Illegal Cigarette Market Still Booming, How Does Croatia Stand?
July the 2nd, 2022 - The illegal cigarette market seems to remain booming regardless of economic situations and of the current issue of ongoing inflation. This is a large problem faced by all EU member states, but just how does Croatia stand when it comes to this apparently eternal question?
As Poslovni Dnevnik writes, Philip Morris International Inc. (PMI) is calling on European Union regulators and legislators to pay closer attention to the millions of adult smokers who are turning to the illegal cigarette market instead of switching to alternative products with reduced harm. KPMG's annual study on illegal cigarette consumption in 2021, commissioned by PMI, reveals that last year, total illegal cigarette consumption increased by an estimated 3.9 percent, or 1.3 billion cigarettes, bringing the total to 35.5 billion.
At the same time, the study estimates that the total consumption of cigarettes actually did decrease across the EU decreased in the same period.
According to the report, the increase in illegal consumption across the EU was largely driven by an estimated 33 percent increase in counterfeit cigarette consumption in France, which rose to 8 billion cigarettes last year. Taken as a whole, France remains the largest market for illegal cigarettes in the whole of the EU, with a total of 15.1 billion illegal cigarettes smoked there in 2021, accounting for 29 percent of total cigarette consumption in that country and representing significant growth compared to 13 percent back in 2017.
“The findings of this report should be a major wake-up call. It's very alarming that even in countries that maintain high excise taxes on cigarettes, such as France, instead of reducing the prevalence of smoking, we're seeing an increase in the consumption of counterfeit cigarettes. In fact, in France over the past five years, while the average price of a pack of legal cigarettes has more than halved, the number of adult smokers has only slightly decreased. But there's still hope.
Other EU countries have adopted differentiated policies on alternatives to cigarette smoking that support a continuous decline in cigarette consumption while simultaneously reducing trade on the illegal cigarette market, and they're already showing some rather encouraging results. The European Commission in Brussels should make this the basis for the future,” said Gregoire Verdeaux, senior vice president of external affairs at PMI.
KPMG's annual report focuses on the consumption and flow of illegal cigarettes across 30 European countries — the 27 EU member states plus the United Kingdom of Great Britain and Northern Ireland, Norway and Switzerland. The report also states that the governments of EU countries would have collected an additional 10.4 billion euros in taxes if these cigarettes had been purchased legally and not on the illegal cigarette market.
The KPMG report also shows that 16 out of 27, or roughly half of the EU member states, experienced a decline or remained stable terms of consumption from the illegal cigarette market back in 2021. Among these countries, Poland saw the largest decline in illegal quantities, with a decrease of 3.7 percentage points.
Consumption from the illegal cigarette market was the main driver of illegal trade across the EU as a bloc, and it's been estimated that the consumption of these illegal cigarettes reached a total of 12.3 billion, which is 34.6 percent of the total illegal consumption. Due to travel and border crossing restrictions during the coronavirus pandemic, organised criminal groups focused on the production of illegal cigarettes within the borders of the EU itself. Interviews conducted by KPMG with seven different law enforcement authorities revealed that illegal production is increasingly moving to Western Europe to be closer to higher-priced end markets such as France and the United Kingdom.
The continued growth of the black market for counterfeit and contraband cigarettes seriously undermines legitimate efforts to reduce and eventually eradicate cigarette smoking.
Here on the Croatian market back in 2021, the total consumption of cigarettes remained stable and amounted to 5.8 billion of them. Six percent of these were from the illegal cigarette market, which is a decrease of 0.65 percentage points when compared to 2020. The largest number of illegal cigarettes circulating here in Croatia are the so-called Illicit Whites, which are cigarettes that don't have any country of origin marked on them. The Croatian state lost an enormous 54 million euros in 2021 due to the illegal cigarette market.
For more, make sure to check out our dedicated lifestyle section.
New Split Public Buses Now Most Modern in Croatia's Entire Region
July the 2nd, 2022 - Part of the new set of Split public buses are now out on the roads of Croatia's second largest city, and they're the most modern not only in this country, but in Croatia's entire immediate region.
As Morski writes, 24 out of a total of 47 new Split public buses procured for the Split-based company Promet d.o.o. were recently presented, all of which were co-financed by the European Union (EU) from the Cohesion Fund.
This first set is the delivery of the first of three groups of new Split public buses for the aforementioned Promet transport company, while the rest will arrive during the height of the summer, meaning in the months of July and August, and their total value stands at around 100 million kuna.
''We're going to get the most modern fleet of buses not only here in the Republic of Croatia but also beyond the country's borders. During the month of July, we will implement the new e-ticketing system, the elements of which are starting to be installed in Split public buses. As such, we can say that our passengers really are going to receive the most modern service in terms of technicality and technology,'' said the director of Split Transport, Miroslav Delic.
The initial presentation of the new Split public buses took place at the Poljud statium on Thursday the 30th of June. As of yesterday (Friday the 1st of July) eight brand new solo city low-floor buses (MAN Lions City), eight solo city semi-low-floor buses (IVECO Crossway LE) and eight suburban buses (MERCEDES Intouro) began transporting passengers along the roads of the City of Split.
A contingent of articulated buses and minibuses is also expected during the months of July and August, which will add to Split's new and ultra-modern public transport offer which will be appreciated by both locals and visitors alike.
For more, make sure to check out our dedicated lifestyle section.
Three Scams in Croatia You Should Be Careful Of This Summer
July 1, 2022 - While Croatia keeps its excellent reputation as a tourist destination for its safety among many other reasons, it's better to be aware of these classic scams in Croatia that could otherwise cause some unpleasant moments.
This summer is about enjoying and having fun after having waited for so many months for your long-awaited days in Croatia. We would like to be able to tell you that there is nothing to fear ahead of your holidays, but it would be irresponsible not to warn you about some unfortunate practices that, if you are not careful, could cause some unpleasant moments. Croatia is one of the safest countries in Europe, and that is not an overstatement. The overall feeling of tourists in Croatia is that of tranquility and security, and year after year this fact continues to be confirmed.
Therefore, if we talk about some things that you should be careful with, it is not something that happens so often and they are usually very specific cases. Either way, it's better to be safe than sorry. We review some scams in Croatia that you should avoid.
Ghost accommodation
In recent years it has become more frequent to read on social networks the unfortunate experiences of tourists who, upon arriving in Croatia, realized that their accommodation did not exist at all. Sites like Booking or Airbnb present a large number and variety of verified accommodations, but it is likely that at some point you have been tempted by an accommodation offer on Facebook that displayed dreamy pictures of the facilities and the views, and that was also rented at a fairly cheap price. And just like on any trusted website for renting accommodation, it is normal to make an advance payment to make your reservation.
It has happened and continues to happen, that when you arrive at the specified address, there is not a single building that resembles what you saw in the photos. Therefore, we recommend that you avoid making reservations on portals or platforms with few guarantees, or in any case, verify the reliability of these accommodations in advance.
Last-minute cancellations
Unfortunately, ghost accommodations are not the only thing to worry about when staying in Croatia. There are some accommodations that, although in this case they are real, usually cancel your reservations just a few weeks or even days before your arrival. Why? The reasons may vary, but in general, most tend to raise their prices higher at the last minute compared to what they were when you made your reservation, leaving you with no choice but to pay the difference so as not to lose your accommodation.
This is unlikely to happen with reputable hosts, and it is very likely that these practices have been in place for a long time. Therefore, it is a good idea to carefully read the reviews of those properties, or to make sure that they have visible reviews in the first place. Likewise, we recommend not only following the most positive reviews but also reading the negative or more critical comments.
Street taxis
During the summer season, many of the most common complaints are from tourists who were charged extortionate rates by some taxi drivers. Most of these rates are applied to passengers who need a transfer to or from the airport or those who leave bars or nightclubs at dawn. Usually, these are taxi drivers who take advantage of a passenger's urgency to not miss their flight or to arrive at their accommodation as soon as possible.
It's been a while since companies like Uber entered the market to revolutionize the taxi industry. If there is one piece of advice that I give very often, it is that it is better to use a taxi app than to ask for one on the street. In my opinion, it is better to have detailed information about the driver, affiliated with a company that you can complain to if necessary, and most importantly, know the fare range in advance.
For more on travel in Croatia, follow TCN's dedicated page.
Visible Steps Forward Made for Slavonia, PM Says
ZAGREB, 1 July 2022 - Prime Minister Andrej Plenković said in Osijek on Friday that visible steps forward had been made for the Slavonia region in the past six years by implementing Project Slavonia thanks to the synergy between the national and local levels.
The project is aimed at helping the region's revitalization, demographic recovery, and economic growth by investing in infrastructure, agriculture and education, he told the press after meeting with Osijek Mayor Ivan Radić and Osijek-Baranja County head Ivan Anušić.
Plenković said he was pleased that HRK 1 billion worth of projects were being carried out in Osijek in the last year.
During our term, investments worth HRK 3 billion have been contracted in the city and over HRK 7 billion in the county, he added.
Regional Development and EU Funds Minister Nataša Tramišak said the results were visible in the economic, social, municipal and road infrastructure after six years of investments co-funded by the EU.
She said plans for regions in industrial transition had been approved in operational programmes until 2027. We are looking forward to the new opportunities, notably in the economic sense, she added.
Mayor Radić thanked the government for investing in Osijek and said the bulk of the current investments in the city, over HRK 1 billion, was financed by the EU. For the first time in ten years, we have more people moving in than out, which interests us the most, he added.
Prefect Anušić said this region was making progress in demography, the return of emigrants and tourism development thanks to the cooperation and the promotion of positive trends.
For more, check out our politics section.
Milanović Responds to Criticism Over Stand at NATO Summit
ZAGREB, 1 July 2022 - President Zoran Milanović asked on Friday "what should I have done" at the NATO summit following criticism by the right-wing opposition that he was not harsh enough and that he softened his rhetoric on the accession of Finland and Sweden, which earlier he made conditional on Bosnia's election law.
At the Madrid summit this week, NATO invited Finland and Sweden to join. Milanović has long considered that should be made conditional on changes to Bosnia and Herzegovina's election law, although he says that in principle, he has nothing against the accession of those two countries.
Finland and Sweden will sign NATO accession protocols on Tuesday, which have to be ratified by all member states.
Yesterday, MP Marija Selak Raspudić (Bridge) said Milanović had played with the feelings and rights of Croats in BiH in a way and that "someone could ask him, where are you now, tough guy?"
Speaking to the press today, Milanović referred to her question at least a dozen times.
"What should I have done?... What should I have said? Which stand would have been the right one to satisfy Selak Raspudić?" he said when asked if he should have been more vehement.
"What do you mean, more vehement? To sully Finland and Sweden? I never do that."
Milanović reiterated that now all the responsibility on their NATO accession "is up to Croatian members of parliament."
Asked if he would, as he had said, "persecute as sinful souls" those MPs who vote for the accession, he said his message was first and foremost to Prime Minister Andrej Plenković because he missed the chance in Brussels in 23 June to help BiH win EU candidate status like Ukraine and Moldova did.
"Ukraine can't get candidate status overnight and BiH be left on the side," he said, adding that many in eastern Europe thought so too, but were using the excuse "well, you know what the situation is."
Milanović said a number of European leaders thought that Plenković failed to do that for BiH because "he got scared." "Sometimes you have to stand firmly behind some things. And then the paradox happens that Slovenian and Hungarian Prime Ministers Robert Golob and Viktor Orban do that instead."
Milanović reiterated that he "would do everything for the election law on BiH to be changed. But my possibilities and powers stop at one point and I can't prevent someone from signing that accession agreement on Croatia's behalf."
"That's active and topical until October, until election day in BiH, because the election law can be changed today, tomorrow, but if it's changed in November, it means nothing to us."
He went on to say that the NATO accession of Finland and Sweden was not a done deal and that the decision made in Madrid to invite them to join "is a general political stand" adopted after Turkey scrapped its blockade.
"You think the story was over with the signing of a memorandum by the three sides? The very next day they requested the extradition of 33 persons," he said about the memorandum Turkey signed with Finland and Sweden and its demand that they extradite 33 members of the PKK and FETO movement it considers terrorists.
Milanović went on to say that Europe and not the United States would deal with the issue of changes to BiH's election law. He said Croats in BiH "can be saved only by a miracle" and accused the Croatian government of "sadistic obstruction."
"That's the responsibility of Plenković and several of his vassals," he added and again criticised Foreign Minister Gordan Grlić Radman for not attending the NATO summit.
For more, check out our politics section.
Minister: Final Works Going On as Planned, Pelješac Bridge to Open on 26 July
ZAGREB, 1 July 2022 - All is going as planned concerning Pelješac Bridge and access roads, and the inauguration of the bridge is expected on 26 July, Transport and Infrastructure Minister Oleg Butković said on Friday.
"All is going on well," said Butković after a meeting of the coordinating team in charge of the "the Road Connectivity of South Dalmatia" project.
He admitted that the current spell of the heatwave is making work more difficult.
Nevertheless, the operating permit is due to be issued on 18 July, he said, without revealing the details of the programme for the inauguration ceremony on 26 July.
or more, check out our politics section.
FINA World Championships: Croatia to Fight for Bronze Medal against Greece
July 1, 2022 - Spain beat Croatia 10:5 in the FINA World Championships semifinal match on Friday. Croatia and Greece will play in the match for 3rd place.
Croatia met Spain in the FINA World Championship semifinals in Hungary on Friday night. Italy beat Greece in the first semifinal match 11-10 and thus booked their spot in the final for the second time in a row.
Croatia had the chance to book their fourth World Championship final. After the great victory against Serbia, Croatia faced Spain, which boasts the former best water polo player in the world, Felipe Perrone.
Good support was expected from the stands from Zagreb, Osijek, Slavonski Brod, Split, and Rijeka.
The last match between these two national teams was one year ago at the Olympic Games in Tokyo, where Spain won 8:4. Interestingly, Croatia played against Spain three times at the World Championships, and all three times Spain celebrated.
Match Report
1st quarter
Spain won the sprint and first attack of the match and scored for 1:0. Zuvela equalized for Croatia in the next attack for 1:1. Spain scored for 2:1 with less than 4 minutes to go in the first quarter. Bukic equalized for 2:2 in the next attack. Croatia took the lead with 1:44 left - Kharkov scored for 3:2! Spain equalized with 17 seconds on the clock. The first quarter ended 3:3.
2nd quarter
Croatia won the first sprint but was unable to score in the first attack. Spain retook the lead for 4:3 with 6:04 left. Spain went ahead 5:3 with just over 5 minutes to go. Croatia was not able to score in this quarter and allowed Spain two goals. It was 5:3 for Spain going into halftime.
3rd quarter
Spain's keeper was brilliant to keep them ahead and denied Croatia several opportunities in the 3rd quarter. Spain scored their first goal of the third quarter for 6:3 with 3:28 on the clock. Bukic finally scored for 6:4 Croatian with just over 3 minutes to go. Spain scored for 7:4 with 1:45 on the clock. Basic scored or 7:5 Croatia with 30 seconds on the clock.
4th quarter
Spain won the sprint in the final quarter. Spain scored for 8:5 with 7:37 to go in the match. Spain scored for 9:5 with 3:39 left in the match and then 10:5 with under 3 minutes left. The match ended 10:5 for Spain.
Croatia and Greece will play for 3rd place.
For more, make sure to check out our dedicated sports section.
President Talks PM, Food Prices, Abortion
ZAGREB, 1 July 2022 - President Zoran Milanović said on Friday he was sorry he did not meet Prime Minister Andrej Plenković at today's conference on the occasion of Croatian Chamber of Trades and Crafts Day, saying Plenković decided against attending when he found out that Milanović would.
Milanović said he was not competing with Plenković. "For me personally, he is zero, but he is the president of the HDZ (party), the prime minister, he won the election, he is responsible for the rampant corruption, deserving for less political radicalism in life, which he succeeded in suppressing in the HDZ because he is a communist."
Food prices, abortion
Speaking of high food prices, Milanović said they were a consequence of the war in Ukraine and that the government could do nothing about it. As for the vouchers announced by the government, he said it was copying Austria.
The president said it was not realistic for abortion rights to be entered into the Constitution, as demanded by the Social Democratic Party and the Green-Left Bloc.
When it comes to abortion, he said "we've had this issue solved in an appropriate way almost 50 years now," better than the Americans who, he said, have been waging a cultural war since 1973.
For more, check out our politics section.
EC: Croatia to Get Less Funding from RRF Because of Speedy Recovery
ZAGREB, 1 July 2022 - Because of its speedy recovery from the consequences of the COVID-19 crisis, Croatia will receive less funding from the Recovery and Resilience Facility (RRF), based on an updated key for the award of grants to EU member states which the European Commission published on Thursday.
The Commission published a table according to which Croatia would be granted slightly over €5.5 billion from the RRF, less than the previously forecast €6.3 billion.
The key for the award of 70 percent of the national allocation was based on the population size, GDP per capita compared to the EU average and the average unemployment rate in 2015-2019 compared to the EU average. The remaining 30 percent took into account the real GDP decline during the COVID-19 crisis in 2020 and the economic activity in 2020-2021.
The new key takes into account the difference between the GDP growth estimate from the Autumn Economic Forecast 2020 and the updated data based on the real GDP in 2020-2021.
As a result, the countries that have recovered faster than expected in the Autumn Economic Forecast 2020 will get slightly less funding, and those with a slower recovery slightly more.
According to the provisional data for Croatia published by Eurostat, the Croatian economy contracted by 8.1 percent in 2020 but quickly rebounded by 10.2 percent in 2021, surpassing the pre-COVID-19 crisis level already last year, while the Commission expected this to happen in 2022.
In the Autumn Economic Forecast of 5 November 2020, which served as the basis for the calculation of national allocations, the Commission estimated that the Croatian economy would decline by 9.6 percent in 2020 and grow by 5.7 percent in 2021, and by 3.7 percent in 2022.
For more, check out our politics section.
Ukrainian Films to Be Screened in Croatian Independent Cinemas in July
ZAGREB, 1 July 2022 - At the beginning of July, the Croatian Independent Cinemas Network and Croatian Audiovisual Centre (HAVC) will start screening Ukrainian films in independent cinemas throughout Croatia, where visitors will have the opportunity to see three Ukrainian classics and three contemporary productions.
The program will be held until September in more than 20 cinemas. The screenings have been organised in cooperation with the Oleksandr Dovzhenko National Centre.
The three Ukrainian classics that will be shown to the Croatian audience are: "Man with a Movie Camera" from 1929, "Operation Dowry" from 1961 and "Shadows of Forgotten Ancestors" from 1965. HAVC noted that these masterpieces of Ukrainian cinema are excellent starting points to get to know Ukrainian film culture.
A special partner of the Film Borscht programme is the Ukrainian Oleksandr Dovzhenko National Centre, and the programme also has a humanitarian character with a fundraising campaign for the centre.
The programme begins in July and in some cinemas it will run through August and September.
For more, check out our lifestyle section.
