Croatian Secret Shoppers Monitoring Dual Pricing Rollout in Stores
July the 16th, 2022 - Croatian secret shoppers chosen by the Economy Ministry are out on the field monitoring the rollout of dual pricing in the country's stores as Eurozone accession rapidly approaches.
As Poslovni Dnevnik writes, after the EU Council formalised the decision to introduce the euro as the official currency in the Republic of Croatia a mere four days ago, the Economy Ministry announced a group of Croatian secret shoppers who will monitor the situation for the sake of consumer protection during the transition to the new currency.
The competition held back in the spring selected six candidates from different parts of Croatia, who, in mid-August will start monitoring precisely how the prices of goods and services are recalculated out in the field during the mandatory dual pricing rule which is set to come into force in September 2022. Some stores, including large chains like Konzum, have already begun displaying their prices in this way.
The selected Croatian secret shoppers are from the Medjimurje Consumer Society and the Consumer Protection Development Organisation from Selnica in Medjimurje County, the Consumer Education and Information Centre from Bilje in Osijek-Baranja County, the Croatian Consumer Protection Association from Zagreb, the Consumer Rights Protection Association from Split, and the Association Consumer Centre from Rijeka.
How will it work?
Over the next thirty days, these Croatian secret shoppers will conclude a contract in which they will receive 112 to 120,000 kuna for their mystery shopping activities, and they will monitor and obtain consumer information until the end of next year, by which time the obligation of dual price reporting will be in full force and will have been for some time.
The plan is for the engaged associations to monitor price movements and the correctness of price recalculation and rounding on a monthly basis by reviewing 50 to 60 different goods and services, at a minimum of 10 points of sale and five points where various services are provided in exchange for money. The associations that have been selected as Croatian secret shoppers have the obligation to publish the results they've obtained regularly, more precisely by the 15th of each month, on their websites.
The plan is also for the situation on the ground to be checked by five people who will be hired by selected associations, and the tours should include, in addition to retailers, fuel stations, butchers, bakeries, as well as service providers such as hair salons and catering and hospitality facilities. For two hours, associations must also provide open telephone lines where consumers will be able to get information from them about those facilities who are wrongly trying to take advantage of the situation and make a profit.
Croatian secret shoppers will soon be placed in banks, as well...
It won't only be stores and other facilities under the radars of Croatian secret shoppers, banks won't be immune either. The Croatian National Bank noted that it will hire secret shoppers, or perhaps in this case it's better to call them secret clients, in order to monitor what practices are being carried out at bank counters, as well as at other credit intermediaries under its authority.
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Medulin and Pula to Host 2024 World Athletics Cross Country Championships
July 15, 2022 - Great promotion for Istria - Medulin and Pula will host the 2024 World Athletics Cross Country Championships!
Tokyo will host the World Athletics Championships in 2025, the members of the World Athletics Executive Committee decided at a meeting in Eugene, where the 18th edition of the World Championships will be held until July 24, reports Gol.hr.
At the same meeting, it was decided that Medulin and Pula will host the 2024 World Athletics Cross Country Championships, and two years later, that competition will be held in the American city of Tallahassee, Florida.
"It is a great honor for Croatia and the Croatian Athletics Federation to host the 2024 World Athletic Cross Country Championships. We are grateful to World Athletics for the trust shown, and now it is up to us to present Croatia, Istria, Medulin, and Pula, as well as the World Athletics Cross Country Championships in 18 months in the best light," said the president of the Croatian Athletics Federation, Ivan Veštić, and added:
"The best Europeans ran in Medulin in 2002, and in 2024 the world's best runners will compete on the most beautiful cross-country course in the world."
Tokyo beat Nairobi, Katowice, and Singapore in the race to host the Athletics World Championships.
"In the strong competition of candidates to host the 2025 World Athletics Championships, Tokyo has presented an exceptional candidacy. I hope that bringing the world's athletics elite to Tokyo again will be a shining example for Japan, which will celebrate 100 years since the founding of the National Association of Athletics Federations in 2025," said the president of World Athletics Sebastian Coe.
Tokyo will host the World Championships for the second time in history. The first time it was host in 1991 when the third edition of the World Athletics Championships was held, while 34 years later, the 20th edition will be held.
Next year, Budapest will host the 19th edition of the World Athletics Championships.
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Slovenia Starts Removing Wire Fence on Border with Croatia
ZAGREB, 15 July 2022 - A small unit of the Slovenian army on Friday started removing the anti-migrant wire fence on the Slovenian side of the border with Croatia near the small border crossing Vivodina-Krmačina and the town of Metlika.
Slovenia's Interior Minister Tatjana Bobnar attended the removal of the fence, saying that it had a great symbolic meaning.
Bobnar said that the removal of anti-migrant barriers, which Prime Minister Robert Golob described as inhumane and as not serving the purpose for which they were set up, is a sign of a change in the new government's policy towards migrants and refugees, as it has committed to the highest respect for human rights and speeding up the processing of asylum requests.
She added that around 51 kilometres of razor wire currently exists on the border with Croatia, that the army can remove 150 to 200 meters per day, and estimates that it will take at least 150 working days to remove.
"Our intention is to first remove the wire fence" and then to "gradually remove" the metal panel fence, in cooperation with local communities, she said.
About €2.5 million has been allocated to have the panel fence removed, she added.
According to data recently published by Slovenia's Interior Ministry, a total of 135,372 meters of panel fence and 60,595 meters of razor wire were erected on the border with Croatia. The wire fences were installed at the end of 2015 by the then Slovenian government, led by Miro Cerar, due to fears of the migrant crisis at the time.
The expansion of the initial anti-immigrant barriers after Cerar's government continued by succeeding governments. The razor wire fence was later gradually replaced with less hazardous panel fencing.
In September last year, the government of former Prime Minister Janez Janša donated about 40 kilometres of anti-migrant barriers to Lithuania from its stockpiles so that it could more effectively protect the 508-kilometre-long land border with Belarus. At that time, Lithuania was experiencing an uncontrolled influx of refugees who were deliberately sent across the border towards the West by the regime of Belarusian President Lukashenko.
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Sabor: Marko Primorac Confirmed as New Finance Minister
ZAGREB, 15 July 2022 - The Sabor on Friday confirmed Marko Primorac as the new Minister of Finance with 77 votes in favour and 55 against, after former minister Zdravko Marić left the government at his own request.
After Minister Primorac swore that he would conduct his duties conscientiously and honourably, in accordance with the Constitution and laws, Parliament Speaker Gordan Jandroković wished him success in his demanding and responsible work.
Primorac is an associate professor at the Faculty of Economics in Zagreb. He studies public finances, local finances, the tax system and public debt management.
He has worked with the Ministry of Finance on a number of task forces in different rounds of tax reforms, as well as on the model of a financing system for local and regional self-government units.
From 2018 to 2020, he served as economic advisor to former president Kolinda Grabar-Kitarović.
Since 2016, he has been a member of the Steering Committee of the Croatian Pension Insurance Institute. From 2017 to 2018, he was the deputy chairman of the Supervisory Board of the Hrvatska Elektroprivreda electricity provider and since 2018 he has been the deputy chairman of the Audit Board of the Hrvatske Lutrije national lottery.
Since 2021, he has been an external member of the parliamentary Finance and Central Budget Committee.
Prior to today's vote in the Sabor, Primorac's appointment was supported yesterday by the parliamentary Finance and Central Budget Committee after being interviewed by the committee.
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Constitution Clear on President Being Commander in Chief, Milanović Says
ZAGREB, 15 July 2022 - President Zoran Milanović said on Friday the Constitution stated very clearly that the president is the commander in chief of the Armed Forces.
Commenting on a Jutarnji List article that by amending the Defence Act, the government plans to strip the president of his power to command the army in peacetime, Milanović told the press in Zaton these announcements were coming because Prime Minister Andrej Plenković and his HDZ party "want to take over the Croatian Army as well," calling it "a constitutional coup."
The commander in chief can be only one, command is vertical, there is no minister, he said, adding that the military chief of staff could not answer both to him and to Defence Minister Mario Banožić.
Milanović said the Defence Act was an organic law and "probably the most delicate one because it regulates a very important constitutional obligation and responsibility of the president of the republic, who is the only commander in chief."
If the president and the defence minister disagree on something, the chief of staff and the army obey the president, he added.
Milanović said that under the Constitution, he, as the president, answers for the territorial integrity and survival of the state. "In order to do that, I must have powers," he said, adding that Banožić could not strip him of his powers.
He reiterated that Banožić had exerted pressure on State Assets staff and that, as a result, the state was defrauded of millions of kuna, calling on the state attorney general again to investigate that.
Milanović also said that many appointments in the Defence Ministry proposed by Chief of Staff Admiral Robert Hranj were "on hold because the minister doesn't want to give his consent."
He added that this was "ruining the Croatian state, the Croatian Army" and that the more Plenković "encourages (Banožić), the ruder he is."
Citing media reports, he said that with Plenković's support, Banožić was indicating "that he plans to retire Hranj." He said they could not do that as Hranj had been appointed for a four-year term and that Plenković should take a position on this.
Earlier today, Milanović watched a joint military exercise between Croatian and US special forces in Udbina.
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Inflation in Croatia Reaches Record High of 12.1%
ZAGREB, 15 July 2022 - Consumer prices in Croatia rose by 12.1% in June 2022 compared with the same month in 2021, the highest inflation rate since the national statistical office (DZS) monitors these data, mostly as a result of increased energy and food prices.
The prices of consumer goods and services, as measured by the Consumer Price Index, increased by 1.1% from May 2022 and by 12.1% from June 2021, the DZS reported on Friday. In May, consumer prices rose by 10.8% year on year.
The annual inflation rate continued to accelerate in June, reaching a historic high of 12.1%, after entering double-digit territory in May. The average increase in consumer prices in the first half of the year was 8.6%, analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.
The highest increases were observed in prices of transport (20.3%) and food and soft drinks (16.9%), followed by restaurants and hotels (14.6%), household furnishings and maintenance (13.0%), clothing and footwear (11.1%), housing, water, electricity, gas and other fuels (9.6%) and recreation and culture (8.0%).
The core inflation rate, which excludes food and energy, reached 7.1% in June.
RBA expects that elevated rates of inflation will continue in the third quarter before calming down towards the end of the year. It predicts that this year Croatia will record the highest inflation rate in its recent history.
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Croatia Reports 1,654 New Coronavirus Cases, 8 Deaths
ZAGREB, 15 July 2022 - In the past 24 hours, 1,654 coronavirus cases, out of 4,401 tests, and eight related deaths have been registered in Croatia, the national COVID-19 crisis management team said on Friday.
There are 9,728 active cases, including 464 hospitalised patients, 14 of whom are on ventilators, while 4,948 persons are self-isolating.
To date, Croatia has registered 1,165,478 coronavirus cases, the death toll is 16,146, and 70.83% of adults have been vaccinated, including 68.79% fully.
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Butković Wins Vote of Confidence to Become Deputy PM
ZAGREB, 15 July 2022 - The Croatian Parliament voted confidence in the Minister for the Sea, Transport and Infrastructure, Oleg Butković, to take up the office of Deputy Prime Minister, previously held by Finance Minister Zdravko Marić who had resigned at his own request.
The longest-serving minister in the present government received votes from 79 lawmakers, 49 voted against and one abstained from the vote.
Parliament Speaker Gordan Jandroković wished Butković success in his new office.
Butković thus become one of the four deputy prime ministers, alongside Tomo Medved, Davor Božinović and Anja Šimpraga. He will take charge of the government's coordinating body for the economy.
Butković announced earlier that the government would increase large-scale investment in infrastructure and continue to ease the tax burden.
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Wildfire Near Šibenik Under Control
ZAGREB, 15 July 2022 - The wildfire that broke out in the Zaton area near the coastal city of Šibenik on Wednesday has not been contained yet, but is under control, the county 112 emergency call center said on Friday morning.
Firefighters remain on the scene, while firefighting planes and military personnel were called off on Thursday evening. There is no open fire, the call center said.
An estimated 3,300 hectares of grass, underbrush, woods, and farmland have been burnt, the national fire service said.
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S&P Upgrades Croatia's Credit Rating After Announcement of Euro Area Entry
ZAGREB, 15 July 2022 - Standard & Poor's (S&P) Global Ratings raised its long- and short-term foreign and local currency sovereign credit ratings on Croatia to 'BBB+/A-2' from 'BBB-/A-3' on Thursday, saying that the country will benefit from accession to the euro area and its economic growth will remain steady. The outlook is stable.
S&P is the second credit rating agency to upgrade Croatia's rating in an unscheduled publication after Fitch Ratings did the same on Wednesday. Both announcements came after the Council of the European Union on Tuesday officially confirmed Croatia's accession to the euro area on 1 January 2023.
Stable outlook
S&P says that the stable outlook reflects its expectation that Croatia's economic growth will remain steady over the coming two years despite rising inflation and the economic consequences of the conflict in Ukraine.
"We expect the government will remain committed to its reform program, receive significant EU financing, and gradually rebuild the fiscal space it lost in the aftermath of the pandemic," the agency said.
The ratings could be raised if Croatia's economic growth were to accelerate beyond S&P's current expectations, leading to a step-up in economic wealth. In this scenario, the agency would expect fiscal consolidation and declining net general government debt beyond its current projections.
"Rating upside could also come from Croatia's deepening European integration, if it were to facilitate institutional improvements, for example within the judiciary, education, and the broader business environment."
On the other hand, a downgrade could be considered in the event of significantly weaker fiscal positions and structurally weaker economic growth than projected.
"Such weakening could result if a prolonged conflict in Ukraine produced increasingly severe pan-European economic consequences or if an abrupt halt to European energy supply accentuated recessionary tendencies throughout the continent. Net emigration trends and an aging population also represent a long-term risk to Croatia's growth and public finances," the agency said.
Benefits from ECB's monetary policy
In the view of S&P analysts, as a member of the euro area Croatia will benefit from the monetary policy flexibility of the European Central Bank (ECB), while residual foreign exchange risks will decline in the heavily euroised economy.
The upgrade also follows the agency's forecast of steady near-term economic prospects from expected solid tourism flows and strong near-term execution of EU-funded investments.
"In addition, we consider Croatia to have limited direct dependence on Russian hydrocarbons, in particular following the recent expansion of the Krk liquefied natural gas (LNG) terminal and advanced sea-borne oil supply substitution," the agency said.
S&P believes accession will eliminate any residual exchange-rate risks in the heavily euroised economy, where about 75% of banking sector assets and 67% of liabilities are denominated in euros, and that it will similarly eradicate the foreign currency risks of the government's balance sheet.
"This should reduce Croatia's share of government debt denominated in foreign currency from over 70% at present to close to zero, as this debt is almost exclusively denominated in euros."
Growth projection revised up to 3.5%
S&P revised its growth projection for the Croatian economy for this year from 2.5% to 3.5% on the back of resilient dynamics in the first half and prospects for a strong tourist season on par with pre-pandemic levels.
"Rising energy and commodity costs are likely to dampen disposable income and contain consumer spending during second-half 2022 and spilling over into 2023. We forecast growth will calm to 2.5% in 2023."
Over the medium term, the agency forecasts Croatia's economy will settle on a solid growth path, backed by investments supported by EU financing and rebounding tourism.
Pan-European economic repercussions from Russia's military intervention in Ukraine and inflationary pressures represent near-term risks to the forecasts.
"Some lingering pandemic risks to Croatia's tourism recovery persist, however, due to comparatively low vaccination rates in the country. As of July 7, 2022, less than 60% of Croatia's population was fully vaccinated against COVID-19, compared with an EU average of 76%."
Average inflation forecast at 8.0% in 2022
"The Russia-Ukraine conflict has added pressure on energy prices, which will have an important bearing on Croatia's inflation outlook for 2022. We project a significant pickup in inflation, with the consumer price index averaging 8.0% this year (from 2.6% in 2021) due to rising energy prices, increasing wages, and rising hospitality sector costs."
S&P projects a general government deficit of 3.0% of GDP in 2022.
"The government has already introduced subsidy schemes to alleviate price pressures on fuel and energy, which add 1.1% of GDP to the expenditure bill. We believe there are risks to our deficit projections as the current energy crisis could require additional government subsidy schemes in the second half of 2022."
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