The German chancellor Angela Merkel, otherwise one of the most powerful people in the European Union, was recently in the Croatian capital of Zagreb at HDZ's pre-European election rally. HDZ is a party which divides opinion vastly among the public, with some loathing it more than anything and others loyal like dogs to it, its leader and its core values, regardless of whether or not the party actually sticks to them.

But, what exactly did Angela Merkel, a highly respected and intelligent political figure who has dominated both German and European politics for such a long time, think of HDZ's performance? The real question is, what did she really take away from it at all, or did the somewhat bizarre undercurrents manage to pass her by entirely? 

As Index/Davor Tomsic writes on the 19th of May, 2019, whether or not Merkel, from the vastly different (and vastly wealthier) Germany, truly grasped what was really going on at HDZ's recent gathering at Zagreb's Cibona is perhaps the most brutal question that could be posed right now, as it appears that HDZ decided to use their limelight in front of Europe's most powerful woman to drop any proverbial mask and show, let's say, a rather old face of the party.

HDZ is a topic as tired as any in Croatia, and the country and its populace have had more than enough time and equally as many chances to make up their own minds about HDZ over the past thirty years, and Plenković once again decided to reveal the true face of his party just before the European elections, and in front of no less than the German chancellor herself, who came to the party's pre-election gathering in the capital for the first time.

Why did Merkel choose to come in the first place?

Of all the countries where the European People's Party operates, the family of which, as HDZ love to state, both Merkel and Plenković proudly belong to, she decided to come to Croatia. It's still not clear why. It's true that HDZ, given the number of MPs it has in Croatia, has a very high percentage of EEP MEPs, but it's not very likely that this is the sole reason Merkel came to show her personal support to Plenković in Zagreb.

It is possible, however, that Plenković is very well respected in the EEP, but that doesn't quite seem to be the real reason for Merkel's arrival, either. Her reasons should probably be sought during the campaign for Manfred Weber, who was also present at the recent HDZ rally. The fact that Croatia is set to assume the rotating EU presidency for six months may have a lot to do with it all.

The reason for Merkel's arrival is certainly more to do with Andrej Plenković than anything else, to whom the whole European environment is a natural habitat. HDZ's main man is a loud and proud member of the European family and is generally seen as a modern European among his peers, as a diplomat deeply attached to European values. Merkel recently announced that this is to be her last term in office in Germany, but despite that decision, she's still probably the most powerful woman on the international political scene.

Despite being a very ''out and proud'' Europhile and a member of the very progressive EEP, just what did Plenković and his party choose to present to Merkel? Rather bizarrely, the Bleiburg tragedy, Thompson and Franjo Tuđman...

Although HDZ's European election program was entitled "Croatia for Generations"; which is supposed to suggest that the party's main focus is the future, it seems that at HDZ's mildly odd rally, there were more words said about the past than much else.

What might not be surprising to that party is the fact that Croatia has somehow managed to gain a massive 1687 new ex-defenders, a whole 24 years after the end of the Homeland War.

To make the matter even more absurd, a controversial topic of the past was openly discussed by HDZ's Karlo Ressler, a 29-year-old man who is present as a promising new face in the party. Ressler was born in no less than Bleiburg, the location of the infamous Bleiburg tragedy, for which a commemoration to murdered Croatian soldiers is held annually, which unfortunately tends to attract political symbols of the past, and which, most importantly of all, Austria has sought to ban.

Austria is a nation that Germany shares very many special ties with, and discussing something that the aforementioned country appears dead set on banning in front of the German chancellor might not have been the most well thought out approach. Germany is far from the horrors of the Second World War, and discussions about it don't seem to scream that HDZ is a party with its eyes on the prize - the future.

Ressler took to the stage and stated that the Bleiburg tragedy was one of the greatest tragedies of the Croatian people, receiving HDZ's ovations in response. Ressler was otherwise born 44 years after Bleiburg happened.

Next on the rather strange agenda was to play a bit of Thompson to Merkel at the rally in Zagreb. The controversial singer, regardless of personal opinions, is banned in half of Europe, and his concerts are banned in Germany of all places, but HDZ still decided to go ahead and blast out Lijepa li si for the German chancellor anyway.

If HDZ's message wasn't quite clear enough to everyone yet, the party leader made sure to confirm it all again, by going out onto the stage and literally screaming about it for around twenty minutes. Screaming about what you might ask? The past and Dr. Franjo Tuđman, I'd answer. He described HDZ's strength and even went as far as to discuss the party's ''enemies'', but refrained from naming them.

Let's not forget that among all of this, there was also a language barrier to deal with, too. Uncomfortable? Yes.

HDZ managed to glorify nationalism and Croatia's membership of the European Union at the same time, and while there were Croatian and HDZ flags galore, there was not one single EU flag to be seen.

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Click here for the original article by Davor Tomsic for Index

ZAGREB, May 12, 2019 - Prime Minister Andrej Plenković said on Sunday that he respected every referendum initiative and that parliament would decide on the union-led referendum initiative "67 is too much" after examining the signatures gathered for a referendum petition.

The initiative's organisers announced at a midnight press conference that they had gathered over 600,000 signatures for a referendum against the statutory retirement age being raised to 67.

"I respect every referendum initiative, including this one. Parliament will decide on this matter after the signatures have been presented," Plenković told reporters in Zagreb.

Asked if Parliament would ask the Constitutional Court to assess whether the referendum question was in line with the Constitution, the prime minister said that this would be decided by Parliament.

Branko Grčić of the opposition Social Democratic Party (SDP) on Sunday congratulated the union-led "67 is too much" initiative on gathering 600,000 signatures for a referendum on the pension system.

Speaking to reporters on the sidelines of an SDP convention in Zagreb, Grčić said this was a good initiative for future pensioners, especially for people for whom it would be difficult to work until 67 years of age for health reasons.

Asked if the referendum would be held, Grčić said that the unions' proposal was very consistent. "It is basically a substitute for the law that was already passed by parliament. I think that everything will be clear after confirmation by the referendum. I don't think the government will have any choice there."

He said that the government's reaction to the signature gathering campaign was arrogant because it used all means available to deter people from supporting the referendum initiative.

Responding to a reporter's remark that five years ago the SDP had supported a similar measure, Grčić recalled that their proposal was that the retirement age be raised as of 2038 and that it was prompted by efforts to speed up economic growth. "Unfortunately, the government that succeeded us went in a totally different direction. The circumstances today are completely different from those of three years ago," he said.

Ines Strenja of the opposition MOST party said on Sunday she was glad that the union-led referendum initiative "67 is too much" had gathered over 600,000 signatures for a referendum on the pension reform.

She said that this was a message to Prime Minister Andrej Plenković that the people wanted further consultations on the pension reform.

"MOST has supported this referendum initiative just as it did all other referendum initiatives because the people have the right to say what they want the country to look like," she said during a presentation of her party's platform for the forthcoming European Parliament elections in the northern Adriatic city of Rijeka.

Strenja said that the pension reform was not good. "There's much more than the retirement age of 67. Croats have a shorter life expectancy than EU citizens, so perhaps the retirement age should be even lower than 65. We want EU standards while forcing our people to be in an unequal position in relation to EU citizens," she said.

Speaking of the EP elections, Strenja said that if elected, MOST's MEPs would be advocating the interests of Croatian citizens rather than of different political groupings. "We want a just Croatia that will be an equal member of the EU and that will fight for its sovereign rights such as the right to an exclusive economic zone. Croatia can do so much more, especially with regard to EU funding," she said, adding that they would also insist on better healthcare for all, especially for people in rural areas and on the islands.

More referendum news can be found in the Politics section.

ZAGREB, May 9, 2019 - It is important for Croatia that over the next five years the EU ensures faster convergence so that the economic, social and development standards of Western member states can be achieved, and negotiations on the next multiannual framework will underline the need to ensure support for demographic revitalisation, Prime Minister Andrej Plenković said on Thursday.

"For us, it's especially important to signal in the next five, i.e. seven years, in the next budget framework, within policies on a more balanced development of all member states, that there's a need for demographic revitalisation in some countries. I mentioned this idea to budget commissioner Guenther Oettinger last year when he visited Zagreb, so we will insist on that in the process ahead," Plenković said in Sibiu, Romania ahead of an informal meeting of EU27 leaders.

Speaking of the EU's priorities, he mentioned common security and investment in science, research and development. "Security is the number one issue of this campaign. According to Eurobarometer, 40% of EU citizens think so."

Asked if the meeting would discuss enlargement, Plenković said he did not expect it. "We'll discuss enlargement in detail at a summit in Zagreb in a year's time. Now, two weeks before elections for the European Parliament, we are all focused on our voters. The Commission will publish its enlargement package a few days after the elections, so it will be discussed only after that."

More news about Croatia and the EU can be found in the Politics section.

ZAGREB, May 7, 2019 - Croatian Prime Minister Andrej Plenković in Brussels on Monday evening met with European Council President Donald Tusk to talk about a summit of the 27 EU leaders, scheduled to be held in Sibiu, Romania, Thursday.

Plenković and Tusk met in Brussels where the Croatian PM will be the keynote speaker at a conference on future EU priorities. He will give a talk at a conference organised by the Centre for the European Policy called "Yes we should! EU priorities for 2019-2024." Plenković is there at the invitation of Heman Van Rompuy, president of the European Policy Centre and former European Council president.

The Croatian PM is scheduled to meet European Commission President Jean Claude Juncker and European People's Party President Joseph Daul on Tuesday.

"The meeting with Tusk is primarily part of the consultations ahead of the summit in Sibiu at which we will adopt a declaration and a strategic agenda for the 2019-2024 period," Plenković said describing the talks as a meeting with Croatia’s great friend.

Announcing his talk at the conference on future EU priorities, Plenković said the main message would be the need for unity, adding that this would also be the main message of the summit in Sibiu.

The Informal Summit of Heads of State or Government of the European Union will take place on May 9, in the Romanian city of Sibiu, in the context of the Romanian Presidency of the Council of the European Union. This will be the first summit of this magnitude ever hosted by Romania since it became a member of the European Union in January 2007.

The high-level meeting will be hosted by Romanian president Klaus Iohannis and chaired by Donald Tusk. The summit will be attended by heads of state and government from EU member states, European Commission President Jean-Claude Juncker, and the President of the European Parliament, Antonio Tajani.

"I believe that the summit in Sibiu is a reminder to all EU leaders that we are together in the EU by our own will, and that we need to try to make the best out of the European project in significantly changed circumstances," said Plenković.

Plenković said he and Junker would talk about Croatia's preparations for entering the Schengen area and the euro area.

More news about Croatia and the EU can be found in the Politics section.

If the China Shipbuilding Industry Corporation (CSIC) gives up, it will be difficult to find another candidate for the ailing Croatian shipyards Uljanik (Pula) and 3 Maj (Rijeka) which is in the shipbuilding industry and is also a strong and respected player. Could a Chinese investment be on the cards?

As Poslovni Dnevnik/Suzana Varosanec writes on the 29th of April, 2019, after yesterday's meeting with Prime Minister Andrey Plenkovic and his government ministers, Hu Wenming, Chairman of the Board of China's largest shipbuilding company China Shipbuilding Industry Corporation (CSIC) confirmed that they are indeed moving towards serious consideration regarding the enfeebled Uljanik and 3 Maj shipyards, which have undergone months of turmoil.

''The prime minister gave us a very serious and detailed presentation of the whole situation,'' Wenming said, adding that they saw that these two shipyards were a very important topic for the Croatian public. "Not only did we bring people from our company - they're in charge of planning, we've already called on lawyers and investment banks, so we will outline what their views on the matter are after visiting the shipyards," Wenming stated.

With that, a key ''tour'' begins, because if CSIC ends up actually not being interested in putting its money into the situation, it will be a hugely difficult task to find another candidate in shipbuilding, which is a big player and has an interest in joining the European shipbuilding industry. Otherwise, this would be the first case of a Chinese takeover of a foreign shipbuilding company, so it is speculated that extensive calculations are being made, and of course whether they even want to have their first European shipyard is being considered. The CSIC is looking at the situation deeply and from all possible angles.

This event all began with the recent announcement of the arrival of the CSIC in Croatia with the aim of visiting the troubled shipyards in Pula and Rijeka. As was then announced, the CSIC chairman contacted Chinese Prime Minister Li Keqiang during his stay in the Republic of Croatia where he attended the summit "16 + 1" and after talking with the Croatian PM about the dire state of Croatian shipbuilding.

As things currently stand, the general belief is that the Chinese decision won't take long to come - it will be a simple and express "no" or "yes", while the third option, more specifically an unconditional "yes", will likely need to be waited for a little longer.

What the outcome of the potential Chinese presence in the Croatian shipbuilding industry is anyone's guess, and while some remain very suspicious of Chinese motives in Croatia in general, despite them already working on the long-awaited Pelješac bridge down in southern Dalmatia, whatever comes of their potential entry has got to be better than the current situation, especially for Uljanik.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese investments and projects in Croatia, doing business and investing in Croatia and much more.

Click here for the original article by Suzana Varosanec for Poslovni Dnevnik

There has been much talk, both positive and negative, about the potential for Chinese investment in Croatia. They're already building the long awaited Peljesac bridge down in Dalmatia and have since expressed great interest in the Port of Rijeka and in constructing a railway line linking Rijeka to Karlovac. 

Many believe that the apparently huge interest of the Chinese (and their money) is a bad omen, and that Croatia will end up trapped by yet more debt it can't pay off in the end. Others see it as a welcome move, despite their suspicions. Whatever the truth behind China's interest in Croatia is, the EU aren't too pleased with it, especially in the case of Peljesac bridge. Peljesac bridge is one of the most important strategic projects in the history of the country, and it has been financed mainly by European Union funds, the fact that a Chinese company has been chosen to construct it hasn't filled the European Union, nor the Commission, with much joy.

What will be the situation with one of Croatia's most pressing issues of late, its ailing shipyards? As Uljanik's dire situation continues to worsen, could the already suggested investment from China be its saviour at the eleventh hour? Maybe.

As Poslovni Dnevnik writes on the 29th of April, 2019, a delegation from China's largest shipbuilding company, China Shipbuilding Industry Corporation, headed by Hu Wenming, the head of the company, will arrive in Zagreb on Monday, as N1 reports.

The Chinese delegation will first be welcomed by Prime Minister Andrej Plenkovic and his government ministers at Banski dvori in the heart of the capital city. After exchanging all of the usual diplomatic pleasantries, they will discuss the burdensome issue of Uljanik (Pula) and 3 Maj (Rijeka), which the Chinese guests will visit on Tuesday.

At today's meeting between the Croatian premier and the Chinese delegation from CSIC, the bosses of Uljanik and 3 Maj, Emil Bulić and Edi Kučan, will present, as was confirmed to N1 by the Croatian Government.

Will the giant Chinese company actually agree to invest in Croatia's ailing shipyards, however? The answer to this question could be known definitively in as little as ten days, Economy Minister Darko Horvat announced last week.

Concerning the potential interest of the Chinese for the Uljanik and 3 Maj shipyards, Minister Tolušić said that this really is "probably the last chance to do something." If there is any possibility whatsoever that the Chinese will enter into some sort of investment arrangement to rescue the shipyards, they'll enter. If there's no possibility, they won't. We'll leave it up to them.'' stated Horvat.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese investments and projects in Croatia, doing business and investing in Croatia, working in Croatia, and much more.

As Mirela Lilek/Novac writes on the 27th of April, 2019, Croatia's situation still isn't good: the country is continuing to ''produce'' graduates with the third lowest employment rate in the whole of the European Union, and as a result, taxpayers pay more and more money for them. According to new data from Brussels, based on a comparative survey of youth employment among Croats with diplomas earned in the last three years, a third of highly educated people aged between 20 to 34 in Croatia have no jobs. Only Italy and Greece are worse.

Of the 28 countries EU member states, Croatia ranked 26th with a 66 percent employability rate. Four positions above Croatia lies Romania, Bulgaria is six places above, and Slovakia is nine places above. Croatia's neighbour to the north, Slovenia, is eleven places above Croatia, Poland is thirteen places above (impressively right behind Ireland and Denmark), and the Czech Republic, with an 89.9 percent employability rate which has impressed the European Commission's experts - has risen to an enviable fourth place.

Malta is in first place in Europe as an employer of its graduates with diplomas, the employment rate of Maltese students stands at a very impressive 94.5 percent, even better than Germany, which boasts a rate of 90.9 percent, followed then by the Netherlands, the Czech Republic, and then Austria. The EU average is on the rise, back in 2014 it stood at 76 percent and in 2018 it stood at 80.2 percent. Unfortunately, the Croats have been close to the bottom for years, more specifically for fifteen years, as it has a below-average rate of employability in relation to the EU. Of course, rather than attempt to fix the problem directly, the Croats are doing what the Croats always do - continuing to debate and argue over who is (more) to blame for such embarrassing conditions.

Economists see the issue as being that the Croats aren't adapting easily to the market, and that Croatia also has an old education system. At Croatia's universities, they argue that the key issue isn't Croatia's higher education institutions, but an underdeveloped labour market, low personal income, and demotivating working conditions. Experts from the European Commission have given a relatively simple answer: Investing in education will benefit everyone in Europe.

Let's see how they explain their theories in some of the country's universities, starting with the largest "producers" of graduates in the entire country, the Faculty of Philosophy and Economics in Zagreb.

''We're aware of the importance of linking study programs and labour market needs. In this regard, the Faculty of Economics makes an effort to make it easier for students to access the labour market by establishing multilateral cooperation with companies and respectable institutions that enable students to perform high-quality professional practices,'' stated Sanja Sever Mališ, who deals with strategic partnerships and projects at the Faculty of Economics in Zagreb. The basic message from this particular Zagreb university is that "they connect students and employers so their best students can find work even during their studies." Therefore, there is no concern for them.

On the other hand, Vesna Vlahović-Štetić, Dean of the Faculty of Philosophy, admits that Croatia's humiliating placement at the bottom of the employability scale of graduates is still something to be very concerned about and therefore the causes of that need to be looked at.

''I assume that part of the problem lies in insufficient development and the ability of the economy and the public sector to absorb newly graduated students. On the other hand, the question is how many colleges and higher education institutions meet the needs of society with their respective programs. At the state level, in some professions there's hyper-production, and in others there is a lack of experts. Additionally, study programs should be regularly updated and developed to meet not only society's needs but also predict what competences professionals will need in the future,'' the dean says.

Data obtained through the HKO project of the Faculty of Philosophy shows that the employability of their students in the year after graduation is 75 percent. They believe this is the result of "the excellent professional and generic competences of their graduates".

"We're convinced at the Faculty of Philosophy that the study programs need to be further improved, so we have just started the study reform process and I'm sure the future employability of our students will be even better," says the university's dean.

The rector of the University of Rijeka, Snježana Prijić Samaržija, doesn't want to run away from the fact that Croatia's universities do hold a share of the responsibility for this issue but, again, she's convinced that Croatia's higher education institutions are't the key cause of the problem, but the underdeveloped labour market definitely is.

Rijeka University has eleven faculties and four departments. On their official page, they point out that they are a modern European university and a centre of excellence within the region and beyond, and that they are responsible for the social and economic development of the community. Samardžija claims that she doesn't want to relate the worrying data on the high rate of unemployed with higher education, but that "it should be borne in mind that higher education is a better job-finding guarantee, such as landing a permanent position,"

"Of course, it's possible to say that the employment rate would be higher if universities, by some automation, increased their quotas for the job-type deficit and reduced those profiles for which the employment bureaus take care of. In that sense, people often say Croatia's institutions and their enrollment policies aren't adapted to the labour market. However, the situation isn't quite that simple.

For example, the market seeks shipbuilding engineers, we have shipbuilding studies and a corresponding quota at the University of Rijeka, but there's a fall in interest for those studies. We can understand the students' fears about the situation with Croatia's shipyards, but the fact is that the need for this profession is still growing. Similarly, despite the lack of mathematics and physics teachers and the excellent studies we have, the interest doesn't match the employment opportunities,'' she explained.

The University of Rijeka decided to put seven studies ''into retirement'' this year, and isn't accepting students for them. Those are acting and media, dental hygiene, computer science in combination with professional studies of medical-lab diagnostics, mechanical engineering, shipbuilding, and electrical engineering.

On the other hand, there's a considerable level of interest in studies that don't guarantee quick and permanent employment at all, such as the arts, cultural studies, and psychology.

''Young people choose studies according to their personal interests, not just employment opportunities. They don't necessarily just want a permanent job, many of them are accustomed to gaining work experience in different institutions, at different places of work, and in different countries. More and more, they prefer to individually define the curriculum through courses and practical competences beyond their study program(s), which will make their expertise comparatively more special and desirable. In the midst of a sluggish and non-ethnological labour market, more and more students enjoy prolonged youthful relationships with their parents or rent apartments,'' says Snježana Prijić Samaržija.

"I don't want to run away from the responsibility of the university, we're constantly thinking about the jobs of the future, we're working on increasing the quota for the deficit professions and improving our students' competences to reduce the unemployment rate. However, time is needed to see the results of these measures because the higher education cycle lasts for at least five years. It should be understood that universities can't just simply increase quotas for occupations for which there's a labour market need because new employment is frozen,'' noted the Rector of the University of Rijeka.

As Croatia's paradoxical situation of having no work but plenty of jobseekers, yet plenty of work and no staff, it's hard to predict the outcome of education system reforms as the market and its needs can alter so rapidly. Will Croatian students simply continue to trickle away on the stream of a proverbial leaking tap out into Western Europe, leaving Croatia with the rather unenviable title of a country that educates its citizens for work abroad? It's likely such a scenario will continue at least for the foreseeable future. Whether or not Croatia will manage to make the necessary alterations to fix that aforementioned ''leaky tap'' in time remains to be seen.

Make sure to follow our dedicated lifestyle, politics and business pages for much more.

Click here for the original article by Mirela Lilek for Novac/Jutarnji

ZAGREB, April 19, 2019 - Croatian Prime Minister Andrej Plenković on Friday offered his best wishes for Easter to Zagreb Archbishop Josip Bozanić, Croatian Bishops' Conference President Želimir Puljić and all members of the Croatian Catholic clergy, as well as to the faithful in the country and abroad.

"While awaiting the resurrection of Jesus, which is the source of Christianity, we contribute to mutual understanding and tolerance and peace among people of good will with a joint prayer. Encouraged by the power of Christ's resurrection, which renews faith, hope and solidarity in the Croatian nation, we continue to work together to the benefit of all Croatian people, notably the neediest ones," Plenković said in the message.

President Kolinda Grabar-Kitarović on Friday wished a happy Easter to the Catholic clergy in Croatia and all Catholic faithful in Croatia and abroad, wishing for stronger faith in redemption and salvation.

"I extend cordial greetings for Easter, the most important Christian holiday, which is the centre of faith for all the faithful hoping for redemption, salvation and resurrection. Strengthened with faith, may this holiday fill our hearts and our homes with peace, love and serenity," the president said in her note.

More Easter news can be found in the Lifestyle section.

As Lea Balenovic/Iva Grubisa/Novac writes on the 17th of April, 2019, Croatian tourism's current business model is unsustainable and has some serious challenges, according to Emanuel Tutek, a partner at the Horwath HTL consulting house, who stated this at the very beginning of a conference on the challenges of the Croatian tourism sector at Edward Bernays High School, the co-organiser of which was Jutarnji list.

Since 19 percent of Croatian GDP comes either directly or indirectly from tourism, the unsustainability of the system is a more serious issue, he added.

''First of all, our tourism is an extremely seasonal sector and as much as 86 percent of all tourism activities in Croatia take place during the summer months. It's also problematic that 96 per cent of these activities are realised on the coast and in Zagreb. In translation, this means that we have plenty of room for progress and the development of our tourist offer across the rest of Croatia, as well as the extension of the season. We are well below the European average. For example, if we compare just the peak of the tourist season, ie July and August, there is 10 to 20 times more of a burden on the area and the residents in Croatia than there is in other European countries. Just remember how some of the destinations and beaches look in July or August,'' warned Tutek.

He also added that Croatia has plenty of room for progress and development in the quality of the accommodation it provides. The Croatian hotels that, as Tutek says, are the pearl of Croatia's hospitality, are very much losing the battle with the hotel industry in the rest of Europe, and the alarm that should be enough to wake the country up is also the fact that the revenue made from tourists' overnight stays in Croatia is less every year.

In addition to this, Croatian tourism is feeling the country's ongoing demographic crisis bite hard, and has a human resource problem as a consequence. This is, as was explained by Tutek, actually a global problem. However, since the international labour market is far more competitive than the Croatian one is, foreign countries are filling their gaps with Croatian workers. Croatia is, unfortunately, at an unimpressive 100 of 138 countries in the world according to the labour market competitiveness index. An even more concerning piece of information shared by the Horwath HTL consultant was that Croatia is the last and second to last in the world on the ladder of attracting and retaining workers.

''We have no solution. The answers to this can't just be some lump sums and other initiatives, we need something more fundamental,'' he warned. One of the negative factors in each case is the uncompetitive average salary. In nearby Austria, for example, in the hotel sector, wages are about 122 percent higher. Still, the hotel industry here in Croatia has experienced a great discrepancy in numbers, and they have therefore begun to increase employee salaries for the last two summer seasons, which has been a fruitful decision. With the rise in salaries and expenses, revenue also grew.

In addition to the inadequate management of human resources, huge problems are also created by the Croatian tax policy. Property tax, Tutek said, practically doesn't exist in Croatia. ''We're the champions of how good private landlords have it. Croatia is a tax oasis,'' he claims.

''We want to be competitive, but there are a number of things that we're not even close to, not even in the wider environment. VAT reduction is certainly important, and there is also the question of consistent policies. It is important for us to have a perception of what will happen in the future at some point, but if the policies constantly change then we can't have a stable business,'' said Sanjin Šolić of the Lošinj hotel group Jadranka.

Davor Lukšić, President of the Lukšić Croatia Group, agreed with him, pointing out that Croatia's 25 percent VAT rate is very high, and even with a rate of 13 percent there would still be room for progress. "We have to remain competitive, especially now when other destinations in the Mediterranean are making a come back," Lukšić added.

But if one was to as Croatian Tourism Minister Gari Cappelli, the problem of the high VAT rate is one of the easiest problems to solve in the Croatian tourism industry. The minister claims that the Croatian Government could lower the VAT rate with one decree, bringing it down to 10 or 13 percent, and such a decision is in the government's plans for the beginning of next year.

''We have a problem with having five-star hotels in two star destinations. First of all, we have to start improving the quality of the destination and spend the whole year measuring what's happening and only after a few years will we see whether both residents and tourists are happy, as well as service providers and the environment. If everyone is more or less happy, then it makes sense to invest in a four or five-star hotel,'' stated Minister Cappelli, adding that in Croatia, it often happens that investments are made in luxurious hotels first, but not in the development of the destination in which it is located.

"Well, we have cases where five-star hotels don't have sewage systems but septic tanks," he said. The minister also referred to the initial lecture by Emanuel Tutek about the key challenges facing Croatian tourism. He agreed that there was always room for progress, but he also pointed out that he was tracking the figures daily and that he couldn't bring himself to agree with all the alarming warnings about the unsustainability of Croatian tourism.

''We're a strange people, two years ago there were no tourists and they wanted to get rid of me, now there are a lot of tourists, and they want to get rid of me again, the projections of what's to come in two years keep coming in, and they're already that I'm shaking in my chair,'' said Cappelli, adding that Croatia is spending what it earns and has therefore finally got an investment rating.

''Now the pressure on public finances is being relieved and the taxes on the economy can be reduced slowly,'' he said.

If the Croatian tourism association is asked for their opinion on the matter, this is last chance saloon for this tax relief to actually become a reality. Namely, it is anticipated that hotels could reduce the volume of their investments by as much as thirty percent over the next three to four years. ''We want to warn the government that it must not let that happen. We have to invest, but we expect that the government to create measures to encourage that and not just put us off,'' said Jadranka's Sanjin Šolić.

Dubrovnik has experienced not only growth in terms of tourism but also the improvement of infrastructure in recent years, Lukšić believes. However, despite the wild popularity of this particular southern Croatian city, it has multiple problems during the winter season.

''In the last two years, we have extended the [tourist] season and the so called ''congress season'' has helped a lot. But we all have to sit around the table and design a strategy for the winter season, which is actually the only problem,'' Lukšić said, arousing a grin from Šolić, who, having being on an island, has much bigger problems.

''It's easy for Dubrovnik. Imagine how it is for us to extend the season! You need to get to the island, the bridge is a problem, the bura is a problem, everything is a problem. We're less competitive than our colleagues on the mainland whichever way you turn. The Chinese, the Koreans, whoever comes to Croatia, lands in Zagreb, goes to Plitvice, Split and Dubrovnik, nobody comes to us,'' complained Sanjin Šolić.

That is why his team sat down together at the table and decided to turn to health tourism for which Lošinj has natural resources, a strategy and a future, said Šolić. Another solution for the development of island tourism is golf. Therefore, a location permit is currently being sought for the construction of a golf course with eighteen holes, with which will be a hotel and villa that will have a total of 800 beds.

''These are the two routes we have on Lošinj. People don't play golf in July and August because its too hot. During November, December, January, February and March, the weather is wonderful and we'll fill our capacities that way,'' he noted.

Emanuel Tutek welcomed this discrepancy in Croatia's tourism development strategies at various locations.

''Not all destinations are suffering the same issues. In Dubrovnik, there is a problem with excessive demand, and the quality of the offer needs to be worked on to reduce the number of tourists. In Istria, the offer should be increased. This has, for example, been done in Maistra. Nobody thought it would pay off to build a five-star hotel in Rovinj, but after the construction of the hotel, the rest of the sector was accompanied by the arrival of tourists and the development of the destination.

However, in addition to the respective issues destinations face in Croatia, the eternal problem facing the entire Croatian tourism sector is labour and wages.

''Salaries are a problem, they're still a base for attracting workers,'' said Tutek, agreeing with the CEO of Jadranka, but as he said, it's difficult to increase salaries because there isn't enough revenue.

"When the minister sorts us out with less taxes, I'll give the rest of it in salaries," he stated.

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Click here for the original article by Lea Balenovic and Iva Grubisa for Novac/Jutarnji

Despite the odd investment here and there, continental Croatia rarely gets a look in when compared to the coast, particularly when compared to Dalmatia. In Eastern Croatia, more specifically Slavonia, the situation is even more depressing, but it seems that not everything is as bleak as we sometimes like to imagine and even portray.

As Suzana Varosanec/Poslovni Dnevnik writes on the 16th of April, 2019, the economic expectations from the Luka Brod (Brod Port) project worth more than 100 million kuna are high. Through the construction of new port infrastructure, the project has become the driving force for the development of Brod-Posavina County, as was highlighted by the Croatian Government.

As stated, the much anticipated construction of new port infrastructure is the driving force for the development of this Slavonian county, this was highlighted at the eighth session of the Council for Slavonia, Baranja and Srijem, and according to the prime minister, it's essential for the Croatian Government and local self-government units to do everything to create the proper conditions for economic development that will end the mass exodus of citizens from Croatia.

Until now, contracted projects with EU funding amount to 9.7 billion kuna, stated the Minister of Regional Development and EU Funds, Gabrijela Žalac. Another 1.85 billion kuna are contracted investments from the state budget.

For the strengthening of the Croatian economy, the development and enhancement of competitiveness, projects such as Brod Port are of great importance, stated the Croatian Chamber of Commerce's Mirjana Cagalj. This is also an incentive for the development of a local environment that is particularly burdened with the exodus of the resident population who are leaving in their droves owing to the unfavourable economic situation, contributing to Croatia's worrying demographic crisis.

Its exceptional traffic position provides great potential for the development of the new port in Slavonski Brod in an intermodal logistics centre, which, according to Cagalj, would work to influence its future strategic role in international container traffic because Brod Port is located on the border of Croatia and Bosnia and Herzegovina, near the crossing of the railway corridor X and the road corridor Vc, which is an international entry port for the EU.

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Click here for the original article by Suzana Varosanec for Poslovni Dnevnik