Monday, 1 June 2020

Who Can Obtain Croatian Government Support in June?

As Poslovni Dnevnik writes on the 31st of May, 2020, the Croatian Employment Service (CES/HZZ) has published the conditions for the receiving of Croatian Government support for job preservation for June on its website.

Here's a list of what's changing and an explanation of who can obtain Croatian Government support next month. The support for June will continue to amount to 4,000.00 kuna per full-time employee/worker.

The CES will receive applications in the period from June the 8th to June the 30th, 2020, and the support can be provided by employers from the following sectors:

Agriculture, forestry and fishing - only crop and livestock production, hunting and related service activities, as well as fishing.

Transport and storage - primarily passenger transport (rail, land, air and water).

Accommodation and food and beverage service activities.

Administrative and support service activities - only rental and leasing activities, as well as travel agencies, tour operators and other reservation services and related activities.

The arts, entertainment and recreation - only creative, artistic and entertaining activities, entertainment and recreational activities and the production and showing of films, sound recording and music publishing activities and their distribution.

Other service activities - the repair of computers and personal and household goods and other personal service activities.

Organisers of cultural, business and sports events, organisers of fairs and weddings, and related activities such as companies for equipment rental, audio and video recording, ticket sales, hall rental and other companies that generate most of their income from events and public gatherings.

Eligible employers: companies, crafts, family farms and self-employed natural persons.

What is the application criteria for Croatian Government support in June?

The criteria for Croatian Government support in June is as follows:

An employer wishing to use the support must prove that in May 2020 he had a decrease in income of at least 50 percent when compared to May 2019, based on the submission of submitted VAT forms for 05/2020 and 05/2019 to the Tax Administration.

If the employer has been operating for less than one year, it is necessary to prove a decrease in turnover by at least 50% percent in May 2020 compared to February 2020 based on the submitted VAT forms for 05/2020 and 02/2020 to the Tax Administration.

For employers who are eligible for support for fifty or more employees for May, the criteria has been supplemented. According to the amendments to this group of employers, the conditions for receiving support for May have been tightened up and can be found in more detail here.

For more on Croatian Government measures, follow our lifestyle page.

Thursday, 21 May 2020

Croatian Government Gives Borovo a Loan, Not a Permanent Solution

As Poslovni Dnevnik/Marija Brnic writes on the 21st of May, 2020, the well known Croatian Borovo factory proved to be the topic of a turning point in the relations between Prime Minister Andrej Plenković and Vukovar Mayor Ivan Penava and his departure from HDZ.

Both politicians, despite their differences, are right in their own respective ways when they talk about the role the state actually plays in Borovo's operations and business.

The company is being kept afloat only thanks to the extraordinary income from various combinations with assets, and loans guaranteed by the Croatian state.

However, Borovo must pay back the last loan in the amount of 6.1 million euros, which was rescheduled back at the end of 2019, in just half a year. This poses a tremendous problem because so far, Andrej Plenković's government has not dealt with a long-term solution, nor has it sought a buyer despite there having been many inquiries. Instead, it just provided the aforementioned state loan with the prescribed time limit attached.

As such, very quickly following its formation, the next Croatian Government will have to take a formal position as far as is possible in regard to the beloved brand Borovo.

Footwear production is not of strategic importance for the state, but due to the area in which it is located, Borovo with its 600 employees has a special status.

Prior to approving the penultimate long-term loan, the Croatian Government requested that the management board of Borovo draw up a restructuring programme within a three month period, but in the meantime, this has been unfortunately all but forgotten.

The fact that there is potential for production has been shown by the fact that the German Ricosta, which has been operating there for several years, recently invested as much as eight million kuna in expanding production.

For more, follow our dedicated business page.

Saturday, 16 May 2020

Croatian Government: Money to Help Workers in May Will be Paid

As Poslovni Dnevnik writes on the 16th of May, 2020, the Croatian Government's aid measures for the month of March were paid out by April the 15th, 2020. Now, given the fact that the 15th of May has passed, and the money has not yet been paid to everyone who is entitled to assistance of 4,000 kuna per worker, 24sata checked the information issued by the Croatian Government and whether or not it is true that there will be no money.

Rejecting such claims and obviously wishing to put an end to rumours of that sort, the Croatian Government has stated that the money is also secured for payments in May, and that it will be paid out in June.

''There is about 700 million kuna left to be paid out and it will be paid out week. Unlike the first round, checks are being done through the Pension Insurance Institute and through the Tax Administration, so it takes a bit longer.

We check the number of employees in each company that asked for help. Those who didn't receive the full amount for all of their workers also don't need to worry, although this is a small number of cases because it may happen that in one company, it might not be checked whether all of the workers are actually employed there.

The money is released in portions, and as soon as the rest of the situation is checked, the money arrives. We need to carry out these checks to avoid any irregularities. The money is there and will be provided for both April and May in the budget and business owners don't need to worry about it,'' stated the Ministry of Labour.

About 570,000 workers are expected to receive aid from the economic measures passed by the Croatian Government in April. About 1.6 billion kuna has already been paid out, with the aforementioned 700 million kuna still remaining to be paid.

The same source told 24sata that money has also been secured for liquidity loans, and that applications are being processed. The calling of the elections and the dissolving of the Croatian Parliament will not affect the flow of the Croatian Government's aid, the source added.

To briefly recall, these government measures have been planned until early June, and after that they are due to stop, but the possibility is open for some to continue.

Make sure to follow our politics page for more on the Croatian Government.

Friday, 1 May 2020

Croatian Government Approves National Reform Programme: 3 Main Goals

As Poslovni Dnevnik writes on the 30th of April, 2020, on Thursday, the Croatian Government approved the National Reform Programme for 2020 and the convergence plan for both 2020 and 2021, which, in terms of economic policy, contains three key objectives - sustainable economic growth and development, linking education to the needs of the labour market and the sustainability of public finances.

To achieve these goals, 25 economic policy measures have been identified, grouped into 10 reform priorities.

These priorities are aimed at improving the business environment; future-oriented investment policy; improving the management of state property; improving public administration; improving the efficiency of the justice system; tweaking education and training in line with labour market needs; strengthening the framework for managing public finances and implementing fiscal consolidation; stimulating demographic revitalisation; improving the welfare system and ensuring the financial stability, sustainability and quality of the Croatian healthcare system.

The implementation of the measures is foreseen through 75 activities.

The programme also defines ten measures to achieve national targets under the Europe 2020 strategy in five different areas: employment, research and development, climate change and energy sustainability, education and the reduction of poverty and social exclusion.

Prime Minister Andrej Plenkovic said at the cabinet session that the programme was a reflection of the continuity of the Croatian Government's policy, but also a reflection of functioning in these new circumstances caused by the coronavirus pandemic.

Croatia's GDP is expected to fall by 9.4 percent.

The Croatian Government's convergence programme projects a GDP decline of 9.4 percent for this year and a recovery of 6.1 percent for next year. All components of Croatia's GDP, except government spending, will be slashed this year, said Finance Minister Zdravko Maric.

The general Croatian Government's budget is expected to record a deficit of 6.8 percent of GDP, or 24.8 billion kuna, in 2020, and in 2021, a general government budget deficit is projected to fall to 2.4 percent of GDP.

Based on the fiscal balance of the general government budget, public debt to GDP is expected to grow by 13.5 percentage points in 2020 when compared to 2019 and will amount to 86.7 percent of GDP, largely due to increased demand for borrowing due to the negative fiscal impact caused by the ongoing coronavirus pandemic.

In 2021, with the general government budget deficit narrowing to 2.4 percent of GDP and strong economic growth, public debt is expected to reach 83.2 percent of GDP, down by 3.5 percentage points when compared to 2020.

Consumer prices are projected to fall slightly in 2020, by 0.3 percent year-on-year.

The Croatian Government estimates that the introduction of the Croatian Employment Service's support for job retention will significantly reduce the impact of the negative shock on employment, with a 3.3 percent drop in employment expected throughout 2020, with an average unemployment rate of 9.5 percent in 2020, and of about 9 percent in 2021.

With respect to fiscal developments, direct budgetary aids are estimated at 14.9 billion kuna, which include the deferral of direct taxes and contributions, the write-off of direct taxes and contributions, the deferral of the 2019 annual income tax liability, aid when it comes to the maintaining of job positions and the procurement of medical and protective equipment to combat COVID-19, a price tag of 14.9 billion kuna has been estimated.

In addition, over 15 billion kuna was secured for favourable lending to entrepreneurs and businesses through HBOR and HAMAG BICRO programmes, and there is currently a 17 billion kuna moratorium on loans.

Croatia is much more prepared than it was back in 2008.

Minister Maric emphasised the fact that the main context of the adoption of the national reform programme for 2020 and the convergence plan for 2020 and 2021 are the devastating economic effects of the global coronavirus pandemic, but stressed that Croatia has dealt with the current crisis much more readily than it did when the global economic crisis of 2008 hit the country.

He recalled the fact that Croatia has had a surplus in its balance of payments account for several years, that its foreign debt was in a downward trajectory, and that it had achieved a budget surplus for three consecutive years, as well as a reduction in the share of public debt in GDP.

In addition, Croatia has introduced rapid and strong support to the private economic sector and achieved an enviable epidemiological picture, Maric added.

Make sure to follow our dedicated section for more on coronavirus in Croatia. For more on the domestic political scene, follow our politics page.

Sunday, 26 April 2020

Croatia Airlines Shares Schedule for Resumption of Domestic Flights

April 26, 2020 - Croatia's national carrier, Croatia Airlines, has launched the schedule for domestic flights from Zagreb to Dubrovnik and Split, starting May 11. Tickets are on sale on the airline's official website.

Dalmacija Danas reports that the Government of the Republic of Croatia decided to gradually loosen the measures in force because of the COVID-19 pandemic, and announced that the introduction of domestic air traffic would be possible from May 11. Thus, Croatia Airlines announced on Saturday that two daily flights from Zagreb to Split and Dubrovnik would be in operation from then.

Croatia Airlines will fly two daily flights between Zagreb and Dubrovnik, one each in the morning and evening.

The morning flight departs from Zagreb at 08:00, and the landing in Dubrovnik is planned at 09:05. The aircraft will depart from Dubrovnik at 09:50, and arrival in Zagreb is scheduled for 10:55.

The evening flight departs from Zagreb at 20:20 and arrives at Dubrovnik Airport at 21:25. Departure from Dubrovnik is at 22:10, and arrival in Zagreb at 23:15. Both daily flights will operate on the 76-seat DashQ400 aircraft.

One way tickets start at 430 kuna and return tickets from 780 kuna. Croatia Airlines is currently offering four daily flights between Zagreb and Dubrovnik from May 18.

From May 11, the service between Zagreb and Split will also operate. The aircraft will depart from Zagreb at 08:10, arriving at Split Airport at 09:00. Departure from Split is planned at 09:45, and arrival at Zagreb Airport at 10:35.

The evening flight departs from Zagreb at 20:20, while the landing in Split is scheduled for 21:10. The return to Zagreb is planned for 21:50, and arrival in the Croatian capital at 22:40.

The Zagreb - Zadar - Pula line is on sale from May 18, and the Zagreb - Brač line from May 19.

The national carrier saw bookings declined 95% in April compared to last year, as it canceled 3,200 flights in March and April. In addition to the services from Zagreb to Split and Dubrovnik on May 11, the airline will maintain its single daily service from Zagreb to Frankfurt.

To read more about travel in Croatia, follow TCN's dedicated page.

Friday, 24 April 2020

Croatian Athletes, Teams Return to Training Under Special Conditions

April 24, 2020 - Croatian athletes of the first two individual categories and the senior teams competing in the highest rank can start training again from Monday, April 27.

24 Sata writes that Croatian athletes and clubs have finally received the go-ahead from the Croatian Government that their sporting activities can begin again.

Croatian athletes of the first two individual categories and senior teams competing in the highest rank can start training again from April 27, concluded Prime Minister Andrej Plenkovic after the session of the Croatian Government on Thursday.

Thus, on Monday, the top football teams in the country could start preparations for the season to continue. As the first calendar option failed, two more calendar options remain. One is to start the championship on May 30, while the other is to continue the championship on June 13.

Croatian champion Dinamo welcomed the news, though little is known about the club's plan for training. It is only certain that there will be some activities on Monday (April 27) at Maksimir. The club is still awaiting a letter of all measures (or its publication on the official site), so the players and new staff will act in accordance with these provisions.

The situation will involve discussions with doctors and epidemiologists, as Dinamo does not know whether they will train in smaller or larger groups and maybe work individually. 

New coach Igor Jovicevic will start his adventure on the Dinamo bench in odd conditions, and the schedule and manner of training will depend on the instructions of the Government, doctors, and epidemiologists. In any case, everything will be much clearer by Monday.

On the other hand, Hajduk has been in good shape for a week already. The first-team players have been individually training at Poljud, each in their own term, with tasks assigned to them by the fitness trainers. As the situation with the virus stabilized, Hajduk was granted permission to train with multiple players in one group. So, as of Friday, Hajduk will train in a group of four players with coach Igor Tudor.

The four-member groups will alternate throughout the day at Poljud, but still with all the measures prescribed by the Civil Protection Headquarters. Players will always train in the same groups. The whole team could train together only once the coronavirus is fully under control.

Rijeka has been training at Rujevica for several days. The training is organized in several groups, followed from the stands by trainer Simon Rozman who returned from Slovenia several days ago and has to quarantine. The club, therefore, provided him and his assistant with accommodation in President Mišković's office.

This news has undoubtedly pleased Croatian athletes, including the Sinkovic brothers and the best Croatian gymnast Tin Srbic. Martin and Valent had been rowing on the ergometer on their balconies for more than five weeks, awaiting permission to train. While the citizens of Zagreb were walking around Jarun in peace, the Civil Protection Headquarters did not allow the Sinkovic brothers to train. 

"We'll switch to Jarun now. I can't wait to get in the boat. We haven't rowed for five weeks, so we'll have to get a feel for the pairs," said Martin Sinkovic, and Valent added:

"It feels like I haven't rowed for a year. I’m waiting for Monday to get into a normal training rhythm. A few days ago, we received the news that we would have the European Championship, and now we will be able to prepare."

Gymnast Tin Srbic has been improvising and maintaining form for weeks, but from Monday, he can finally go back to his favorite place - the gym! 

"I am glad that the decision was made and that we will be able to train normally. To me, the gym is everything, so I hope there will be new competitions at the end of the year to represent your country," Srbic told RTL.

To read more about sport in Croatia, follow TCN's dedicated page.

 

Thursday, 23 April 2020

COVID-19: Croatian Government Presents Plan to Loosen Measures

April 23, 2020 - The Croatian Government presented a three-phase plan to loosen coronavirus measures in Croatia. 

Index.hr reports that at 13:15 on Thursday, the Croatian Government session began.

In his opening statement, Prime Minister Andrej Plenkovic mentioned this morning's earthquake in Zagreb. He says the government is working on a law to help anyone who has suffered from the earthquake. He also recalled yesterday's commemoration in Jasenovac.

"We have once again condemned these crimes,” he said.

He then spoke about the coronavirus. He recalled that it had been almost two months since it was first found in Croatia.

"Today it has spread to the whole world, half the population is living in reduced movement. The number of infected people has jumped from 80,000 to over two and a half million," Plenkovic said.

"2800 people died in the US yesterday, more than in the World Trade Center attack. By the end of next week, the death toll of Americans could exceed the death toll in the Vietnam War," Plenkovic said.

"Europe is the worst hit," he added, saying that 60 percent of all deaths are in Europe.

"In our country, the epidemiological situation is under control. Despite minor fluctuations, the trend has been declining for the past two weeks," he said. He says at no point was the number of new cases over 100.

"The coefficient that measures how much one person infects others has fallen below one. Today, it is below 0.8 and was 2.5. Therefore, we can gradually launch a range of social and economic activities. But that does not mean that we can immediately return to our old ways,” he said.

"This virus requires the vigilance of all of us," he added.

Plenkovic presented loosening measures in three phases:

"What we are going to present today must come with strict measures.

Phase 1 begins on Monday, April 27: [The ability to] work will be provided to all entities engaged in trade activities except those operating within shopping centers.

We will make work possible for anyone engaging in service activities, except for those who have close contact with people.

Public city and suburban lines will be introduced. Libraries and museums will open. The training of athletes in the highest rank of competitions is allowed. Only priority groups of students will have the ability to take the state graduation exam.

Phase 2, May 4: The health system will be fully operational except for exceptions decided by epidemiologists. The private healthcare system will operate.

Work will be provided to the businesses of related industries where close contact is established. These are beauticians, hairdressers, pedicurists...

Phase 3, May 11: Meetings of up to ten people will be allowed, shopping centers will be open, preschools will be open, classes from grades 1-4 will be provided and children with disabilities who have a teaching assistant will be able to undergo their education.

Laboratory training will be allowed. Inter-county lines will be introduced. Catering facilities will open exclusively on terraces. Catering facilities in accommodation units will be provided for accommodation users," he said.

"The state graduation will be June 8-29," Plenkovic added.

IN DETAIL:

PHASE 1 - April 27, 2020

- Ability to work for all business entities engaged in trade, except those operating within shopping centers

- Continuation of work to all business entities engaged in service activities, except those in which close contact with customers is observed, respecting physical distance measures (for example, carpenter, tailor, locksmith, travel agencies, photo studio)

- Introduction of public city and suburban transport lines and express lines for islands not connected by ferry

- Libraries, museums, galleries, antiques and bookstores to open

- Facilitating training of athletes I and II. categories in individual sports and senior sports teams competing in the highest level of competition

- Facilitating the state professional exam for priority groups of students

PHASE 2 - May 4, 2020

- Enabling the full operation of the public health system, with the exception of exceptions in line with the Ministry of Health measures

- Enabling the full operation of the private health system, with due regard for specific epidemiological measures

- Ability to work for all business entities engaged in service activities in which close contact with clients is observed, with respect to specific epidemiological measures (for example, hairdressers, beauticians, barbers, pedicurists)

PHASE 3 - May 11, 2020

- Gatherings of up to 10 people in one place allowed, while respecting physical distance measures

- Facilitating the operation of shopping malls while respecting specific epidemiological measures

- Facilitating the work of preschools and elementary classes from grades 1-4 and special classes and working with children with disabilities who have a teaching assistant

- Laboratory, artistic and clinical exercises and practical work allowed in small groups in higher education

- Introduction of inter-county and domestic air services

- Allowing catering facilities to work exclusively in outdoor areas and terraces

- Allowing catering facilities to work in accommodation facilities only for users of accommodation services

- Operation of national and nature parks allowed

- Expanding opportunities for issuing e-passes

Mass from May 2

"We have decided to allow religious gatherings from May 2," he said.

"Religious gatherings will be allowed from May 2, for which precise recommendations and instructions from epidemiologists will be made," Plenkovic said.

"In the end, I want to say that we have shown that our priority is protecting life and health. It is also our job to make the economy work. We've made it possible to retain jobs. From next week on, many will reactivate their businesses," he said.

About opening borders

"I believe we will learn to live with this virus. We will find solutions with our partners in Europe. So we'll be in a position to move towards opening the borders as well. We'll find solutions in the coming weeks that will be mutually agreed upon and which will be safe," he said.

About tourism

Plenkovic also spoke about the tourist season:

"This morning and throughout this week, I interviewed colleagues whose citizens love Croatia. All colleagues would like us to find a model in the coming weeks on how to allow borders to open and allow people to come," Plenkovic said. He talked to Kurz, Janša, and Orban. He added that Angela Merkel also supports this.

"It's a government obligation," he said.

"If two countries are in a similar epidemiological situation, if they're fighting equally well, we will find a solution so you can travel. So that Slovenians can go to Croatia and Croats can go to Slovenia. Others have the same desires. We will look for a solution and then the season can be worked out. Clearly, it can't be a record season like the last three," Plenkovic said.

About e-passes

"The reasons why they can be issued will be expanded. They will remain in function, but the scope will be increased with the epidemiological picture. As far as trade is concerned, HZJZ will make recommendations."

He explained that if someone from Krapina goes to the sea, they will get a pass. So, he said, they will remain, but they will be easier to issue.

"We're not running. We are loosening the measures as much as we can with the utmost caution," he said.

The measures were unanimously adopted.

More soon...

Follow our live updates on the corona crisis in Croatia 

Sunday, 12 April 2020

Finance Minister Maric Explains Government Minimum Wage Measure

As Novac writes on the 11th of April, 2020, Croatian Finance Minister Zdravko Maric commented on the government's ''minimum wage'' measures for RTL on Friday, stating that the amount being offered by the government was not the workers' full pay but merely support for wages. Minister Maric went on to make the measure more clear.

"This [measure] is payroll support. We [the government] cover that part, the rest is up to the employer to make up for if the worker otherwise has a higher salary. The salary should be as is stated in their employment contract. But if someone has run into problems, then he or she needs to solve them with the employee. That's why we have other measures, such as credit measures of liquidity,'' explained Minister Maric.

When asked about workers who are otherwise paid less than 4,000 kuna and the state pays the affected companies an amount of 4,000 kuna per worker, Minister Maric said that it would be fair for the employer to pay the worker the difference up to 4,000 kuna.

Finance Minister Maric didn't express any particular desire to talk about possible salary cuts for public sector employees amid the ongoing coronavirus pandemic, stating only that those matters needed to be discussed.

"This is a topic that we have on the table. There was a meeting yesterday. I hope that the talks will continue. We'll also invite the unions with which we've signed collective bargaining agreements. In this part, solidarity and community are important in defeating the crisis," he said.

He added that at present, the state has paid over one billion and one hundred million kuna out to employers to make up the wage differences of their employees as part of these "minimum wage" anti-epidemic economic measures. That is for more than 370,000 employees, and the total measure, he assumes, will be used by 600,000.

Make sure to follow our dedicated section for rolling information and updates on coronavirus in Croatia. For more on politics in Croatia, follow this page.

Thursday, 9 April 2020

Have Government Coronavirus Measures Forgotten About Marinas?

Nautical tourism in Croatia is one of the areas of the country's strongest economic branch which was blossoming before the coronavirus crisis struck. Croatian marinas are a money pot at the best of times, and tourism based precisely on the soft waves of the sparkling Adriatic sea could be a gold mine. That being said, has the Croatian Government forgotten about marinas in their package of anti-epidemic economic measures?

As Marija Crnjak/Poslovni Dnevnik writes on the 9th of April, 2020, after addressing the public a few days ago warning that the Croatian Government had forgotten them in their package of measures to help the economy and the tourism sector due to the effects of the pandemic, Croatian marinas also sent an official letter to the competent ministries and the government itself in order to attempt to halt the collapse of the sector in time for the upcoming season.

Despite the fact that many are claiming that 2020's tourist season is a no go, given the unprecedented circumstances we find ourselves in, Croatian marinas still believe this summer could attract tourists who have their hearts set on nautical tourism in Croatia.

''It's very urgent for us that they recognise the marina system that employs around 2500 people, and the specifics of the sector that mean that we're currently not eligible for the state's minimum wage support. As a rule, marinas are in operation since April the 1st, so we have no evidence that revenue has fallen previously because we were closed,'' explained Sean Lisjak, president of the Association of Marinas at the Croatian Chamber of Commerce (HGK)

During this period, Croatian marinas also started to pay for services from charter companies, and since everything in Croatian tourism has now come to a halt, they aren't in a position to pay for those services, nor are they entitled to state support.

The pressure is increasing, and some marinas have unfortunately begun to send foreclosures to charter companies, Lisjak states. Another problem they're facing is the concession for the use of the maritime domain, which they paid for this year back in February, before the onset of the coronavirus crisis.

''We're seeking for the state to equalise us with the rest of the tourism sector through a measure of release from having to make the concession payment, and the release of the concession payment for 2021. In addition, in the long run, we're seeking equalisation through tax treatment and the lowering of value-added tax rate on marina services to thirteen percent,'' concluded Lisjak on behalf of the Marina Association at the Croatian Chamber of Commerce.

For more on coronavirus in Croatia, follow our dedicated section.

Wednesday, 8 April 2020

Coronavirus: Half a Million People Await Government-Paid Salaries

The coronavirus pandemic is continuing to wreak havoc with the global economy, and the Croatian economy is no exception despite the excellent results the country is having in fighting the virus.

As Poslovni Dnevnik writes on the 7th of April, 2020, as many as a third of persons who are residents of Croatia and who pay pension insurance, will get a part of their salary, and in some cases the entire monthly amount from the state budget this month.

As of the 5th of April at noon, 86,746 Croatian employers had requested job preservation support for about 506,000 of their workers, according to a report from Novi list. If workers who are seeking government-paid salaries both the state or local budgets, as well as those working for public or communal companies are separated from the total, it seems that private sector employers have sought support for almost half of their workers. It will be 3,250 kuna for March, 4,000 kuna net for April, with the state paying 1,460 kuna in contributions.

This means that for more than half of the amount of the average salary in Croatia in April, which amounts to about six and a half thousand kuna and which previously cost employers more than ten thousand kuna, will be covered by the state.

Considering that the payment of taxes and contributions has been delayed, and the fact that such fees will be written off entirely for some employers, this means that employers currently have to allocate just over 2,500 kuna to pay the average wage to their workers. The state will give a total of around 600 million kuna to Croatian employers. In addition, the Ministry of Finance had received 77 thousand requests for the deferral of contributions and income tax as of the 5th of April, 2020.

These measures have apparently, at least for the time being, prevented the massive layoff of workers due to the ongoing coronavirus crisis. As of the 5th of April, according to the Croatian Employment Service (CES), there were 147,980 unemployed people, which is 10,003 more than there were back at the end of February.

The number of unemployed persons increased by 7.2 percent in just over a month, while in the past few years, the number of unemployed would traditionally start to decline due to employment in the pre-season, in preparation for summer. However, if the state had not passed the measures it has, given the freezing of economic activity, that figure would probably be in the hundreds of thousands. The real situation with people who lost their jobs due to the coronavirus epidemic will be better seen in June if the government decides against extending the duration of the aforementioned economic measures.

Make sure to follow our dedicated section for all you need to know about coronavirus in Croatia.

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