Thursday, 23 May 2019

A Return to Old Glory for the Port of Rijeka? Potentially...

As Suzana Varosanec/Poslovni Dnevnik writes on the 23rd of May, 2019, investors have recognised the potential, which for the Port of Rijeka, means a step forward to the leading container-logistics centre in the Northern Adriatic.

With new investments, Rijeka is being returned to the former position that it once enjoyed at the tail end of the 1970's, when it was a large and significant port centre. Those have been the type of messages sent to the director of the Rijeka Port Authority, Denis Vukorepa, on the occasion of the completion of the Zagreb Deep Sea Container Terminal (Zagreb DSCT) project in the Port of Rijeka.

There has been a great level of interest from potential concessionaires, including as many as seven of the world's largest operators from Europe, the Middle East and the Far East. Officially, the Chinese, and also the CRBC which is currently building Pelješac Bridge, have made themselves known.

The Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, will also visit the terminal at which the works are taking place today. To briefly recall, the most important capital project in the Rijeka Gateway Project II, worth 112.5 million euros, of which 84 million euro is from a World Bank loan, while 28.5 million euros is financed by the state. However, in addition to those amounts, the Rijeka Port Administration has continued to invest 40-50 million euros in its own investments.

When this part is completed, individual talks are expected in June and July when potential concessionaires will present their respective terminal management concepts.

It's certainly not excluded that the interest for the second phase of the construction of the terminal will gain traction, and for which permits have been prepared. The expected term for the signing of a contract currently stands at the end of September.

Traffic in the Rijeka basin in the container area has increased by about ten percent over more recent years, but a more dynamic growth in freight volumes and cargo flow is expected, which is the subject of interest for rail freight operators, and is expected to attract a larger volume of truck traffic.

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

Tuesday, 21 May 2019

A Dying Trade: Marko Zidar is the Only Shoemaker in Town - Našice, Slavonia

The situation in Slavonia is far from a blooming one, at least in economic terms, and while Croatian pensions continue to be small, often forcing their recipients to continue to work in any way that they can, for some that just isn't sustainable, not because of the economic situation as such, but because of time.

As Novac/Jutarnji writes on the 21st of May, 2019, despite the fact that shoemaker Marko Zidar has now retired, he chose to continue to work. He says that he does so for some additional income, because Croatia's pensions are small, but also because of the love he has towards this work. He has been the only shoemaker in Našice, a town in Slavonia in Eastern Croatia, for more than thirty years, and he continues to work because this occupation is considered to be scare, Glas Slavonije writes.

His work is well known to Našiče's locals, but over the last several years, the locals of this town in almost overlooked Slavonia have barely visited him. Why? Because there is no longer any high quality footwear that needs to be repaired.

"It's easier to buy [shoes] cheaper now, and people with lower wages can't even afford leather, expensive but high quality footwear," says Zidar.

He repairs women's, men's, children's shoes, those that need only a little stitching up, those that are completely worn down, those which just need a new heel, and also those that just need a bit of ''scrubbing up''. In additon to working with shoes, he also works with purses and belts, but everything is much less than it ever was before in this dying profession. Although the cost of his work has been sustainable and has barely changed for almost twenty years now, Zidar's number of customers has dropped significantly, and the materials he needs are more expensive, so this type of job is carrying with it less and less profit, not to mention sense.

"The problem is the raw materials that I can't get in Croatia, I've got to order it from Germany and Italy," says Zidar, and concludes that he can't make a decent living from that job. He's been known to have repaired as many as forty pairs of shoes in a single day, but today, he deals with that amount in one week, if he's lucky. Today, he grabs work here and there and whenever he can, and it happens that people bring their shoes to the repair and then just leave them there, not returning to pick them up again.

"I waste material and my time, and I can't get either of them back - it's disappointing," says the shoemaker from Slavonia.

He studied this craft in Zagreb and this profession did very well when such a trade was in high demand, once upon a time, but then things began to change rather drastically. Despite the change ''of the wind'', Zidar never regretted his choice. Now, after thirty years of work as an entrepreneur, and after having retired, he nurtures his skill and his craft. At the beginning back when he started his own business, he worked all day and all night and earned very good money, even training his son in the same skill.

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Monday, 20 May 2019

National Action to Keep Educated Youth in Croatia Held in Zagreb

As VLM/Poslovni Dnevnik writes on the 20th of May, 2019, two respected Croatian newspapers, Večernji list and Poslovni dnevnik, in cooperation with the University of Zagreb and the Faculty of Economics in Zagreb, are set to organise a round table entitled Future in Croatia and a ''time travelling'' exhibition through Večernji list's history.

After successful events already held in Osijek, Koprivnica, Rijeka, Zadar and Split, Zagreb will now play host to this national action launched by the Vecernji list group with the ultimate goal of retaining young educated people here in Croatia in the face of continuing and concerning negative demographic trends.

The event will be opened by Večernji list's Andrea Borošić, Prof. dr. sc. Lorena Škuflić and Prof. dr. sc. Damir Boras.

The Zagreb roundtable will discuss the vital importance of the retention of young and educated people here in the Republic of Croatia, and will be attended by numerous significant figures from across the spectrum of both politics and science in Croatia who have succeeded in standing out in their respective fields.

The first part of the program will conclude with the official opening of Večernji list's exhibition "We've been together for 60 years", which, through interesting and interactive content, will present the rich history of Croatia's media leader, along with an introductory speech from the curator.

At the very end of the program, an interactive forum will be held during which a student contest in writing projects will presented, and the present Večernji list group will reward the excellence of Croatian students.

Guests will be Podravka's dr. Sc. Jasmina Ranilović, PLIVA's Blagica Petrovac Šikić, UVI eSports d.o.o.'s Marko Komerički and the directors and founders of the company Hodajuće reklama Tino Vrbanović and Ante Starčević, who will present their encouraging and successful business ventures and projects which have been realised here in Croatia to all those gathered there.

Make sure to follow our dedicated business and lifestyle pages for much more. If it's just Zagreb and what's going on in the capital you're interested in, follow Total Zagreb or check out Zagreb in a Page.

 

Click here for the original article by VLM on Poslovni Dnevnik

Thursday, 2 May 2019

Chinese Interested in Croatian Shipyards, With One Condition...

The Chinese interest in Croatian projects is continually growing, or so it seems, and there is now room to dare when it comes to the potential Chinese rescue of Uljanik and 3 Maj at the eleventh hour.

As Marija Brnic/Poslovni Dnevnik writes on the 2nd of May, 2019, the Chinese CSIC representatives currently visiting Croatia to see the state of Croatia's ailing Uljanik (Pula) and 3 Maj (Rijeka) shipyards have expressed clear interested in new projects with Croatia's shipyards, but only if the Croatian state covers the cost of what has already failed, there have also been mentions of the diversification of production, but they don't want guarantees.

If there is an agreement between the Croatian Government and the Chinese CSIC about reviving Uljanik and 3 Maj, it will be done so with regard to a combination of the models which were discussed with the previous two strategic partners, Darko Končar and Tomislav Debeljak.

According to the explanation given by Minister of Economy Darko Horvat after the final talks and the three-day visit of CSIC's representatives, the Chinese are indeed interested in starting with new projects, while the state should cover the cost of old, failed projects, meaning it will need to take place on a clean slate. It's also more than likely that the sites of today's Croatian shipyards will see other projects developed there, that is to say, the diversification of activities will occur.

"If they don't see the possibility of continuity of shipbuilding at this time, we want other industries to take place here, and not just those exclusively involved in shipbuilding," Minister Horvat stated. Therefore, unlike Danko Končar's initial idea, Chinese diversification would not be a real-estate business, but would involve some sort of other, new production aside from shipbuilding. And the clean starting position the Chinese have indicated that they want, which is similar to what Tomislav Debeljak sought but is unlike his idea, almost certainly means declaring the bankruptcy of the two shipyards.

"We don't expect them to finance failed attempts to build ships that haven't been completed. The starting position means new projects,'' stated Horvat in reference to the wishes of the Chinese.

The continuation of construction in Pula and Rijeka in partnership with CSIC would in any case have a completely different financing philosophy. The Chinese say, after the talks, that they are completely astonished at the reliance of state guarantees for shipbuilding. To repeat what Finance Minister Zdravko Marić stated recently, it's much too early to talk about exactly what changes might occur in this context following their entry into Uljanik and 3 Maj. Over the next few weeks, CSIC's senior people will analyse the collected information and determine whether or not, and indeed in what form they're interested in entering into the structures of Croatia's enfeebled shipyards.

At this moment in time, Darko Horvat has merely announced that any form of Chinese entry would involve a new way of financing, with different sources, a different way of drafting project documentation, and would involve no state guarantees. After the final talks at Zagreb Airport, Horvat didn't provide any more specific information, nor the deadlines within which he expected to receive feedback from the Chinese, but he did appear to try to leave the impression that he was optimistic about the whole situation. The Chinese representatives themselves, however, didn't give any media statements.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese projects and investments in Croatia, doing business, working and investing in Croatia and much more.

 

Click here for the original article by Marija Brnic for Poslovni Dnevnik

Wednesday, 1 May 2019

Croatia's ''Include'' Most Successful Campaign on Funderbeam in Just 6 Days

Croatia's ''Include'' continues to go from strength to strength in the face of an unforgiving system and even less forgiving employees of the state bodies, proving that where there is a will, there's a way, even if you happen to be in Croatia.

We often hear all about how Croatian companies are failing due to either the lack of will or, more frequently, the truly insane amount of red tape and obstacles placed before anyone who wants to make something for themselves by the state and an old, outdates and senseless system of bureaucracy. 

As unoiled the cogs continue to turn in the Office(s) of the Uhljeb in state institutions of all kinds up and down the country, the unsackables continue to undermine and chip away at the determination of the doers and would-bes from behind their perspex windows.

Faced with an entire forest's worth of paperwork, more stamps than a border control officer and usually an unacceptably hostile attitude from the state employee (also known as the unsackable) dealing with them, many would-be entrepreneurs give up quickly and head elsewhere in search of their dreams. However, as big as Croatia's problem in this regard really is, not everything is so bleak.

As Poslovni Dnevnik writes on the 1st of May, 2019, just six days after the launch of another Funderbeam SEE group fundraising campaign, Ivan Mrvoš and his highly successful company ''Include'' raised a massive 1.22 million euros in equity, making Include's campaign the largest ever on Funderbeam globally.

The director of Funderbeam SEE, Damir Bićanić, commented that Mrvoš is pushing the records of the platform with Include yet again: "With their first campaign, they collected what was then the largest sum on the Funderbeam platform, and although sum has risen in the meantime, they collected more than any other campaign in just six days on the platform once again, globally.''

After Include's first successful campaign when they collected 465,000 euros on Funderbeam back in 2017, this time their first campaign goal of 1.2 million euros was met in a mere six days, and investors still have the opportunity to meet the target of two million euros.

"We're very pleased that after six days we've reached the minimum planned goal. I think that this, as well as 290 investors from 21 countries, are the indicators that we're doing a really good job. I believe that the amount of investment in the remaining days will grow steadily, although we're already the most successful Croatian crowdinvesting campaign on the platform ever,'' stated Include's founder Ivan Mrvoš.

Make sure to atay up to date by following our dedicated business and Made in Croatia pages for much more.

Wednesday, 1 May 2019

Burdened Croatia Airlines Continues to Endure Financial Losses

As Poslovni Dnevnik writes on the 30th of April, 2019, Croatia Airlines' operating losses during the first quarter of this year stand at 90.2 million kuna, with a net final loss for that period totalling a massive 98.6 million kuna, as Croatia Airlines announced on Tuesday.

Croatia Airlines explained that these significant losses are to be expected in view of its highly seasonal business performance. The air company added that the lower net result, in comparison with the previous year, was significantly influenced by the increase in amortisation costs, standing at 26.5 million kuna, caused by the change in international financial reporting standards, ie, with the application of IFRS 16, as well as major work on the engines made in the previous period.

Croatia Airlines made sure to add that the net effect on the result, resulting from the change in the method of recognising operating lease costs, amounted to 4 million kuna for the first quarter of 2019.

They point out, however, that its EBITDA performance indicator is more positive, standing at as much as 16.6 million kuna when compared to the same period last year.

In the first quarter of this year, 345,800 passengers were transported by Croatia Airlines, which was 2.4 percent less than during in the same period last year. This reduced demand has been put down to Easter having been later this year than it was in 2018, as well as the fact that it was higher at the same time last year because the demand for the European handball championships in Croatia was of course high. Given the favourable booking and demand, the fall in the number of passengers for Croatia Airlines during 2019's first three months will likely be compensated for during the remainder of the year.

This season, Croatia Airlines will continue to fly to all ten of the destinations which have been included in its flight network over the last three years - Lisbon, Milan, Prague, St.Petersburg, Stockholm, Oslo, Helsinki, Bucharest, Dublin and Mostar, as well as the seasonal Split - Copenhagen and Dubrovnik - Munich routes, which was first introduced last year. The news is that there will be an additional flight on Tuesdays on the normal Zagreb - Dublin route, so that passengers will have three flights available to them per week, on Tuesdays, Thursdays, and Sundays.

During this year's summer tourist season, the company will fly directly to 38 European destinations in 24 countries, with Zagreb being directly connected to 24 European destinations in 22 countries.

The air company's report also states that Croatia Airlines recorded an operating loss of 76.5 million kuna in 2018, with a net loss of 82.9 million kuna.

The company also recently announced that the consortium of Privredna banka Zagreb and DVB Banka has been selected as the financial advisor for the company's much needed recapitalisation, the consortium will also seek an equally needed strategic partner.

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Wednesday, 1 May 2019

Marić on Potential Chinese Investment: Too Early to Talk About Anything

As Poslovni Dnevnik writes on the 30th of April, 2019, Croatian Finance Minister Zdravko Marić said on Tuesday that he still needs to see if there really is specific interest from the Chinese shipbuilding company, whose representatives are visiting the ailing shipyards in Pula (Uljanik) and Rijeka (3 Maj), saying that it's too early to be able to say anything and that we "need to be completely realistic".

When aked by a journalist about the expectations of the Croatian Government, given that a delegation from the Chinese shipbuilding company China Shipbuilding Industry Corporation (CSIC) has visited the Uljanik and 3 Maj shipyards, Marić said that first of all, we should be realistic and after CISC's representatives get a proper look at the state of affairs with those shipyards and answers to the questions they are interested in, we will need to wait and see what their response to all of it will be.

At this point, it's still too early for that, he added, recalling yesterday's introductory meeting between the Croatian prime minister, his ministers and the aforementioned Chinese delegation at Banski Dvori in Zagreb, where everything was transparent and very clearly presented.

"A really high level team from the perspective of that company has arrived, but on the other hand, we need to be completely realistic. So, today they will spend all day in both Rijeka and Pula and then after that, of course, we can't expect it immediately but within a reasonable time frame, they'll determine what they saw, state what they think about it, and whether or not there is a certain level of interest,'' said Marić when answering journalists' questions after attending the annual European Investment Bank (EIB) press conference.

The CSIC delegation, headed by Hu Wenming, arrived at the enfeebled Uljanik on Tuesday morning, where talks with the members of Uljanik's management board and its supervisory board took place. Assistant Minister of Economy Zvonimir Novak has also been participating in these talks.

Several representatives of the aforementioned Chinese company arrived at Uljanik as early as Monday afternoon, where they viewed the plants and made an unofficial assessment of the capabilities of the Pula shipyard's production facilities, ie, they got better acquainted with its technical capabilities, the processes that take place there, the technology and its general capacities.

What will coe of the visit is anyone's guess so far, but despite suspicion from some, an injection of Chinese money could truly be Uljanik's very last hope.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese projects and investments in Croatia, working, doing business and investing in Croatia and much more.

Tuesday, 30 April 2019

Is Chinese Rescue of Croatia's Burdened Shipyards Inevitable?

If the China Shipbuilding Industry Corporation (CSIC) gives up, it will be difficult to find another candidate for the ailing Croatian shipyards Uljanik (Pula) and 3 Maj (Rijeka) which is in the shipbuilding industry and is also a strong and respected player. Could a Chinese investment be on the cards?

As Poslovni Dnevnik/Suzana Varosanec writes on the 29th of April, 2019, after yesterday's meeting with Prime Minister Andrey Plenkovic and his government ministers, Hu Wenming, Chairman of the Board of China's largest shipbuilding company China Shipbuilding Industry Corporation (CSIC) confirmed that they are indeed moving towards serious consideration regarding the enfeebled Uljanik and 3 Maj shipyards, which have undergone months of turmoil.

''The prime minister gave us a very serious and detailed presentation of the whole situation,'' Wenming said, adding that they saw that these two shipyards were a very important topic for the Croatian public. "Not only did we bring people from our company - they're in charge of planning, we've already called on lawyers and investment banks, so we will outline what their views on the matter are after visiting the shipyards," Wenming stated.

With that, a key ''tour'' begins, because if CSIC ends up actually not being interested in putting its money into the situation, it will be a hugely difficult task to find another candidate in shipbuilding, which is a big player and has an interest in joining the European shipbuilding industry. Otherwise, this would be the first case of a Chinese takeover of a foreign shipbuilding company, so it is speculated that extensive calculations are being made, and of course whether they even want to have their first European shipyard is being considered. The CSIC is looking at the situation deeply and from all possible angles.

This event all began with the recent announcement of the arrival of the CSIC in Croatia with the aim of visiting the troubled shipyards in Pula and Rijeka. As was then announced, the CSIC chairman contacted Chinese Prime Minister Li Keqiang during his stay in the Republic of Croatia where he attended the summit "16 + 1" and after talking with the Croatian PM about the dire state of Croatian shipbuilding.

As things currently stand, the general belief is that the Chinese decision won't take long to come - it will be a simple and express "no" or "yes", while the third option, more specifically an unconditional "yes", will likely need to be waited for a little longer.

What the outcome of the potential Chinese presence in the Croatian shipbuilding industry is anyone's guess, and while some remain very suspicious of Chinese motives in Croatia in general, despite them already working on the long-awaited Pelješac bridge down in southern Dalmatia, whatever comes of their potential entry has got to be better than the current situation, especially for Uljanik.

Make sure to follow our dedicated business page for more information on Chinese-Croatian business relations, Chinese investments and projects in Croatia, doing business and investing in Croatia and much more.

 

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

Sunday, 28 April 2019

Zagreb Startup's Mundus Project - Australians Want Croatian Product

This Croatian startup from Zagreb is a real mix of classical and virtual mobile games, but also has an educational mission.

As Ivan Tominac/Poslovni Dnevnik writes on the 28th of April, 2019, today, virtual games have replaced classic ones like ''Čovječe ne ljuti se'' (Ludo) or ''Monopoly'', but when classically associated with a digital game, you end up with a smart social game - Mundus.

A passionate love for technology is shared by three students from Zagreb. They all came together two years ago, and their project is Mundus. Social games are undervalued today, these guys agree, and although industry experts might say that their project isn't in demand in this day and age, the fact is that they entered the startup world directly from their school desks and are learning in parallel with the development of the project.

"We had to combine what was unknown knowledge to us back then. But given the fact that we love to learn and to develop technology, it wasn't difficult for us,'' stated of Mundus's members, Filip Hercig, who was the one to kick off the project initially.

The idea for Mundus was quite spontaneous back at the end of 2015 when Hercig, who is now in charge of business development, showcased the very first concept of this clever game during a competition for young technicians and young entrepreneurs. The name changed several times - at the earliest stage it was called ''Zabavan put Hrvatske'' (A fun journey of Croatia) and then ''Svijet na dlanu'' (The world in your palm), before taking on its current name.

"In the summer of 2017, when we came to the CROZ company to develop our ideas, we decided to shorten its name from Svijet na dlanu down to just Svijet, but as it didn't sound good, we decided to translate into Latin, and that's how Mundus began,'' said Filip Hercig.

It seems that Mundus isn't just your regular type of game, and the focus of the project today is on the application of this technology within the scope of formal education. It's actually an educational system, and the game is just one of the solutions the Mundus team is working on. A mobile device acts as a kind of gaming agent, where players choose the theme for the game and launch a quiz, and everything else is played on the game's board, like with classic games before the Internet age.

Things became much more serious for this Croatian startup back in September of last year, when they won the Good Game Liftoff startup competition.

"They chose us as the best startup and besides giving us their trust, they also gave us 100,000 kuna. We can't forget to mention the Good Game Global company that actually organised the competition and raised all the funds for that prize,'' added Hercig.

After winning the Good Game Liftoff, this Croatian startup managed to secure numerous collaborations, is currently working with 48 schools across the Republic of Croatia, and interest in the game has stretched far beyond the borders of the country, and even beyond the borders of the EU and the European continent.

"There's interest on the Australian and New Zealand market, specifically in the education sector. We're currently conducting tests that are a prerequisite for serious moves in these markets,'' said Hercig. Mundus is actually still a non-profit organisation, explained Hercig, and in 2019, it should turn into a real company.

"We're oriented towards cooperating with educational institutions, but of course we're not closing the door to purchase options for private users. We've got potential there tool, and in order to best explore the mass market, we plan to launch a Kickstarter campaign in September 2019,'' concluded Mundus' Filip Hercig.

Make sure to follow our dedicated business and Made in Croatia pages for much more.

 

Click here for the original article by Ivan Tominac for Poslovni Dnevnik

Sunday, 28 April 2019

More Than Third of Graduates with Diplomas in Croatia Unemployed

As Mirela Lilek/Novac writes on the 27th of April, 2019, Croatia's situation still isn't good: the country is continuing to ''produce'' graduates with the third lowest employment rate in the whole of the European Union, and as a result, taxpayers pay more and more money for them. According to new data from Brussels, based on a comparative survey of youth employment among Croats with diplomas earned in the last three years, a third of highly educated people aged between 20 to 34 in Croatia have no jobs. Only Italy and Greece are worse.

Of the 28 countries EU member states, Croatia ranked 26th with a 66 percent employability rate. Four positions above Croatia lies Romania, Bulgaria is six places above, and Slovakia is nine places above. Croatia's neighbour to the north, Slovenia, is eleven places above Croatia, Poland is thirteen places above (impressively right behind Ireland and Denmark), and the Czech Republic, with an 89.9 percent employability rate which has impressed the European Commission's experts - has risen to an enviable fourth place.

Malta is in first place in Europe as an employer of its graduates with diplomas, the employment rate of Maltese students stands at a very impressive 94.5 percent, even better than Germany, which boasts a rate of 90.9 percent, followed then by the Netherlands, the Czech Republic, and then Austria. The EU average is on the rise, back in 2014 it stood at 76 percent and in 2018 it stood at 80.2 percent. Unfortunately, the Croats have been close to the bottom for years, more specifically for fifteen years, as it has a below-average rate of employability in relation to the EU. Of course, rather than attempt to fix the problem directly, the Croats are doing what the Croats always do - continuing to debate and argue over who is (more) to blame for such embarrassing conditions.

Economists see the issue as being that the Croats aren't adapting easily to the market, and that Croatia also has an old education system. At Croatia's universities, they argue that the key issue isn't Croatia's higher education institutions, but an underdeveloped labour market, low personal income, and demotivating working conditions. Experts from the European Commission have given a relatively simple answer: Investing in education will benefit everyone in Europe.

Let's see how they explain their theories in some of the country's universities, starting with the largest "producers" of graduates in the entire country, the Faculty of Philosophy and Economics in Zagreb.

''We're aware of the importance of linking study programs and labour market needs. In this regard, the Faculty of Economics makes an effort to make it easier for students to access the labour market by establishing multilateral cooperation with companies and respectable institutions that enable students to perform high-quality professional practices,'' stated Sanja Sever Mališ, who deals with strategic partnerships and projects at the Faculty of Economics in Zagreb. The basic message from this particular Zagreb university is that "they connect students and employers so their best students can find work even during their studies." Therefore, there is no concern for them.

On the other hand, Vesna Vlahović-Štetić, Dean of the Faculty of Philosophy, admits that Croatia's humiliating placement at the bottom of the employability scale of graduates is still something to be very concerned about and therefore the causes of that need to be looked at.

''I assume that part of the problem lies in insufficient development and the ability of the economy and the public sector to absorb newly graduated students. On the other hand, the question is how many colleges and higher education institutions meet the needs of society with their respective programs. At the state level, in some professions there's hyper-production, and in others there is a lack of experts. Additionally, study programs should be regularly updated and developed to meet not only society's needs but also predict what competences professionals will need in the future,'' the dean says.

Data obtained through the HKO project of the Faculty of Philosophy shows that the employability of their students in the year after graduation is 75 percent. They believe this is the result of "the excellent professional and generic competences of their graduates".

"We're convinced at the Faculty of Philosophy that the study programs need to be further improved, so we have just started the study reform process and I'm sure the future employability of our students will be even better," says the university's dean.

The rector of the University of Rijeka, Snježana Prijić Samaržija, doesn't want to run away from the fact that Croatia's universities do hold a share of the responsibility for this issue but, again, she's convinced that Croatia's higher education institutions are't the key cause of the problem, but the underdeveloped labour market definitely is.

Rijeka University has eleven faculties and four departments. On their official page, they point out that they are a modern European university and a centre of excellence within the region and beyond, and that they are responsible for the social and economic development of the community. Samardžija claims that she doesn't want to relate the worrying data on the high rate of unemployed with higher education, but that "it should be borne in mind that higher education is a better job-finding guarantee, such as landing a permanent position,"

"Of course, it's possible to say that the employment rate would be higher if universities, by some automation, increased their quotas for the job-type deficit and reduced those profiles for which the employment bureaus take care of. In that sense, people often say Croatia's institutions and their enrollment policies aren't adapted to the labour market. However, the situation isn't quite that simple.

For example, the market seeks shipbuilding engineers, we have shipbuilding studies and a corresponding quota at the University of Rijeka, but there's a fall in interest for those studies. We can understand the students' fears about the situation with Croatia's shipyards, but the fact is that the need for this profession is still growing. Similarly, despite the lack of mathematics and physics teachers and the excellent studies we have, the interest doesn't match the employment opportunities,'' she explained.

The University of Rijeka decided to put seven studies ''into retirement'' this year, and isn't accepting students for them. Those are acting and media, dental hygiene, computer science in combination with professional studies of medical-lab diagnostics, mechanical engineering, shipbuilding, and electrical engineering.

On the other hand, there's a considerable level of interest in studies that don't guarantee quick and permanent employment at all, such as the arts, cultural studies, and psychology.

''Young people choose studies according to their personal interests, not just employment opportunities. They don't necessarily just want a permanent job, many of them are accustomed to gaining work experience in different institutions, at different places of work, and in different countries. More and more, they prefer to individually define the curriculum through courses and practical competences beyond their study program(s), which will make their expertise comparatively more special and desirable. In the midst of a sluggish and non-ethnological labour market, more and more students enjoy prolonged youthful relationships with their parents or rent apartments,'' says Snježana Prijić Samaržija.

"I don't want to run away from the responsibility of the university, we're constantly thinking about the jobs of the future, we're working on increasing the quota for the deficit professions and improving our students' competences to reduce the unemployment rate. However, time is needed to see the results of these measures because the higher education cycle lasts for at least five years. It should be understood that universities can't just simply increase quotas for occupations for which there's a labour market need because new employment is frozen,'' noted the Rector of the University of Rijeka.

As Croatia's paradoxical situation of having no work but plenty of jobseekers, yet plenty of work and no staff, it's hard to predict the outcome of education system reforms as the market and its needs can alter so rapidly. Will Croatian students simply continue to trickle away on the stream of a proverbial leaking tap out into Western Europe, leaving Croatia with the rather unenviable title of a country that educates its citizens for work abroad? It's likely such a scenario will continue at least for the foreseeable future. Whether or not Croatia will manage to make the necessary alterations to fix that aforementioned ''leaky tap'' in time remains to be seen.

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Click here for the original article by Mirela Lilek for Novac/Jutarnji

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