. Under this Directive, Member States must take measures to ensure that only waste that has been subject to treatment is landfilled.

The European Green Deal and the Zero Pollution Action Plan set a zero pollution ambition for the EU, which benefits public health, the environment and climate neutrality.

In its judgment of 15 October 2014, the Court of Justice of the European Union ruled that, before landfilling, waste must be treated in the most appropriate way to reduce negative impacts on the environment and human health as far as possible. Following this ruling, in 2015, the Commission launched a study to investigate the landfilling of untreated non-hazardous municipal solid waste in Member States.

In Croatia, the study analysed five landfills of non-hazardous waste in five different counties. The study revealed shortcomings in all visited sites and that municipal waste is being landfilled without any treatment. The landfills subject to investigation are lacking infrastructure capacities and so are the counties where these landfills are located.

Taxation

Croatia, Denmark and Lithuania were called upon to explain how they transposed the VAT e-commerce package into national law.

The Commission has decided to open infringement proceedings against Denmark, Croatia and Lithuania for non-communication of the explanatory documents in relation to the transposition of new EU-wide rules for VAT on e-commerce.

The new rules are intended to simplify VAT for companies and consumers involved in cross-border online sales within the EU and to create a fairer environment for EU sellers by removing the VAT exemption for low-value imports from outside the European Union.

In line with Court of Justice case law, Member States must indicate in a sufficiently clear and precise manner the national measures by which they transposed obligations imposed by an EU Directive. Since Denmark, Croatia and Lithuania have failed to provide clear explanations on the way they have transposed these directives, the Commission cannot check that these Member States have completely and correctly transposed the relevant provisions into national law. Denmark, Croatia and Lithuania now have two months to act. Otherwise, the Commission may decide to send reasoned opinions.

A letter of formal notice is the first step in the infringement procedure, launched by the Commission against Member States deemed to be in contravention of EU law. If the matter is not resolved, the Commission sends a reasoned opinion, and if that also fails, it refers the matter to the Court of Justice. 

For more on politics, CLICK HERE.

ZAGREB, 12 Nov 2021  -  As many as 64% of respondents in Croatia support stricter government measures that will make people change their behaviour in an attempt to overcome climate crisis, according to a survey conducted by the European Investment Bank (EIB) in cooperation with the BVA pollster.

The opinion polls show that 64% of the respondents in Croatia are in favour of "strict government measures imposing changes on people’s behaviour to fight climate change," while 70% of EU citizens and 73% of Britons are also in favour of such measures.

Furthermore, 78% of Croatians welcome the adoption of a tax on products and services that contribute most to global warming, according to the results of the fourth EIB Climate Survey conducted among more than 30,000 respondents in 30 countries from 26 August to 22 September this year.

In Croatia, three quarters of the respondents believe that climate change and its consequences are the biggest challenge in this century. Also, 85% believe they are more concerned about the climate emergency than their government.

Furthermore, 84% of the Croatians believe that climate change affects their everyday lives, and 81% are in favour of using renewable energy to help overcome the climate emergency, as against the EU average of 63%.

For more news, CLICK HERE.

ZAGREB, 12 Nov - The COVID-19 situation has continued to deteriorate in the European Union and is considered "very worrying" in ten countries, including Croatia, the European Centre for Disease Prevention and Control (ECD) said on Friday, as quoted by the French news agency AFP.

Of the 27 EU member states, the situation is very worrying in Belgium, Poland, the Netherlands, Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Hungary and Slovenia, the ECDC said.

The most favourable epidemiological situation is in Italy, Malta, Spain and Sweden, it added.

Croatia remained "dark red" on the ECDC's latest COVID-19 map, released on Thursday.

In the EU and the European Economic Area, 81.1 per cent of people aged above 18 have received at least one dose of vaccine, the ECDC said.

In Croatia, over 50,000 people have received their first shot in the last three days, Health Minister Vili Beroš tweeted. 

For more news, CLICK HERE.

November 12, 2021 - Good news for the inhabitants of the Dalmatian town, as Makarska introduces free public transport towards the end of the year. Here are the routes.

Organized by the City of Makarska, free public transport has started on the route Veliko Brdo - Makarska - Veliko Brdo as a pilot project, reports Slobodna Dalmacija. The test period will last until the end of the year and refers to the connections of the most remote local board with the city. Makarska Mayor Zoran Paunović was also on the first run.

In this test period, transportation is free for all citizens who have a permanent or temporary residence in the area of ​​the city of Makarska, which passengers will prove with an ID card or appropriate certificate. The carrier will issue them a monthly travel ticket on the spot on the bus.

Departures from Veliko Brdo to Makarska are at 7.30 am, 8.33, 9.33, 10.33, 12, 13.30, 14.50, 16.50 and 19.20. Departures from Makarska to Veliko Brdo are at 8.25, 9.25, 10.25, 11.30, 13.20, 16.15, 18.15, 19.05 and 20. 27 hours.

Boarding and disembarking of passengers on the route Veliko Brdo - Makarska - Veliko Brdo is performed at three bus stops in the area of ​​Veliko Brdo, bus stop near Napoleon's monument, near the store "Tommy" in Ante Starčević Street, at the beginning and end of the city waterfront, below the bus station, the end of the roundabout next to the high schools and the end of the town market and the Music School.

The City of Makarska has concluded a contract on co-financing the line at the initiative of the Family Bus Service carrier, which, according to the publicly available register, is the only one with registered lines and issued county licenses for county public regular passenger transport between Veliko Brdo and Makarska.
This pilot project is a step closer to the organization of public transport and an opportunity for the City of Makarska to know first hand the real traffic demand and the justification for the introduction of public transport in Makarska.

Are you planning to visit Makarska? Take a look at the Total Croatia 2021 guide, where you will find all the information about accommodation, restaurants, things to do, tours, how to get to the riviera, and much more HERE. Now available in your language!

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