Opposition: Coronavirus isn't Only Problem in Croatia
ZAGREB, Nov 5, 2020 - Not denying the negative impact of the corona crisis on public finance, opposition parties in the parliament on Thursday said that the epidemic of coronavirus was not the only problem for Croatia and its economy, and that the lack of reforms needs to be taken into account too.
It is true that the coronavirus epidemic could not be predicted however it has exposed all our weaknesses. It has come across an abandoned state that has neither the will nor the idea of how to implement reforms, MP Anka Mrak Taritas said during a debate in parliament over this year's budget revision.
She claimed that the country's health system is like a bottomless pit with costs continually increasing while its quality is decreasing and debts are skyrocketing.
With due respect to the effects of the pandemic and need to amend the budget, MP Damir Bakic of the We Can! party said that budget priorities are unclear: rationalisation and savings or redistribution based on social criteria. Funds for the children's and disabled persons ombudsmen are being decreased, the defence ministry is one of the rare institutions whose funds have not been reduced. The Office for Croats (Abroad) has a budget of HRK 80 million, more than an entire series of institutions involved in the fight against corruption, said Bakic.
Years of idleness now up for payment
Years of not doing anything are now catching up with us. We haven't implemented any reforms except of the state holidays, said MP Davor Dretar of the Homeland Movement (DP), adding that Croatia was dependant on support from the EU.
Unfortunately that money is being invested in the public sector and not productive activities and the question is how much of that money will end up in the pockets of local power mongers, said Dretar.
MP Hrvoje Zekanovic (HS) said that it is necessary to prepare a transparent catalogue of investments.
Government has helped citizens and entrepreneurs
The Croatian Democratic Union (HDZ) has a lot of understanding for the measures that the government has taken during the crisis and consequently the budget revision too. The government has adopted a package of support for citizens and entrepreneurs valued at HRK 8.1 billion, MP Grozdana Peric (HDZ) said.
Lawmakers have time until the end of the debate to put forward their amendments to the budget revision while the Sabor is expected to debate the amendments on Tuesday and then vote on them on Wednesday, when it is expected to adopt the 2020 budget revision.
Employers Ask for More Assistance, Say Costs are Growing in Times of Crisis
ZAGREB, Nov 5, 2020 - The Croatian Employers' Association (HUP) on Thursday warned that employers were faced with permanently rising costs, underscoring that the expenses for the implementation of coronavirus prevention measures are HRK 1,300 per employee, which is why they called for more assistance.
HUP says in a press release issued on Thursday that the employers demand some urgent measures, including lowering Value Added Tax on protective equipment and all other related essentials to reinforce anti-COVID protection.
HUP conducted a survey among its members about the costs for providing workers with protective masks and other protective equipment and to set up physical barriers and procuring disinfectants.
The survey covering employers who have 42,000 workers on their payroll shows that the average cost for the procurement of those items is about 1,300 kuna per worker.
Broken down by business type, those in the services sector were expected to invest between 1,460 and 2,050 kuna per worker, the manufacturing industry 1,000-1,100 and the ICT sector about 500 kuna, HUP says.
It underscores that the whole manufacturing industry has had to allocate HRK 230 million for the procurement of protective gear, tools and disinfectants, the retail sector HRK 300 million, while the construction sector HRK 105 million since the start of the pandemic.
HUP director-general Damir Zoric was quoted as saying that the enterprise sector could not overcome the current crisis without more compensation measures.
Zoric says that employers ask that sick leave allowances for workers due to COVID-related reasons should be covered by the Croatian Health Insurance Agency (HZZO).
Health and Wellness Tourism Opportunities Discussed at Adriatic Region Investment Forum
November 5, 2020 – At the Adriatic Region Investment Forum held yesterday in Zagreb Hotel Westin, participants discussed health and wellness tourism opportunities in Croatia and the Adriatic region.
As part of the fourth Adriatic Region Investment Forum for Health, Sports, and Tourism, held yesterday at the Westin Hotel in Zagreb, numerous potentials of Croatia and the entire Adriatic region were presented as year-round health tourism destinations.
Under the new circumstances, panelists and lecturers were filmed in a set-up studio in the hall of the Westin Hotel, and the forum could be followed online.
Projects of new tourist capacities
Of course, the topic of the coronavirus pandemic and the new circumstances that it brought in health tourism could not have been avoided. Dr. Prem Jagyasi (India-UAE), one of the world's most important experts and promoters in health tourism, gave a lecture on integrating wellness programs into the global health and medical tourism industry and was also joined by Dr. Lutz Lungwitz, President of the German Association of Medical Wellness, Emin Cakmak, founder of the Global Healthcare Travel Council from Turkey, and Dr. Jeana Havidich from the USA (Association of Croatian American Professionals).
The presentation of the prepared projects is a special feature of this Investment Forum, and several projects of new hospitals and other health and tourism capacities in Croatia and the region have been offered, as well as large health tourist resorts.
A synergy of rural and health tourism
The panel "Food as a resource in tourism" provoked an interesting discussion in which the multidisciplinary nature of the participants enabled possible new directions for the development of rural areas in Croatia. The synergy of rural and health tourism can strengthen the production, but also the settlement of rural areas, especially in the next financial period (2021-2027) in which such development will be encouraged, especially if it is set as one of the strategic developments of the Republic of Croatia.
Tugomir Majdak, State Secretary of the Ministry of Agriculture, Marcel Medak (President of the Health Tourism Association of the Croatian Chamber of Commerce), Assistant Professor Sanja Music Milanovic (HZJZ), Zeljko Ivancevic (Consultant - ECS Brussels), and John Raffetto (American Adriatic Health Ltd, Washington DC) participated in this panel.
AI in health and rural tourism
Another interesting panel entitled "Challenges of the application of artificial intelligence in health and rural tourism" is the work of experts from the company Infodom, which was the main sponsor of the Forum this year. About this interesting and instructive topic through the application of new technologies, Hrvoje Sagrak, President of the Management Board of Infodom, Ph.D. Silvana Tomić Rotim, director of the Croatian Institute for Informatics, Mislav Malenica, president of the CRO.AI association, and prof.dr.sc.Slavko Vidović, a founder of Infodom, gave their opinions.
Source: Adriatic Region Investment Forum
Sports and health infrastructure
In previous years, the topic of sports was opened at the Forum as part of what is important for the branding of Croatia, and this year again one of the panels is dedicated to this topic. The intention was to emphasize the need for sports infrastructure as a basis to be able to brand sports potential in various sports in which Croatia achieves above-average results.
Sports infrastructure, including human resources, is a strong basis for fitting the sports offer into the overall year-round tourism offer. The last, but very interesting and energetic panel entitled "Sports and health infrastructure in the branding of sustainable tourism" was attended by Ranko Ćetković, Assistant Secretary General of the COC, prof.dr.sc. Igor Jukić, Ph.D. Miljenko Bura and a pioneer of the health industry, prim.dr. Vlasta Brozičević from Terme Selce.
Terms and circumstances of investing in Croatia
The investment forum was opened by the envoy of the Prime Minister Andrej Plenković, State Secretary of the Ministry of Tourism and Sports Tonči Glavina, and introductory speeches were given by the envoy of the Mayor of Zagreb Milan Bandić, Ana Pandža Kunčević, Violetta Yanshevskaja (who spoke from Kiev), President of Global Healthcare Travel Council, and the main organizer dr.sc. Miljenko Bura.
Some of the main names on the list of speakers are dr.sc. Jakša Puljiz (Institute for Development and International Relations), Tonči Glavina, State Secretary at the Ministry of Tourism and Sports, Šime Erlić, State Secretary at the Ministry of Regional Development and EU Funds, Jurica Mateša from the Ministry of Economy and Sustainable Development, and John Gašparac (PWC Croatia), who also moderated an interesting and informative panel which discussed the stimulating conditions and circumstances of investing in Croatia.
Special emphasis was placed on the topicality of "European" money, which must contribute to faster achievement of strategic goals of the National Development Strategy of the Republic of Croatia until 2030. Invitation and messages were sent to interested investors to create preconditions for intensive investment in the next ten years.
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EC Projects Croatia GDP to Drop 9.6% this Year, Return to Pre-crisis Level in 2022
ZAGREB, Nov 5, 2020 - The European Commission projects in its Autumn 2020 Economic Forecast, published on Thursday, that Croatia's economy will contract 9.6% this year, increase 5.7% in 2021 and reach the pre-crisis level in 2022, rising by 3.7%.
"Croatia’s economy is expected to contract sharply in 2020 due to the impact of the COVID-19
pandemic. Output should partially recover in 2021, thanks to private consumption and investment, but is not expected to reach its pre-crisis level by 2022," the Commission says.
In the Summer 2020 Economic Forecast, published on July 7, the Commission projected that Croatia's economy would contract by 10.8% this year and increase by 7.5% in 2021.
In the Spring 2020 Economic Forecast, the first after the outbreak of the coronavirus pandemic, published on May 6, the Commission projected that Croatia's GDP would contract by 9.1% this year and increase by 7.5% in 2021.
"Uncertainty and lingering travel restrictions weigh on exports, including tourism. The labour market is expected to recover slowly over the forecast period. Following a sharp deterioration, public finances should improve in 2021 and 2022," the Commission says in the latest forecast, adding that the "current account, however, is expected to remain in deficit only in 2020 and 2021."
"Potential introduction of stricter COVID-19 suppression measures presents a negative risk to this scenario in the short term," the Commission says but adds that "investment supported by the Resilience and Recovery Facility constitutes an upside risk, as it is not included in this forecast due to scarce available information."
"The labour market responded quickly to the disruption earlier in the year with unemployment on the rise since April," the Commission says and adds that "the seasonal rise in employment due to the tourist season was less pronounced than in recent years. Labour market conditions are expected to deteriorate further in the second part of 2020, as government wage support measures are largely set to expire."
Low inflation, 6.5% budget deficit, 86.6% public debt-to-GDP ratio
The Commission says the "recovery should be slow as neither employment nor unemployment are likely to reach their 2019 levels by the end of 2022. Nominal wage growth should be subdued in 2021 and 2022, which should help offset the negative impact of the sizeable GDP drop in 2020 on unit labour costs."
"Energy prices should drive consumer prices in the short term as core inflation is expected to stay low stable. The HICP inflation rate is forecast to drop to 0.1% in 2020 and pick up to 1.5% by 2022," the Commission says.
It notes that public finances bear the brunt of this year's crisis. "In 2020, the general government balance is expected to plummet to -6.5% of GDP because of the strong economic contraction and measures aimed at preserving employment and businesses. The most significant among these measures (which collectively add up to 3% of GDP) concerns subsidies for employee wages."
"Tax revenues should contract strongly as household and tourist consumption decrease, particularly affecting VAT revenues. The drop in contributions and personal income tax revenue should be less pronounced as government measures have protected employment and wages. Wage subsidies and the public wage bill should drive strong expenditure growth while previously agreed collective agreements are implemented. Interest spending should decrease in spite of substantial new borrowing as maturing debt is refinanced at very low rates," the Commission says.
"In 2021-2022, tax revenue is expected to recover strongly on account of household consumption, employment and wages. The rebound should be relatively sharp for contributions and VAT and somewhat softer for income taxes, as personal income tax rate cuts take effect in 2021 and companies carry forward their losses," said the Commission.
"The take-up of EU funds should boost revenues in 2021 before moderating in 2022. Expenditure growth should subside in 2021, after a strong 2020, and pick up in 2022. Additional savings on debt servicing are expected."
The Commission says the deficit is expected to drop from 6.5% of GDP this year to 2.8% in 2021 and deteriorate to 3.2% in 2022, "based on a no-policy-change assumption."
"The debt ratio is set to spike in 2020 due to both the large drop in GDP and the accumulation of new debt to finance the deficit. After reaching 86.6% in 2020, it should resume its pre-crisis downward path" to 82.4% in 2021 and 81.7% in 2022.
The Commission says the forecast for the EU is subject to extremely high risk and uncertainty due to the epidemiological situation.
The Autumn 2020 Economic Forecast projects that the euro area economy will contract by 7.8% in 2020 before growing 4.2% in 2021 and 3% in 2022. The forecast projects that the EU economy will contract by 7.4% in 2020 before recovering with growth of 4.1% in 2021 and 3% in 2022.
The largest drop this year is expected in Spain (-12.4%), followed by Italy (-9.9%), and the smallest in Lithuania (-2.2%) and Ireland (-2.3%).
Ministry of Agriculture Gives Green Light: Vrgorac Farmers to Receive 300,000 HRK Next Year
November 5, 2020 - Great news for Vrgorac farmers, who will receive around 300,000 kuna next year as support from the City.
Slobodna Dalmacija reports that by creating a three-year comprehensive assistance program, defined through seven different measures, the city administration in Vrgorac decided to help its farmers.
After the City Council's support, the program received the necessary approval from the Ministry of Agriculture, so the first public calls can be expected in early 2021.
"In the area of the City of Vrgorac, agricultural production is extremely developed, and the most important products are strawberries, prosciutto, wine, peaches, nectarines, grapes, table grapes, vegetables, and honey. We are among the leading areas in Croatia in wines, prosciutto, strawberries, and table grapes. More than 450 family farms are active," says Mayor Ante Pranic, adding that the program contains de minimis aid, which will be granted in accordance with EU rules on state aid to agriculture and rural development.
The program contains seven measures: support for the preservation and expansion of livestock; support for the preservation and expansion of the bee stock; support for the purchase of equipment, tools, and machines for the development of agricultural production; for the renovation and construction of greenhouses and hothouses; for the introduction of ecologically advanced methods in agricultural production; support for investment in the processing of agricultural products, and, as a seventh measure, support for investment in vegetable production, planting strawberries and the establishment of new perennial plantations. These grants will be co-financed by the City from 2021-2023.
Last year, the City defined its own quality label for agricultural products, "Vrgorac Quality," to increase the mutual knowledge and value of these products by creating a recognizable brand.
This program will be available only to farmers who are in the quality label system. In the first year, 300,000 kuna in aid is predicted," Pranic emphasized.
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Beros: High Number of New Cases Recorded Today, but Numbers Not Doubling
ZAGREB, Nov 5, 2020 - Croatia has registered 2,848 new cases of the coronavirus infection in the last 24 hours, but a weekly analysis shows that the number of new cases is not doubling, and the number of active cases has dropped by 1,051 in the last four days, Health Minister Vili Beros said on Thursday.
The increase this week is 22%, Beros told reporters after a government session.
The number of patients in hospitals is on the rise, as is the number of fatalities, which is expected as those numbers follow the increase in new cases.
Beros said he would talk with representatives of doctors' associations which yesterday called for the introduction of stricter measures against coronavirus.
I fully understand their demand, but we must achieve a balance between maintaining the economy and doing what is most important to preserve health, he said.
He said that some countries had introduced a complete lockdown yet they had not seen a decrease in the number of new infections.
Beros thanked primary care doctors for becoming involved in tracing the contacts of persons infected with coronavirus.
Commenting on the opposition's demand for his resignation, Beros said that he was doing everything he could to fight the epidemic, adding that in the end everything he has done will be analysed.
First Gay Marriage Held in Kutjevo, Heart of Slavonia
November 5, 2020 - The first gay marriage held in Kutjevo was between locals from the area of Čaglin Municipality.
As the city clocks struck midday, two men, locals from the area of Čaglin Municipality said goodbyes to their single selves and embraced their future together as husband and, well, husband. Their affirmations were heard in front of the registrar of Kutjevo and thus, officially, they became partners in a same-sex marriage. It was the first gay marriage to take place in Požega-Slavonia County.
Portal Požega.eu reported that the intimate marriage ceremony of the 47-year-old and his 32-year-old partner took place over recent days, far from the gaze of the public. The ceremony was a quiet and private affair. In rural areas like Požega-Slavonia County, such marriages are not always met with widespread approval. The city registrar reported that this was the first gay marriage they had been asked to witness, despite having been in the job for many years.
Though this may be the first gay marriage to take place in Požega-Slavonia County, hundreds of same-sex marriages have concluded in Croatia since 2014, when the Life Partnership Act came into force. In the time since then, male same-sex marriages in Croatia have been slightly more common than female ones. The largest number of such marriages took place in Zagreb. From published figures outside of Croatia, where same-sex marriages have been more commonplace over a longer period of time, same-sex marriages are frequently more stable with fewer ending in divorce compared to traditional marriages.
Life partnerships in Croatia
The first same-sex marriage in Croatia was concluded in August 2014, and despite the great interest of the public, the two male partners managed to keep the wedding a secret. Just like the couple from Kutjevo. The couple married in the first of the ceremonies in Croatia only went public with details just last year.
"I was very nervous in those days, it was a historic thing after all. If we could not have done it in Croatia, we would certainly move to a country where it was possible," one of the spouses, Ivan Zidarević, told 24sata, adding that society has changed for the better with the change in the law.
Zidarević said he believes that Croats are tolerant of gay couples. Their marriage ceremony in 2014 was witnessed by two registrars, godparents, several friends, but also the then-Minister of State Administration, Arsen Bauk, initiator of the Croatian Life Partnership Act. Bauk gave the couple a symbolic gift – a pair of ties.
According to the Law on Life Partnership of Persons of the Same-Sex, a life partnership is a family community of two same-sex persons concluded by the competent authority (a registrar). The process of concluding a life partnership in Croatia is very simple. It is necessary to report to the registrar, who then checks whether the preconditions for concluding a life partnership have been met and takes a statement on the choice of surname. After that, the time and place of the ceremony are agreed, which, along with the registrar and partners, takes place in the presence of the godparents.
Happiness despite condemnations
At the beginning of this year, the Constitutional Court decided that same-sex couples in Croatia have the right to be foster parents under the same conditions as everyone else. However, the current constitutional definition of marriage in Croatia does not include same-sex families. A change to legally recognise married same-sex partners in this way was this year demanded by the participants of Zagreb Pride, held on September 19, 2020. Pride organisers said that without a change in the recognition, state authorities are still restricting the rights of gay people and making them second class citizens.
In many EU countries, and more so in Zagreb here in Croatia, same-sex marriages are acceptable and almost every day. But, in rural areas such as Požega-Slavonia County, Kutjevo, and other places like these, such marriages are still of great interest and not universally embraced.
Although they live in an environment where they might encounter condemning views, the happy couple from Požega-Slavonia County decided to legalize their relationship. In comments on Facebook, people wished them luck, and one commenter jokingly wrote: "If they didn't make a toast with Graševina, they didn't do anything. Congratulations anyway!"
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Croatia Logs Record 2,848 New Coronavirus Cases, 29 Dead
ZAGREB, Nov 5, 2020 - In the past 24 hours, Croatia registered a record 2,848 new coronavirus cases and 29 deaths, the national COVID response team said on Thursday.
The number of active cases is 15,356, including 1,278 hospitalised patients, of whom 122 are on ventilators.
Since February 25, when the new virus was first registered in Croatia, 59,415 persons have been infected, of whom 683 have died and 43,376 recovered, including 2,306 in the past 24 hours.
Currently, 31,677 persons are self-isolating.
To date, 532,288 persons have been tested, including 8,906 in the past 24 hours.
Bozinovic on COVID-19 in Croatia: Cases Rising Due to Socializing on Weekends
November 5, 2020 - Deputy Prime Minister and Interior Minister Davor Bozinovic with the latest on COVID-19 in Croatia.
Slobodna DalmacijaSlobodna Dalmacija reports that Davor Bozinovic said on Thursday that the number of newly infected had risen every week on Wednesday, which could be attributed to weekend behavior, and called for private gatherings to be reduced.
"Weekend days are approaching when people usually relax in the company of relatives and friends. Unfortunately, the data show that the number of newly infected grows every week from Wednesday onwards, which can be partly attributed to weekend behavior," Bozinovic said at a government session.
He warned that it is especially important in those days to reduce, as much as possible, social activities, private celebrations, gatherings from which the infection most often spreads within the household and family, and then in the workplace.
Since the last session of the Government, a decision has been made to extend the existing rule of crossing the Croatian border until November 19. Decisions were also made on necessary epidemiological measures for Brod-Posavina, Zadar, Karlovac counties, and the City of Zagreb, he reminded.
On Wednesday, given the complex epidemiological situation in Varazdin County, and at the county headquarters' suggestion, they intensified measures related to limiting public gatherings to 30 people, religious gatherings, cultural and sports activities to 50 and limiting the work of restaurants until 10 pm.
Inspectors of the Directorate of Civil Protection, in cooperation with inspectors of the State Inspectorate and police officers, inspected 23,221 business entities, catering facilities, and public gatherings, Bozinovic reported.
They issued 1,137 warnings and 25 misdemeanor warrants in the total amount of HRK 630,000 for exceeding midnight, not pointing out the notice of observance of hygienic measures and not maintaining physical distance, and wearing face masks.
Members of the State Civil Protection Intervention Unit continued to equip health and other facilities with containers and tents.
Since the last session of the Government, 1.12 million items of protective equipment have been issued, which is about 58 tons, of which 26 tons were delivered to the Arena sports hall.
There are about 13.6 million different items or 1350 tons of protective equipment in the Directorate of Civil Protection in Jastrebarsko and regional warehouses. Bozinovic emphasized that the protective equipment and means issued to the users are being promptly renewed.
The directorate also mobilized a home for the elderly in Novi Marof as an outpatient facility for the treatment of the sick in the Varazdin County, which currently houses users of the Home for the Elderly and the Infirm Zavojna from Varazdin.
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PHOTOS: World's Largest Traditional Sail Ship Ready for Luxury Sailing
November 5, 2020 - Made in Split, the incredibly luxurious Golden Horizon is the largest traditional sail ship in the world. Take a look at her before her maiden voyage in spring 2021
Croatia is no stranger to the biggest and most luxurious yachts in the world. But, none of them look like the Golden Horizon. Built in Split to the template of a square-rigged sailing vessel called France II from the year 1913, she is the largest traditional sail ship in the world.
British cruise company Tradewind Voyages is offering places on the first voyage of the ship. The first cruise the world's largest traditional sail ship will undertake will see her sail around the coast and islands of Scotland and England. For the moment, the Golden Horizon is still moored in Split, where she was built.
The ship has 140 cabins and all face outwards, offering views of the sea. The refined but casual interior of the ship's shared spaces are intended to offer all the luxury of a modern cruise ship, but with the romantic ambiance of a traditional sailing vessel.
The largest traditional sail ship in the world is 162 meters long and 18.5 meters wide. It has five steel masts, 35 sails and can accommodate 300 passengers and 150 crew members. It holds a two-floored restaurant that can seat all passengers simultaneously and a glass-bottomed swimming pool.
The design of the ship might be regarded as retro, but its considered construction was specifically undertaken in order to facilitate sustainable holidaymaking. The ship will use its sails and sea currents for around 70% of its propulsion throughout any season.
Accommodation on board varies in size, standard and cost. The premium offer is four apartments of 45 square metres, each with two bathrooms, two showers and a jacuzzi. 34 smaller rooms have balconies and jacuzzis, while the other passenger rooms with windows are located on the lower decks.
The first passengers are expected to board for the debut two-week cruise on 1 May 2021. After its maiden voyage, it will spend the rest of the season touring Iceland, England and Ireland, the Arctic, the Baltic Sea, Norway, Denmark, Spain and Portugal, with each cruise usually lasting seven or fourteen days.
All images © Tradewind Voyages
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