A journalist writing for the German publication Suddeutsche Zeitung has criticised the Austrian prime minister and the Austrian authorities for their attitude towards Croatia in the coronavirus era.

As Poslovni Dnevnik writes on the 31st of August, 2020, the Republic of Croatia has unfortunately found itself placed on the red lists of numerous European countries as an epidemiologically insecure country, and as such has been the subject of many media outlets in our neighboring countries over recent days - which is not surprising, because Croatia ''reddened'' in August, in the heart of the tourist season when the country still had a very large number of tourists within its borders.

For example, Kvarner almost reached 100 percent of last year's figures. But non-compliance with anti-epidemic measures and an increase in the number of people infected with the new coronavirus has led to reactions from countries with large numbers of tourists; Austria and Slovenia put the whole of Croatia on its red list, Germany put ''only'' two Dalmatian counties with the largest increase in newly infected people on its red list… All together, this move resulted in a large number of tourists going home overnight, which meant crowds at the borders and at airports.

Over recent days, the chairman of the Supervisory Board and the co-owner of Valamar, the largest tourist group in Croatia, Gustav Wurmböck, criticised the Austrian Government's decision in an Austrian weekly called Profil, pointing out that the Austrian authorities failed to ask anyone about the situation in Croatia's numerous hotels and camps.

''Nobody has been infected in any of Valamar's facilities," he said, adding that the sector had previously called for hotbeds such as nightclubs to be regulated.

The new regime was also commented on by Austrian journalist Felix Haselsteiner in his column for the German newspaper Suddeutsche Zeitung. He was actually among the tourists who had to return home due to the new measures. In the article ''The virus in the car'', he also asked the question of whether Austria's move was necessary at all. Namely, he criticised the policy of the Austrian Prime Minister Sebastian Kurz towards Croatia. Kurz stated that the virus was ''coming to Austria by car'', and suggesting that this was due to Austrian returnees from Croatia. The journalist said that the Austrian Prime Minister thus denied the reality that the virus had been in Austria since March and that it had no intention of leaving, adding that Croatia had been demonised as a party destination, which wasn't removely true, and that Austrians traditionally come to Croatia to camp.

The return of the virus

"Croatia gets a quarter of its GDP from tourism and they couldn't afford to just cancel the summer season, so they were one of the first countries in Europe to open up to tourists. The virus returned to Croatia as the tourists did. So, to continue with Kurz's metaphor, coronavirus travelled by car for the holidays and then it returned,'' said the journalist from the Suddeutsche Zeitung. The author also pointed out that it would be better if Austria, like Germany, put certain regions on its red list, which would be a real European solution, and that in that case Austria could play a crucial role in the European response to the pandemic. The columnist for Suddeutsche Zeitung believes that revenge will be carried out in some way or another, particularly because many Croats go to Austria to ski.

He also discussed the experiences of some tourists who were more than satisfied with the adherence to the measures in Croatia.

The German RTL also reported on the experiences of a group of German tourists returning home from Croatia. They remind that on August the 20th, the Robert Koch Institute declared the Croatian counties of Sibenik-Knin and Split-Dalmatia as risky areas. However, tourists said that Croatia was "an idyll without traces of the COVID pandemic".

For all tourists, however, the infuriating issue was the sudden departure home on the orders of a higher political force that didn't sit well with anyone whatsoever. In addition, many tourists had to isolate themselves or have had to be tested for the virus in the last two weeks at their own expense, Novi list writes.

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As Poslovni Dnevnik writes on the 31st of August, 2020, the coronavirus hospital has now been reopened at Zagreb's Dubrava Hospital, and Ivica Luksic, the coordinator of hospital treatment for infected patients, stated when in conversation with N1 that the first patient had already arrived.

"We had a young man who has a chronic disease and at the same time is coronavirus positive, he's located in our respiratory centre," said Luksic, adding that the patient's condition is good.

He pointed out that they are now entering autumn much securely and calmly, precisely because of the experience they have gained since the beginning of the pandemic back in spring. “Of course, instruments, respirators, capacities, all of that is important, but so is the experience and knowledge we have in the treatment of the infected and the organisation we’ve come to learn over time, so, no matter how the numbers grow, we’re ready and our citizens can be calm,'' the coordinator of Dubrava Hospital's recently opened coronavirus hospital said.

He added that 40 respirators and 80 beds are ready and waiting for patients with a more difficult clinical picture, and that the capacities can be increased if necessary. "As long as pandemic lasts, there will be more and more positive and infected people, and we must take care of those patients who have other chronic diseases, and at the same time are coronavirus positive," Luksic said.

With a good reorganisation of the system, part of the services will work in two shifts and the waiting list has even decreased in some cases, said Luksic, adding that things can be done better and that this time should be used to reorganise the system.

People's fear when it comes to regular visits to their doctor is justified, Luksic points out, adding that this must be taken into account in any reorganisation and modification process. ''At first, we didn’t know which way to go either, but luckily those issues didn’t last long and patients went to see their doctors and were examined at other hospitals. Today when we're significantly more prepared, we're well organised, and all chronic patients come, they can still go to their doctor and get the care they need,'' Luksic said.

The key thing in the continuation of the coronavirus pandemic is to protect people and medical staff, which is something the expert team of the Ministry of Health and the National Civil Protection Headquarters are thinking about on a daily basis, and all strategies and scenarios are being planned and solutions are being given, says Luksic.

"The key is that nothing is possible without people, and the thing we need to make sure we do is defend, in addition retirement homes, which house the most vulnerable population - the health system. You can be organised enough, but if there are not enough people, any system gets into trouble,'' Luksic said.

When asked whether he expects a larger increase in the number of infected people with the opening of kindergartens and schools, Dubrava Hospital's coronavirus hospital coordinator said that greater mobility of people is expected to increase the number of infected.

"Maybe children will not be the biggest carriers, but colleges and people who normally move around and socialise more will be, and we're entering the winter part of the year, so we expect further growth. That's why it's important to be responsible and stick to the recommended measures. The measures of social distance and wearing a mask aren't very demanding, and in this situation they're actually the most important to us,'' he said.

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ZAGREB, Aug 31, 2020 - "I believe that together with the relevant authorities they too will approach the matter by differentiating between Croatian counties on the basis of the number of people infected," Plenkovic said after meeting with Jansa on the margins of the 15th Bled Strategic Forum.

Plenkovic said that Slovenia is closely monitoring the daily situation regarding the coronavirus outbreak in Croatia and is aware that Croatian counties like Istria, Primorje-Gorski Kotar, and Lika-Senj have a relatively small number of people infected, even after the total number has increased at the state level.

"I believe that they will make that distinction," said Plenkovic.

Slovenia put Croatia on its red list in mid-August, introducing mandatory quarantine for anyone entering Slovenia from Croatia.

Plenkovic also had a bilateral meeting with Hungary's Prime Minister Viktor Orban. Orban has announced that Hungary will be closing its borders to all foreigners as of Tuesday. Hungarian citizens returning home will have to spend two weeks in isolation and have at least two negative Covid-19 test results.

The main reason for the ramped-up measures in Hungary, Slovenia, and Austria is the start of the school year which begins one week earlier than in Croatia, Plenkovic underlined.

"In a way that was expected. We managed to delay their measures as much as possible until the end of August so that Croatia's tourism season could be as good as possible," he added and concluded that not one country wanted to have restrictions in force for too long.

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ZAGREB, Aug 31, 2020 - Central European leaders gathered at the Bled Strategic Forum in Slovenia on Monday, saying that during the time of the coronavirus Europe needed more solidarity and should abandon double standards for its member states.

The Bled Strategic Forum, the most important foreign policy event in Slovenia, hosted a panel discussion on the topic "Europe after Brexit and Covid-19", with the prime ministers of Slovenia, Croatia, Italy, Poland, Czech Republic, and Bulgaria, the president of Serbia and the director of the International Monetary Fund (IMF) in attendance.

At the start of the discussion, Croatian Prime Minister Andrej Plenkovic spoke about Croatia's presidency of the European Union in the first half of the year, underscoring that the maximum had been done in the circumstances of the pandemic, a crisis which "started as a health problem and grew into a crisis of all aspects of society."

Italy's Prime Minister Giuseppe Conte, who participated via video link from Rome, said that the pandemic highlighted the value of solidarity and that the EU proved that it could respond as a community of interests inspired by common values.

He added that the present crisis was a great chance for a stronger and more cohesive Union.

IMF Director Kristalina Georgieva, who too participated via video link from Sofia, said that there was the reason for optimism. Together we created ground under the feet of the global economy by creating liquidity, she said.

She underlined that the second round of financial aid to the world economy has to be tied to investments in digitization, education, and the capacity to deal with climate change that will affect us even more strongly than the coronavirus.

She added that it was natural that at the start of the pandemic each country shut itself within its own borders. However, with its Next Generation package of financial support, the EU proved that that was history and that observers from outside Europe were pleased because Europe showed its solidarity.

Plenkovic said that in the months to come it was necessary to reach a balance between national measures, which once again showed the importance of the role of states, and a European and global response, adding that there was a consensus n European policy that it was necessary to fight the coronavirus together.

Democratic standards topic at Bled Strategic Forum

Hungarian PM Viktor Orban denied the accusations against his country, saying that democracy in Hungary was at the same level as that in Germany and Italy, but based on a Christian and not a liberal model. He added that Europe needed a joint army that would be the driver of technological innovations.

Polish Prime Minister Mateusz Morawiecki said that inequality still existed in the EU as far as freedom was concerned because companies from the Union's east did not have the same opportunities as those in its west.

We have to retain solidarity and unity in Central Europe but also be a part of the European Union. The Central European dimension is different but it is not contrary to the EU, he said. 

Janez Jansa, the prime minister of the host country, accused European policy of being hypocritical in 2014 because it did not condemn "election thievery" in Slovenia when he was a "political prisoner", while today it is condemning countries where there are no political prisoners.

Serbia's President Aleksandar Vucic spoke about double standards in western Europe, citing as an example attempts to storm the parliaments of Serbia and Germany.

When that occurred in Belgrade 27 people were arrested and that was presented as a dictatorship, and when such an attempt was made in Berlin and more than 300 people were arrested, that was then proof of democracy, said Vucic.

Serbia wishes to join the European Union, but Brussels should show more respect, Vucic said, adding that in his country the EU is perceived as an institution that is creating pressure for Kosovo's independence which is why 40 percent of Serbia's population is opposed to that integration.

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ZAGREB, Aug 31, 2020 - This year so far campsites have recorded 7.7 million nights or 51% of last year's results and although there are still tourists and many planned to stay open until October, most could close earlier due to tighter coronavirus restrictions in the main markets, according to the Croatian Camping Union (KUH).

KUH director Adriano Palman has told Hina's initial forecasts indicated that 2020 would see about 30% of last year's results. He recalls that most of them opened between May 15 and June 15 as borders were reopened.

At the moment, most of the tourists are from Germany, Poland, and the Czech Republic.

Palman says "it's impossible to forecast" what the situation in September will be and that it will primarily depend on the number of coronavirus infections in all relevant countries and Croatia.

Campsites in Istria, Primorje-Gorski Kotar, and Zadar countries have recorded 82% of this year's nights, he adds.

So far, campsites in Istria have recorded 3.6 million nights or 46% of last year's figure. Campsites in Lika-Senj County have recorded 62% of last year's nights, followed by Zadar County (60%) and Primorje-Gorski Kotar County (56%).

Palman says campsites in the southernmost Dubrovnik-Neretva County, although the furthest from the main markets have recorded 53% of last year's nights.

This year has seen a higher demand for mini camps, which have recorded 90% of last year's nights, although they account for only 4% of total campsite nights, he says, adding that four and five-star campsites, the most expensive ones, account for 52% of this year's nights.

This year so far, German, Slovenian and Austrian campers have generated 71% of all campsite nights. Polish and Czech tourists rank fourth and fifth, having generated 65% of last year's nights.

Palman says revenue is likely to be well below 50% of last year's figures and that campsites expect the adoption of new aid measures to avoid restructuring and retain jobs.

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ZAGREB, Aug 31, 2020 - Croatian Prime Minister Andrej Plenkovic said on Monday that he would talk with Slovenian PM Janez Jansa about putting counties and not countries on the coronavirus red list.

Plenkovic and six other European prime ministers are attending the Bled Strategic Forum, and on the fringes, he will meet with Jansa and Hungarian PM Viktor Orban.

Speaking to the press, Andrej Plenkovic said the meetings would discuss "joint efforts to reduce infection and its cross-border effects."

In mid-August, Slovenia put Croatia on the coronavirus red list, which means mandatory quarantine for anyone arriving from Croatia. In order to avoid quarantine, many Slovenian tourists left Croatia.

"Our position is to attempt, notably in Slovenia, not just because of Croatia but also for the sake of numerous Slovenians who are our frequent and dear quests, to see the county level of infection as a criterion, something like Germany has done. I think there is room for that and that that is the best option."

He said the Bled Strategic Forum, the most important foreign policy event in Slovenia, was a good opportunity for European states to analyze their management of the coronavirus pandemic so far.

We can slowly sum up what has been good since January, he said, "what we have done well together, and how to respond together in the future when it comes to a vaccine, the procurement of medical and protective equipment."

Slovenian reporters asked him if he and Jansa would discuss the territorial dispute between the two neighboring states.

"Our position has been clear the entire time. We had Slovenia's initiative before the European Court in Luxembourg and you saw the decision, that it's not competent. We are still willing to talk about the border with Slovenia and our stance has not changed during my whole term," Plenkovic said, adding that it was necessary to find a "good, sustainable solution acceptable to both countries."

The 15th Bled Strategic Forum is focusing on Europe after Brexit and COVID-19. Also attending are Czech PM Andrej Babis, Polish PM Mateusz Morawiecki, Bulgarian PM Boyko Borissov, and Serbian President Aleksandar Vucic. Italian PM Giuseppe Conte is participating via video link.

The foreign ministers of Croatia, Hungary, Poland, Slovakia, the Czech Republic, and Romania also arrived in Bled for a panel in which the EU High Representative for foreign and security policy, Josep Borrell, will also take part.

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ZAGREB, Aug 31, 2020- Over the past 24 hours, 146 new coronavirus cases in Croatia have been registered and two persons have died, Health Minister Vili Beros said on Monday.

Currently, there are 2,650 active coronavirus cases in Croatia.

Since the outbreak of the virus in Croatia in February, 10,270 persons have shown to be positive for the virus and 167,250 have been tested, including 1,591 in the past 24 hours, Beros said at a press conference of the national COVID response team.

Twenty-eight persons have been hospitalized in the past 24 hours, he said, adding that 14 patients were on ventilators.

To date 7,434 persons have recovered from the virus, including five discharged from hospital in the past 24 hours, Beros said.

Namely, Index.hr. reports that, as for the decision on the work of the gym, it will be changed and the gyms will be able to work with the application of all measures. When asked how the gyms became safe within 4 days, Božinović answered that it was a question for the local headquarters.

"We made the decision based on the conclusion of the Split-Dalmatia County Headquarters. And by arguing that the focus is to be extinguished in such a way that, if detected, in this case, 4 gyms, to take all measures allowed by law to remedy the situation as soon as possible and so that the activity can continue to go. The last option should be to close something for 14 days. We need as many field trips as possible, more precise information, to remedy the situation. On this occasion, we call on all those who use and give their services to make every effort to implement the measures of the Croatian Institute for Public Health", said Božinović.

When asked about the protests of caterers, Capak said that the goal is always to find a balance and adapt as much as possible to the necessary epidemiological measures.

"We strive to find balance all the time. Epidemiological measures and restrictions are being imposed at various levels around the world. In some European cities, restaurants are completely banned. We have balance, working cafes, restaurants, nightclubs until midnight. Everyone has the right to protest. We think we have found a balance between the economy and health", Capak concluded.

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August the 31st, 2020 - It perhaps isn't a very common headline to read, but for the beautiful Lika region, often referred to as Croatia's green heart, the ongoing coronavirus pandemic has actually created a little added value.

As Poslovni Dnevnik writes on the 30th of August, 2020, the global pandemic brought some positive changes to the Lika region, known for its many decades of emigration and economic troubles. Namely, the demand, sale and even the price of real estate and agricultural land jumped. Wealthier people from big cities are buying farms and similar such land, and due to financial insecurity in the city, young families are returning to their roots and to the sort of peaceful rural life the Lika region offers so readily.

Due to the outbreak of the pandemic, the Pernar family sold their Zagreb studio apartment, bought a three-storey house in Lika with a garden and orchard, and returned to their parents' idyllic neighbourhood.

"Given the fact that we have a small child, and given that there is general insecurity about everything at the minute, we thought it was the best solution," Ana Pernar told DNEVNIK.hr, adding that they have absolutely no regrets about the decision.

The price of land in the Lika region is rising as a result of the ongoing pandemic

Emigration has been going on in Lika for decades, and sadly this truly gorgeous area has dropped to less than 10 inhabitants per square kilometre. This was also reflected in the price of real estate. Land could be bought for one to two kuna per square metre, and now, due to higher demand, the price has risen to 15 kuna per square metre.

Real estate agent Ivan Bizanovic has sold 200 properties in the last year alone, which is a big jump compared to the annual average of 50 sales. Today in Lika, for 300 thousand kuna you can buy a house covering 300 square metres with an orchard and 3,500 square metres of land attached to it. Of particular interest are the reasons for the jump in demand during the pandemic.

"People from Zagreb, Rijeka, Zadar and Sibenik come to us, they buy smaller farms and plant a garden on those plots to have healthy food and their own production. The biggest reason is that people are afraid of going hungry,'' said Bizanovic.

Land in the Lika region is also sought and bought by investors who would build glamping camps. It is a new tourist trend that offers accommodation in luxury tree houses, all while enjoying the peace and quiet of nature. In these trying times in which social distancing has sadly become the norm, the Lika region is perhaps the ideal place to be.

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ZAGREB, Aug 30, 2020 - In the period from 1215 hours Saturday to 0745 hours Sunday, 262 persons in Croatia were diagnosed with the coronavirus infection, and one more COVID patient died, the national COVID-19 crisis response team stated on Sunday morning.

The country's COVID tally shows that since the outbreak of the infection, there have been 10,123 cases.

Of them, 2,727 are still active, of whom 229 are being treated in hospitals, including 13 patients on ventilators.

So far, 184 persons have succumbed to the infection, and 7,212 have fully recovered.

Since 25 February when Croatia registered its first COVID case, 166,638 tests have been performed for this infectious disease.

Currently, 8,879 people are self-isolating.

As of this Sunday, the national COVID-19 management team starts issuing press releases on the daily new coronavirus infection cases every day at 10 am. Until now, press releases on COVID-19 numbers have been issued at 2 pm every day since the onset of the coronavirus outbreak.

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As Novac/Goran Penic/Marina Klepo writes on the 29th of August, 2020, the worst coronavirus-dominated economic forecasts have unfortunately come true: Croatia's GDP sank 15.1 percent in the second quarter, and among EU countries, according to the data released so far, Croatia recorded the fifth worst result, after Spain, France, Italy and Portugal. The Croatian Government has some tricks up its sleeve.

Historically, Croatia has never seen such a sharp decline in its economy, and CBS data from 1996 shows that the biggest quarterly decline so far was at the beginning of 2009, at the outbreak of the financial crisis, which stood at 8.8 percent. The lockdown to curb the spread of the new coronavirus has resulted in a much worse drop.

Due to the absence of the pre-season, CBS data shows that export of services fell by as much as 67.4 percent. The export of goods, meanwhile, fell 10.4 percent, household consumption fell by 14 percent and investment fell by 14.7 percent. The fact that household consumption was reduced during quarantine doesn't come as a surprise, but investments have sunk more than expected. Of the total investments in the country, as was explained by the Minister of Finance, Zdravko Maric, 52 percent refers to construction, and it recorded a slight plus.

Big challenges lie ahead according to Zdravko Maric...

''We believe that the procurement of equipment led to the fact that total investments fell more than expected. We also had a physical barrier regarding the procurement of equipment due to the pandemic,'' said Maric, saying at the same time that "challenges lie ahead". Of all the components of GDP, the only exception in terms of the drop is government spending, which increased by 0.7 percent.

Goran Saravanja, the director of the Imelum consulting company, pointed out that the worst is over, although the recovery will be long and uncertain, and he expects GDP decline this year to be less than 10 percent "due to a better tourist season than what was expected". But he doesn't expect a more pronounced recovery in terms of personal consumption. Zrinka Zivkovic-Matijevic, an RBA analyst, has more pessimistic expectations, believing that the latest announcement confirms that the fall in GDP will be above 10 percent this year, and growth of only three percent can be expected next year.

If we want to mitigate the economic downturn and prevent significant layoffs, the finance minister said, the government faces major challenges. Although it launched a very generous job preservation package in the spring, there is a real danger that many will find themselves in a thankless situation after the measures expire. When asked what he thinks the government could or should do to prevent the worst-case scenario, Zivkovic-Matijevic singles out "working on strengthening the institutional capacity to withdraw the planned European Union funds'' as something of significance.

The first payments of the agreed 22 billion euros from the EU are expected this autumn, and that money should mitigate the consequences of the coronavirus crisis, accelerate domestic economic growth and make things a bit more sustainable. But to what extent Croatia will be able to offer quality programmes in order to make really good use of the large amount is still something which is yet to be seen.

According to Saravanja, the Croatian Government would mitigate the decline in domestic demand the most if it could accelerate the start of infrastructure projects, ie capital investments that are in a high stage of preparation, especially projects with an EU financial component. He adds that those in charge should absolutely not lose focus on structural reforms.

The third quarter

Croatia's GDP, when viewed over the first turbulent six months of 2020, fell by 7.8 percent, which is actually slightly better than the EU average where the decline stood at 8.3 percent. Owing to the fact that Croatia had a slightly better first quarter, and since Croatia recorded 53 percent of overnight stays in tourism compared to last year until this August, and planned for a massive 70 percent decline, the Government expects that in the third quarter, the predicted decline will be slightly lower, and ultimately at the end of the year - GDP decline will be slightly less than planned.

''Even under the theoretical assumption that by the end of the year we have no more tourists, overnight stays will be at over 40 percent of what was recorded last year, which will reflect GDP trends and a correction of the fall in the third quarter and by the end of the year,'' said the Prime Minister's Adviser for Economic Affairs, Zvonimir Savic. When it comes to further measures to mitigate the consequences of the ongoing coronavirus crisis, the Croatian Government is counting on generous funds from the EU for liquidity of the economy, the preservation of jobs, as well as for reforms and investments.

A few days ago, we received confirmation that we will have one billion euros of soft loans from the SURE programme at our disposal, with which the government will compensate the current cost for co-financing salaries during the lockdown, but also for further measures. According to Savic, the measures will be targeted towards activities that are the most affected by the coronavirus crisis, in the sectors of tourism, catering and transport. This money will then be used to finance the measure of a shortened working week and other things. The tourism sector is demanding that the measures last until the beginning of next season.

The second thing that is planned, according to Savic, is to maintain the liquidity of the real sector through favourable loans from HAMAG BICRO and HBOR for small and medium-sized enterprises.

''The concept of the Covid loan goes further with a grace period, five years of repayment and an interest rate of 0.25 percent. It is estimated that this year alone, we'll have 100 to 200 million euros, and in two years a total of 700 to 800 million euros,'' added Savic.

The most significant funds lie in the mechanism for recovery and resilience of the economy - over 6 billion euros that can be used over the next three years. EU countries must draw up national recovery plans in the next three months, and through this mechanism, all reforms and investments related to strengthening the economy in the pandemic can be financed. These are projects for environmental protection, infrastructure, digitalisation and the reform of public administration, the judiciary, and as has since been found out, Croatia has negotiated that the funds be used for the reconstruction and construction of school buildings after the Zagreb earthquake, and the same is being negotiated for health and cultural facilities.

Wage growth

''These are non-refundable funds with which we can renovate public buildings, and this is then an opportunity for the construction sector, but also for companies that will equip schools and hospitals. We can also justify the costs of distance education,'' said Savic, noting that the programme has been in force since back in February. There is also a tax relief that will come into force next year, and which, through a reduction in income and profit taxes, will bring citizens higher salaries and business owners higher incomes, which should encourage more consumption.

The Croatian Government is also counting on negotiations with the unions about the agreed increase in salaries in the public and state sector. As we have learned, the dynamics of wage growth will be negotiated with regard to the situation. There will be either a delay for a while (for two years, for example) or a slowdown in growth (minor increases) on the table. The government wants a compromise, it doesn't want to cause friction, and it hopes that the unions are on the same wavelength as them in terms of awareness of the velocity of the coronavirus crisis we're all trying to wade through together.

It wants to speed up investments as well. At the moment, over 20 billion kuna are involved in various projects financed from the EU, and state-owned companies are expected to invest more.

Urgent moves by the Croatian Government to get out of the coronavirus crisis are as follows:

1. A shortened working week

The government will help activities in tourism, catering and hospitality and transport with co-financing of 2000 kuna per worker for a shortened working week. The criteria and duration of this measure are still being agreed on.

2. Favourable loans for business owners

HAMAG BICRO and HBOR will continue to provide loans with interest rates of 0.25 percent to maintain the company's liquidity.

3. The construction of schools and hospitals in Zagreb

Croatia has 6 billion euros of grants at its disposal that can be used for various projects which involve environmental protection, infrastructure, digitalisation and the reform of public administration, the judiciary and so on. The funds will be used for the reconstruction and equipping of schools, as well as health and cultural facilities after the Zagreb earthquake, which will boost the construction sector.

4. Tax relief

A new tax reform will take effect on January the 1st, 2021, reducing income tax rates from 24 to 20 percent and from 36 to 30 percent, as well as income tax from 12 to 10 percent for small and medium-sized enterprises. Salaries should thus increase by 100 to 800 kuna. The Croatian Government once again wants to encourage consumption.

5. Negotiations with trade unions on the increase of salaries

The Croatian Government wants a compromise to either freeze the agreed wage increase until GDP starts to rise, or to make the increases smaller than agreed.

6. Investments

It wants to accelerate investments financed from EU funds, as well as payments from the EU budget, and encourage state-owned companies to have more investments.

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