ZAGREB, July 8, 2020 - President Zoran Milanovic on Wednesday called on Austrians to spend their summer vacation in Croatia, noting that Croatia's coast, where numerous Austrians traditionally spend their holidays, "is as safe as can be."

"I would like to use this opportunity to, first of all, invite Austrian citizens to visit Croatia," Milanovic said in Vienna after a meeting with his Austrian and Slovenian counterparts.

Milanovic noted that Croatia was safe with regard to the coronavirus and that incidents, which are occurring in all countries, "are relatively or absolutely rare" in Croatia.

"The coast is long, sparsely populated and there are few people. I don't want to sound overly pathetic but we are waiting for you. It is as safe as can be," Milanovic said, adding that he was speaking rationally and could substantiate what he was saying.

Austrian President Alexander Van der Bellen stressed that it was in the interest of the three countries to keep their borders open and that as a native of Tirol, he had a lot of understanding for people wishing to spend their vacation on the coast.

An Austrian reporter wanted to know how accurate claims were that Croatia was a safe country considering that it tested four times fewer people than Austria.

Milanovic said that Croatia did the test too little but that hospitals were not overcrowded and that a very small number of people were on ventilators, far fewer than during last year's flu season.

He added that the mortality rate in Croatia was lower than during last year's flu season.

Slovenian President Borut Pahor stressed that his country, Austria and Croatia had shown that it was possible to live relatively normally with the coronavirus, with open borders and continued economic activity.

"People comply with (epidemiological) measures if they are proven to be of vital importance," Pahor said after the seventh meeting of the three countries' presidents held in a trilateral format, with the first being held in 2014 in Vienna.

Van der Bellen said that the three countries did not want their tourism sectors to collapse and that the Austrian economy depended on neighbouring economies.

A lot of people in Austria are not aware just how intertwined we are with other countries like Croatia, Slovenia or Slovakia in terms of the economy. It is in our interest for those countries, too, to overcome the economic crisis as soon as possible, said the Austrian president.

He stressed the issue of the climate crisis, noting that a vaccine against COVID-19 would be found but that there was no vaccine against the climate crisis.

In the coming years, we will have to deal with both problems. But that also brings opportunities for Europe's sustainable recovery, said Van der Bellen, elected as president on the Greens slate.

Milanovic, too, called for greater action regarding green policies, saying that the coronavirus would pass but that problems the world was faced with due to climate change were of such magnitude "that we must not stop thinking about them for a single moment."

As Novac writes on the 3rd of June, 2020, starting this weekend, the Istrian Tourist Board is launching intensified media advertising in its emitting tourist markets with special emphasis on the area of ​​Austria and southern Germany, under the slogan "Istrien so nah!" (Istria so close!).

Building on the current destination campaigns conducted in cooperation with the Croatian National Tourist Board (HTZ), the last of which being "The vacation you deserve is closer than you think" which is being directed towards seven European markets, Istria wants to focus additional attention on its close and faithful markets - German-speaking tourists.

The promotion of the Istrian Peninsula was actively carried out by the Istrian Tourist Board during the previous period of coronavirus induced "dormancy", so, among other activities, two significant newsletter campaigns were realised at more than 500 addresses in Austria and Germany.highlighting Croatia's good crisis management during the pandemic, while in the second, the opening of accommodation and catering facilities, attractions and other tourist facilities was presented.

The director of the county office, Denis Ivosevic, believes that the long-standing friendship between Istria and its Austrian and German guests will be expressed even during these extraordinary circumstances, mutually confirming the level trust built over many years - on the one hand - the optimism and loyalty of Istria's visitors, and on the other hand, by the development of high quality services and facilities on the Istrian Peninsula.

By always following the trends in the travel market, as well as listening to the wishes of its visitors, Istria has developed a type of tourist infrastructure that, even in these difficult times caused by the global pandemic, can offer the necessary security and all the conditions required for a pleasant holiday.

An additional incentive in choosing a destination will be provided by the advertising momentum on online channels, which is scheduled to begin on June the 5th and will last for six weeks, intended primarily for visitors looking for an offer of camping and private accommodation.

Selected motifs, such as attractive Istrian panoramas, from the famous views of Rovinj and the picturesque outline of its old town, a romantic twilight over Porec to the nearby Brijuni islands and more will be used to lure German and Austrian tourists who are more than likely needing a getaway after the last period, to Istria.

Advertisements promoting Istria also contain a partner logo that officially connects Istria County with one of the world's strongest brands - the football giant FC Bayern Munich. The agreement on this important strategic partnership with the tourist board was signed two years ago, on June the 4th, 2018.

In addition to the Tourist Board of Istria County, this advertising is financially supported by the Croatian Tourist Board and several leading hotel companies in Istria.

For more, follow our travel page.

By early July of 2020, it will be much easier for Croatian job seekers to find work in Austria. Their labor market will be significantly liberalized as Barbara Ban/Novac/JutarnjiList reveals on November 22, 2019. Finding employment in Austrian companies will be easier, without the massive present-day paperwork or work permits for certain jobs.

Admittedly, many Croatian tourism and hospitality workers have been finding jobs in Austria for a long time. As in Croatia, their profession is in high demand and finding work is not a problem. Nevertheless, some important rules still apply.Dr. Marie Škof, from the Klagenfurt-based law firm Grilc Vouk Škof, spoke last Friday at the Croatian Chamber of Commerce in Pula. She indicated that the liberalization of the Austrian market will be a great help to workers and entrepreneurs who want to send their employees to work on projects their companies have contracted with Austrian companies.

No More Work Permits

- This will mean that you will no longer need to fill out all the present-day forms nor will work permits will be required. The entire procedure for issuing permits for workers in Austria will be greatly reduced. Presently, it’s practically impossible to obtain a work permit - as Dr. Škof noted. The exception is tourism and hospitality workers who obtain work permits to work in season.

- It’s not a problem to get a work permit in that sector, but it has been a problem to get one for construction trades, because certain quotas may have already been met. And from July 1, 2020; all Croatian citizens will be able to get a job in Austria without a work permit. This means that workers in Austria can be employed in the same way as they can in Croatia. It’s important that they find an employer - the lawyer emphasized.

Large Croatian Worker Wave Expected

Asked about what Austria expects next year, since a portion of the Croatian population can hardly wait for the labor market to be opened; Dr. Škof replied that a large wave of Croatian workers is expected especially since Austria is so close to Croatia.

- While Austria expects a lot of Croatian interest, Croatian workers will also be able to work for Croatian companies in Austria without having to seek an Austrian employer. This means that they will not have to move with their entire families but will only need to work in Austria on a temporary basis, the lawyer explains. When they work for a Croatian company in Austria, that employer is obliged to pay them in accordance with the Austrian collective agreement for that industry. Also, according to Austrian regulations, an employee will have certain rights: including time off and paid time off (13 and 14 days respectively).

Strict Employer Regulations

If Croatian employers in Austria do not comply with these strict regulations, Austrian inspections are not so forgiving. In fact, they are among the most rigorous in Europe, will hand out fines immediately and penalties accumulate on a per offense basis. This means that for one offense, the penalty is multiplied by the number of employees working in Austria and the number of Austrian partners with which the Croatian company works. Those numbers can quickly become quite massive. That is why Dr. Škof warns Croatian companies in Austria to become familiar with the regulations, since they could easily go bankrupt otherwise.

The Brodmont Company is a striking example. In 2015 it was rehabilitating a part of the Poels paper mill. There were 217 employees working there, and the Austrian financial inspectors noticed some irregularities, which resulted in a € 3.2 million fine for Zoran Maksimović, the director of the Croatian company. A prison sentence of four years or more was also handed down in the event of non-payment. Maksimović decided to challenge these massive and disproportionate penalties, and won the dispute at a European court for this case, which has become a precedent and will serve as an example in further jurisprudence.

For more information on the labour market and and trends, follow our Business page here.

Croatian entrepreneurs are taking the limelight once again with their ideas, innovation and good business sense, but this time, the recognition comes from outside of Croatia.

As Poslovni Dnevnik/Marta Duic writes on the 7th of November, 2019, a startup has designed a tool for digital documentation and communication in the building industry, and one of the people at the top is a Croat.

PlanRadar, which has developed a digital documentation and communication tool in the construction and real estate markets, was awarded the EY Entrepreneur of the Year Award in Austria in the Startup category.

An expert jury awarded PlanRadar one of the most prestigious entrepreneurial awards currently available, assessing growth, future potential, innovation, employee leadership and social responsibility. It is a solution that is used weekly on more than 25,000 projects across 43 countries in total. One of the founders of PlanRadar is Croatian national Bojan Petković.

He recently said as director for Croatia, Serbia and Slovenia that, that although these three countries are their main focus, the company will not neglect others in the region.

Their main market is the DACH region (Germany, Austria, Switzerland), but PlanRadar has recognised the potential of the Croatian market and plans to develop the application even further.

"PlanRadar enables the construction industry and the real estate market to have digital documentation, manage tasks and deficiencies throughout the project," says Petković. The benefits of PlanRadar have been recognised by large international companies such as Strabag and Hochtief, and in Croatia by the likes of Kamgrad and Abilia.

Make sure to follow our dedicated business page for much more.

More than excellent news for the Croatian job market and the domestic economy as a whole as as many as 600 jobs are set to be opened in Zagreb County thanks to a huge investment.

As Poslovni Dnevnik writes on the 29th of May, 2019, parts for the aviation giants Boeing and Airbus will be produced in the Republic of Croatia. The parts will be incorporated into the world's most famous aircraft and their engines, including names like Airbus, Boeing, Bombardier, and Rolls-Royce. The news was announced on Wednesday by Večernji list, citing that the Austrian aeronautical company FACC is beginning to construct a production plant for the interior parts of planes in the business zone of Jakovlje in Zagreb County, close to the Croatian capital of Zagreb.

The investment is worth a massive 33 million euros and will open up 600 jobs. The land has already been purchased, the necessary permissions and the permit have been granted and the construction has begun. The plant should be completed by the end of 2020 and production at the plant will commence in 2021.

This great news has also been confirmed by the head of the aforementioned Austrian company Robert Machtlinger, who stated that FACC wants to grow and be quicker than the market and intends to work on strengthening the expertise of its employees. "Zagreb is offering us this because it has a highly qualified workforce," he added.

The company chose between different locations in Central and Eastern Europe and ultimately decided on Zagreb. The sale contract has already been signed, and the Austrian company has become the owner of the land in the Jakovlje business area, totalling 130 thousand square metres.

Vecernji list also revealed that a meeting will take place on Wednesday in Banski Dvori where the President of FACC AGI's management board and the president of AVIC Cabin Systems Co. Limited from China, a company which owns 55.5 percent of the Austrian company, will talk to Croatian Prime Minister Andrej Plenković, Economy Minister Darko Horvat and State Secretary Zdenk Lucić about the project implementation and everything that goes into the planning and licensing phase.

The plan is that construction work on the plant will be completed by December 2020, and production will begin no later than April 2021, according to Dnevnik.

As a daughter company of the Chinese state-owned company Aviation Industry Corporation of China, one of the ten largest Chinese companies, FACC, based in Austria, is part of the global market and cooperates with world leaders in the aviation industry such as Airbus, Boeing, Bombardier, Rolls-Royce. FACC is otherwise a company with more than 3,400 employees from 38 countries which work in thirteen locations worldwide, Vecernji list writes.

They added that un the financial year 2018/2019, they earned 781.6 million euros in revenue, an increase of 4.5 percent compared to the previous financial year, and also the best result in the company's thirty-year history.

Make sure to follow our dedicated business page for much more.

The Croatian fruits and vegetables are being sold through the FinotekaDostava.com website, in order to successfully cut out the middleman.

As Miroslav Kuskunovic/Agrobiz/Poslovni Dnevnik writes on the 27th of April, 2019, Croatian fruit and vegetable producers, as well the producers of other Croatian value-added products, have begun to use the benefits of the common EU (single) market and the ability to place and sell products in Austria and Slovenia, for now. On the FinotekaDostava.com website, customers from Croatia, Slovenia and Austria are able to order products from Croatian OPGs from the comfort of their own homes. Once ordered, the produce is freshly and carefully packed and delivered to their addresses directly from Croatia.

"Finoteka's specificity is that we don't store our fruit and vegetables, but we function with the ''from the field to the table within 24 hours'' principle. This literally means that some fruit or vegetables that are growing right now in a garden in Croatia are going to be sent out in package delivered to someone's doorstep in Vienna, Ljubljana or Zagreb the next day,'' said Hrvoje Kolman, the owner of Finoteka Dostava.

Kolman has been placing and selling products from Croatian OPGs since back in 2008 in this manner. However, his website first became the most well known a few years ago when, through his search engine, a huge amount of fruit from the Neretva Valley ended up being sold and sent throughout Croatia when a ban on exports of agricultural products to Russia from the EU was first introduced.

"Our delivery is as good on the islands as it is on the mainland. The quality of the service and the delivery speed is the same regardless of whether you live in the city or in the most remote place. All our fruit and vegetable packages arrive within 24 hours of harvest, whether you're in Croatia, Slovenia, or anywhere in Austria,'' says Kolman. He explained that the Austrian market has been being tested over recent months, while they have been present on the Slovenian market for more than a year now.

"We deliver about 100 packages per month to Slovenia. Asparagus have been doing well these days, and strawberries, cherries and other fruits and vegetables will begin soon,'' says Kolman.

The prices of Croatian quality products are, however, slightly lower than those on sale in Slovenia and Austria, which is why it is expected that such sales from Croatia could become very attractive indeed. Croatian farmers deliver their products to Finoteka, the products are carefully reviewed, and depending on the order, they're packed on that same day and then sent out. Croatian farmers get to cut out the middleman, and consumers don't have the worry of eating food which is of unknown origin, it's also GMO free, it hasn't been stored, and it hasn't been sprayed.

"It's very important for us to know who we're cooperating with. We choose good producers above all, those to whom agriculture isn't just a business but also a pleasure. We choose those whose eyes shine when they talk about their products. Finding and selecting such people is are biggest challenge," says Kolman.

Make sure to follow our dedicated Made in Croatia and business pages for more information on Croatian products, Croatian companies and OPGs, Croatian services and much more.

Click here for the original article by Miroslav Kuskunovic/Agrobiz on Poslovni Dnevnik

As Bernard Ivezic/Poslovni Dnevnik writes on the 14th of March, 2019, the Austrian capital of Vienna boasts as many as 5,830 IT companies currently in operation, which is more than are in operation on the entire territory of Croatia.

The Croatian Chamber of Commerce (HGK) took with them as many as 32 Croatian companies, mostly from the IT sector, to Vienna's fifth international B2B Software Days.

Among them, the conference was participated in by King ICT, Megatrend business solutions, Mediatoolkit and Ekobit. Tajana Kesić Šapić, the director of the Croatian Chamber of Commerce's industry sector, said that the visit was organised in cooperation with the Austrian Chamber of Commerce, Advantage Austria, and the European Entrepreneurship Network who are interested in the Croatian IT sector.

"Over the last five years, IT companies' revenue in Croatia grew by 7.4 percent, and exports rose almost twice as fast, to 11.3 percent per year," stated Kesić Šapić.

Although the startup scene in the Croatian capital of Zagreb has been ''coming to life'' over the last few years, the same sector in Austria's capital city has been growing stronger at double Zagreb's rate. In Vienna alone, there are more IT companies than are in operation in the whole of the Republic of Croatia, an impressive 5,830 of them.

Vienna is investing more than the equivalent of a quarter of a billion kuna per year into the city's startup scene, and just like in Zagreb, the city readily provides all the necessary support for the free establishment of startups, up to half a million euros worth.

Goran Mrvoš, director of Infosite, one of the Croatian IT companies at the fair, said that in Vienna he realised that the overall awareness of digitalisation in Croatia was low, and that it created a market advantage for foreign competition.

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

Click here for the original article by Bernard Ivezic for Poslovni Dnevnik

The Pelješac Bridge saga continues, and deadlines for various parts of the job, be it on the bridge itself or on its required access roads, rather unsurprisingly see more and more extensions...

As Josip Bohutinski/VL/Poslovni Dnevnik writes on the 13th of March, 2019, the State Commission for the control of public procurement procedures (DKOM) has dismissed an appeal lodged by Varaždin's Colas to modify the tender documentation for the construction of Ston's bypass of Sparagovići - Papratno and Papratno - Doli.

As Večernji list reports, Colas actually only lodged an appeal one day before the expiry of the bidding deadline on February the 14th, 2019. DKOM assessed this appeal, deemed it to be unfair and subsequently rejected it. The tender for the construction of the Ston bypass road was announced on December the 3rd, 2018, with the deadline for the submission of bids for the job set for the 21st of January this year.

Due to the requirements of potential contractors requesting explanations of the tender documentation, the bidding deadline has been extended several times. The estimated value of the works for the construction of the Ston bypass road is 449.1 million kuna, and according to the tender documentation, the chosen contractor will have a deadline for completing the works, which is currently 30 months from the date of introduction to the job.

While Croatian roads (Hrvatske ceste) can be satisfied with DKOM's decision on the (very late in the day) Colas appeal for this part of Pelješac Bridge's access road, when it comes to the second part of the Pelješac Bridge access road, the Duboka-Sparagovići section, the commission's decision will have to be waited on once again. Namely, the decision for this access sectiont to be built by the Greek company J&P Avax has received an appeal from Aktor SA, another Greek company that participated in the tender, as well as Austria's Strabag. J&P Avax offered 464.9 million kuna without VAT to build the Duboka - Sparagovići road section. The estimated value of these works currently stands at 482 million kuna. Offers for these works were officially opened in June last year.

In addition to J&P Avax, the job of constructing twelve kilometres' worth of this section was desired by six other companies and consortia. In the selection decision, it was stated that J&P Avax's bid was, according to the selection criterion, rated the most economically advantageous. The Aktor SA offered 464.6 million kuna, and Austria's Strabag offered 478.3 million kuna. The lowest bid was offered by Integral engineering from neighbouring Bosnia and Herzegovina - 321.2 million kuna, but that was rejected for its unusually low price tag. Colas, the company to lodge an appeal, also had its offer of 52.5 million kuna rejected, and the China Road and Bridge Corporation were also rebuffed with their offer of 647.8 million kuna, because these offers exceed the estimated value of the works, and the Chinese didn't extend the validity of their offer. Offers were also submitted by the GP Krk association and Euro-asfalt from Bosnia and Herzegovina, with a 444.3 million kuna price tag.

The scheduled deadline for construction of the Duboka - Sparagovići road section currently stands at 33 months from the date of the contractor's introduction to the job. Given the fact that in such proceedings, DKOM requires two months to decide on an appeal, the beginning of construction of this section can likely be expected to begin sometime during the middle of this year and not before.

The bid for equipping and supplying the Duboka - Sparagovići section came to an end in February with three offers. The estimated value of these works stands at 38.2 million kuna, and all three bids received are well above this amount. Valard offered 52.9 million kuna, Dalekovod offered 57.3 million kuna, and Elektrocentar Petek offered a handsome 59.5 million kuna. Croatian roads have stated however that they will cancel this bid and announce a new one in which everything needed for the Duboka - Sparagovići section and the Ston bypass will be unified.

Croatian roads have also pointed out that the deadline for completing the entire Pelješac bridge project, meaning the bridge's actual construction and the construction of its access roads, is now January the 31st, 2022.

Make sure to follow our dedicated news and business pages for more information on the construction of Pelješac Bridge and much more.

Click here for the original article by Josip Bohutinski/VL on Poslovni Dnevnik

To briefly recall, Gredelj's bankruptcy began back on October the 1st, 2012, and an encouraging letter of intent from an Austrian railway company is a possible path to its end. Could an Austrian acquisition be the end of Gredelj's long list of problems?

As Poslovni Dnevnik/Suzana Varosanec writes on the 23rd of January, 2019, the Austrian company OBB-Technische Services GmbH operating in the Austrian Federal Railways has provided a letter of intent on expressing an interest in the possible purchase of Croatia's TŽV Gredelj d.o.o., which is in bankruptcy.

This information has now been officially confirmed, as have the decisions made by Gredelj following it, the company promptly authorised bankruptcy trustee Tomislav Đurić to initiate some preliminary talks. As the Austrians are, at least formally, the only interested party, perhaps this is the way for Gredelj to finally claw its way out of the dark tunnel of bankruptcy. Despite its issues, it wouldn't be right to exclude its importance, or that other interested investors, including those which are already familiar with the situation won't pop up at the last minute, the same can be said for the potential of Russian capital suddenly knocking at the door.

The first meeting between the aforementioned Austrian railway company and Gredelj's bankruptcy trustee should be held this month, but the final position on this possibility, which has suddenly been opened up as a possible solution to Gredelj's acquisition, will still have to be waited on for a certain period. This delay is key to assessing the viability of investing in TŽV Gredelj, but is also the determining factor on how to complete the bankruptcy proceedings which commenced back on the 1st of October 2012, Most importantly, this order of things needs to take place because of which the process which is being conducted - the plan to settle the company's bankruptcy and provide a final resolution to its creditors.

This manufacturing company and ex-component of Croatian Railways will not be sold below the asking price, but will also not be liquidated through the sale of large tangible assets. "TŽV Gredelj, with its 410 employees, is the only company in the region that can carry out all [types of] repairs on locomotives and wagons, both those that are simpler and those which are more complex," stated Đurić, dismissing the worrying Gredelj liquidation scenario.

Several meetings with representatives of the Austrian railway company are expected to be organised. Other important aspects, such as all the data on Gredelj's technological and production capabilities, first became known to the Austrians on the basis of their recent collaboration with LocoTech.

Just how things will proceed between the currently interested Austrian railway company and Gredelj is yet to be seen and the enfeebled Croatian company is far from out of the woods it entered back in 2012 yet. However, a concrete expression of interest from the Austrians, who are typically very serious in such matters, is a step in the right direction.

Make sure to stay up to date with our dedicated business page for much more.

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

As Suzana Varosanec/Poslovni Dnevnik writes on the 29th of November, 2018, Business Intelligence (Poslovna inteligencija), the leading company for the implementation of analytical and strategic ICT consulting in Southeast Europe, is planning to take its business across the Atlantic to the North American continent, most likely to Canada, in a move which would be the next big step for the Croatian ICT company following the opening of their offices in two major European cities, London and Vienna.

The bold plan was confirmed by the president of the management of the aforementioned Croatian ICT company, Dražen Oreščanin, who Poslovni Dnevnik caught up with while he was on an official trip to Canada, where the Croatian-Canadian Economic Forum in Toronto was held. He was heading there as part of visit of numerous Croatian businessmen, which had already been reported by the Croatian Chamber of Commerce (HGK).
 
What are your estimates of the possible effects of the visit of our economic delegation to Canada?

Every step we made towards developing cooperation is a good step, and can make moves. During this visit, several activities were held - a forum with the Canadian-Croatian Chamber of Commerce, B2B meetings with interested Toronto companies, a meeting with the local community of Croatian emigrants in Toronto, a visit to the Kitchener Technology Centre, Waterloo University, and two hi-tech companies in Toronto. Existing contacts are interesting, and time will show whether or not it will result in some specific work.
 
What are the impressions on strengthening economic cooperation?

I think there's a mutual interest, the current commodity trade is fairly small, and the numbers grow year after year. The new CETA deal makes it much easier to trade between the European Union and Canada, and the very fact that HGK and the ambassadors of both countries are actively involved in the organisation of such a visit speaks of mutual interest and great potential.
 
What do the Canadians generally say about the business climate and the benefits of starting a business and investing in our country?

The conversations I mainly led were focused on potential opportunities that we as a Business Intelligence have on the Canadian market, but I didn't  talk to my interlocutors about just those topics. Recently, the Canadian company Constellation took over IN2, one of the largest IT companies in Croatia, so it's obvious that investment interest exists.
 
What is the potential for further expansion of the company on the Canadian market, as well as cooperation with the companies over there?

I certainly see the potential, I hope that some of the conversations we've had to turn into some concrete opportunities and work. We're certainly planning to open up a company on the North American continent after we open companies in London and Vienna. What I've seen during this visit is truly exceptional and very competitive when compared to other places we're contemplating in the United States. We'll probably make a final decision based on the volume of work we have in a specific part of the US and Canada, and here, the potential for a company like Business Intelligence is definitely big.

Make sure to follow our dedicated business and Made in Croatia pages for more information on this Croatian ICT company, other various companies from up and down the country and their services.

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