ZAGREB, January 23, 2019 - Prime Minister Andrej Plenković said on Wednesday that the 'Tolušić case' was the most perfidious attempt to compromise and destabilise government so far, dismissing insinuations that this was a "PR attempt" by the ruling coalition to divert attention from other topics.

"We have already seen fabricated text messages between state prosecutors, judges, prime minister, deputy prime ministers, but we haven't seen anything like this before," Plenković said at the start of a cabinet meeting, saying that that the attempt to fabricate compromising photographs of deputy prime minister and Economy Minister Tomislav Tolušić was the main topic over the past several days.

Plenković said he was particularly surprised by the comments of some political stakeholders and some media who claim this is all part of "the PR attempt to divert attention from some other topics." We are not that creative and we are not into business of doing that, Plenković said.

The prime minister stressed that everyone in the government was outraged by the attempt to besmirch Minister Tolušić, which objectively could have had serious consequences for his private life as well. "This deserves strongest condemnation and of course, I expect the authorities to find the perpetrator and discover their motive," Plenković said.

The prime minister added that regardless of all attempts to destabilise the authorities, the government would continue to do its job.

In the end he thanked the owner and editor in chief of the Nacional weekly who published the information about the Tolušić case, acted reasonably and informed the Security and Intelligence Agency about it immediately, which soon after that established that it was a doctored photo..

The Nacional weekly on Tuesday ran an article under the headline "A hooker and cocaine in professional set-up against Tomislav Tolušić". The article is accompanied by fake photos aimed at discrediting the minister. The weekly claims that the photomontage showing Tolušić with a prostitute and cocaine was aimed at discrediting and politically destroying Prime Minister Andrej Plenković and Minister Tolušić. The weekly said it had obtained the photos from an anonymous source.

The Security and Intelligence Agency (SOA), which has also received the photos in the meantime, has found them to be fabrications. Other minister also condemned the fake photographs.

More news on the agriculture minister can be found in the Politics section.

ZAGREB, January 21, 2019 - Prime Minister Andrej Plenković said on Sunday he had been doing all he could over the past two and a half years to reduce divisions and tensions in society, and reiterated that he expected Vukovar Mayor Ivan Penava to calm tensions in the eastern town.

Plenković was speaking to the press in Zagreb on Sunday evening after opening the workshop "Digitisation of Public Services". He spoke about projects for which Zagreb Mayor Milan Bandić was seeking government support, about an incident in Parliament between him and Nikola Grmoja of the opposition MOST party, and about the situation in Vukovar.

The prime minister said he could see no connection between the projects for which Bandić was seeking government support and an early election. There is no doubt, he said, that making support of Bandić's parliamentary group for the ruling majority conditional on support for his projects "is an imposed issue that does not exist."

This government has established partnerships and dialogue with regional and local government units, and basically all of them are allocated more money as a result of legislative reforms. Some units may have received less because of their development, he added.

Asked about his conflict during Question Time in Parliament with MOST MP Nikola Grmoja, who accused him and Foreign Minister Marija Pejčinović Burić of high treason and working in Serbia's interests, Plenković said that this issue should be seen in a wider context.

"There are parties that want to impose Croatia-Serbia relations and relations between the Croats and the Serb minority in Croatia as key issues, and in a polarising way. If you have people who would block Serbia's EU accession negotiations in chapters concerning statistics, economic and monetary union, then you are dealing with people who do not understand this subject, but use it to intensify the spiral of hatred. Accusing the deputy prime minister and foreign minister of working in Serbia's interests and accusing the prime minister of systematically working in the interests of Serbia is a matter that cannot be ignored and I made that clear in Parliament," Plenković said.

Asked about the latest incidents in Vukovar and statements by mayor Ivan Penava, the prime minister reiterated that he had spoken to him several times in the last few months. "I expect him to do his work by reducing tensions. His task is to be the mayor of all citizens of Vukovar," he said.

Plenković noted that Penava had been elected mayor thanks in part to the support of the local Serb community and that he should make sure he did not make any move that would cause tensions in the town. "We as the government and as the state must move forward based on fundamental prerequisites such as truth, bringing war criminals to account, respecting the symbols of the Croatian state - the flag, national anthem and coat of arms, and investing in the education of young people who show respect for the country of which they are citizens," the prime minister said.

"I have been doing all I can in these two and a half years to reduce divisions and tensions in the Croatian society. In this process I have taken upon myself a lot of things and a huge part of the electorate does not consider it good. Anyway, I am fully confident that what I am doing is good and that there is no alternative to a coexistence, dialogue, education and mutual respect. But war crimes cases must be fully dealt with," Plenković said.

Speaking at the opening of the workshop "Digitisation of Public Services", which will be conducted by Harvard University professors at the State School of Public Administration, Plenković said that this was a valuable project that would focus on the complex healthcare system over the next three days.

The workshop is the result of cooperation between the State School of Public Administration and Harvard University. At the opening ceremony, the executive director of Harvard Kennedy School, Amy Capman, and the head of the State of School of Public Administration, Rudolf Vujević, signed a cooperation agreement.

The project is fully financed by the Lukšić family, which has for many years provided scholarships for Croatian students to acquire additional knowledge at Harvard University. Plenković thanked Davor Lukšić, the CEO of the Excelsa business consulting firm, for that.

During the workshop, about 40 selected participants will acquire specific management skills and knowledge about digitisation, better functioning of public administration, public policy making, and budgeting.

Plenković said he was confident that this would help improve the quality of public service, in this particular case in the healthcare sector.

More politics news can be found in our special section.

In recent days, many users of Facebook and other social networks have been sharing their photos from 10 years ago and nowadays, comparing what has changed in the meantime. Journalists have decided to do the 10 Year Challenge for Croatia as well and see what has happened in and with Croatia in the meantime, reports Index.hr on January 19, 2019.

Ten years ago, in 2009, Croatian Prime Minister was Ivo Sanader (tried for several cases of corruption; spent time in prison), while President was Stjepan Mesić (still alive and well; in political retirement). That was a turbulent political year, in which Sanader suddenly resigned, without giving a convincing explanation, with his deputy Jadranka Kosor (lost elections in 2011; removed as HDZ president soon after that; now a retiree and prolific Tweeter user) taking over the government on 1 July 2009.

It is nice to remember some of the better-known politicians who were ministers at the time. Some have since disappeared from politics, some have been convicted of various corruption crimes, and some are still active today. For example, in the Sanader government, the regional development minister was Petar Čobanković (convicted of corruption, instead of going to prison he spent some time peeling potatoes as community service). Interior Minister was Tomislav Karamarko (elected as HDZ president; became deputy prime minister; resigned due to a scandal; thinking about returning to politics), transportation minister was Božidar Kalmeta (tried for corruption), while today's Speaker of Parliament Gordan Jandroković was foreign minister. Darko Milinović, recently thrown out of HDZ, was health minister. Croatia was not yet a member of the European Union but was admitted to NATO that year.

In the last ten years, Croatia has lost many of its inhabitants. The six-year recession has left a profound mark on the economy, and it has also created a sense of doom, prompting a wave of emigration. The scale of the population decline is best seen by the fact that in the 2018/2019 school year there are six schools which have been closed because they were left with no students, while 117 schools saw not a single new student being enrolled.

The estimates of the State Bureau for Statistics for 2017 give a figure of 4.1 million inhabitants, which is about 200,000 less than in 2007 when 4.3 million people lived in Croatia. Given that there is no data for the current year, and the latest official data is for 2017, for comparison purposes the journalists have analysed the decade from 2007 to 2017.

In addition to the number of inhabitants, the number of employed fell from 1.517 million in 2007 to 1.407 million in 2017. It was even less at various points in the last ten years. As the number of employees fell, the number of pensioners rose, which jeopardises the retirement system because salary contributions of current workers fund the pensions of existing retirees. Thus, in 2007, the number of retirees was 1.11 million, while in 2017 the number rose to 1.23 million.

As for the public debt, in 2007 it amounted to 120 billion kuna, while by the end of 2017 it had exploded to 283.3 billion kuna.

There was also a rise in public spending. If we add to the state budget the expenditures of the Croatian Health Insurance Institute, public spending amounted to 111.1 billion kuna in 2007 and reached 146.1 billion kuna billion in 2017.

Basically, in ten years almost everything that was supposed to grow fell, and all that was supposed to drop increased instead.

More news on Croatian politics can be found in our special section.

Translated from Index.hr.

The bids sent to the public tender were opened in early November. That is, the only bid which has been received. Tigra and Vodotehnika companies were the only ones to apply to perform the construction works on the Monument to the Homeland, which is supposed to be located between the City Hall and the Vatroslav Lisinski Concert Hall. But they said they could do the job for 27.4 million kuna (excluding VAT), or almost six million kuna more than what the City of Zagreb initially estimated the project would cost. This prompted the city authorities to analyse the estimated cost of 21.5 million kuna (excluding VAT) for months. And finally, they have made a decision ؘ– the tender will be cancelled, and a new one announced, reports Večernji List on January 14, 2019.

This will happen, according to Dinko Bilić, the head of the City Construction Office, in early February, while the current tender, announced in August 2018, will be annulled, based on the findings and analysis of the costs by an authorised expert witness. Asked when the construction will start on the monument that should be completed by the spring of 2020 at the latest, he did not provide an answer.

Still, the monument’s author, architect Nenad Fabijanić, says that the annulment of the tender should not affect the previously planned deadlines. “The problem appeared because the cost of the works was determined two years ago, based on the main project plans, when the cost of materials and workforce in the construction sector was lower," Fabijanić says. Now the price should be corrected upwards. “If the works begin in the spring, everything would be done by late autumn. Each segment of the monument demands time, and the works should not be rushed,” adds Fabijanić.

The high price of the monument, which was particularly criticised by the opposition at the City Assembly, was explained by Mayor Milan Bandić by the complexity of the project. The oversized glass bricks will be specially produced in a Czech master workshop, following the designs of sculptor Jeronim Tišljar. The second part of the monument, a three-metre stone monolith where foreign delegations will lay wreaths, will be made from a unique Croatian stone called Adriatic Green. The third element, a 30-metre portal, will be made of particular fibre-reinforced polymer, which is resistant to most acids and corrosion, so the maintenance costs should be lower.

The new Monument to the Homeland is supposed to take over the commemorative duties from the current Altar of the Homeland at Medvedgrad, while the portal will be, according to Fabijanić, a new city gate connecting the Trnje district with the old city centre in the Lower Town. The greenery will frame the whole composition and eliminate the street noise.

More news about Zagreb can be found in our special section.

Translated from Večernji List (reported by Petra Balija).

ZAGREB, January 8, 2019 - The president of the BM 365 - Party of Work and Solidarity, Zagreb Mayor Milan Bandić, said on Tuesday he dismissed "with indignation" accusations that he was paying MPs to join his parliamentary group, adding that the group's door is wide open to everyone.

"I'm not wooing anyone, I'm not appealing to anyone and I'm not buying anyone because I don't think people are commodities. I reject that with indignation, but the door isn't closed to anyone. The door is wide open, and will be in the future too, to the honest, fair and proven man who wants to help his neighbourhood association, municipality, town, county and family and realise his political ambition," Bandić said at a press conference.

Quoting Marx and Engels' proclamation "A spectre is haunting Europe - the spectre of communism," Bandić said "the spectre of work and solidarity is haunting Zagreb and Croatia." He said the problem has arisen solely because his parliamentary group was joined by MPs "who've had enough of party leaders who aren't up to the job, and parties have become an end in themselves."

Bandić said that over the past three months his party was joined by 250 people from other parties, from MPs, county deputies, mayors and municipal heads to chairs of neighbourhood committees in Zagreb, and that more people would join in the months ahead.

Bandić said Croatia did not have leaders and was crying out for them, adding that his party "isn't wooing anyone, because people aren't commodities." When MPs join other parties, it's not a problem, but when they join Bandić, something's wrong or something's fishy, he added.

He said Reformists MP Darinko Dumbović left his parliamentary group although he was in parliament thanks to him, and wished him luck.

Asked if his group's MPs have to vote for every government decision, Bandić said that was not the rule because his was a democratic party and that, without his group, no government budget would have been adopted.

MP Mladen Mađer, who recently left the Croatian Peasant Party (HSS) to join Bandić's parliamentary group and party, said he did so because he was sure he would be able to achieve the goals for which he was in parliament, primarily the development of Koprivnica-Križevci County. He accused HSS president Krešo Beljak of running the party in a centralised way.

Mađer denied that Bandic had hired his two daughters, saying one works in the Zagreb city government and that she got the job after replying to an ad, while the other has been living in Osijek for eight years.

During the press conference, Bandić clashed with reporters several times after they posed questions to him, saying they were not letting him answer normally and that some were "cawing" like "crows in my playground."

More news on the Zagreb mayor can be found in our Politics section.

A high-ranking official from the Ministry of Maritime Affairs, Transport and Infrastructure has been arrested for sexual harassment committed at work. According to unofficial information, the person in question was until recently the head of one of the departments in the ministry. On December 20, he allegedly assaulted a low-ranking employee of the Ministry and began to touch her inappropriately, reports Jutarnji List on January 7, 2019.

The shocked woman quickly informed the Zagreb police department, who arrested him and charged him with intimidating behaviour, threats and sexual harassment. Police officers allegedly came to pick him up at the ministry building and took him to a police station for questioning.

“We can only confirm that, on 20 December, one male person with the described allegations was taken to the detention centre,” said the Zagreb Police Administration. The suspect was later questioned at the Municipal State Attorney's Office.

When asked about the event, the Ministry of Maritime Affairs, Transport and Infrastructure issued the following reply: “According to the information we have, one of the heads of services of the Ministry of Maritime Affairs, Transport and Infrastructure was taken to remand prison. As a result of the information we have received, we have sent to the Municipal State Attorney's Office a request for their statement, a question whether an investigation procedure has been launched against a civil servant so that we can proceed further in accordance with the Civil Servants Act and initiate appropriate procedures. Due to the personal data protection rules, we are not able to provide more detailed information except that the person has been an employee of the Ministry for the past 9-10 years.”

The abuser is expected to be removed from his duties if it is determined that he has actually committed what is being alleged.

It is interesting that the Official Code of Civil Servants, issued by the government on March 25, 2011, is highlighted prominently on the official webpage of the Ministry, stating: “Civil servants have the right to be protected against sexual harassment or behaviour that represents verbal, nonverbal or physical conduct of a sexual nature, which is intended to be a violation of the dignity of officials and employees and cause fear, hostility, humiliation or offence.”

The crime in question can be punished with up to one year in prison.

More news on the ministry can be found in our Politics section.

Translated from Jutarnji List (reported by Krešimir Žabec, Marin Dešković, Dijana Puhalo).

For political leaders and voters, 2019 will be an exciting year. First up are the elections for the European Parliament in May, followed by presidential elections next winter, which will themselves be just a warm-up for parliamentary elections no later than 2020. Here is the 2019 political forecast for some of the most prominent politicians, reports Jutarnji List on January 1, 2019.

Former Prime Minister Zoran Milanović (SDP) is expected to announce whether we will run for president against his erstwhile opponent, current President Kolinda Grabar-Kitarović. On the other hand, we will see whether her political turnaround toward the political centre will succeed, bringing her closer to the current HDZ leadership. This year we will also find out whether Dalija Orešković, the former chairwoman of the Conflict of Interest Prevention Commission, is a new political star, as well as how the turmoil in SDP will end. Events in HDZ also promise to be interesting, with party leader Andrej Plenković's expected attempt to get rid of remaining party opponents, including deputy party president Milijan Brkić.

Milan Bandić, mayor of Zagreb
The mayor of Zagreb is in good political form, with his parliamentary group expanding with new MPs almost weekly. There are rumours that it is only a matter of time when Bandić will knock on Plenković's door and demand a government's reconstruction, with his representatives becoming ministers. Apart from Plenković, Bandić must keep watch over the State Attorney’s Office and courts. Just one guilty verdict could be enough to end the career of the most enduring Croatian politician. Therefore, 2019 might be a challenging year for Bandić.

Tomislav Karamarko, former HDZ president
The former HDZ chief and the most powerful politician in the country three years ago is reportedly thinking about returning to politics, but the main barrier is his successor Plenković. Another danger is the so-called “fake text messages scandal.” The only good opportunity for Karamanko's political return this year are European elections in May, and only if he succeeds in restoring the right-wing alliance with his former culture minister Zlatko Hasanbegović.

Davor Bernardić, SDP president
The SDP president is facing numerous dangers, and 2019 will be a decisive year for him. The critical moment will be the European elections in spring. If his battered political party is defeated as expected, his remaining allies in the SDP leadership will turn against him.

Damir Krstičević, defence minister
For the ambitious minister of defence, the key political event will take place immediately at the beginning of the year. Possible failure of the project to buy Israeli fighter jets is a significant danger for Krstičević. Failure could easily cost him a seat in the cabinet. To make matters worse, it seems that the fate of this military "deal of the century" is no longer in his hands. The help can only come from Washington.

Andrej Plenković, the prime minister
In the first two years of the prime minister's term, he survived a break with MOST and the potentially deadly implosion of Agrokor. He also dealt with intra-party opponents, but the primary battle is still ahead of him. His expected duel with Milijan Brkić is an opportunity for a decisive victory over the right wing of his party. Excellent prospects for further strengthening of his position are also offered by the European elections, which HDZ is expected to win easily. A stray bullet from the Agrokor affair or possibly some skeletons from the closet are the greatest dangers for Plenković in 2019.

Dalija Orešković, former chairwoman of the Conflict of Interest Prevention Commission
The former president of the Conflict of Interest Prevention Commission has announced the establishment of a new political party. The key event for her is the spring European elections where she is expected to run with her candidate list. If she manages to achieve a good result, an even better opportunity to break into the very top ranks will be available later in the year – presidential elections. How successful she will be depends a lot on the people she will surround herself with.

Kolinda Grabar-Kitarović, president
The current president has made her new year's resolution earlier than usual. She has decided to clean up her office before Christmas and enter the new year with new advisors. To win the second term in office, she should get closer to the prime minister and HDZ, and distance herself from the far-right. On her way to the second presidential term, the most significant obstacles are her former friends from the right, but also her old colleague from the time they used to work together in diplomacy – Zoran Milanović.

Zoran Milanović, former prime minister and former SDP president
The leadership crisis in the SDP has increased the chances of Milanović’s return to politics. Numerous SDP members have already expressed their wish to see the former prime minister run for president. Kolinda Grabar-Kitarović is shaken, and if she cannot recover quickly, this could be a chance Milanović would not want to miss. His potential candidacy is at the same time his greatest possible risk because in the case of a defeat he would definitely be remembered as a major political loser. His final decision on whether to run depends on whether the entire SDP and other left-liberal parties would support his candidacy.

Ivan Vilibor Sinčić, Živi Zid president
According to the latest poll, Živi Zid is now the most popular opposition party, so we can say that Sinčić is the new leader of the opposition. The best opportunity for Živi Zid this year is the European Parliament election, as well as presidential elections for Sinčić personally in the winter. The greatest danger is a possible appearance of a new anti-systemic political party that would make him and Živi Zid redundant.

More news on Croatian politics can be found in our special section.

Translated from Jutarnji List.

The year which began a few hours ago will bring us at least two elections (European and parliamentary), which means there will be no painful cuts or reforms. However, there will be many new rules and regulations which will in some ways significantly change how people in Croatia live their lives, reports Večernji List on January 1, 2019.

The new year has brought us a lower VAT rate on a variety of foods and non-prescription drugs. Although there was initially much doubt whether lower VAT on fresh meat and fish, fruit and vegetables would bring lower prices for consumers, some retail chains have already lowered the prices of these products. It can be expected that they will be soon be followed by their competition. The average Croatian family should have around 1,000 kuna more in its budget due to the lower VAT rate.

The new year also brings a higher minimum wage (3,000 kuna instead of 2,751 kuna). Also, parents of university and high school students who receive scholarships or receive prizes will not have to fear that they will have to pay a higher income tax in the future due to the success of their children. Certain provisions of the new Law on the Rights of Croatian Veterans and Their Family Members also come into force.

Another major novelty is the pension reform, bringing a quicker harmonisation of the retirement age for women and men. Full equality when it comes to the retirement age will be achieved in 2027 when both women and men will retire at age 65. “Emancipation” will be confirmed in 2033, through an increase in retirement age for everybody. Both women and men will then retire at age 67.

There is good news for people wanting to buy expensive cars. They will be able to write off 50 per cent of the VAT even for vehicles costing more than 400,000 kuna, which used to be the upper limit for VAT deduction. According to the EU rules, the government had to expand the measure to include more expensive vehicles.

As of 1 January, the property transfer tax will be cut. Last year, this tax which is paid when you buy or sell real estate was reduced from five to four per cent, and this year it will be just three per cent. Also, there is a lower income tax on higher salaries. Income between 17,500 kuna and 30,000 kuna a month will be taxed at the rate of 24 per cent, instead of 36 per cent. The higher tax bracket will cover income over 30,000 kuna. Two salary contributions have been abolished, but there is now a higher contribution for health insurance.

Starting from January, owners of private rentals will have to pay a tax between 150 and 1,500 kuna, which will be determined by towns and municipalities. In local authority units which do not make their decision by 15 January, the tax will be 750 kuna.

Changes are coming to students as well, whose minimum wage will be increased from 21.50 kuna to 23.44 kuna.

A new health care act is also in force, which means that all health centres will have to have at least one physician on call on weekends and holidays. The law also introduces changes in the organisation of emergency medical assistance through the integration of unified emergency hospital admissions.

Most misdemeanour courts in Croatia are abolished as of today. They have been merged with municipal courts. The only two misdemeanour courts that remain are those in Split and Zagreb. Also, judges at the same court level will receive equal pay, and all of them, as well as state attorneys, will receive six per cent higher salaries.

Fostering will become a profession. Allowance paid to foster parents, who have so far received between 300 and 500 kuna per month, will increase to 2,500 kuna. For foster parents of children and adults with special needs, the amount will reach between 5,000 and 6,000 kuna. Foster parents will also continue to receive a supply allowance, which is now between 1,800 and 2,200 kuna.

More news on Croatia’s tax system can be found in our Business section.

Translated from Večernji List (reported by Iva Boban Valečić).

Years pass, but some things never change in Croatian politics. The year which is about to end has again been full of drama and scandals, and just occasional good news. Remarkably, many of the same issues which you will read about here have featured prominently in our reviews for 2016 and 2017 as well, which just shows that most problems in Croatia are just swept under the rug and never solved. What follows is Croatian Politics 2018, a review of events which will be remembered from the past year, as reported by TCN.

The year began with tensions in the Bay of Piran, part of the Adriatic Sea which Croatia and Slovenia both claim. In late 2017, Slovenia decided to implement the decision by arbitration tribunal which awarded Slovenia most of the bay. However, Croatia has refused to accept the decision, saying that the arbitration process was compromised by Slovenian government representatives who were in collusion with a supposedly independent arbitrator. The tensions raged for a few weeks, with MEPs proposing military solutions and war veterans talking about organising a rather provocative regatta. Eventually, reason prevailed, and the tensions died down. However, the issue is still unresolved, despite assurances to the opposite, with Croatia calling for negotiations and Slovenia insisting on the implementation of the arbitration decision. You are sure to read about this dispute in our 2019 review as well, particularly given Slovenia’s decision to file a lawsuit against Croatia.

Relations with Serbia are always in the focus of interest, and this year was no exception. In January, the government was surprised to hear that President Kolinda Grabar-Kitarović had invited Serbian President Aleksandar Vučić to visit Croatia officially. After a short argument over who is really leading Croatia’s foreign policy, Vučić arrived in Zagreb. While the visit mostly went well, the relations between the two countries deteriorated steadily throughout the year and the debate about whether Vučić should have been invited at all continued. Another turn for the worse took place in April when a Croatian parliamentary delegation’s visit to Belgrade was cut short after an incident in the Serbian parliament caused by a notorious Serbian MP and war criminal Vojislav Šešelj. Tension rose again in August when the anniversary of Operation Storm is traditionally celebrated, marking Croatia’s liberation of previously occupied territories in 1995. Serbian President Vučić gave a series of provocative statements, including comparing Croatia to Hitler.

As for the economy, January brought the first worrying signs about the future of Croatian shipyards, a low number of new orders, and about the government’s apparent unwillingness to continue to cover shipyards’ losses. Later in the year, the crisis in the Uljanik shipyard in Pula and its 3. Maj branch in Rijeka would feature prominently in our reporting. Workers spent months striking due to unpaid wages. As the year ends, the situation is still dire and “strategic partners” which the government hopes to find are nowhere to be seen.

“Reforms” is one of the most popular words of Croatian politicians. Every year in January we can hear officials saying that the year ahead is “the year of reforms” which will make Croatia much more prosperous. Needless to say, these promises are never fulfilled, and 2018 did not disappoint. The issue served the president well since she was able to attack the government for lack of reform efforts whenever it suited her.

Ideological debates and historical revisionism attempts continued in 2018 as well. In February, the government-appointed historical commission published its recommendations on issues related to the authoritarian regimes from Croatia’s past, but the conclusions did not satisfy anyone, except for the prime minister, who likes to pretend that the recommendations have solved the problem.

The year which is about to end has again brought us the problem of censorship, questions about media freedoms, warnings about the rise of the far right, separate commemorations held in Jasenovac, the parliament refusing to sponsor anti-fascism events, people destroying flower beds because they reminded them of communism, historical revisionism on the public television, assaults on journalists, satirists receiving death threats, “suspect” politicians being assaulted, photos of Tito slipping from under Croatia’s coat of arms, former prime ministers being sentenced for corruption, and media regulators receiving death threats.

The Catholic Church is undoubtedly part of the political life in Croatia, so it is no wonder that rumours about changes coming to its leadership draw considerable attention. While nothing has been confirmed, it is expected that the Archbishop of Zagreb, Cardinal Josip Bozanić, could be replaced in the new year. In the meantime, the church has continued to receive vast amounts of money from the state budget, meddle in politics, as well as advise the government on the new abortion law, 

The demographic crisis continued, with high emigration and low birth rates bringing down the number of inhabitants. The president and the government argued about who and what was to blame. The president even presented her measures to solve the problem, which were soon forgotten, and demanded a special session of the government, which never took place. Proposals were presented on how to convince people not to move, as many sectors faced a lack of workers, while many schools started closing down. The extent of the crisis was such that even Serbian President Vučić became "worried." The only “good news” came at the end of the year when reports claimed that the emigration wave was calming down because everybody who wanted and could have left already did.

One of the issues we write regularly in these annual reviews is the construction of Pelješac Bridge, which will connect the Dubrovnik area with the rest of Croatia without the need for travellers to pass through a short stretch of Bosnian territory. After many years of delays, the project has finally moved into the implementation phase. Early in the year, a decision was made to award the tender for the construction to a Chinese consortium, despite protests made by Bosnia and Herzegovina that the bridge could not be constructed before the border between the two countries in the area is defined. The decision to award the contract to a Chinese bidder also brought about a marked change in relations between Croatia and China, which were later further improved by high-level meetings and visits.

Another perennial issue is the future of INA, Croatia’s national oil company, which is owned jointly by the Croatian government and MOL, Hungarian national oil company. In 2016, the prime minister announced that Croatia would buy back MOL’s share of INA. Two years later, nothing has changed. Earlier this year, the government selected financial advisors for the buyback, but the contract with them was never signed. One of the main issues is the future of the INA refinery in Sisak. While in January the relevant minister said he was optimistic about the refinery’s future, by the end of the year he apparently changed his opinion. Another issue is Croatia’s arrest warrant for MOL’s CEO, which Hungary does not want to implement.

Another year has passed, and the supposedly “strategic” project of an LNG terminal on the island of Krk has again gone nowhere. Multi-year delays have continued. The government announced two tenders trying to find out who would be interested in using the terminal once it is built (if that ever happens), but the results were dismal. Just two government-owned companies applied, presumably after receiving a nudge from officials to send their applications and help the government avoid a total disaster. While the project receives verbal support from foreign governments, no one seems to be interested in sending binding offers to use its capacity.

One piece of good business news was the apparently successful conclusion to the worst part of the crisis in Agrokor, one of Croatia’s largest and most important companies. The agreement between creditors was concluded, thanks mostly to Russian banks, although not without an accompanying scandal about high fees paid to consultants, some of whom actually took part in the secretive process of writing the special law which the government adopted to save the company from collapse. The scandal took out Deputy Prime Minister Martina Dalić and government-appointed commissioner Ante Ramljak, who had to resign under pressure. E-mails were published which showed that the prime minister knew more about the dealings than he initially admitted, but he managed to escape more or less unharmed. Agrokor’s former owner Ivica Todorić, who fled earlier to London to avoid arrest, was extradited to Croatia late in the year, after multiple delays and court proceedings. Even Tony Blair’s wife could not help him. He has since been released on bail and is currently awaiting possible indictment. The legal proceedings are expected to last for many years.

Good economic news brought us the first upgrade in Croatia’s credit rating since 2004. Unemployment numbers were also down, although more due to mass emigration than to economic revival. Good tourism results, especially in the pre-season and post-season, helped Croatia achieve planned economic growth for 2018 (still among the lowest in the EU). Slightly more moderate growth is expected in 2019, with the lack of reforms being the main culprit. The budget recorded another good year, with spending and revenues being more or less balanced, while the public debt has continued to decline. The year ended with another round of tax cuts and pension reform. Croatia has also announced plans that it will adopt the euro as its currency. The process is expected to last many years.

The ratification of the convention on preventing violence against women, the so-called Istanbul Convention, somewhat unexpectedly turned into a crisis for the government in April when a large group of HDZ MPs decided to vote against the proposal, despite prime minister’s insistence that it should be ratified. While the convention was easily adopted thanks to opposition support, it turned into another attempt by HDZ’s right wing to weaken or possibly topple Plenković as party leader and prime minister. Just like several other similar attempts, it did not succeed.

A national security issue which has drawn a lot of media attention throughout the year is the acquisition of military fighter jets. The decision was first delayed for years, then it was supposed to be made in 2017, but again delayed first to early 2018, and then beyond. After much lobbying, the government finally decided to buy 12 F-16s from Israel. The questions about the deal persisted, with many asking why Croatia was “rejuvenating” its air force with ancient aircraft. By the end of the year, the contract for the deal has not yet been signed, amid disputes between the United States and Israel about what equipment Israel can legally sell to Croatia. Grand plans about “strategic cooperation” with Israel also appear to be on hold. Defence Minister Damir Krstičević has invested a great deal of personal effort in the deal, but the acquisition is still in question, and its final fate is yet to be determined.

As expected, the political circus took a break in June due to the World Cup in Russia. While the break was initially expected to last just a couple of weeks, until the Croatian national team is eliminated in the first phase of the competition as usual, its spectacular success extended the political break to a full month and more. Of course, leading politicians did not miss this opportunity to travel to Russia and have their picture taken with footballers and fans. Needless to say, even this occasion, which was supposed to unite the country, brought divisions, primarily due to an appearance by a controversial singer at the homecoming ceremony, which was attended by hundreds of thousands of people.

The Istanbul Convention ratification prompted one of this year’s two referendum initiatives to be launched. The other effort involved proposed changes to the election laws, which would substantially reduce the rights of national minorities to elect their MPs. The government was against the referendums, while the president seemed to be of a different opinion. While both initiatives claimed they had gathered enough signatures for the referendums to be held, the government checked the signatures and conveniently found enough irregularities to lower the number of accepted signatures below the required threshold. This was just one of several attempts to pressure the government from the right.

One of the rare reforms which have begun, at least nominally, is the reform of Croatia’s education system, the so-called “curricular reform.” The issue has caused conflicts between coalition partners, with HNS repeatedly threatening to leave the government if their proposals are not accepted. Their threats were not taken seriously by anyone since it is clear that early parliamentary elections would probably bring about an end for the party.

A scandal broke in September whose consequences are still unclear at this time. A ministerial driver was arrested under suspicion that he had informed a suspect about a police investigation against him. Interestingly, the driver is a close friend of Milijan Brkić, HDZ deputy president and Prime Minister Plenković’s chief intraparty nemesis. While Brkić has denied having any role in the scandal or leaking the information about the investigation, he has been conspicuously absent from public affairs in recent months. Other scandals involving Brkić have also resurfaced, prompting allegations that his opponents were trying to eliminate him politically. On the other hand, some potentially embarrassing documents about him suddenly disappeared. The scandal has even reached the president’s office, with the national security advisor resigning in December under still unclear circumstances.

Relations between Croatia and Bosnia and Herzegovina, as well as the connected issue of the status of Croats in the neighbouring country, were at the forefront of Croatia’s foreign policy efforts in 2018. With October elections looming, the year began with Bosnian Croats warning that the election law was unfair and that it could lead to a Croat representative in the Bosnian presidency being elected by more numerous Bosniaks. That is precisely what happened, with candidate Željko Komšić winning the post, although he apparently did not have the support of the majority of Bosnian Croats. This prompted Croatia’s government to launch a campaign within the EU to pressure Bosnia into changing its election law, which then brought accusations about meddling in internal affairs of the neighbouring country.

One of the potentially most explosive events of this year was a war veterans’ protest held in Vukovar in October. The veterans complained about the lack of prosecution of persons suspected of committing war crimes against Croats in the Vukovar area in 1991, which was a problem which they discussed earlier in the year as well. However, many believed that the protest was actually just a guise for a right-wing attempt to bring down the government led by moderate Prime Minister Andrej Plenković and replace him as HDZ president with a more extremist candidate. Plenković and his team appeared at first worried that the attempt might succeed, but with time they managed to limit its consequences. Once held, the protest passed without incident and has been more or less forgotten, except when occasional arrests in the area do happen, which then draw condemnation from local Serbs who say the police is arresting then just to satisfy the Croat war veterans. In the meantime, tensions in the town continue.

Throughout the year, rumours about impending ruling coalition reshuffle and/or early parliamentary elections continued. However, unlike in 2017, which brought about a change in the ruling coalition composition, with MOST being replaced by HNS, this year the government was more or less stable. One potential candidate for another reshuffle was Zagreb Mayor Milan Bandić, whose parliamentary group somehow manages to “convince” previously opposition MPs to switch parties and cross to his side. Numerous legal proceedings against him have not made him any less desirable patron. The substantial Zagreb city budget which he controls probably has something to do with it. In two years, he has managed to increase the number of his MPs from 1 to 12, with additional expansion of his parliamentary group expected early in the new year. The fact that people did not vote for his party did not discourage him at all. There are rumours that Bandić will use the increase in the number of his MPs, who are crucial for the parliamentary majority, to demand several ministerial posts in the new year.

As for the opposition, turmoil in SDP continued, with several attempts being made to topple the party president and “the leader of the opposition” Davor Bernardić. Fortunately for SDP opponents, these attempts have been unsuccessful, so Bernardić remains in his seat while his party’s popularity continues to plummet, with the latest polls showing it dropping to the third position, behind HDZ and Živi Zid. An increasing number of SDP MPs are leaving the party, with some of them joining the government ranks.

The migrant crisis continued, particularly on the border with Bosnia and Herzegovina, with the police employing ever harsher measures to control the borders and NGOs publishing increasingly critical reports about the alleged police violence and irregularities. The police have repeatedly denied any wrongdoing, despite video evidence to the contrary.

The migration issue also brought us another controversy, this time with the signing of the Global Compact for Migration in December. President Kolinda Grabar-Kitarović, who this year marked three years in office, initially supported the agreement, but then suddenly changed her mind, announcing she would not travel to Marrakesh where the UN conference was held. The government immediately said that Croatia would support the declaration nevertheless, which caused protests from right-wing circles. In the end, the non-binding resolution was supported by Croatia, but no-one really expects it will be implemented.

The final few days of the year brought us another major scandal, whose consequences will become clear in the following months. The president decided to dismiss her domestic policy adviser Mate Radeljić, who many believed had influenced the president to take a more critical position towards the government. After he was dismissed, Radeljić said he was threatened by a Security-Intelligence Agency (SOA) official not to try to damage the president politically after being dismissed. He was allegedly told that the agency was ready to run into him with a car if necessary. The president’s office and the SOA issued statements saying they had acted legally, but interestingly they did not outright deny all of Radeljić’s claims. It is expected that Radeljić’s dismissal will result in better relations between the president on the one side and the government and HDZ leadership on the other, just in time for the presidential elections next year.

Another exciting political year is ahead of us. It will include at least two elections (for European Parliament in May, and for president probably in December), and there is always a possibility the early parliamentary elections might take place. Stay with TCN for all the latest political and business news.

ZAGREB, December 16, 2018 - Border Violence Monitoring (BVM), an organisation that documents expulsions and violence against migrants, on Sunday released video footage purportedly corroborating the suspicion that Croatian police systematically expel groups of migrants on the external border of the European Union back to Bosnia and Herzegovina. The Croatian Ministry of the Interior dismissed the claim, insisting that border police were applying the principle of deterrence.

The ministry said in a statement it had checked the locations where the footage was made and the actions of Croatian police, and found that the police actions on the border with Bosnia and Herzegovina were in line with the law. It dismissed the claim about expelling hundreds of migrants to Bosnia and Herzegovina and stressed that the police applied the principle of deterrence.

BVM said it had received the footage in an anonymous letter. The organisation considers it authentic because of "the extensiveness and level of detail of the material in concordance with other reports".

"The footage was filmed by hidden cameras in a forest near Lohovo, Bosnia-Herzegovina, (Coordinates 44.7316124, 15.9133454) between 29 September and 10 October 2018 and show 54 push-backs," BVM said, adding that at least 350 refugees, including small children, minors and women, can be seen in the video.

It said that reports by local non-governmental organisations cite expulsions accompanied by property destruction, violence and theft by police, and that in villages near the border Doctors Without Borders regularly provide medical assistance to migrants injured by police.

The Croatian Ministry of the Interior says that the principle of deterrence is prescribed by the Schengen Border Code and is applicable to an area between two border crossing points open to international traffic, in this case between Croatia and Bosnia and Herzegovina. "This is a legal measure available to border police in European countries and is applicable to persons who try to enter their territory illegally, outside border crossing points," the ministry said.

The ministry stressed in its statement that Croatian police act in accordance with the existing law, respecting all high standards of basic human rights.

Any uncontrolled entry of a large number of persons would turn Croatia into a hot spot, which the Ministry of the Interior will never allow, but will use all measures and mechanisms available under national and EU legislation to protect the state border, the statement said.

It said that non-governmental organisations covering Croatian police actions should communicate any relevant information to the police without delay so that an investigation could be urgently carried out in accordance with the rules of criminal investigation. "All else is open to manipulation and misinterpretation of the circumstances of any incident."

The ministry said it thoroughly checks all information available about accusations of the alleged use of force and the commission of crimes against migrants. "So far not in one case has it been found that police officers overstepped their powers against migrants," it underlined.

The efforts made by Croatian police in preventing illegal migration and the manner in which they monitor and guard the state border, which is the longest external border of the EU, are in line with the conclusions of relevant EU authorities and are acknowledged by EU countries that are final destinations of economic migrants. Thanks to the effective work of Croatian police, these countries are not exposed to a bigger influx of migrants, the statement said.

Croatian police remain committed to protecting the Croatian and EU border and safeguarding the security of Croatian and EU citizens, the ministry said.

More news on Croatia’s migrant policies can be found in the Politics section.