Thursday, 14 July 2022

International Folklore Meetings Begin in Split-Dalmatia County!

July 14, 2022 - International Folklore Meetings is the name of a joint manifestation that has been organized for years in the cities and municipalities of Split-Dalmatia County by local folklore societies and cultural and artistic organizations.

The event is supported by their local self-government units, tourist boards, Split-Dalmatia County, and numerous sponsors and donors, and more recently by connecting with international folklore festivals in the Republic of Croatia under patronage of the International Association of Folklore Festivals and CIOFF groups.

The first initiative was given by KUD "Ante Zaninović" from Kaštel Kambelovac to organize a modest folklore evening called ˝Za jubav tance igraše˝ two decades ago. Soon after, KUD ˝Pleter˝ from Dugopolje joined the event by organizing a folklore evening aptly named ˝Ljepota u kamenu kamenitom“. A year later, KUD ˝Branimir 888˝ from Muć connected their traditional folklore event "The old chest is open" to the meetings. Finally, seven summers ago, KUD ˝Dalmatia˝ from Dugi Rat joined the international folklore meetings with its folklore ceremony called "Kolo, kolo, kolajna od zlata."

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So far, folklore groups from Bosnia and Herzegovina, Slovenia, North Macedonia, Poland, Czech Republic, Slovakia, Romania, Lithuania, Serbia, France, Italy, Austria, Spain, Portugal, Russia, Canada, Hungary, and Ukraine have participated. During the past years, almost 2,000 performers from around 100 different folklore groups from 18 countries performed on the summer stages in Kaštela, Muć, Dugopolje, and Dugi Rat. This year, in the international part of the program, guests from Colombia, the United States of America, Slovakia, North Macedonia, and Bosnia and Herzegovina will show their skills in singing and performing traditional dances.

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After a two-year hiatus, this now transcontinental folklore program will undoubtedly enrich the programs of cultural summers on the coast of our county and in Inland Dalmatia. The meeting is held in two coastal and two coastal towns in the county in four days.

Program:

Friday, July 15, Dugi Rat: 6th international meetings „Kolo, kolo, kolajna od zlata“
Saturday, July 16, Muć: 19th International Folklore Festival ˝Stara je skrinjja is open˝
Sunday, July 17, Kaštel Kambelovac: 20th international meeting ˝Za jubav tance igraše˝
Monday, July 18, Dugopolje: 17th International Folklore Meeting ˝Ljepota u kamenu kamenitom˝

Foreign folklore groups:

Compania Nacional de Danzas Tradicionales "Pachamama", Bogota, Colombia
Idaho Xpress, Burley, Idaho, USA
Folklore Ensemble "Rovina", Dlhe Klčovo, Slovakia
KUD "Ilinden", Bitola, North Macedonia
KUD "Tribanj Bila," Livno, Bosnia, and Herzegovina

In addition to the joint performances of folklore groups from Colombia, the USA, Slovakia, Bosnia and Herzegovina, and North Macedonia, every evening has its specialty, where local folklore societies will also perform. After two full years without the folklore "caravan" due to the COVID-19 pandemic, with the announcement of the International Folklore Meetings, all KUD hosts want to organize such meetings as a unique international folklore event in Split-Dalmatia County.

For more, check out our lifestyle section.

 

Thursday, 14 July 2022

After Saltworks Museum, Pag Salt Flats to Open to Curious Visitors

July the 14th, 2022 - The strange, moonlike island of Pag is famous for its salt production, not to mention its cheese, and after the island's salt museum opened its doors to visitors from at home and abroad, the Pag salt flats themselves are set to be made open to the public who are curious to see part of the production process.

As Poslovni Dnevnik writes, a morning spent on the Pag salt flats as part of the famous Pag Saltworks is a totally new and authentic experience for visitors to this rather bizarre looking island, reports HRT.

"We've finally seen the day we have been waiting for for decades now. Thirteen years ago, we opened the Salt Museum, and the Pag salt flats have always been closed off to the public," said Mate Donadic, a tour guide who is in charge of professional guidance and the story of the so-called ''white gold'' produced on the island.

"Pag's salt is collected the old-fashioned way. We have a small grate and with that the flower of the salt is collected. It must be calm weather in order to do this properly, there must not be a storm going on, there must not be rain, there must be absolutely ideal conditions,'' said Antonijo Bakac, an employee of Solana Pag (Pag Saltworks).

However, it is easier for tourists to take the salt from the carriage like this - they can take much as they want, and they can also see part of the production. The Pag salt flats were also visited by entrepreneurs and companies from the island of Pag who cultivate autochthonous wine varieties across the road from the saltworks.

"Pag Saltworks has been measuring the meteorological conditions for a hundred years now. This year, there was de facto no rain since March, meaning there was no significant amount of rain. Last year we produced 18,300 tonnes of fine salt, so this year we will hopefully have some opportunities for record production,'' said Josip Cepin, another employee of the Pag Saltworks.

For more, make sure to check out our dedicated travel section.

Thursday, 14 July 2022

Cruise Ships Return - Most Visited Croatian Ports in First Half of 2022

July the 14th, 2022 - From all the way up in Rijeka to all the way down to Dubrovnik, let's look at the list of the most popular Croatian ports during the first half of this year as tourism returns to normal in the post-pandemic period.

As Morski writes, the State Bureau of Statistics has published a report on cruise ship arrivals in Croatian ports in the first five months of this year. The most visited port in the last half a year has of course been Dubrovnik.

In the period from January to May 2022, 48 foreign cruise ships entered Croatian ports with 135 cruises successfully completed. There were 97 thousand passengers aboard those ships, who stayed in Croatia for a total of 278 days. In the same period back in 2021, no entry of a foreign ship in any Croatian port for a round trip was recorded due to the epidemiological measures introduced across Croatia, Europe and most of the rest of the world to prevent the further spread of COVID-19, the novel coronavirus.

Compared to the first five months of the pre-pandemic, record year of 2019, the number of trips by foreign cruise ships to Croatian ports up and down the coastline decreased by 21.1 percent, the number of days the ships stayed in those ports decreased by 28.0 percent, while the number of passengers on those ships decreased by a massive 60.9 percent.

Foreign cruise ships in the first five months of 2022 sailed under the flags of 11 countries in total. The largest number of trips by foreign cruise ships in Croatian ports was made under the flag of the Bahamas, with 34 trips in total, which is 25.2 percent of the total amount of trips made in the first five months of 2022. This flag was followed by cruises made under the flags of Malta (22 trips) and of Panama (17 trips).

Out of a total of 135 round trips, most of them were realised down in Dubrovnik-Neretva County (45.2 percent) and Split-Dalmatia County (31.9 percent), which is a total of 77.1 percent. The remaining 22.9 percent of trips into Croatian ports were made in the following counties: Zadar (15.5 percent), Sibenik-Knin (3.7 percent), Istria (3.0 percent) and Primorje-Gorski Kotar (0.7 percent).

The Port of Dubrovnik rather unsurprisingly had the most visits by foreign cruise ships (90 visits), followed by the ports of Split (68 visits), Zadar (35 visits), Korcula (17 visits), Sibenik (15 visits) and Hvar (14 visits).

For more, make sure to check out our dedicated travel section.

Thursday, 14 July 2022

Vodnjan Company Infobip Now Taking Over Netokracija Magazine

July the 4th, 2022 - The remarkable Vodnjan company Infobip, otherwise Croatia's very first unicorn, is now taking over the Netokracija magazine in yet another step forward for its business.

As Poslovni Dnevnik/Josipa Ban writes, Infobip, the first Croatian unicorn, is taking over the business and technology magazine Netokracija, with which it has been cooperating for a long time, with the aim of strengthening the developer community and providing it with content intended for it, as well as further raising the value of IT in society as a whole.

Netokracija's team, headed by founder Ivan Brezak Brkan, will become part of the Vodnjan company Infobip's developer experience department led by Ivan Burazin.

It's worth looking at just how far Infobip has come, as it has well and truly broken the stereotypes placed on the majority of Croatian companies. Last year, Infobip took over Shift, the largest regional developer conference of which Netokracija has been a partner since the very beginning.

The plan is for Netokracija, as part of the wider Infobip Group, to continue operating through independent editorial with the potential to expand to other markets to continue positioning itself as a relevant media portal in the Republic of Croatia and in neighbouring Serbia with a stronger focus placed on the startup and developer scene.

For more, make sure to check out our dedicated business section.

Thursday, 14 July 2022

Mass Zagreb Solar Panel Installation to Reduce Costs by 80%

July the 14th, 2022 - A mass Zagreb solar panel installation would see spending on electricity cut by a massive 80 percent. Although the Croatian capital has lagged a bit behind the rest of the country in terms of leaning more towards renewable energy sources and the overall green energy transition, it now wants to make up for it with giant steps forward, and even become a national leader.

As Darko Bicak/Poslovni Dnevnik writes, the Zagrebacki suncani krovovi/Zagreb solar panels company would be in charge of carrying out a large energy project of the same name, which aims to start the mass Zagreb solar panel installation on the city's public buildings. The move should ultimately, according to the announcement of Mayor Tomislav Tomasevic, bring 80 percent savings compared to the current costs for electricity energy and reduce CO2 emissions by the same impressive percentage.

The decision to establish a new city company was made at a recently held City Assembly. The company will have no employees, and it will manage investments of more than 300 million kuna. The project was presented at the end of last year when the Croatian Parliament adopted a programme entitled "Integrated solar power plants on public buildings, multi-apartment buildings and family houses and commercial buildings in the Zagreb area for the period from 2022 - 2024".

As explained by Zorislav Antun Petrovic, chairman of the Environmental Protection Committee of the Zagreb City Assembly, the goal of the programme is to increase the use of renewable energy sources while promoting the use of solar energy in public, private and commercial facilities across the capital city.

"The programme will enable the coordinated preparation and construction of integrated solar power panels on the roofs of existing buildings with the ultimate goal of providing electricity from renewable sources. The construction of solar power plants will make it possible to reduce operating costs, create the proper prerequisites for the decarbonisation of the buildings themselves, achieve energy and climate goals, and reduce greenhouse gas emissions by increasing the share of renewable energy sources," explained Antun Petrovic.

The City Office for Economy, Environmental Sustainability and Strategic Planning, as well as the Regional Energy Agency of Northwest Croatia - REGEA, are both responsible for the operational implementation and management of the programme. The City of Zagreb noted that REGEA itself, as a non-profit institution, is neither registered nor authorised to perform the production or sale/supply of electricity. Therefore, for the purpose of implementing the investment part of the programme, i.e. mass Zagreb solar panel installation on the roofs of buildings, a trading company has been established with the aim of the efficient and timely preparation and implementation of the investments themselves: from design, securing financing to construction and management.

A detailed analysis of 567 of Zagreb's public buildings, excluding buildings owned by Zagreb/Zagrebacki holding, was carried out, and conceptual projects and requests for obtaining power consent for the first 150 were prepared. This is a total capacity of more than 10 MW with an investment value of more than 75 million kuna. According to the study presented by REGEA, it is expected that residents of the city could be involved in the extension of this project, and both the volume of the project and the size of the total investment would increase.

"There's been a successful application to the so-called The Norwegian Fund - a total of seven solar power panels with a power of about 1.3 MW, an investment value of 10 million kuna, with a grant of 85 percent. When preparing the investments themselves, all possible models of implementation will be considered, depending on the specific profile of the roof itself, i.e. the consumption of the specific location, which implies financing through grants from European Union (EU) funds, technical assistance funds from development banks and loans from commercial banks," they stated from the City of Zagreb.

For more, make sure to check out our dedicated lifestyle section.

Thursday, 14 July 2022

Alkar Training Underway Ahead of 307th Sinjska Alka!

July 14, 2022 - Alkar training is officially underway at the Alka racecourse, every Monday to Friday from 18:00 to 20:00!

After extensive training at the Sinj hippodrome and the Sinjsko polje plains, the Alkars continue preparations at the Alka racecourse from today, July 14.

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Zizic

Every day from Monday to Friday, from 18:00 to 20:00, you can be a part of the unique preparations and see how the Alkars sharpen their eagle eye and adjust their right hand. This also helps the horses at the Alka stable get used to the lively environment and the sand of the Alka track.

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Branko Covic

As August and the Alka festivities approach, the whole of Sinj beats to the rhythm of the marching bands of the City Music and the galloping of horses. The streets of the city that lives for Alka, the flagship of UNESCO and Croatian and world intangible heritage, are buzzing.

It all starts on Friday, August 5 at 17:30 with the competition for the 307th Bara. The 307th Čoja will follow on Saturday, August 6, also at 17:30, and on Sunday, August 7, at 16:30, Alkars will fight to win and mark their name in the Alka's long and rich history.

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Entrance to the training, as well as to Bara and Čoja, is free. Don't miss the opportunity to be a part of these unique events in the world and participate live in the Sinjska Alka preparations! 

For more, check out our lifestyle section.

 

Thursday, 14 July 2022

Fires in Vodice, Zaton, Sibenik: Latest Updates & Video Overview

July 14, 2022 - The latest on the fires in Vodice, Zaton, and Sibenik, which broke out on Wednesday, July 13. 

A large fire broke out on Wednesday in the hinterland of Sibenik, and during the afternoon, the fire spread to Zaton and Raslina. Residents of Zaton and Raslina had to leave their homes, and some were evacuated by boat. During the evening, some residents returned home. About 20 houses burned down, and the fire also destroyed several cars. 

 

Two Canadairs have been in action since the early morning. The fire chief reported that the fire is under control, reports Jutarnji List.

08:10 am - Darko Dukić, commander of the Šibenik-Knin County Fire Brigade, told HRT that the situation is under control but that the moment when he will be able to say that the fire is localized is far away.

"Be careful; the fire covered 3,300 hectares; that's a huge area. In addition, there is a lot of pine forest in the area towards Vodice, and if the fire had engulfed that area, the fire would have reached Tribunj," said Dukić.

07:45 am - The Croatian Fire Association announced on Thursday morning that more than 300 firefighters fought the fire near Zaton and Raslina during the night from Wednesday to Thursday.

"On Thursday around 2:00 am, firefighters partially managed to bring the fire under control. On Thursday morning, there is no uncontrolled fire spread and large fronts. The fire is surrounded," said the Croatian Fire Association (HVZ).

"Since 6:00 am, two Canadairs have been used. Tonight, 350 firefighters, 50 soldiers, 54 police officers, and many citizens were involved. One hundred eighteen firefighters with 40 firefighters came from the interior," said chief fire commander Slavko Tucaković and added that extraordinary deployments were engaged from Split-Dalmatia, Lika-Senj, Primorje-Gorski Kotar, Karlovac, Zagreb, and Zadar counties, and Koprivnica-Križevac county is coming.

There was no evacuation order tonight, the residents defended their houses, and we thank them. There was significant material damage to homes and olive groves, but luckily no one was injured. It is estimated that around 3,000 hectares were burned," added Tucaković.

HVZ states that firefighters and other forces remain at the fire site until further notice.

07:30 am - Minister Davor Božinović also visited the fire this morning. He pointed out that the situation is better than yesterday:

"Morning in Zaton and Raslina. A better situation, no large fire fronts, and uncontrolled expansion towards Vodice. More favorable weather conditions. Around 350 firefighters from Šibenik and six other counties worked all night, with the support of many citizens, soldiers in the Raslina area, and 75 police officers to secure the fire and traffic. Thanks, everyone," announced Bozinović.

07:02 am - Due to the fire in the Šibenik area, the DC8 is closed to all traffic; the state road DC27 from the intersection with the Adriatic highway (DC8) to Gaćelezi and the county road Vodice-Gaćelezi (ŽC6086), the Croatian Auto Club (HAK) reported on Thursday morning.

06:50 am - Slavko Tucaković, chief fire chief, appeared on the show 'Good Morning Croatia' and explained what happened during the night near Šibenik.

"Fortunately, the night was less fiery. The key moment happened around 2 am when the wind stopped, and there is currently no uncontrolled fire spread, as we surrounded the fire from all sides. Two Canadairs also took off this morning," Tucaković said, confirming that the situation was challenging yesterday.

"It was a firestorm. Material damage is excellent, about 20 houses were damaged. Fortunately, there were no casualties; several firefighters were slightly injured, one fell into a well. We all have to move on together; the damage was great... But, everyone came to help."

04:45 am - On early Thursday morning, the Sibenik area is still burning, and the firefighters are processing the peripheral part of the fire area next to the buildings in the towns of Raslina and Zaton. That work awaits them all night, said the deputy commander of the Public Fire Department of the city of Šibenik. 

The county commander of the Sibenik-Knin Fire Brigade, Darko Dukić, told Croatian Radio at 2:00 am on Thursday that the situation in the area of Zaton and Raslina had calmed down and that the fire was open in the direction of Vodice.

"The situation in the area of Zaton and Raslina has calmed down. However, we have an open fire in the direction of Vodice towards the Adriatic highway, which is closed to all traffic. All the fire brigades are deployed in that part, and we are stopping the spread of the fire towards the highway and further towards the houses in Vodice and the area of Srima. In the last few hours, the work has been done successfully in that part, the wind has stopped somewhat, and we will see how the situation will develop further. Colleagues from Zadar County, Lika-Senj, and Primorje-Gorski Kotar have joined us, and Karlovac County is joining us very soon," said Dukić.

The commander of the Šibenik fire brigade, Volimir Milošević, presented the situation on the ground in the early hours of Thursday.

"I will go by places: In Raslina, the situation is much better. The fire is not localized but is no longer so active that it endangers buildings. In Zaton, the situation is somewhat better. However, a large area around these places needs to be rehabilitated. We cannot consider it localized until the firefighters pass by on foot. The problem is that the fire in Zaton is moving along the hills in the direction of Vodice, that is, Srima, and the Jadranska magistrala, and this is what the firefighters are doing most now - they are preventing the fire from crossing the Jadranska magistrala, or Benkovac road. The buildings are less threatened at the moment, but the fire is quite large. The forces we receive from neighboring counties and other parts are on their way, and some larger ones have arrived. Tired firefighters will be at least partially replaced," said Milošević.

For more news in Croatia, follow TCN's dedicated page

 

Thursday, 14 July 2022

20 Ways Croatia Changed Me in 20 Years: 6. Moving Vegetables

July 14, 2022 - Twenty years a foreigner in Croatia. Part 5 of 20 Ways Croatia Changed Me in 20 Years - the fabulous culture of moving vegetables. 

About 15 years ago, I was driving through Republika Srpska from Hvar to Belgrade to visit friends in my father-in-law's commercial vehicle. It had his name on the side and Split licence plates. As I tried to cross the border, the guard eyed my passport and me with suspicion. What was a Brit doing driving a car he didn't own with Split plates through this lesser-travelled part of the Balkans, and did I have anything to declare? 

Nothing at all, I replied. He was not convinced and so I had to show him what I had, which was not much. Just my bag and 20 kilos of lemons and 20 kilos of potatoes, gifts for the family in Belgrade from the family field on Hvar from my father-in-law.

"You are bringing potatoes to Serbia? You think yours are better than ours?" Now he was really suspicious. We spoke in Serbian and Croatian, and I explained that they were a gift from my father-in-law to his relatives. The guard asked if he could take a few to try, and I told him to help himself. I was free to go. Almost.

"Just one more thing, Nije punac, nego tast." Punac is the Croatian word for father-in-law, tast is the Serbian.

A week later, I returned to Hvar by the same border, this time with about 20 kilos of paprika, a gift in the opposite direction. He just smiled.

It was one of the many examples of one of my favourite cultural practices in Croatia and the wider region - moving vegetables. 

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(My late father-in-law, whose tireless efforts in his family field, combined with the excellent cooking of his wife, produced the finest home-cooked food of my life)

I must confess that I had never thought about vegetables in my life until I came to Croatia (apart, perhaps, from my time as an aid worker in post-genocidal Rwanda in 1994 when my project was donated 1.5 million sachets of vegetable seeds with no packing list - it took 3 weeks to account for our gift), but vegetables (and fruit) loom large in my daily life in Croatia, and my 20 years in Croatia has made me completely rethink and appreciate local, quality food, as well as the cultural importance of transporting it to friends and extended family when driving from A to B. 

Most of the credit for my enhanced passion for vegetables is due to my wife and her parents, whose family field has been the source of much of the goodness that I consumed during my 13 years on Hvar. The field was my late father-in-law's passion, and my wife and mother-in-law translated the fruits of the field into delicious and healthy local Dalmatian fare. Seeing my kids have an affinity with blitva (Swiss chard) at an early age was in direct contract to my fight every Manchester Sunday lunch to avoid the two Brussels sprouts on my plate. 

Shortly after I moved here in 2003, I was in the grocery shop in Jelsa in November. There was a Brit, also living on the island, in front of me asking to buy some tomatoes - where were they?

"It is November," came the reply. "It is not the season. No tomatoes."

It had not occurred to her that tomatoes even had a season. Or to me. And if they did, when was it? Back in the Manchester supermarkets, tomatoes - very bland tomatoes - grew 24/7, 365 days of the year.

And so began one of the great transformations of my time in Croatia. I moved from being a spoiled city boy who could have any fruit or vegetable he wanted from a major supermarket chain to only being able to have fruits and vegetables when they were in season. But what I lost in availability, I more than made up for in quality. The wild asparagus may only be available for a few weeks in Spring, but WHAT a taste. (If you are an asparagus fan, you really have not tasted asparagus until you try the wild Dalmatian variety). The cucumber and tomato salads in summer are simple, but refreshing and so full of goodness. And I will never forget seeing my two kids return to Hvar after we moved. Seeing them breathing in the scents of that aromatic island was a joy to watch that November, but watching them head straight for the mandarin trees to pick a few mandarins to eat immediately was a wonderful sight. You don't get that experience when your mandarins grow in Manchester supermarkets. 

After several years, I visited Manchester once more and visited a supermarket. I was shocked when I looked at the tomatoes. Where was the life, the colour. I bought some to try, but they tasted mostly of water. Dalmatia spoils you that way. Once you get used to wholesome homegrown Dalmatian vegetables, it is hard to find the quality elsewhere. 

But the culture of moving vegetables was everywhere. I must admit I was a little confused one trip to Zagreb when I got into my car to find 30 cabbages and 10 litres of wine in the back to give to my brother-in-law in Zagreb. There was nothing wrong with that, but then a few months later, I found myself transporting a similar number of a different kind of cabbage in a different direction. Trips to Albania would always include a mandatory stop in the Neretva valley to stock up on watermelon, peaches and other treasures, and the roads of northern Croatia are always bountiful for bulk buying of pumpkins and paprika. 

I love it. 

And if nobody is driving from A to B, does that mean that moving vegetables comes to a halt? Absolutely not! Having moved away from the island, we would be regular and grateful recipients of large packages sent via post. Olive oil, mandarins, tomatoes, blitva, grapes, and a host of other goodness. Heaven. And we were certainly not alone. In addition to the post, other parents use the 'Balkan DHL' Service: Fast, Cheap, Reliable & Unbeatable, one of the finest institutions in south-east Europe.

The majesty of vegetables and the lifestyle that surrounds it is one of the many untapped treasures of Croatian tourism, as very few people locally have understood its appeal to city boys like me. One Hvar man who did was a friend of mine who runs a luxury tourism business. He told me about the moment when he finally understood the secret of successful tourism. 

"I was with some rich New York clients in an olive grove for lunch and olive oil tasting," he explained. "One of them pointed to a lemon tree and asked if he could pick a lemon. I told him to pick six and forgot about it immediately. At the end of the week, he came to me to thank me for an incredible week, but he also wanted to tell me about the highlight. Picking those lemons. He lived in New York, had never seen a lemon tree, and had only seen lemons in shops, bars and restaurants. It was a powerful moment, and I realised that authentic experiences like that which are free and all around us here can be sold for top dollar."

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And I can definitely confirm the magic of the freshly picked lemon. Can there be any better case for the Dalmatian lifestyle than sending one of the kids out to pick a lemon from the family tree in the garden for the evening gin and tonic on the terrace? 

****

What is it like to live in Croatia? An expat for 20 years, you can follow my series, 20 Ways Croatia Changed Me in 20 Years, starting at the beginning - Business and Dalmatia.

Follow Paul Bradbury on LinkedIn.

Croatia, a Survival Kit for Foreigners will be out by Christmas. If you would like to reserve a copy, email This email address is being protected from spambots. You need JavaScript enabled to view it. Subject 20 Years Book

Wednesday, 13 July 2022

Central Bank Expects GDP to Increase 2.5%, Inflation to Drop to 4.6% in 2023

ZAGREB, 13 July 2022 - Real GDP growth could be 5.5% this year and 2.5% in 2023, while inflation could slow down from this year's 9.4% to 4.6% in 2023, the Croatian National Bank (HNB) said on Wednesday.

According to the HNB's summary of macroeconomic trends and estimates, the economic repercussions of the Russian invasion of Ukraine, the continued rise in energy and raw material prices, and the disruption of global supply chains have not seriously affected Croatia's economic growth outlook.

However, unfavourable global circumstances and pronounced inflationary pressures could have a bigger impact on domestic economic trends in 2023, when real domestic activity growth is expected to slow down to 2.5%.

The risks remain pronounced in the projected period 2022-23, with the prevalence of risks that could have a negative impact on economic growth, such as a gas embargo, food and energy price hikes, tighter financing conditions than expected, and a deterioration of the COVID situation.

HNB governor Boris Vujčić told the press that growth in Q2 this year was expected to be stronger than in Q1, when it was 7%, the tourism season was expected to make a very strong contribution in Q3, and "solid growth" was expected in Q4.

He said Q4 was much more uncertain and that for the most part, it depended on developments on the energy market, and whether there would be a gas embargo for Europe, which would significantly change the economic outlook for Q4 and 2023.

Vujčić said a recession was possible next year, mainly due to a stoppage in gas deliveries to Europe. The recession could first occur in Croatia's main trade partners, Germany and Italy, and then spill over to Croatia, he added.

As for this year's tourism season, he said arrivals were almost the same as in 2019, while accommodation and hospitality prices increased by 20 to 30%, which would point to a record tourism season financially.

Inflation in June surpasses 11%

This year's inflation of consumer prices could accelerate to 9.4%, first and foremost as a result of considerably higher global energy and raw material prices, the HNB says. On the domestic market, energy and food prices continue to increase the most, but the increase in prices of other goods and services is gradually accelerating, too.

Vujčić said inflation was expected to increase to over 11% in June, that during the summer it should be at 11% or 12%, while it was expected to start slowing down at the end of this year and especially at the start of 2023.

The growth of the main inflation sub-components is expected to slow down in 2023 and total inflation as well, to 4.6%. However, this forecast hinges on the stabilisation and, later this year, the gradual decrease in energy and raw material prices on the global market, according to the HNB.

Inflation projections for this year and the next are dominated by risks that could increase it further, including higher energy and raw material prices and a more pronounced salary growth.

Vujčić said the fight against inflation envisaged higher interest rates and that the European Central Bank announced that this could begin this month already. "I expect this to continue in the autumn."

The goal is for HNB and ECB interest rates to be the same as of 1 January 2023 and Croatia's accession to the euro area, he said.

Mandatory reserves to be reduced to 1%, no more foreign currency claim obligation

The HNB Council decided today to reduce banks' rate for calculating mandatory reserves from 9% to 5% this August and from 5% to 1% in December, which is the mandatory reserve rate in the euro area, Vujčić said.

He also decided that the minimum amount of foreign currency claims be reduced from 17% to 8.5% in August and abolished in December.

The effect of the first measure will be the release of HRK 34.2 billion in mandatory reserves, while the second will allow banks to release or differently dispose of €5 billion, Vujčić said.

Historically low interest rates

He said today's decisions would also affect interest rates by making financing cheaper for banks, so they would have fewer reasons to raise them, notably on new loans. They can reduce them further, depending on their business policy, he added. "But we'll see where we are at the start of next year."

Vujčić said interest rates in Croatia were historically low, while those in EU countries outside the euro area were considerably higher, twice as high for housing loans.

Decrease in real and increase in nominal pay

This year, employment is expected to continue to grow and unemployment to fall, with an increase in nominal and a decrease in real pay.

Vujčić said the current situation on the labour market was unusual, given that the private sector was recording a strong rise in nominal pay, about 10%, mainly due to the difficulty to find qualified labour, while wage increases in the public sector were slower.

Looking at the two sectors together, the growth in wages is somewhat lower than that of inflation, and this year real pay is expected to drop 1.5-2%, Vujčić said, adding that wage increases were expected to be at the level of inflation growth only in the private sector.

Euro area and Schengen additional incentive to foreigners to buy real estate

Speaking of the real estate market, Vujčić said property prices in Q1 were 13.5% higher year on the year and that the increase was also due to very low interest rates on savings, which are even negative in neighbouring countries, prompting foreigners to buy due to the higher yield.

The increase in property prices is also due to the government's subsidised housing scheme as well as the acceleration of inflation.

Vujčić said Croatia's accession to the euro and Schengen areas would be an additional incentive to buy real estate. On the other hand, if the rise in ECB interest rates also affects those on deposits, this rise should also reduce the incentive to buy real estate, but this can't happen overnight, he added.

Market activity could slow down due to the expected tightening of financing conditions and unfavouable income trends.

For more, check out our politics section.

Wednesday, 13 July 2022

EC Rule of Law Report - Recommendations for Croatia

ZAGREB, 13 July 2022 - The European Commission recommended to Croatia in its annual rule of law report on Wednesday to reconsider security checks on judges, to regulate lobbying, to increase the transparency of state advertising in the media, and to address the issue of lawsuits against journalists.

"The process for appointing the President of the Croatian Supreme Court, a challenge raised in the 2021 Rule of Law Report, was concluded," the report says.

"Responding to findings of the past Rule of Law Reports, amendments strengthened the State Judicial Council’s and State Attorney’s Council’s role in the selection of judges and state attorneys, and, as committed in the context of the Croatian Recovery and Resilience Plan."

New laws introducing regular security checks on judges and state attorneys conducted by the National Security Agency raised concerns, the report notes.

One of the recommendations therefore is to reconsider "the newly introduced periodic security checks conducted by the National Security Agency on all judges and state attorneys by ensuring their integrity based on other existing mechanisms, taking into account European standards on judicial independence and autonomy of prosecutors and the opinion of the Venice Commission."

"Criminal proceedings concerning cases of alleged corruption among judges and disciplinary proceedings are ongoing. The level of perceived judicial independence remains very low," the report says, adding that the Supreme Court President disseminated a questionnaire for judges "which has raised concerns among them.

The questionnaire requested information on the external activities of judges and their income, their membership in associations, public appearances, the employment at courts of their family members/relatives, and any lawsuits brought by them against journalists.

Long criminal proceedings undermine the fight against corruption

"The justice system extended electronic communication tools and decreased backlogs at higher court instances, but significant efficiency and quality issues remain."

The Commission notes that a new Strategy on the Prevention of Corruption for 2021-2030 was adopted in October 2021 to strengthen the prevention of corruption and raise awareness about its harmfulness.

"While the effective investigation of corruption continued, including on high-level corruption, the number of indictments and final judgments for corruption decreased. The excessive length of criminal proceedings continues to undermine the effectiveness of the anti-corruption framework," the report says.

"The new Law on the Prevention of Conflicts of Interest has strengthened asset declarations and improved the framework on revolving doors."

A Code of Ethics was adopted for members of Government, however, a similar one for members of Parliament and detailed rules on lobbying activities remain to be introduced, the report says. "The new framework on the protection of whistleblowers entered into force  On the Government’s proposal, Parliament adopted amendments to remove immunity of members of Government for corruption crimes."

High number of cases of abusive litigation targeting journalists

"The legal framework for media pluralism and freedom guarantees the basic right of freedom of expression and the right to information. There are concerns about the political independence of the Council for Electronic Media and the management of the public service broadcaster HRT," the report says.

"The revised Electronic Media Act updated rules on the transparency of state advertising and media ownership, and on media concentration. However, a need remains to further strengthen the framework on state advertising, including the new public tender procedure, as concerns related to the economic dependence of certain media outlets on state advertising persist. The establishment of an independent, self-regulatory body for the media is being discussed."

The Commission recommends further strengthening "the framework for a fair and transparent allocation of state advertising, by establishing clear criteria, good practices and oversight measures to guarantee the effective functioning of the new public tender procedure for local and regional media."

"The professional environment for journalists is impacted by verbal aggressions against journalists, including by politicians. A high number of cases of abusive litigation targeting journalists remains a significant concern. Delays in the processing of requests for information from journalists remain an issue," the report says.

The Commission recommends addressing "the issue of strategic lawsuits against public participation targeted at journalists, including by addressing the abuse of legal provisions on defamation and encouraging awareness, taking into account European standards on the protection of journalists."

The Commission notes that the number and duration of public consultations increased, which resulted in more participants providing their comments, and that Parliament further decreased the use of emergency procedures.

The Constitutional Court reviewed some emergency measures and has accumulated backlog due to lack of resources, the report says, adding that a challenge exists regarding the follow-up of the Ombudsperson’s recommendations, and on access to information. "While some preparatory steps were taken, the Government has not progressed in adoption of the new National Plan for Creating an Enabling Environment for the Civil Society Development 2021-2027."

One of the recommendations is to ensure a more systematic follow-up to recommendations and information requests of the Ombudsperson.

Speaking at a press conference, Commission Vice-President for Values and Transparency Vera Jourova said that due to problems under the previous Slovenian government, primarily due to difficulties in financing the Slovenian STA news agency, the Commission started thinking about introducing mandatory rules for all member states in order to protect the media sphere as well as possible.

"Rule of law remains a bedrock of democracy. Russia's war in Ukraine is another reminder of the importance of our work to uphold and promote rule of law in the EU and beyond. This year's report shows that the debate about rule of law in Europe is making progress as Member States make improvements and address rule of law matters. Unfortunately, concerns still remain in some Member States, especially when it comes to the independence of judiciary," she said.

For more, check out our politics section.

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