ZAGREB, September 20, 2019 - Prime Minister Andrej Plenković said during a visit to the northern Adriatic city of Rijeka on Thursday that the government's acceptance of the proposals by the "67 is too much" referendum initiative was an important decision, noting that the pension reform had already had positive effects.

Asked by the press if the government had capitulated to the unions, Plenković said that the government had announced an important decision at its meeting today and that it would submit to the parliament amendments to the Pension Insurance Act as proposed by the "67 is too much" initiative.

"The pension reform is good and positive, it is an important structural reform. During our term in office, pensions have increased by 11 percent, and by nearly 15 percent for low-income citizens. As of January 1 this year, some of the people who have retired could return to the labour market, and data shows that as many as 13,500 people have returned to the labour market. This is a message that there are people who want to work even after they turn 65," the PM said.

He noted that the retirement age of 67, provided for under the present law, was introduced by the SDP government. "I don't remember anyone organising any demonstrations or referendums at the time."

"Our message was that we heard the message of 700,000 citizens, that in these amendments we will deal with what primarily the three union federations see as problematic, and that at the same time we will amend the Labour Act and several other acts that cover special professions to allow those who so wish to work after they turn 65," Plenković said.

"In that regard, I think we have achieved the right balance and closed this issue, and that this reform, which has been assessed by experts from the European Commission and credit rating agencies as very good, ... will resolve the concerns raised," he added.

Asked if Regional Development Minister Marko Pavić, who had claimed while serving as Labour and Pension System Minister that abandoning the pension reform would cost 40 billion kuna (5.4 billion euro), should resign, Plenković said that it should be borne in mind that at that time a projection of financial sustainability over the next 20 years was being made and that amendments to other laws would make it possible for some of the people to work after 65 years of age, which would considerably reduce the costs.

"We will try to keep this fiscal effect as low as possible," the PM said, adding that Pavić had already taken the helm of another government department.

More news on the pension system can be found in the Politics section.

ZAGREB, September 19, 2019 - Finance Minister Zdravko Marić on Thursday said that the acceptance of demands set by the "67 is too much" initiative would not jeopardise public finances and that the payment of pension allowances was safe.

If the union demands are met, pension payment will be safe, Marić said after the cabinet meeting at which Prime Minster Andrej Plenković announced that the demands for which unions had collected the signatures of more than 700,000 citizens, would be upheld.

Citizens signed a petition to call a referendum against raising the pension eligibility age from 65 to 67 but also against stricter penalties for early retirement.

Former labour minister Marko Pavić in the spring warned that that would cost the government 45 billion kuna by 2040.

Marić, however, recalled that those forecasts were made for long term and for the sustainability of the system in the next 40 or 50 years.

Amendments to the pension act will not have any impact in the short term, over the next two or three years, he explained.

Marić announced a new set of laws that in addition to the pension act will also deal with labour legislation that will allow people to continue working after 65 if they wish.

Health Minister Milan Kujundžić said that the government's decision to accept the demands by the "67 is too much" initiative was a sign of respecting citizens' wishes for a referendum and reality and that it was not a sign of political weakness.

"That is not political weakness of the government but a sign of maturity and courage," Kujundžić said after the cabinet meeting.

Labour and Pension System Minister Josip Aladrović said on that the government had accepted the will of more than 700,000 citizens who had signed the "67 is too much" referendum initiative because the pension system can remain sustainable and adequate and ensure inter-generational equality even if the initiative's demands are met.

"We have accepted the will of 700,000 citizens. We realised that our claims of the sustainability, adequacy and inter-generational equality can remain even if the demands of the referendum initiative are upheld, namely to accept the articles of the law as formulated by the unions," Aladrović told reporters after the cabinet meeting on Thursday.

He announced that at the same time amendments to labour legislation would be put forward, which he believes will achieve the objectives that the government hoped for, and that is for people to remain on the labour market longer and for higher pension allowances.

Asked why the government hadn't done this before but now, he said that that part of the law that the "67 is too much" initiative referred to was adopted by the SDP-led government.

"That part of the law was insignificantly changed. However, citizens expressed their will. We respect the will of the people and have accepted their demands. In that way we are retaining our objectives that we communicated at the beginning of the pension reform. Among other things, we expect the system to remain sustainable, stable and that pension allowances will be adequate," he said.

Aladrovic said that his predecessor Marko Pavić should not suffer any consequences for scaring the public by saying that the union demands would cost the pension system 45 billion kuna (6 billion euro).

MP Mirando Mrsić (Democrats) on Thursday called out former Labour and Pension System Minister and incumbent Regional Development and EU Funds Minister Marko Pavić to step down because he had consciously misled the public about the sustainability of the pension system.

"Today's move by the government is proof that Pavić consciously misled citizens and spent our money to finance a campaign that attempted to prove to citizens that our pension system would cave in if we don't save 40 billion kuna," Mrsić said in parliament on behalf of the HSS and Democrats group while commenting on the government's decision to accept the demands set by the "67 is too much" initiative for a referendum on the pension reform.

Mrsić underscored that millions of kuna had been spent on the campaign that Pavić, as the then minister, organised to convince citizens that if the union demands were met that would lead to "lower pensions, indebt our children and destabilise the pension system."

"Millions of kuna were thrown to the wind just to save Plenković's and Pavić's hides," Mrsić said and added that he expected Pavić to resign before the end of the day.

Mrsić asked incumbent labour minister Josip Aladrović why he raised his hand to uphold the demands by the "67 is too much" initiative today when until recently he considered the union demands would be destabilising.

He added that the pension system would not cave in because of the retirement age being 65 or 67 but rather due to the inflation of privileged pensions and suggested that the unions should insist on the referendum.

More news about the pension system can be found in the Business section.

ZAGREB, September 19, 2019 - Prime Minister Andrej Plenković on Thursday said that the government had decided to uphold all the proposals put forward by the "67 is too much" initiative and that it would be forwarding a bill to parliament to amend the Pension Insurance Act and return the age pension eligibility to 65 and that it would propose amendments to the Labour Act that will enable people to continue working if they wish after they turn 65.

The government will send a bill to parliament for amendments to the Pension Insurance Act. We will uphold all the proposals by the referendum initiative and amend certain aspects of the Pension Insurance Act and forward it to parliament, Plenković said at the cabinet meeting on Thursday without making mention of union demands for a referendum to be held regarding their demands.

He recalled that during the spring the government was confronted with activities by the "67 is too much" civil initiative and after the signature collection campaign it was established that more than 700,000 citizens had signed the petition for a referendum on the pension act.

The government, Plenković said, heard the message by Croatian citizens even though it considers that remaining longer in the workforce and being eligible for a pension later is not an objective circumstance that is specific to Croatia but to others, it is a fact that some people wish to work after they turn 65.

That has been shown by the 13,500 pensioners who returned to the labour market and there are more of them in various branches, he underscored.

"Hence, in addition to a bill on amendments to the Pension Insurance Act and, respecting the will of citizens, we will also propose amendments to the Labour Act and other laws that regulate the status of certain categories in such a way that people who wish to work after the age of 65 can do so," he said.

That will create a balance between the fundamental objective of the civil initiative and union demands and those citizens who supported the initiative with their signatures while at the same time providing the possibility for citizens who wish to remain in the workforce to do so, Plenković believes.

"The amendments will positively impact employment and the revenue and expenditure side of the state budget and the amount of pension allowances for future beneficiaries. We will be expanding the labour market and creating new opportunities on that market and we are listening to the message of 700,000 people but also offering a chance for all those who wish to work longer and remain on the labour market," he underlined.

He recalled that his government had embarked on a comprehensive pension reform so that the pension system can be adapted to demographic challenges and changes on the labour market and economic circumstances.

After Prime Minister Andrej Plenković announced on Thursday that the government had decided to uphold all the demands by the "67 is too much" union initiative and forwarded amendments to the Pension Insurance Act to parliament, MP Peđa Grbin (SDP) and Nikola Grmoja (MOST) said that the government had capitulated.

"This is the Croatian Democratic Union (HDZ) government's capitulation because it has realised that its proposal was bad and detrimental for citizens and that it would be defeated and that it is better to give in than to bash your head against a brick wall," Grbin said.

Naturally, we are pleased that the government has done that, Grbin said, because its proposal would have been disastrous for pensioners and citizens.

Asked to comment on the unions' insistence to conduct the referendum, Grbin said that if the referendum question is "Do you want a law like that to be adopted," and if parliament adopts it in the meantime then the referendum question is pointless.

In his comment of the government's decision, Grmoja said that "this was the only possible move considering the large number of signatures - admitting defeat and accepting the union demands." He believes that it seems to him that everything is possible in an election year despite the government's claims, and that the pension system won't cave in after all.

Goran Aleksić of the SNAGA party does not think that Plenković's announcement is a pre-election trick. "Why would we go to a referendum if this is simpler. I would do that too if I were Plenković," said Aleksić.

More referendum news can be found in the Politics section.

ZAGREB, September 17, 2019 (Hina) - Labour and Pension System Minister Josip Aladrović said on Monday that he did not see any reason for trade unions to call on citizens to take to the streets if a referendum was not called against the pension reform, saying that the matter would be discussed by the parliament.

Leaders of three union federations asked the parliament earlier in the day to call a referendum against the pension reform, otherwise they would call on citizens to take to the streets to ensure that the will of the 750,000 referendum petition signatories is honoured.

"We shall see, the matter is now up to the parliament to decide," Aladrović told reporters before a session of the HDZ party leadership, when asked about the statement by the three union federations.

Aladrović said that signatures for the referendum petition had been counted and sent to the parliament and that the parliament would most probably discuss the matter in the first or second week of its next session, which starts on Wednesday.

"We'll see what the parliament decides," he said.

Parliament Speaker and HDZ secretary-general Gordan Jandroković said that there would be no need for anyone to take to the streets.

"We will act in line with the law and everything will be all right," said Jandroković when asked about the union referendum campaign "67 is too much" and the unions' threats.

More referendum news can be found in the Politics section.

ZAGREB, September 16, 2019 - Leaders of three union federations asked parliament on Monday to call a referendum against the pension reform, otherwise they would call on citizens to take to the streets to ensure that the will of the 750,000 referendum petition signatories is honoured.

SSSH leader Mladen Novosel told reporters outside parliament that they submitted the signatures more than three months ago and that, aside from the Public Administration Ministry's confirmation that enough signatures had been collected, there had been no word from the government or parliament about the next steps.

The unions expect parliament to set the referendum date by the end of this month, he said. If the referendum question is sent to the Constitutional Court for assessment, there is a 30-day deadline and possibly another 30 days for the Court to reply to parliament, Novosel said, adding that the unions would ask the Court to reply as soon as possible.

Novosel said there would be no more negotiations or agreements on the referendum, adding that the referendum must be held because the will of the people must be honoured.

NHS leader Krešimir Sever said the referendum must be called as soon as possible, telling those in power not to force the unions into political waters as they did not want to engage in politics.

He said those in power had pushed the unions into collecting signatures for the referendum during the European Parliament election campaign.

There is still enough time to call the referendum during October so that the presidential and parliamentary elections can be held in a relaxed manner, said Sever.

MHS leader Vilim Ribić reiterated that the unions would not meet with Labour and Pension System Minister Josip Aladrović until the referendum was called.

The 750,000 signatures collected is equal to the number of votes thanks to which the HDZ is the ruling party, so I don't think someone can toy with that, he said.

He said it was important to hold the referendum as a sign of democratic culture, calling on Prime Minister Andrej Plenković, who he said decided whether parliament would send the referendum question to the Constitutional Court, to decide "in line with democratic, civilised and cultural standards" and call the referendum.

More news about referendums can be found in the Politics section.

ZAGREB, August 29, 2019 - The union initiative against raising retirement age, called "67 is too much" has collected a sufficient number of signatures for a referendum to be called about the Pension Act, the Public Administration Ministry advised at a cabinet meeting on Thursday.

The government endorsed the report submitted by the ministry regarding the signature collection procedure and forwarded the report into parliamentary procedure.

The initiative collected almost twice the number of signatures required to call a referendum. The ministry determined that 708,713 valid signatures had been collected.

In order for a pension eligibility conditions referendum to be called, it was necessary to collect at least 373,568 signatures (10% of the total electorate), while the unions have said that they have counted more than 700,000 signatures.

An examination of the number and validity of signatures on a sample of 49,962 voters determined that there are 708,713 valid signatures, state-secretary in the Administration Ministry, Darko Nekić said today.

Parliament now has to decide whether it will call the referendum or whether it will request the Constitutional Court to check the constitutionality of the referendum question.

Signatures were collected for two weeks this spring for a petition for restoring the statutory retirement age from 67 to 65.

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

ZAGREB, June 13, 2019 - Unionists who launched the "67 is too much" campaign to collect signatures for a referendum on restoring the statutory pension age from 67 to 65 on Thursday submitted to the parliament a total of 65 boxes with 748,624 signatures collected from 27 April to 11 May.

In order for the referendum on pension eligibility to be called, it was necessary to collect at least 373,568 signatures.

After meeting with the unionists, Parliament Speaker Gordan Jandroković explained the procedure to follow the receipt of the signatures, which also includes checking the validity of signatures and their exact number.

Furthermore, there is a possibility for the parliamentary committee on the Constitution to propose that the parliament should ask the Constitutional Court to check whether the proposed referendum question complies with the Constitution.

Asked by the press whether he believes that this question should be sent to the Court, Jandroković said that he would discuss the matter with party colleagues and coalition partners before giving an answer on the matter.

Jandroković said that the unionists were always welcome to the negotiating table, however, it seemed to him that they were now disinclined to resume the negotiations.

Asked by the press how come rating agencies and international institutions commend the pension reform undertaken by the government while the changes are being met with opposition in the country, Jandroković recalled the positive economic indicators such as economic growth and reform processes, including the pension reform, for which Croatia has been rated well.

"It is the people that have the final say, but it can happen that a good measure adopted by the government is contested by citizens," he said.

Mirela Bojić, one of the union coordinators who presented the signatures, said today that calling the referendum would be a good opportunity for the parliament to help citizens restore faith in top Croatian institutions.

Recently, Bojić has said she believes that the referendum question should pass the test at the Constitutional Court, even though "anything is possible in Croatia".

More referendum news can be found in the Politics section.

ZAGREB, June 11, 2019 - Union leader Krešimir Sever told Hina on Tuesday that signatures collected for a referendum petition for restoring the statutory retirement age from 67 to 65 would be submitted to the national parliament on Thursday.

The unionist said that a meeting of Parliament Speaker Gordan Jandroković and the initiators of the referendum campaign "67 is too much" was scheduled for Thursday and that on that occasion, the unionists would hand the collected signatures.

In order for a pension eligibility conditions referendum to be called, it is necessary to collect at least 373,568 signatures, while the unions have said that they have counted more than 700,000 signatures.

"We expect the parliament to request the checking of the validity of signatures, and we are not afraid of that as we have already erased the signatures in which we have spotted deficiencies," Sever said.

He ruled out a possibility for the renewal of the negotiations with the government on pension eligibility conditions, saying that the unions insist on the holding of the vote.

More referendum news can be found in the Politics section.

ZAGREB, May 27, 2019 - The union-led referendum initiative "67 is too much", which has managed to collect over 600,000 signatures for a referendum petition on restoring the statutory pension age of 65, said on Monday that it had spent HRK 867,000 on its campaign and received HRK 1.3 million in donations.

Under the law, such initiatives can spend a maximum amount of 8 million kuna, however, unionists and activists have managed to spend much less, according to a report published on the website of the State Electoral Commission (DIP), which is in charge of supervising the financing of referendum initiatives, under the new law on the funding of political activities.

Thus, "67 is too much" is the first initiative to be regulated by the new legislation.

The report also gives a breakdown of donors, and the lion's share of donations came from the three trade union federations that had organised the initiative.

The maximum individual donation of 200,000 kuna was paid by the Zagreb-based Maxima company. The list of donors includes only one physical person, who made a donation of 200 kuna.

The unions also provide a breakdown of expenses and the largest portion, 199,500 kuna, went on various advertisement and promotional services.

On 12 May, the initiative "67 is too much" announced that they had gathered over 600,000 signatures for a referendum to prevent the statutory retirement age from being raised from 65 to 67.

Under the law, organisers of a referendum are required to gather the signatures of at least 373,568 voters, or 10 percent of the electorate, before formally filing a referendum petition.

More news about referendum initiatives can be found in the Politics section.

ZAGREB, May 18, 2019 - Unions that organised the "67 is too much" signature collection campaign for a referendum to restore the statutory retirement age from 67 to 65, said on Friday that they planned to submit the signatures to parliament by the end of May and added that they did not agree with a proposal by Deputy Prime Minister Predrag Štromar for conditions for a full pension to be amended without going to a referendum.

Signature lists are still coming from all counties to the initiative's head office for inspection, and only after that will the number of signatures be made public. The signatures will be submitted to the parliament most likely in the week after May 26, the initiative's national coordinator, Mirela Bojić, told Hina.

In order for a referendum on pension eligibility to be called, it is necessary to collect at least 373,568 signatures, while unofficial union sources have said that they have counted almost 700,000 signatures.

"The plan is to submit the signatures to parliament in the week after the European election and then parliament will decide on their inspection and on the assessment of the constitutionality of the referendum questions," Bojić said.

She added that the initiative resolutely rejects Štromar's proposal that the referendum be abandoned for the sake of saving money and that an agreement be reached with the unions regarding their demands.

"As far as we are concerned, we will not back down. The government had plenty of time. We literally begged for them to sit down at the table so that we don't have to collect signatures. However, now that we've collected this many signatures, we have an enormous responsibility toward citizens and insist that a referendum be held and the will of citizens respected," said Bojić.

She believes that the referendum questions should pass the test at the Constitutional Court even though "anything is possible in Croatia".

"With regard to the way we formulated the questions, which constitutional experts from all sides are talking about these days, I am convinced that the Constitutional Court has almost no manoeuvring room, unless that is an opportunistic political decision which, unfortunately we have been accustomed to recently," she added.

The initiative expects the referendum to be called for early September.

More news about the retirement age referendum can be found in the Politics section.