ZAGREB, 23 March, 2021 - The latest assessment of Croatia by the Standard & Poor's (S&P) credit rating agency shows that Croatia is stable, and the agency's projection of Croatia's growth is similar to to our forecasts of 5% and the forecasts made by the European Commission, Prime Minister Andrej Plenković said on Tuesday.

The Standard & Poor's agency has affirmed its 'BBB-" credit rating on Croatia, with the stable outlook, the government stated earlier on Tuesday.

The credit agency's report says that Croatia's stable political climate and plans to enter the euro area are conducive to reform efforts. The agency projects a general government deficit of 2.9% of GDP in 2021. It also expects Croatia's debt to resume falling and go below 80% of GDP until the end of 2024.

During his visit to Varaždin County, Plenković said that he found it interesting that the credit agency, the EC and some other analyses show that they are aware how much his cabinet had done in the first stage of its term, that is before the COVID-19 pandemic.

In this context he pointed to "a sound and responsible management of the public finances" and the rapid curtailment of the debt.

Plenković also underscored that last July, Croatia entered the European Exchange Rate Mechanism II.

Asked by the press about the latest statement from the Croatian Employers' Association (HUP) that employers were not engaged in the elaboration of Croatia's National Plan for Recovery and Resilience (NPOO), Plenković said that the purpose of the plan is to make use of the 6.3 billion euros of non-repayable grants and after that an additional 3.5 billion euros will be at the disposal through loans.

In the period between those two steps we will focus on the preparation of the new multi-annual financial framework where 12.7 billion euros awaits us, Plenković said, adding that in the end a sum f 30 billion euros wll be available in the next ten years.

Commenting on all those amounts, Plenković said that "this is a true lever for the economic growth and investments as well as for making the economy more resilient."

When it comes to the structure and speculations about how much could be funnelled to the private sector, Plenković said that about 95% of those 6.3 billion euros would end up in the private sector either directly or indirectly.

We are working on the national recovery and resilience plan that has to satisfy three components: 37% of green transition, 20% of digital transition and to make sure that those projects will not be detrimental to some other criteria of the Green Deal, the premier said and announced the presentation of the draft plan for next week.

For more about politics in Croatia, follow TCN's dedicated page.

ZAGREB, 22 March, 2021 - The government has taken steps to make sure that  €3.8 billion (HRK 28.5 billion) can be provided for reconstruction and revitalisation in the quake-affected areas, Prime Minister Andrej Plenković underscored on Monday at the first Croatian conference on earthquake engineering - 1CroCEE.

The conference was organised by the  Faculty of Civil Engineering in Zagreb on the first anniversary of the 5.5-strong tremor that struck Zagreb and its environs on 22 March 2020.

Plenković recalled today the extent of the damage to Zagreb and its environs and then later to the Banovina region which was struck by the 6.2-strong quake on 29 December was truly enormous.

The damage is estimated at HRK 86 billion in Zagreb and its environs and HRK 41.6 billion in the Banovina area in Sisak-Moslavina County. The sum total of the quake damage is put thus at HRK 128 billion.

For that expensive and long process of the reconstruction to be implemented it is essential to secure the necessary funds, particularly from European and international sources, said Plenković.

The government has to date taken intensive activities at all levels for reconstruction and revitalisation of affected areas  so as to secure €3.8 billion or about HRK 28.5 billion, which is 22% of the funds required.

Of that amount, almost €1.4 billion is from European sources and €2.4 billion through international financing institutions.

The European funds include €684 million from the EU Solidarity Fund for Zagreb's reconstruction and almost €600 million is planned through the Recover and Resilience Mechanism, while €111 million will be reallocated from the Competitiveness and Cohesion Operational Programme from the existing Multiannual Financial Framework (MFF), he said.

In addition, we will endeavour to secure funds from the new EU Multiannual Financial Framework  which is currently being programmed and financing reconstruction will be treated as a specific item, said Plenković.

When it comes to international financing institutions, in addition to an already contracted loan of €184 million from the World Bank, talks will be conducted for an additional €1 billion from the European Investment Bank (EIB), €900 million from the Council of Europe Development Bank (CEB) and €300 million from the European Bank for Reconstruction and Development (EBRD).

An additional €319.2 million needs to be added to all that which Croatia requested from the European Solidarity Fund for the removal of damage caused by the earthquake in the Banovina region, he added.

Plenković added that constant talks were being held with a series of development and commercial banks to come up with solutions that will provide credit lines with favourable interest rates for individuals. That primarily refers to the 20% of the costs they need to cover reconstruction, to finance the difference between structural repairs and complete reconstruction, to finance the reconstruction of apartment buildings and also to fund the reconstruction of public buildings by the state.

"We are about to enter the phase of organised structural repairs and comprehensive reconstruction, not just in Zagreb but in neighbouring counties," said Plenković.

He underscored that reconstruction should boost a new large development cycle for Zagreb and neighbouring counties as well as trigger the revitalising of the Banovina region.

World Bank director for Croatia and Slovenia, Elisabetta Capannelli, said that the estimated quake damage was equal to reached 30% of Croatia's GDP.

March 19, 2021 - The Prime Minister of the Republic of Croatia, Andrej Plenković, received the President of the European Football Federation, Aleksandar Čeferin, and the President of the Croatian Football Federation, Davor Šuker, at Banski dvori in Zagreb to discuss football infrastructure in Croatia. 

HNS reports that Prime Minister Andrej Plenković was accompanied by the Deputy Prime Minister and Minister of Finance Zdravko Marić and the Minister of Tourism and Sports Nikolina Brnjac. The HNS delegation was accompanied by the Executive Director Marijan Kustić and the Head of the International Department and Licensing Ivančica Sudac.

HNS

The meeting topic was primarily further investments in the development of football infrastructure in Croatia, and support for plans for the construction of a national stadium and the renovation of existing football stadiums in Croatia was also emphasized.

Prime Minister Plenković reminded that his Government in the last term adopted the National Sports Program 2019-2026, increased allocations for sports by more than 100%, and several projects were launched in the sports sector. He also added that the Government had launched investments in local sports infrastructure for the first time, and 15 football infrastructure projects in the total amount of HRK 5.7 million were co-financed through a public tender for co-financing the renovation and construction of sports infrastructure in 2019.

In addition to job preservation measures, the government has expanded support measures to mitigate the negative effects of the COVID-19 pandemic that have also affected the sports sector.

"I thank Prime Minister Plenković for organizing this meeting with Minister Brnjac and Minister Marić, which I consider extremely important for the further development of football, especially football infrastructure in Croatia. I am glad that the Government of the Republic of Croatia has shown an understanding of many economic, health, and other benefits that football brings to society and interest in the challenges we face as the most massive sports organization in the country. With the support of UEFA and FIFA, HNS has done a lot in the development of infrastructure in recent years, and of course, we wish more state assistance in this segment," said HNS President Davor Suker, adding:

"I have the impression that the current government led by Prime Minister Plenković, despite all the current challenges, has the hearing, desire, will, and strength to return to football what football, as the most successful Croatian 'product,' deserves. I am proud that in UEFA President Aleksander Čeferin, we have a great friend of Croatian football, and I thank him for showing today with concrete examples and figures that any investment in football is many times more profitable; for society as a whole."

Šuker also expressed satisfaction with the agreement reached on the establishment of a joint body of the Government, UEFA, and HNS:

"I believe in the effectiveness of a joint body composed of representatives of the Government and the Ministries of Finance, the Ministry of Tourism and Sports, HNS and UEFA's independent experts, and the city of Zagreb to jointly prepare a sustainable project to build a new stadium."

UEFA president Čeferin also reported on UEFA's plans to organize the European Football Championship, given the epidemiological situation in Europe.

At the initiative of UEFA President Čeferin and HNS President Šuker, a humanitarian match between Slovenia and Croatia was played in Petrinja on 13 March. On that occasion, President Čeferin, on behalf of UEFA, handed over a donation of 50,000 euros to the Croatian Red Cross. At the same time, HNS donated 200,000 kuna to the Sisak-Moslavina County Football Association to reconstruct football infrastructure.

To read more about sport in Croatia, follow TCN's dedicated page.

ZAGREB, 16 March, 2021 - Prime Minister Andrej Plenković said on Tuesday that Croatia would continue to administer the AstraZeneca COVID-19 vaccine despite the fact that some 20 countries have suspended vaccination due to blood clotting in some patients.

Although more and more countries are suspending the use of AstraZeneca, Croatia will wait for the opinion of the European Medicines Agency (EMA).

"The stand of professionals on this matter is that the benefits of vaccination outweigh any risks known to them at the moment," Plenković told the press in Daruvar. "None of them has pointed to us any risks which would lead to the conclusion that vaccination should stop."

Today Plenković took part in an online meeting with prime ministers Sebastian Kurz of Austria, Janez Janša of Slovenia, Boyko Borissov of Bulgaria, Andrej Babiš of the Czech Republic, and Arturs Karinš of Latvia.

The six EU member states will demand a corrective mechanism for vaccine distribution, Plenković said afterwards. "We agreed to jointly appeal for the creation of a corrective mechanism."

Thereby, he added, they wish to "compensate for the delay some countries have experienced due to the slower distribution of the AstraZeneca vaccine."

EMA will meet on Thursday to discuss the information gathered and decide if said vaccine has contributed to thromboembolism in people who have received it.

For more about vaccination in Croatia, follow TCN's dedicated page.

ZAGREB, 15 March, 2021 - Prime Minister Andrej Plenković said on Monday that a coordinated stance by the European Medicines Agency (EMA) regarding the AstraZeneca vaccine should be known tomorrow, after several countries have temporarily suspended administering the vaccine due to the emergence of certain side effects.

"Our stance is that a sound test has to be conducted to determine if there are any reasons, based on the findings so far, for Croatia also to go in that direction. From what the experts are telling me, there are no such indications for the time being. Tomorrow, we will probably see a coordinated stance by EMA, which as far as I understand, will proceed cautiously, that is, continue testing the vaccine itself and continue with consultations with the company regarding any possible consequences of the vaccination," Plenković said ahead of a joint meeting of the Croatian Democratic Union (HDZ) Presidency and National Council.

He added that the director of Croatia's HALMED drug regulator, Siniša Tomić, today participated in EMA meetings which discussed what to do next considering the emergence of several side effects that have been reported throughout Europe.

In reference to the procurement of the Russian Sputnik V vaccine, Plenković said that Croatia would wait for it to be approved and that the EMA had launched the relevant procedure. In the meantime, we will obtain additional information and test the vaccine, he added.

Asked who made the decision on how many doses of a vaccine Croatia would order, Plenković said that the procurement of vaccines was launched in the summer before reports that AstraZeneca had had certain problems with clinical trials.

"The vaccine that at the time was way ahead in terms of testing and the fact that it could be finished and its approval sought was AstraZeneca's and we, like the majority of other countries, immediately ordered the largest quantity of that vaccine. Then we ordered the Pfizer, Moderna and Johnson and Johnson vaccines. Croatia ordered a total of 8.7 million doses," said Plenković, adding that no one could have known that problems would emerge in vaccine production when the initial orders were made.

Asked whether anyone would be held responsible for the poor estimate in procuring vaccines, he said that for the entire time the aim had been to protect citizens, which was why more doses had been ordered than Croatia needed.

"The problem has emerged because one company, from which we ordered the biggest quantity... now has a problem in delivering the vaccine to the entire European Union. If that problem didn't exist, the rate of inoculation in Croatia would be very high," he explained.

Asked why Croatia didn't order the largest quantity of the Pfizer vaccine, which was the option many countries used, he said that only a few countries did that and that Croatia's decision was based on an expert opinion at the time.

"Croatia has a population of four million people and can immunise a maximum 3.4 million, and how could it justify buying 20 million doses?" "We did everything that was logical and correct based on the information that was available at the time and as time is moving on, we are looking for other solutions, just like everyone else," he said.

He added that it was necessary to find a corrective mechanism to redistribute the vaccines.

As far as continuing inoculation with the AstraZeneca vaccine in Croatia is concerned, Plenković said that the experts would decide on that. "As far as I understand, EMA's stance is that when the risk and benefits are taken into account, at the moment it is better to be vaccinated," said Plenković.

With regard to the European initiative for a vaccination certificate, Plenković said that the European Commission would release its proposal on Wednesday and that that would enable free movement and the tourism season.

For more about vaccinations in Croatia, follow TCN's dedicated page.

ZAGREB, 15 March, 2021 - Prime Minister Andrej Plenković said in an interview with the Politico news website published on Monday that it was reasonable to expect that Croatia would enter the eurozone and the Schengen area by the second half of 2024.

"The idea is to do both — accession to Schengen and the eurozone — by the end of this government’s term, so the second half of 2024," Plenković said. "It’s tough, but reasonable."

The European Commission said in 2019 that Croatia had fulfilled all the technical requirements for entry into the Schengen passport-free travel zone, and this should now be endorsed by other member states. Romania and Bulgaria have been waiting for this to happen for years.

In mid-2020 Croatia was admitted to the European Exchange Rate Mechanism (ERM II), a key step towards eurozone membership.

Plenković said that because of the coronavirus crisis the eurozone members could be expected to continue suspending their own rules for fiscal discipline, while those on the path to join the euro could not rely on "such easy self-help tricks."

He expressed regret that Croatia had "stepped away from consolidation and sound public finances" to limit the economic damage of the crisis.

Plenković said that his government would pursue two goals: "Using the recovery fund, the EU budget and private investment to generate growth. And the other one: Go back to the framework of 2017-2019, when my government achieved a budget surplus."

The prime minister said he believed Croatia would be able to spend the first euro from the EU recovery fund at the beginning of next year, adding that it was a complicated process. "Unless it’s helicopter money, it’s very difficult and complex. You need a plan, a project, verification, tender, implementation, documentation. If it goes faster, we’ll gladly spend it, but if I’m realistic …"

For more about politics in Croatia, follow TCN's dedicated page.

March the 15th, 2021 - The Croatian PM Andrej Plenkovic has expressed his sorrow for having not ordered more doses of the coronavirus vaccine and his frustration at how things are playing out.

As Poslovni Dnevnik writes, in an interview with the influential European news portal Politico, the Croatian PM said that looking at things from today's perspective, he is sorry that he did not order larger quantities of coronavirus vaccine for Croatia, but also explained how difficult it was to guess which pharmaceutical company would be the fastest to register and the most successful in mass production.

"In times of crisis, there´s always pressure to resolve something. But then comes the moment after the crisis and someone asks you: we have 4 million inhabitants, and you ordered vaccines for 14 million people; why?¨ the Croatian PM said in a frank and open conversation in Brussels on Friday. Plenkovic said that the idea of the ​​joint procurement of vaccines at the EU level, instead of individual procurement at the national level, was "very, very good", despite how badly it is going.

In that interview, the Croatian PM also spoke about the National Recovery and Resilience Plan, a document that all EU member state governments should send to the European Commission (EC) by the end of April so that they can start using the money from the new coronavirus recovery fund. When asked when Croatia could spend its first euro from this new fund, which is responsible for doubling the money that Croatia has had at its disposal through all other EU funds, Plenkovic answered that it will unfortunately not be this year.

"I have a feeling it will be early next year. The process is complicated. Unless it’s helicopter money, it’s very difficult and complex. You need a plan, a project, verification, a tender, implementation, documentation. We´ll gladly spend it if things go quicker, too, but if I´m being realistic… ", Politico writes, quoting the words of the Croatian PM. The Commission predicts that the first advance from the recovery fund could be paid out to EU member states in July, but that the situation as Plenkovic predicted will likely be the one which takes place. He gained that view after meetings with the leading individuals of the EC.

The Prime Minister also talked about whether the pandemic can slow down Croatia's path to the Eurozone, given that both the deficit and public debt are affected.

"The only thing I´m sorry about is the fiscal policy," said the Croatian PM, adding that we have "moved away from consolidation and sound public finances" in order to reduce the economic damage caused by the pandemic. Croatia therefore plans to use twice the amount of EU funds to boost its economic recovery, but also to return to the 2017-2019 framework, when my government had a budget surplus, the prime minister told Politico.

"To enter the Eurozone, we must meet the rules set out in the basic agreement. It´s very difficult to get an exemption from the contract ", said Plenkovic, referring to the situation that Vecernji list also wrote about in a recent interview with EC Vice President Valdis Dombrovskis. This is a situation in which all EU member states enjoy the benefits of temporarily suspended deficit and public debt rules, but the fact that these rules are currently suspended through the Stability and Growth Pact does not formally and legally suspend them as the Maastricht criteria spells out in that contract, which should be satisfied by any nation which wants to join the Eurozone.

Politico added that the Croatian PM, immediately after noting that it is difficult to get an exemption from the basic EU treaty, joked: "It´s probably possible, with a smart lawyer“ "

The Prime Minister concluded that his government still aims to bring Croatia into both the Eurozone and into Schengen by the end of its term, ie by the second half of 2024. That deadline is "difficult, but reasonable", assured the Prime Minister.

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ZAGREB, 11 March, 2021 - Croatia is ready to make its contribution to the Conference on the Future of Europe, in which Commission Vice-President for Democracy and Demography Dubravka Šuica will have one of the leading roles, Prime Minister Andrej Plenković said in Brussels on Thursday.

Croatia will make its contribution to the discussion on how to respond to global challenges together and how this Conference can improve the responses of the EU and its institutions to citizens' expectations and to numerous issues in the world which are now substantially different than they were before the COVID-19 pandemic, Plenković told reporters after meeting European Parliament President David Sassoli.

The leaders of the three EU institutions on Wednesday signed a joint declaration on the Conference on the Future of Europe, which is conceived as a public forum where citizens will over the next year be able to say what sort of Union they want.

The  Conference is expected to open on 9 May, Europe Day. It should have been launched on 9 May last year but had to be postponed, partly because of the coronavirus pandemic, but mostly because the leaders of the EU institutions were unable to agree on who would chair the Conference.

The Conference will be chaired by a three-member presidency consisting of the Commission President, the Parliament President and the Prime Minister of the country holding the rotating presidency of the Council of the EU.

In addition to the collective presidency, there will also be an executive committee which will be responsible for the organisation and oversight of the Conference's work. Each of the three main institutions will have three members on the executive committee, while the representatives of national parliaments will have observer status. Croatia's Dubravka Šuica will be on the executive committee on behalf of the Commission.

Sassoli said that the Conference should result in the better functioning of the Union, which is expected to be given new competences.

Plenković and Sassoli also talked about problems with COVID-19 vaccines in the EU, EU membership prospects of the Western Balkans, and Croatia's efforts to join the Schengen zone and euro area.

Plenković said that Croatia supports the EU integration of southeast European countries, especially Bosnia and Herzegovina with which it shares the longest border and where Croats live as the smallest constituent ethnic group.

For more about politics in Croatia, follow TCN's dedicated page.

ZAGREB, 10 March, 2021 - Prime Minister Andrej Plenković on Wednesday met with a delegation of the Women's Room NGO to discuss measures to curb violence against women and they agreed on the preparation of a national strategy to combat sexual violence.

Maja Mamula and Anamarija Drožđan-Kranjčec from the Women's Room informed the Prime Minister of the activities of their organisation, which includes the Centre for Victims of Sexual Violence which provides direct help and support to victims of sexual violence.

The talks underlined the need for raising public awareness of the problem of sexual violence, strengthening prevention and implementing education about that problem at all levels.

The two sides agreed on drafting a national strategy for the prevention of sexual violence, which will involve all relevant departments and civil society organisations.

There was also talk of amendments to the Criminal Code regarding the combatting of sexual violence, which have been prepared and should soon be put to public consultation.

The main amendments concern redefining the prosecution of sexual harassment to enable its ex-officio prosecution, which is something the government has already announced.

Under the amendments, there will be no statute of limitations on child abuse.

The meeting also discussed activities implemented by the Ministry of Labour, Pension System, Family and Social Policy in order to establish shelters for victims of violence in all counties, the related media campaign and cooperation with civil society organisations.

The Women's Room delegation welcomed the fact that the need for a strategic document to combat sexual violence had been recognised as well as the announced legislative amendments.

Prime Minister Plenković thanked the delegation for their cooperation and work on raising awareness of the problem of violence, notably their activities in providing support to victims of sexual violence.

For more about politics in Croatia, follow TCN's dedicated page.

ZAGREB, 9 March, 2021 - Croatia is ready to take in about ten COVID patents from the Czech Republic and Slovakia each, Prime Minister Andrej Plenković tweeted on Tuesday after his telephone conversation with his counterparts Andrej Babiš of Czechia and Igor Matovič of Slovakia.

"I have conveyed Croatia's readiness to hospitalise about ten COVID-19 patients each from the Czech Republic and Slovakia, if necessary, taking into consideration the fact that their respective health systems are under strain," Plenković wrote on his Twitter account.

Croatia is showing its solidarity with EU member-states in the struggle against COVID-19, he underscored.

The Czech Republic, which has been one of the hardest hit countries in the world by the COVID epidemic recently, has asked Germany, Switzerland and Poland to take in dozens of COVID-19 patients as the situation in its own hospitals has reached a critical point.

Slovakia has already transferred some of its patients abroad this week.

Poland and Germany each have said that they can hospitalise ten patients from that country. 

For more about COVID-19 in Croatia, follow TCN's dedicated page.