As Darko Bicak/Poslovni Dnevnik writes on the 29th of May, 2020, measures to help businesses and entrepreneurs in Croatia should be extended, AmCham warns as it discusses the Croatian economy.

The American Chamber of Commerce in Croatia (AmCham) welcomes the recent Action Plan to reduce non-tax and parafiscal levies to help the Croatian economy recover and get back on its feet during the coronavirus crisis.

In a set of recommendations to help the Croatian economy, AmCham has, among other things, announced measures to further reduce and eliminate parafiscal levies and indirect taxes. As Andrea Doko Jelusic, Executive Director of AmCham Croatia, points out, entrepreneurs in the Republic of Croatia pay around 440 parafiscal fees, which makes doing business significantly more difficult and trying for them.

"Certain levies have a general purpose, so their abolition would create a budget deficit that should be financed from other sources, and there are also a number of levies that aren't financially burdensome, but the purpose of their actual payment is non-transparent.

A large number of indirect taxes and levies also represent an administrative burden in terms of monitoring the obligations of the payments themselves and procedures which are too complex. Entrepreneurs point out certain things as the biggest problems: an excessive number of parafiscal charges, non-transparency, financial burdens, the complexity of these procedures and the administratively demanding monitoring of payment obligations.

We believe that it is necessary to focus on further reducing the total number of parafiscal levies and the financial burden they cause,'' explained Doko Jelusic.

Part of the recommendations also refers to the introduction of the possibility of transferring tax losses backwards, then deferral, ie, the exemption from paying income tax advances in 2020, offsetting mutual tax debts and the exemption from VAT payments on donations for earthquakes. They also point to the need to extend the deadline for the implementation of government measures to help the recovery of the already enfeebled Croatian economy.

''Following the end of the extraordinary circumstances caused by the coronavirus pandemic, it's to be expected that it will take some time to restart all of the activities that have been suspended, order raw materials, contact clients and establish a regular work cycle. Therefore, it's necessary to think about extending the measures to help the Croatian economy by three months, and in tourism by twelve months,'' concluded the executive director of AmCham Croatia, which brings together about 250 American, Croatian and other international companies that employ more than 88,000 people in Croatia.

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As Poslovni Dnevnik writes on the 29th of May, 2020, in April this year, retail consumption in Croatia sank by a record 25.5 percent when compared to the same month last year, and industrial production also recorded a large decline, which heralds a sharp decline for the Croatian economy in the second quarter.

The Central Bureau of Statistics (CBS) released a report on retail trade turnover on Friday, and according to calendar-adjusted data, consumption fell 19.8 percent in April compared to the previous month, while, as stated, it sank 25.5 percent compared to April last year.

This is the second month in a row in which consumption has fallen under the influence of the ongoing coronavirus crisis, as it was 7 percent lower in March than in the same month last year. The CBS also announced on Friday that industrial production fell by 11 percent in April compared to the same month last year, its biggest drop since June 2009, when it sank 13.3 percent.

This is the sixth month in a row that production has been falling, and it doesn't bode well for the Croatian economy.

This sharp drop in consumption and production across Croatia is the result of measures aimed at preventing the spread of the new coronavirus, which came into force in the second half of March.

This slowed down growth for the Croatian economy in the first quarter, meaning that gross domestic product (GDP) grew by a mere 0.4 percent on an annual basis, the slowest since the end of 2014, CBS data released recently showed.

In the second quarter, a sharp decline in the Croatian economy is expected, followed by a recession, ie, a decline in the Croatian economy for two consecutive quarters.

In a recent survey conducted by Hina, analysts expect Croatia's GDP to fall by 20.5 percent in the second quarter when compared to the same period last year, and their estimates of the fall range from 15 to 25 percent.

This is significantly more than 8.8 percent, the largest drop in GDP so far, recorded in the first quarter of 2009 at the beginning of the financial crisis.

For more on the Croatian economy, follow our lifestyle section.

As Novac writes on the 22nd of May, 2020, through framework loans to banks, HBOR has enabled the approval of new liquidity loans to Croatian businesses, enterprises and entrepreneurs affected by the coronavirus pandemic.

The liquidity loans come with welcome interest rates reduced by 0.75 p.b when compared to regular loans. Zagrebačka banka d.d., Privredna banka Zagreb d.d., Erste & Steiermärkische Bank d.d., OTP banka d.d., Raiffeisenbank Austria d.d., Hrvatska poštanska banka d.d., Addiko Bank d.d. and Sberbank d.d., have all cooperated in the move.

Beneficiaries of these new HBOR liquidity loans can be micro, small and medium-sized enterprises, and medium-capitalised enterprises (with up to 3,000 employees) that weren't facing business difficulties on the 31st of December, 2019. Croatian businesses applying for this new type of loan should, according to the Methodology for Calculating a COVID score introduced by Fina, be assessed as clients whose business is at risk. Where exactly the need for additional funding actually lies is also imperative.

"This way of lending will enable the faster approval of funds needed by businesses along with a reduced interest rate. Namely, more than 1.2 billion kuna was made available to businesses for new liquidity loans, which banks will, thanks to HBOR's sources, approve at an interest rate reduced by 0.75 p.b. when compared to regular ones,'' said Tamara Perko, President of the Management Board of HBOR.

The maximum loan amount to an applying businesses can amount to no more than 35 million kuna, and the funds can be used to finance employee salaries, overhead costs and other basic operating costs, the procurement of raw materials and the settlement of liabilities to suppliers and other similar operating expenses. However, it should be noted that existing credit liabilities to commercial banks and other financial institutions cannot be settled with these funds.

For more information and for the possibility of loan approval, interested business entities should contact one of the previously listed commercial banks.

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Could a shortened working week instead of laying off staff save more money and help the economy get back on its feet in the aftermath of the coronavirus crisis? As the coronavirus pandemic continues to wreak havoc with the global economy, here's an interesting look at the maths, which doesn't support the laying off of employees at all.

As Novac writes on the 13th of May, 2020, Vladimir Benic, an economist and director of the Zagreb company CareerCentar, gave a concrete calculation pointng to the idea that a shortened working week, in which we work three to four days a week only, could save jobs not only the coronavirus era, but in other crises, too. The text he wrote was first published on his LinkedIn profile.

A similar solution was introduced by the Germans, the text says, not as a result of coronavirus-induced economic issues but following the 2008 financial crisis. In order to slow down the growth of the number of unemployed people in Germany, they introduced a measure of subsidised part-time work, better known as ''kurzarbeit''. They thus retained a larger number of part-time employees, instead of laying off 20 percent of the entire German workforce.

We are translating and transmitting his text in its entirety below:

"Figuratively speaking, laying off 200,000 workers would save a company 19 billion kuna a year due to not needing to pay out for those wages. However, once a company reaches pre-crisis levels, it's necessary to restart the recruitment process. Given the cost of hiring people and running the business in the range of 50 percent to 200 percent of the annual salary of workers, companies will thus spend a minimum of 10 billion kuna by re-employing workers. So, the net effect of the company's savings is 9 billion kuna (minus the amount of severance pay the company needed to pay out to those laid off workers).

On the other hand, if companies keep hold of all of those 200,000 workers and reduce their working hours from 40 down to 25 hours per week, that would be save 75,000 workers according to those working hours. Add a 10 percent pay cut to that, and the company would save up to 8.4 billion kuna. In this case, a company would save on the cost that needs to be invested in the re-employment process, and in addition would retain the knowledge and acquired skills of its [retained] employees.

In addition, if we look again at the German scenario, the state could, in the case of retaining workers, help business owners with certain measures to preserve those jobs. If we take into account the positive effect on the state budget in the form of reduced state expenditures for unemployment benefits, the total positive effect of the second business model is greater than 10 billion kuna.

When this image is viewed from the worker’s perspective, the calculation also goes in favour of the second model. For example, the previously mentioned 200,000 workers in a period of one year, with a reduced number of working hours, will see around 6.5 billion kuna left at their disposal.

In this way, they will continue to remain creditworthy, and will change their consumer habits to a lesser extent, which will continue to encourage the development of the economy. On the other hand, if the same number of workers lose their jobs, they will have around 5.5 billion kuna at their disposal, or one billion kuna less for consumption, which will lead to the slower recovery of the [economy of] the country.''

Make sure to follow our lifestyle page for more. Stay up to date with our dedicated section for all you need to know about the coronavirus pandemic in relation to Croatia.

As Poslovni Dnevnik writes on the 7th of May, 2020, the Republic of Croatia currently has 25,000 fewer employees than it did at the beginning of May 2019, and the total number of insured persons stands at 1,520,000. Croatian companies have been given some breathing room by the state via economic measures, but the rules are not there to be toyed with...

As part of measures to help the domestic economy, the state has so far provided 1.6 billion kuna to Croatian companies for the payment of the minimum wage to their staff for March for half a million (500,070) employees in the private sector. The monthly fund for regular gross salaries of employees is around 15 billion kuna, meaning that the state aid being paid out covers one tenth of regular salary expenditures.

The payment of this state aid is planned for another two months, and today is the last day for applications submitted by new Croatian companies and employers to be looked at, which in April alone recorded a worrying drop in revenue of more than 20 percent.

Croatian companies already on the list for March don't have to renew their applications, but are required to attach a supplement to it. By April, about 13,000 new applications had arrived for an additional 95,000 workers. If the number doesn't change significantly, it means that at least 595,000 workers will be paid 4,000 kuna in state aid this month. Keeping jobs during April could cost the state about 2.5 billion kuna, with 1.6 billion kuna having already been paid out for March, according to a report from Vecernji list.

All of the Croatian companies who received money for March had to submit proof that they had paid their staff their salaries by Tuesday, May the 5th, and the competent Ministry of Labour states that 477,000 JOPPD forms were submitted to the Croatian Employment Service (CES). The first checks carried out by the Tax Administration indicated that every fourth company reduced their salaries when compared to the previous month.

The unions, on the other hand, have repeated that everything that one might imagine is happening, is happening, from those Croatian companies who duly forwarded the money they received to their workers, to employers who have been demanding that the money paid back into their workers' accounts be returned to their hands and the like. Employers who, for various reasons, failed to submit proof of having paid salaries with the money provided by the state will be additionally controlled, according to Josip Aladrovic.

Wherever irregularities are detected, a refund will be requested. At yesterday's session, the Governing Board of the Employment Service decided to extend the right to state aid to Croatian companies/employers who operate seasonally only, or have a secondary occupation, and to certain artistic organisations and independent professions. So far, 3,500 applications that didn't meet the criteria have been rejected. In addition to 4,000 kuna in support, the state will pay 250 kuna in contributions for second-pillar insured persons.

According to the number of employees, the majority of state aid from March (more than one billion kuna) ended up in the accounts of micro and small Croatian companies, but state aid for the payment of salaries was also requested by many larger enterprises, starting with hoteliers who were not allowed to work to stores who could work, as well as bookmakers, oilmen, and even large bakery chains.

The number of unemployed persons in Croatia is also growing and is now edging close to 160,000, but if the situation with the coronavirus pandemic normalises quickly, there is a good chance that it will not exceed that number.

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As Poslovni Dnevnik/Jadranka Dozan writes on the 6th of May, 2020, as far as the Croatian economy is concerned, the European Commission (EC) predicts a GDP decline of 9.1 percent in 2020, but with a relatively quick start to recovery and 7.5 percent growth next year.

With the economic forecasts that come with the rolling around of spring, the European Commission recently presented the first official assessment of the consequences of the coronavirus pandemic on the European economy, and this year it is described as a "recession of historical proportions".

New forecasts compared to the winter forecasts of less than three months ago have clearly shown the extent of the economic shock caused by the coronavirus outbreak; As early as February the 13th, 2020, the EC's winter forecast for this year predicted a slowdown in European GDP growth to 1.2 percent, and in the spring, it turned into an expectation of a decline of 7.4 percent and then a recovery at a rate of 6.1 percent next year. year, which rests on assumptions that are nevertheless accompanied by numerous concerning uncertainties.

In the case of the Croatian economy, the European Commission's forecast for 2020 from mid-February has shifted from a 2.6 percent GDP growth forecast to a worrying 9.1 percent decline, but with a relatively quick start to economic recovery that should be reflected in growth of 7.5 percent in 2021, with domestic demand as the main driver of that growth.

The European Commission also predicts a higher rate of decline than that of Croatia this year in only three other Mediterranean countries - Greece (9.8 percent), and hard-hit Italy and Spain (9.4 percent). At the same time, next year, their predictions see the Croatian economy at the top in terms of growth in forecasts; when it comes to countries that the EC predicts will have better forecasts than Croatia in 2021, only Greece (7.9 percent) outdoes it. Compared to last week's projections, it turns out that the EC is somewhat more optimistic.

The Croatian Ministry of Finance's predictions of a slightly deeper decline this year (9.4 percent) and more moderate growth next year (6.1 percent) may still be explained by the Croatian Government's fresher and fuller insight into the state of the Croatian economy than that of the more distanced EC. And although these forecasts assume a gradual normalisation of life and work, the EC highlights the uncertainty factor of the duration of that desired and expected normalisation, as well as the very real risk of a potential second wave of the coronavirus epidemic.

Currently, the common denominator of the forecast for the Croatian economy remains the expectation of a relatively quick start to the recovery process. Whether it will take Croatia two, three or more years to reach last year's GDP level remains to be seen, but this time it is not expected that it will take a full decade, which is what the unfortunate situation looked like for the country after the devastating 2008 economic crisis.

Thus, in a review of Croatia's situation, EC analysts point out that the Croatian economy saw in the ''entrance'' of the coronavirus pandemic in a much better condition than it did with the 2008 crisis. This is especially true for macroeconomic and budgetary indicators. However, Zeljko Lovrincevic from the Zagreb Institute of Economics points out that at the same time, Croatia's demographic picture is far worse than it was back then, and the technological matrix has not changed significantly, which still makes the economy much more vulnerable.

Regarding the structure of the Croatian economy, the European Commission has emphasised Croatia's enormous level of reliance on tourism, which affects the depth of the expected decline this year, but also poses a risk in the case of longer travel restrictions.

"Due to the expected increased aversion to international travel of potential foreign tourists, tourism is not expected to recover to the level of 2019 in 2021," the forecasts say.

However, domestic demand should recover faster than exports do, as uncertainties about the outlook for global trade remain significant, and this year's export outlook is exacerbated by the recession(s) being experienced by Croatia's main foreign trade partners.

When it comes to household consumption, the Croatian Government's measures to (co)finance wages in the business sector should help preserve it. At the same time, projects financed from EU funds, as well as measures to support the liquidity of companies, should have a mitigating effect on the dynamics of investments, the European Commission pointed out.

The negative impact of the large decline in exports of goods and services on GDP should, in turn, be mitigated by the high import component of tourism exports.

"Unlike the Croatian Government's projections, in which the unemployment rate is falling very slowly according to today's values, the European Commission's projection instills optimism," commented Luka Burilovic, head of the Croatian Chamber of Commerce (HGK).

The Commission believes that the Croatian Government's measures to support wages and liquidity should mitigate the decline in employment, but despite this, employment will still fall sharply this year in sectors that are likely to experience disruptions for the longest time, such as the leisure, tourism and hospitality industry.

The unemployment rate, after last year's fall to a historic low (6.6 percent), could rise by about three and a half percentage points this year, according to the EC, to 10.2 percent, but the Commission expects it to fall again to 7.4 next year. Finally, the Commission has somewhat more favourable forecasts regarding the deficit. After three years of surplus, this year they see the general government deficit at 7.1 percent of GDP, and next year they calculate that it could be reduced to 2.2 percent.

The EC estimates that partial and complete write-offs of taxes and social security contributions for the hardest hit companies in the second quarter should reduce revenues by the projected 1.5% of GDP. They also calculate that, for example, subsidies for salaries in the private sector could cover more than half a million employees and cost almost 2 percent of GDP.

The decline in activity for the Croatian economy and the government measures to try to keep things afloat has resulted in a significant increase in financing needs, so the EC expects public debt to rise to 89 percent of GDP this year, with a decline to below 84 percent of GDP in 2021.

For more on the Croatian economy, follow our lifestyle page.

As Ana Blaskovic/Poslovni Dnevnik writes on the 28th of April, 2020, much like if Croatia was placed under a strong magnifying glass, the coronavirus pandemic has showcased the many inefficiencies and the illogicality of the current Croatian system surrounding the economy.

At the same time, it has shown us that a change for the better is indeed more than possible and that the efficiency of the Croatian public apparatus is not a mere myth but a possible reality. What a shame it has taken a global pandemic to bring that to our attention.

When there has been no alternative, government institutions have proven their ability to be fast paced, their readiness to embrace digital processes and to become goal driven. Although whether or not the grants of 4,000 kuna for job retention are an optimal measure or not, the decision has been made and the application and payment process have carried out very well by the Croatian Employment Service and the Ministry of Finance.

The rapid introduction of e-passes (e-propusnice) shows that Croatia is ready at all levels to introduce and implement modern and digitised processes, but at the same time, the number of issued e-passes points to an over-fragmentation of the territorial organisation.

The introduction of Andrija showed truly excellent cooperation between Croatian and foreign companies in the creation and perfection of a smart and innovative technological solution. The state apparatus is enormous, and the number of people who can truly complete actual projects and tasks sought by the public is very modest, which makes it seem as if Croatia is not taking full advantage of its opportunities and potential at all.

If the ongoing coronavirus crisis has taught us something, it's that Croatia can indeed be efficient and orderly, and our biggest fear now should be us simply going back to our old and outdated ways under the pressure of the loud and self-serving minority who don't want to evolve or respond to change.

After the initial hesitation, the aid measures for the Croatian economy aimed at the right goal. The proposals were addressed to the Croatian Government from various institutions, and in fact, these economic measures should make the Croatian economy agile, fast, resilient and ready for the upcoming market struggle.

Coronavirus came knocking at Croatia's door when it was in a totally unprepared state in many ways. The idea of working from home, while popular, isn't adequately regulated in Croatia and this is one of the issues that needs to be addressed urgently independent of the coronavirus pandemic, since working from home is a trend that absolutely must survive even after this threat is history. It's a way for working parents to cope better, and it's a way to give young people more flexibility.

Croatia is also missing a real grasp on the idea of putting people on ''standby''. In fairness, the country did have something similar during the war, and we'd do well to incorporate an upgraded version of that in the present extraordinary circumstances. Slovenia put its workers who were unable to go to work on a ''standby'' basis and secured 80 percent of their wages, freeing employers from too much burden, who were already struggling to preserve their business bases.

AmCham also demanded that such workers in Croatia be allowed to receive, if not the Slovenian, French or British variant of the payment of 80 percent of their net salaries, or the Czech Republic's payment of 60 percent of their net salaries, then the amount provided by the CES, with certain employer obligations needing to be met along with it.

Although the argument against that is the fact that the Croatian solution allows for the payment of 4,000 kuna net irrespective of whether the employee is working or not, the employer has an obligation to pay the rest of the person's wage up to their usual full pay, and it is therefore still necessary for them to go through the whole long and exhausting administrative process with workers who aren't currently working in order to reduce the salary in these circumstances when all the time available should be focused on keeping the basics of the business, retaining customers, suppliers and employees who are still able to work.

Croatia has chosen the egalitarian principle of support for maintaining jobs with a net cash sum of 4,000 kuna. The argument for such an approach is certainly the simplicity that allowed for its speed of implementation. Despite its shortfalls, this measure protects, above all, lower-paid jobs and lower-valued industries.

However, this approach increases the chance of seeing highly specialised professionals become unemployed, and as such weakening Croatian firms in the aftermath of the coronavirus crisis when they return to the market. In addition, better-paying jobs, on a regular basis, contribute more to the budget, so it would be fair for them to be able to get more in the crisis.

How can we re-launch the domestic economy?

The tax and contribution write-offs for those affected by the coronavirus crisis are only for small businesses with a high turnover decline. Such a measure doesn't allow other companies a good start with re-beginning business operations, but instead becomes a heavy weight. Retaining workers with a delay or the partial write-off of taxes and contributions means that months or years after the re-launch of ''normal'' business, companies will continue struggle with the burden of these fees.

Large companies with a fifty percent or more drop in turnover, which is already a bankruptcy threshold for them, are allowed a proportional write-off of their regular taxes and contributions.

Given that it is crucial that in the period following the cessation of these special coronavirus-induced circumstances, economic operators must be able to initiate economic recovery rapidly. So it must be considered essential that economic operators aren't continually burdened with the tax liabilities that arose during the crisis. Coronavirus could finally bring a more significant cut in para-fiscal levies as a measure of easing the burden on the economy.

Make sure to follow our dedicated section for more on coronavirus in Croatia.

As Novac/Frenki Lausic writes on the 27th of April, 2020, for HDZ, when it comes to the Croatian economy, the state budget and other standards that regard citizens, it would be best to hold parliamentary elections now.

With each new passing day and month, even if we go with the baseline scenario, where the recovery of the Croatian economy would begin to be felt in the second part of the year, and the coronavirus pandemic would be kept under control, economic disadvantages on all levels would be visible.

The business results of Croatian companies will be much worse, the state budget deficit and public debt will grow radically, and the wallets of most citizens will grow even more empty. Last year, the Republic of Croatia achieved a budget surplus of 0.4 percent, and Zdravko Maric, the finance minister, said in preliminary estimates that the borrowing of a massive 45 billion kuna would be needed in the first three months of the coronavirus crisis in order to cover current expenditures of the enfeebled Croatian state budget.

Executives from the Croatian National Bank (HNB/CNB) said that each month with the epidemiological measures we've had so far in place, brings about a three percent drop for the Croatian economy. The current uncertainty is so high that the risks are largely unaccountable. In such a situation, pragmatism also requires HDZ to reduce this uncertainty to an absolute minimum, which can now, at least as far as HDZ as a party is concerned, can only be achieved through rapid elections. The July elections, if the party wins, gives HDZ the opportunity to make cuts on the expenditure side of the state budget with the power of a new electoral victory, and with generally less resistance.

Furthermore, such a strategy also enables the party not to make any painful decisions before July rolls around, especially those concerning the salaries of employees in the state and public sectors. If we remain with ''only'' a 45 billion kuna hole blown in the budget for the first three months of the coronavirus crisis, we should know that this represents 31 percent of the state budget and 11.2 percent of Croatia's GDP, if we calculate the GDP compared to the 2019 result, when amounted to 400 billion kuna.

However, if we know that with the baseline scenario, real GDP will drop, according to various calculations, by between seven and ten percent, then the deficit ratio in GDP in 2020 will be higher than 11.2 percent. This would also mean that public debt would reach close to 84 percent of GDP, the last time that was the case was back in 2015. In a less optimistic scenario, Croatia's GDP decline would be greater than ten percent and would go towards fifteen percent (and more) than that. The budget deficit would go up to 60 billion kuna and public debt would soar above 90 percent of GDP. In just one year. It goes without saying that this would be devastating beyond words for the Croatian economy.

A quick look at the numbers: 

A 45 billion kuna deficit in the state budget in the first three months of the coronavirus crisis.

84 percent of GDP could account for public debt in 2020 (up from 73 percent of GDP in 2019) even with a baseline (optimistic) scenario.

31 percent of the central government's budget amounts to 45 billion kuna

11.2 percent of GDP (from 2019) amounts to 45 billion kuna.

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The Croatian economy, much like the global economy, has been forced to grind to a halt owing to the ongoing coronavirus pandemic. In a time when Croatia, known for its seasonality in terms of employment, would be gearing up for the summer season and employers would be seeking out waiters, chefs, bar staff and more, the unemployment rate is only increasing.

For the Croatian economy, of which the strongest branch which makes up around 20 percent of GDP is tourism, coronavirus threatens absolutely devastating economic consequences. The trade sector, which is also of enormous importance, both in the sense of its connection to tourism and independently of it, is also suffering huge losses.

As Jadranka Dozan/Poslovni Dnevnik writes on the 24th of April, 2020, the latest report from the Tax Administration shows that there has been an enormous drop of six billion kuna in all activities since the beginning of April 2020 thanks to the coronavirus pandemic and the numerous economic restrictions that have been introduced in order to try to flatten the infection curve.

In all activities which go through the fiscal system, the number of invoices issued fell by as much as 52 percent last week in the retail and wholesale/trade sector, according to the latest data from the Tax Administration.

This is a significantly higher decline than in the second week of April (when it was 34 percent in total and 24 percent in trade), the reason being that this year, Easter, ie the pre-festivity spending period, took place a week earlier.

A more realistic picture of the recent decline has been given by the first three weeks of April 2020. As touched on above, from the latest tax report, it can be been seen that in all activities since the beginning of April, there has been a huge six billion kuna drop, which is 44 percent or 4.58 billion kuna less than in the first twenty days of April 2019.

Over the past three weeks, trade turnover was 36 percent or 2.68 billion kuna lower than in the comparable period last year. Thus, in the first three weeks of April 2019, close to one billion kuna (956 million kuna to be precise) was fiscalised, and in the twenty days of April this year, only 91.5 million kuna has been fiscalised, a massive 91.5 percent less than last year.

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As Julije Domac/Poslovni Dnevnik writes on the 23rd of April, 2020, could we have ever expected this? The crisis caused by the COVID-19 virus is shaking Croatia and the Croatian economy, as well as that of the whole world. We're currently living in times that would otherwise be really difficult to even begin to imagine.

The coronavirus crisis we're now in is testing absolutely everything that matters most to us and that we simply take for granted. This includes the mere functioning of the Republic of Croatia as a country. Not only has the functioning of the state been called into question, the function of the Croatian health system has, too. A test of our European solidarity of cooperation is also now heating up. However, the crisis of the generation is also the opportunity of the generation. The need and the energy to finally change Croatia for the better, the need to hit the reset button on the country, has never been clearer.

The recovery of the Croatian economy.

In this tremendously difficult situation, we're also facing another crisis - the shock to the Croatian economy and the European economy as a whole is currently more severe than the 2008 crisis. More than ever, we need a strong and coordinated economic policy response, a clear set of priorities and the launching of investments.

The recovery of the Croatian economy will only come from massive investments to protect and create jobs and support all businesses and companies, all Croatian cities and regions, and all sectors suffering economic damage as a result of this suddenly stalled economic activity.

New investments should also stimulate a new Croatian and European economic growth model - that model should be much more resilient, much more protected, more sovereign and more inclusive. All these demands lie in the idea of ​​a green economy. The transition to a climate-neutral economy can quickly secure jobs, growth and improve the way of life for all residents of the Republic of Croatia, the European Union, Europe, and around the world. It would also contribute to building a more resilient society.

New technologies are already here, in 2019, as much as 72 percent of all investments in the energy sector were related to renewable energy. In the last decade, tremendous progress has been made in developing new technologies and creating a totally new value chain. Just ten years ago, zero emission vehicles were just a prototype, today they're everywhere on our roads.

Just a decade ago, wind energy was three times as expensive as it is today, and solar power was as many as seven times more expensive. Ten years ago, we didn't even deal with the energy renovation of buildings because it seemed expensive and entirely unnecessary to us.

The political will for change is clearly being expressed today. Projects such as the European Green Compact and numerous national plans for carbon-free development clearly define the path that Croatia should take - and boldly. Contrary to some expectations, the COVID-19 crisis didn't distract other EU member states from advocating a more green agenda, quite on the contrary.

The recent initiative of 12 EU member states led by Denmark, Germany and France calls for a ''green recovery'' as a key strategy for the times of crisis we're currently living in. The European Commission has also launched a public consultation on its Renewed Sustainable Financing Strategy, part of a 3 trillion euro package for a greener economy by the year 2030.

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