ZAGREB, 4 March (Hina) - As many as 35% of eight-year-olds in Croatia are overweight, shows a survey by the CroCOSI European Childhood Obesity Surveillance Initiative, which was presented on Thursday on the occasion of World Obesity Day by Sanja Musić Milanović, who headed the survey.

Musić Milanović described obesity as one of the biggest public health problems of the 21st century and the common denominator for all leading chronic non-infectious diseases.

"If in the next 30 years we do not reduce the trend of increasing obesity, the average life expectancy will be shorter by three and a half years," she warned, presenting the results of the second round of the survey conducted in 2019.

According to the survey, 33.1% of eight-year-old girls and 37% of boys are overweight.

In the past three years there has not been a significant increase in child obesity in Croatia, as the results for the first round of the survey (2015/2016) indicated that 34.9% of eight-year-olds were overweight while three years later that percentage was 35%. 

The survey also showed that about 57.4% of adults in Croatia have a problem with weight, which is a risk factor for a series of chronic non-infectious diseases.

Musić Milanović underscored that as much as 6.6% of the state budget earmarked for health is spent on diseases caused by obesity.

In Croatia, 67.6% of men are overweight, which makes them the "absolute champions in Europe," she said.

Northerners are the slimmest people, while southerners are the fattest, notably boys in Mediterranean countries, she added.

The presentation was attended by Health Minister Vili Beroš and Education Minister Radovan Fuchs. Beroš said that an action plan was being prepared to tackle the problem of obesity while Fuchs said that an initiative had been launched recently to increase Physical Education classes in schools.

ZAGREB, 4 March, 2021 - The government on Thursday endorsed a bill on the establishment of a defence and security university which will be sent to parliament, with Defence Minister Mario Banožić saying the university would produce leaders for the Croatian army and other components of the homeland security system.

"In the year when the Croatian army is marking its 30th anniversary, a legislative framework is being created to transform the Croatian Military Academy into the University of Defence and Security, which is of special state interest," Banožić said, according to a ministry press release.

The university will facilitate the development of a teaching staff for military, defense, security and intelligence sciences and skills, and it will also be able to apply for EU funding, Banožić said, adding that the university would also develop and conduct scientific research in support of military, defense, security and intelligence activities.

"Working together, we will create an organisation which will be ready to produce leaders for the Croatian army and other components of the homeland security system," said the minister.

ZAGREB, 4 March, 2021 - Tenants and users of state-owned flats and business premises from Sisak-Moslavina, Karlovac, Zagreb and Krapina-Zagorje counties and the City of Zagreb will be exempt from the obligation to pay rent or fee for the use of state-owned flats and business premises.

The decision was made by the Croatian government on Thursday because of the consequences of the earthquakes that struck the four counties and Zagreb on 28 and 29 December last year.

Tenants and users of state-owned real estate will be exempt from payment starting from January 2021 until it becomes possible again to use business premises and flats damaged in the earthquake.

The Ministry of Physical Planning, Construction and State Property is authorised, Minister Darko Horvat explained, to exempt tenants and users of state-owned property from the obligation to pay rent or fee for the use of state-owned flats and business premises which are managed by the ministry and have been declared as unfit for use following examination.

Since some of the state-owned flats and business premises are managed by the Državne Nekretnine company, the company's assembly is in charge of making the necessary decisions and taking the necessary actions to grant the exemption.

The government also authorised the Central State Office for Reconstruction and Housing to exempt users of state-owned housing units in Sisak-Moslavina and Karlovac counties from paying rent due to the consequences of the earthquakes after 28 December last year.

ZAGREB, 4 March, 2021 - During a cabinet meeting on Thursday, the government adopted a state aid scheme for this year for exceptionally vulnerable sectors in agriculture, ensuring HRK 121 million for that purpose.

Agriculture Minister Marija Vučković said that HRK 51 million was earmarked for dairy cows, HRK 18.5 million for reproductive sows, HRK 42 million for tobacco production, HRK 8.5 million for the olive oil sector and HRK 1 million for domesticated and native agricultural plants.

The total amount of HRK 121 million will come from the ministry's state budget allocation and from projections for 2022 and 2023, Vučković said.

The programme is aimed at improving these vulnerable sectors.

Legislative framework by year's end for euro coins with national side

The government tasked the Finance Ministry with preparing, by the end of the year in cooperation with the Croatian National Bank (HNB), a bill and other necessary acts designating the Ministry as the competent authority for issuing euro coins. These laws will also lay down the procedure for issuing, manufacturing, security, storage, management, supply, replacement, withdrawal and destruction of euro coins.

Currently, HNB has the exclusive right to issue kuna coins, and after adopting the euro currency, Croatia will follow the example of the majority of euro area countries where coins are issued by the relevant ministry.

Finance Minister Zdravko Marić recalled that last year the government had adopted the National Plan to replace the Croatian kuna with the euro and the issuance of coins is one of the significant activities in that process.

The government also endorsed the activities of the Croatian Mint in designing euro coins with the national side, Marić said.

The coins will have to be approved by the European Commission after meeting all the criteria. Marić added that the ministry will also have to arrange possible models of the business relationship with the Croatian Mint before the end of the year.

ZAGREB, 4 March, 2021 - In 2020 banks' net profits were more than halved, while this year corporate and household lending is expected to pick up and demand for housing loans to increase, it was said on Thursday at a digital press briefing of the Croatian Banking Association (HUB).

Also presented was HUB's analysis of the banking business in 2020 and the response to the COVID-19 crisis which, it was said, resulted in a significant deterioration of banks' business results.

Net profits in 2020 dropped by 53.3% from 2019, to HRK 2.7 billion, mainly due to a drop in operating income and a growth in value corrections of financial assets --- amortisation expenses.

Net interest income dropped by 5.7% on the year, net fee and commission income by 10.5% and net business income by 9.9%. "This means that banks' income dropped a little more than Croatia's GDP in 2020," HUB director Zdenko Adrović said. Last year GDP contracted by 8.4%.

Banks' capital ratio at the end of 2020 was 24.9%, ranking them among the best capitalised banks in the world, which facilitates lending and deposit growth as well as low interest rates, he said.

Deposits and lending increased in 2020

In 2020 household deposits went up 6.1% on the year to HRK 224.5 billion, while in January 2021 they were up 7.1% on the year.

The fast deposit growth is mainly a result of giving up spending or the impossibility to spend part of one's income, said Adrović.

In 2020 household lending went up by 2.3%, with housing loans increasing by 7-8%. In Q4 alone, housing loans were up 14% on the year, while non-purpose cash loans dropped by 1% and overdrafts on transaction accounts by 5%.

Adrović said he believed that corporate and household lending would pick up in the coming period due to a rise in demand for housing loans. Part of the demand comes from the government's subsidised housing scheme and it is also due to last year's earthquakes, he added.

This year demand for housing and corporate loans is expected to improve and, thanks to existing interest rates, result in higher income and net profit for banks, Adrović said.

Last year corporate loans went up 5.3% while this past January they increased by 5.7%, he added.

Thanks to an average interest on long-term housing loans of 2.9% and no big pressure on interest growth, Croatia is doing very well, he said, noting that interest rates were markedly lower than in more developed countries which have been in the EU longer than Croatia, such as the Czech Republic, Hungary and Latvia.

(€1 = HRK 7.5)

ZAGREB, 4 March, 2021 - President Zoran Milanović on Thursday received representatives of the Adriatic Aerospace Association, a non-governmental, non-profit and independent organisation aimed at promoting research and development in the aerospace sector.

The President's Office said in a press release that the representatives of the Association, whose aim is to also act as a point of contact for projects and to promote education, counselling and international cooperation, acquainted the President with their activities.

They said there were professionals in companies and institutions in the science and education sector willing to participate in the Croatian aerospace programme by designing and implementing projects in the country and abroad.

They also spoke about the development of the first Croatian 2U CubeSat satellite, called Perun 1, and the costs of its launch, which is planned for June 2023.

The Association's representatives noted that the launch of the satellite was their short-term objective, while their long-term goal was education and opening of a university programme. They said they wanted to teach students and young people about all aspects of the organisation and implementation of such a project.

ZAGREB, 4 March, 2021 - Social Democratic Party (SDP) leader Peđa Grbin said on Thursday that the funeral of late Zagreb mayor Milan Bandić had shown that discrimination was present in Croatia and that all of us in Croatia obviously "cannot be equal even in death".

"I have heard today that an association was penalised for organising a protest rally, (...) why were they penalised when we heard yesterday that the virus is not a chapmion in long jump and that everything is fine and according to the rules. The prime minister discovered discrimination in the past ten or so days, but this yesterday showed that discrimination is here in Croatia, because obviously not even in death can all of us be equal," Grbin said.

The Opposition leader said that due to the anti-epidemic restrictions some families had had to say to their loved ones that they could not attend a funeral because there couldn't be more than 25 of them, and then yesterday all of us had seen the "charade".

"Everyone in Croatia, of course, must have the right to a civilised and dignified burial, but what took place yesterday wasn't that. If we have rules in the country, then those rules must apply to everyone, if the rules do not apply to everyone in the same way, then that is discrimination. And then it's something else, too, then it's making people idiots, and that must be said loud and clear," Grbin said.

"Yesterday, no one from the SDP was officially at the funeral because we thought it was not necessary. No one from the SDP was officially there because we think that it wasn't up to us to honour in that way a man we talked about until yesterday as bad, as problematic, as someone who destroyed the city of Zagreb. That would have been hypocritical, and I have no intention of being a hypocrite," Grbin said.

ZAGREB, 4 March, 2021 - Tomislav Tomašević, the Green-Left Bloc's candidate for Mayor of Zagreb, said on Thursday he was prepared to deal with the legacy and network of the late mayor Milan Bandić, following comments that Bandić's death has shaken his position as an election favourite.

"Bandić is not the mayor any more, but his network, his legacy and problems are still present. We have been preparing for long to deal with these problems. We have entered politics not to be against, but in favour, to deal with the problems and raise the standards of living in Zagreb. Also, we want to change Zagreb in order to change Croatia," Tomašević said.

The present management model in Zagreb did not emerge with Bandić nor will it end with him. It will end only if true change occurs, and we are the sole guarantor of that, he added.

"The coalition between the HDZ (Croatian Democratic Union) and Bandić has been stable for five years. Who ran Zagreb before Bandić? The HDZ. Who rules Croatia on the basis of clientelism and corruption? The HDZ. If we look at all the local 'sheriffs' in Croatia, the model of local 'sheriffs' must be dismantled. The best place to show this is the City of Zagreb, because it is a symbol," Tomašević said.

He said he did not think he was politically incorrect because he had not attended Bandić's funeral and signed the book of condolence in City Hall. He said he had extended his condolences to the family, cancelled all his campaign activities and refrained from making public statements until today.

Tomašević said that he and his associates had been working on the election programme for Zagreb for months. He said he believed that it would be the most comprehensive of all programmes in the forthcoming election, due in May, and that he would present it to the public soon.

Debt to be stabilised by public procurement monitoring

Tomašević said that the city's budget deficit had officially reached HRK 1.3 billion (€173.3m), but noted they had not yet received the report on budget execution for last year, which was very difficult because of the earthquake, the coronavirus pandemic and the socio-economic crisis.

One of the main ways to stabilise and reduce the debt is to reorganise and monitor public procurement, he said. "My message to the private sector is that there will be a level playing field for all, no more favourites," Tomašević said, expressing confidence that in this way the city would cut expenses by HRK 600 million (€80m) annually.

He announced a review of all detrimental contracts with private companies, and said he expected all heads of city departments and all management boards of city companies to offer their resignations, after which public calls for those positions would be issued.