March the 31st, 2023 - This week in Croatian politics, we've had discussions around the hypothetical arrest of Vladimir Putin, donations of helicopters and a huge sum of cash to Ukraine, gas price worries and Ivica Todoric is back where he loves to be the most - in the spotlight.

Former Agrokor boss Ivica Todoric is thrilled that Index readers stated they'd sooner vote for him as prime minister than current PM Andrej Plenkovic

If you're a follower of politics (and scandals) in Croatia, you'll more than likely recall one of the most enormous events in independent Croatian history - the Agrokor saga. I wrote a lot about it back at the time, and you can get a feel of it here, in an article entitled Requiem for a Company. Ivica Todoric, the former boss of this huge company, fell into troubled waters and there was a huge amount of drama surrounding the entire story. It eventually ended with him being extradited back to Croatia from London after handing himself in at Charring Cross police station following his stay in the United Kingdom in an attempt to avoid Croatian courts. 

Todoric is currently a free man, and despite all of the dramatics of that situation from back in 2017, he is still more popular than Andrej Plenkovic in the opinion of some Index readers. Index recently carried out a poll asking their readers who they'd sooner vote for as prime minister, the current one (Plenkovic), or the somewhat Godfather-like character, Ivica Todoric. They chose the latter, and he's thrilled about it.

Todoric is known for his humour (no, really), and the inspiration for that poll was provided by Todoric himself, who published a similar one on his own Facebook profile and, examining the pulse of the people, asked whether the citizens of Croatia wanted him or Andrej Plenkovic as prime minister. In his Facebook poll, Todoric received 92% of the votes in his favour, and Index readers who share a similar sense of humour also gave Todoric a shining 72% advantage in its own poll.

Would Croatia arrest Vladimir Putin if he entered the country? Plenkovic says yes

Plenkovic recently made a statement during his stay in the Belgian capital of Brussels after a two-day spring meeting at the summit of European leaders. The main topics of the summit were further support for Ukraine, especially in sufficient quantities of ammunition, the competitiveness of the European economy, especially in relation to the United States and China, and the internal market and issues of energy and migration.

"Once again, we showed our commitment and solidarity to Ukraine in all aspects. We also discussed the topics of economic management, competitiveness and the energy situation, where everything that has been happening for the past three years in the context of the coronavirus crisis, the energy crisis, the food crisis and inflationary pressures essentially requires greater coordination of the economic policies of EU member states," Plenkovic said.

In response to the question of whether or not the Croatian authorities would arrest Russian Federation President Vladimir Putin if he arrived here in Croatia, Plenkovic said an emphatic and blunt - yes.

''The International Criminal Court (ICC) has issued an arrest warrant for Vladimir Putin, so if he were to visit Croatia, he would be arrested in accordance with the procedure stipulated by that law,'' Plenkovic said.

Croatia otherwise acceded to the statute of the International Criminal Court and a law was passed on cooperation with that court. "That law provides for all the procedures in case there is a warrant issued for the arrest of a person, and as far as I know, immunity does not apply here. Accordingly, the procedure would go exactly as provided for by that law, and of course the Croatian police and competent authorities would react to Putin arriving in Croatia," said Plenkovic in response to a journalist's question.

President Zoran Milanovic makes a strange statement about the Russia-Ukraine war once again, this time about donated Croatian helicopters

Croatia, much like the rest of the EU and indeed most of the world, has stood firmly by Ukraine's side ever since the beginning of the shock Russian invasion back in February 2022. Having been through a horrific war just one generation ago and with those painful memories still very fresh, Croatia is able to understand the Ukrainian struggle against Russian aggression like few other countries are, given that the now shared experience both countries have is so recent. Milanovic, however, has continuously been vocal about his rather odd stances for over a year now. He has invited endless criticism and even questions from other politicians from across Europe about just what Croatia's official stance is.

Of course, Milanovic's strange statements and stances are not remotely in line with the official Croatian position - firmly by Ukraine's side and staunchly against Russia's actions. Plenkovic, with whom Milanovic is constantly butting heads, has spoken about this numerous times, attempting to distance not only himself personally but Croatian politics as a whole from the president's baffling and politically damaging remarks. 

The latest such remark from Milanovic regards helicopters Croatia donated to Ukraine, and which should be delivered there very soon. Milanovic was quick to tell journalists that these helicopters "needed getting rid of anyway'' because Croatia no longer has the conditions for their maintenance.

To keep you in the loop, Croatia is donating fourteen transport helicopters to Ukraine, of which twelve are MI 8 MTV-1 models and two are MI 8 T models. Defense Minister Mario Banozic said on Wednesday in the Ukrainian city of Odessa that he expects these helicopters to arrive in Ukraine soon.

Milanovic dressed his comments up in a fashion which makes it seem as if Croatia is simply doling out its useless cast-offs to the Ukrainian people, which has angered multiple people in Croatian politics and beyond. "Those helicopters aren't something promising anyway, we wouldn't have the conditions or the ability to maintain them anymore, because we have a lot of those helicopters and we need to get rid of them,'' he claimed.

Croatia also recently agreed to provide another 500,000 euros to Ukraine.

As the Croatian Government alters its decision on price controls, milk prices shoot up

On Thursday, the Croatian government changed the decision on direct price control measures for specific food products in such a way that the highest retail price of UHT milk with 2.8 percent milk fat per liter has now been raised by 5 cents and the price it cannot exceed amounts to 1.03 euros.

You can read more detail about that by clicking here.

Economy Minister Davor Filipovic has claimed that energy (gas) prices won't go up as of tomorrow, when the current measures are due to expire

A cabinet meeting was held recently in the National and University Library, as Index reports. On the agenda of the session was the decision to approve the granting of a shareholder loan to Hrvatska elektroprivreda (HEP) and the initiation of the recapitalisation procedure. Prime Minister Andrej Plenkovic announced that HEP will be given a shareholder loan, first of 400 million euros, and then another 500 million euros. Minister Davor Filipovic also made a statement after the session, where he discussed the topic on everyone's minds - price increases following the expiration of government measures on the 1st of April, 2023.

"The price of gas will not change from April the 1st. Everything will be fine, as it has been until now. People don't have to worry about it. We're protecting the people and the economy, and there will be no problems in that regard, people don't need to worry about any of that," he added.

"The government has now made several important decisions. One of them is the granting of a shareholder loan to HEP and recapitalisation. This is being done so that HEP will continue to bear the burden of this crisis and so that people can continue to have a favourable price for electricity. We've agreed that HEP will extend the repayment of the loan in order to be able to continuously purchase the energy products that are necessary for the functioning of the domestic economy," said Filipovic.

"We're moving in the direction of recapitalisation, and as for HEP's financial results, you should ask the HEP Management. We haven't yet received any financial results from them, the obligation for us to be given those results is just after March, so everything is still within the legal deadline. HEP's management is responsible for that and it's up to them," he added.

For more on Croatian politics, make sure to keep up with our dedicated section. You can also follow our Week in Croatian Politics articles which provide an overview and are published every Friday.

March the 24th, 2023 - This week in Croatian politics, we've had ongoing issues with post-earthquake reconstruction, more arguing between Plenkovic and Milanovic, and former President Ivo Josipovic thinks its time for the Constitutional Court to get involved.

Zagreb mayor Tomislav Tomasevic has openly discussed his relationship with Andrej Plenkovic, saying that "of course there is some tension..."

Tomislav Tomasevic recently appeared as a guest on Dnevnik N1, where he discussed, among other things such as the post-earthquake reconstruction process, his relationship with the prime minister. In his words, there are tensions, but the pair still need to work together.

"We have to work together, and we need to cooperate because of EU funds, I guess it is in everyone's interest that this money is spent. I think that so far, we've managed to cooperate in a good way, and yes, of course there are conflicts, one concrete example is the increase in water prices. Several dozen cities raised their water prices without any hype about it,'' Tomasevic said.

When it comes to Zagreb, he says they don't have a single affair to discuss.

"A new tram line is being built for the first time after 20 years, new buses and trams are here, some order has been introduced on the street terraces... Before that, not a single new tram had been bought for 17 years, we have trams running in this city that are even older than me,'' remarked the Zagreb mayor.

The European Commission is set to get a much more detailed insight into what's going on with Croatia's post-earthquake reconstruction process

I don't know about you, but I personally didn't think anyone would still be saying the words ''post-earthquake reconstruction process'' three entire years after the Zagreb earthquake of March 2020, and well over two years since the Petrinja earthquake struck in December of that same year. Alas, things move slowly in the world of Croatian politics, and we are still uttering those words. The European Commission is going to be getting a detailed look into precisely what's going on. 

Today, the European Commission will be informed of the review of the state of Croatian post-earthquake reconstruction, which is being financed from the EU Solidarity Fund, as well as Croatia's view of costs across all of its ministries.

This meeting was announced by the Deputy Prime Minister and Minister of Construction, Branko Bacic, who, on the occasion of the third anniversary of the Zagreb earthquake (March the 22nd), assessed that the aforementioned segment of Croatian post-earthquake reconstruction is being implemented in full as planned, so this gives some hope that the money will be spent within the prescribed deadline.

You can read more by clicking here.

Has the much talked about Jarun bridge project been kicked into the long grass?

A large project which would have connected the western part of the capital city to Novi Zagreb appears to have stalled completely, with Tomasevic saying that he'd much rather strengthen the city's already existing bridges in case of another earthquake than build another. That all sounds alright, but there are people stuck in limbo because of this decision. People with properties situated along the route that would lead to the would-be bridge can't do anything to repair or reconstruct their houses which were damaged during 2020's earthquake. This issue affects 150 houses situated along this route which are awaiting demolition, but owing to only some things having been formally agreed upon and legalised by the state and other items having been simply disregarded, the situation sits stagnant. Experts say that the Jarun bridge is a classic example of the violation of various laws that ultimately put the City of Zagreb into a deeply unfavourable situation.

You can read more on that by clicking here.

Plenkovic claims that foreign leaders are set to come to Zagreb but none of them want to meet with President Zoran Milanovic

The trolling, mud slinging and arguments between Plenkovic and Milanovic have become somewhat iconic at this point. The pair were even depicted as part of the Rijeka carnival process this year. Endlessly taking swipes at each other, these two powerful figures in the world of Croatian politics can never resist a chance to throw each other under the bus.

In this case, however, Plenkovic has a point in the eyes of most when he says that Milanovic's often rather strange comments about the Russia-Ukraine war are simply not in line with Croatia's official position and that he is sending a very wrong message out to the rest of Europe and indeed the world with many of the statements he makes.

His politically damaging statements in regard to Russia and Ukraine have seen political figures from abroad question Croatia's official position, ask how he is ''being allowed to say such things'', and even had Russian media claiming Milanovic supports their country's disgraceful actions. A poor image for Croatia indeed, especially after the absolutely praiseworthy approach it has towards Ukrainian refugees and Ukraine's unfortunately all too familiar struggles.

Plenkovic went more deeply into the above during a recent official visit to Istria, where after initially emphasising everything the government has done so far, he once again referred to the strained relationship his government (HDZ) has with Zoran Milanovic (SDP), and why they refuse to cooperate with him. He enumerated the cases of him blocking the government's proposals for the appointment of various officials and representatives and said:

"This is just to make the general public aware of where the problem is and where the issues stand. Milanovic's views are completely opposite to the natural position of Croatia,'' he said bluntly, before touching on the beginning of Russian aggression against Ukraine back in February 2022, when Milanovic refused a meeting of the National Security Council.

"If there was a moment when we should have met because of serious security threats, that was the moment. After that came his distancing from Croatia's position and his repeating of pro-Russian positions that are completely contrary to what the stance of Croatia is as a European country, a country that is neither neutral nor non-aligned. We have diametrically different views," he said, as N1 reported.

He pointed out that foreign officials don't want to meet with or cooperate with Milanovic, who has isolated himself with his strange statements and views.

"To make you aware, the Spanish Prime Minister was here recently, he didn't meet with him, the Danish Prime Minister was also here as well, she didn't meet with him either, the President of the Canadian Senate came and he didn't meet with him, the Deputy Prime Minister of Italy was here and he did not meet with him. Do you understand what messages our allies and partners are sending him? They're saying; we hear what you've been saying for a year and we don't want anything to do with it,'' Plenkovic said.

Former president Ivo Josipovic says that Plenkovic and Milanovic are the only ones responsible for their poor relationship

Former Croatian president Ivo Josipovic was a recent guest of N1 Studio live, and during that appearance he commented on the constant conflict between President Milanovic and Prime Minister Plenkovic, as well as the elections that are coming next year.

"Both of them are responsible for their poor relationship and I'm sorry that it's happening," Josipovic said in regard to the constant arguing and insults being thrown around between the president and the prime minister. He says that he used to talk to Milanovic from time to time, but not about things going on in the sphere of Croatian politics.

"It's dangerous in a way even if there was a completely regular situation, and this isn't a normal situation [referencing the war in Ukraine]. This conflict creates a bad political climate and damages Croatia's international reputation, as well as the view of Croatian politics here at home,'' he added.

The war in Ukraine has implications for Croatia's immediate neighbourhood and our security, and it isn't a good situation when the two leading statesmen don't talk,'' warned the former president, reminding that both have responsibility for the functioning of the entire political system.

"I have the experience of being in a mandate with a government of the opposite political orientation as well. Did you ever hear such conversations between me and Jadranka Kosor? There was no idyll between me and Milanovic either, but it's important that everyone sticks to their political competence," said Josipovic, who believes that the Constitutional Court could declare this entire situation unconstitutional and force the president and prime minister to sit down and talk properly.

The situation with Croatia not moving quickly enough to absorb the EU cash given to it continues to be a burden

"Over the next 100 days, we must spend 403 million euros. A large number of projects are being implemented in the areas affected by the Zagreb and Petrinja earthquakes, and this gives us hope that we will be able to use this money. The works are now in full swing, the construction sites are filled with workers, and we keep receiving requests for reimbursement of funds daily", it was said by Spatial Planning Minister Branko Bacic.

As most people who have dealt with anything even remotely administrative here, Croatia tends to move at a snail's pace, and those of us who are better acquainted with this had our heads in our hands from the very day the earthquake struck. Of course, what Bacic is saying isn't good enough for most, and the University of Zagreb's rector claims that what Bacic has stated is simply not in line with previous forecasts. 

You can read more by clicking here.

For more on Croatian politics, make sure to keep up with our dedicated section and follow our Week in Croatian Politics articles which are published every Friday.

March the 17th, 2023 - This week in Croatian politics, we've had an HDZ politician accused of drink driving, causing an accident, defrauding an insurance company and also seeing three police officers arrested alongside himself. On top of that, we've had more talk about healthcare reforms, resignations, and freedom for the Murter mayor who spent municipal funds in an Austrian brothel. It's been a busy week.

Goran Jandrokovic says the ''institutions are doing their job'' after an HDZ prefect was accused of driving under the influence, causing an accident, faking the circumstances of said accident and then defrauding the involved insurance company for over 13,000 euros

Another day, another very uncomfortable scandal to deal with for HDZ. On the basis of the criminal complaint filed by PNUSKOK, USKOK has issued a decision on conducting an investigation against six Croatian citizens (born in 1970, 1976, 1985, 1968, 1989, and 1970 respectively) due to well-founded suspicion of criminal offenses of influence peddling, the abuse of positions of authority and assisting in the abuse of positions of authority.

The police, as well as USKOK, published a statement about HDZ's Vukovar-Srijem County Prefect Damir Dekanic.

''In addition to faking the circumstances of a traffic accident in which he was involved in order to avoid attracting any negative publicity, he also caused damage to an insurance company and obtained an improper financial benefit for himself,'' they wrote, adding that he was over the limit (under the influence of alcohol) and that he was driving 87.9 km/h when the traffic accident occurred.

"The criminal investigation established the suspicion that the 53-year-old county prefect in question was driving the county's official car under the influence of alcohol (1.44g/kg) at an illegal and unadjusted speed of 87.9 km/h in the area of Zupanja and Cerna, shortly after midnight on April the 17th, 2022. As a result of the above, he lost control of the steering wheel in Cerna and the vehicle went off the road and hit the front end of a car which had county registration plates owned by a 47-year-old woman, parked in front of a house, and then into the fence of the said house," the police wrote.

The belief is that, in order to avoid misdemeanor liability and thus the negative publicity that this event would have for him as a county prefect, Dekanic asked the owner of the damaged vehicle not to call the police and that she'd be compensated for the damage caused. Dekanic also allegedly called his cousin to arrange with him to lie to the police. Then three police officers were also arrested related to the accident.

The accident took place near Cerna last year and the saga goes on, and there's little point in rehashing the entire thing in this article, but the story has ruffled feathers within HDZ and within Croatian politics in general, with Milanovic and Plenkovic of course butting heads over it. Parliament Speaker Goran Jandrokovic has also thrown in some of the most famous last words in Croatian politics - that the ''institutions are doing their job''.

This line has been made the brunt of many a joke, because it appears to be code for ''nothing will ever be done about it, but please stop asking about it''.  Jandrokovic's recent comments on the arrest of Vukovar-Srijem prefect Damir Dekanic were that he ''couldn't say anything new about it'' and that ''the institutions are doing their job,'' adding that ''the investigation will show what exactly happened. The barty bodies will make the decisions. We'll see what happens next.'' Rather vague, one might say.

"It's important that the state bodies can work freely without any pressure and they'll come to adecision in accordance with the law, and if there's been a violation of the law, he will be sanctioned," he added, reported N1. He says that he himself did not ask the prefect about the traffic accident in question. "I didn't ask him about it, but I heard from other officials that he said he wasn't driving."

Marin Miletic steps down as the vice president of Most/Bridge

Croatian Parliamentarian Marin Miletic has stepped down as the vice president of Most, claiming that he is resigning irrevocably from the position. He stated that he decided on this move as a sign of "personal responsibility for the complete failure in the elections for local committees in Rijeka". Here's his statement translated in its entirety:

Dear all, I entered politics with a clean face and with a sense of great responsibility towards my voters. My Istrian and Rijeka people, the inhabitants of Kvarner, elected me to the Croatian Parliament to fight for the freedom of every single person and for the dignity of every human being. I've done this since the first day of my representation and will continue to do so until my last day. My fellow citizens of Rijeka also trusted me in the local elections by almost 12%, and Most had more than 10% of the support of the people of Rijeka. In the city council, we've been working with both dedication and strength.

Because I personally believe in political responsibility, in the importance of taking personal responsibility - I'm hereby informing the public and my fellow citizens of Rijeka that I am resigning irrevocably from the position of vice president of Most due to a complete failure in the elections for the local committees in Rijeka. I'll continue to humbly work in the Croatian Parliament, in Kvarner, in my beautiful Rijeka and wherever the party wants me tobe, to build a more beautiful and just Croatia. However, I can't demand high standards of morality from other people if I don't behave like that myself. That ' why I'm irrevocably resigning from the position of vice president of Most.

Keep me in your prayers," Miletic posted on Facebook.

Murter Mayor Tonci Turcinov is enjoying freedom once again after having spent municipality cash in an Austrian brothel

Yes, you did read that correctly. Whoever said Croatian politics was boring?

Murter's mayor Tonci Turcinov was released from custody this past week and photographed in Murter, standing in front of the municipality building. Several days ago, his lawyer Fran Olujic confirmed for Index that he was then due for release, after spending almost a month in pre-trial detention due to possible influence on witnesses.

Turcinov was released from custody one day before the deadline because the investigating judge had already questioned all twenty witnesses. Pixsell photographers snapped Turcinov while he was throwing some rubbish away and was standing in front of the Murter-Kornati municipality building. The proceedings against Turcinov continue and he will await his final verdict in freedom.

After receiving an initial police report, USKOK launched an investigation and requested detention for Turcinov, who was arrested for alleged illegalities with which he damaged the Municipality of Murter-Kornati for at least 60,000 euros. The prosecutor's office previously reported that it suspected that Turcinov had used municipal money for private purposes from the beginning of 2018 all the way until the middle of 2022, that is, to pay for travel expenses and other services and expenses in Croatia and abroad. In April 2019, Turcinov paid with said municipality money in a brothel in Austria. He even allegedly shamelessly used the official card of the Municipality of Murter, Telegram revealed. He spent 1,560 budgeted euros in the Austrian La Cocotte club.

He claimed that he used the card in the club by mistake because it was similar to his private card and that he then personally covered the cost of the municipal delegation's accommodation in the Schlosswirt Ebenthal hotel in Klagenfurt in order to indemnify the municipality. The hotel disputed the authenticity of the invoice to Telegram, so the portal announced that Turcinov had falsified an invoice for the expenses at the hotel in order to cover up the expenses of the Austrian brothel.

After the affair broke out in the media, he announced that he was resigning from his position of councilor in the county assembly, but also that, with the support of his associates and fellow residents, he would continue working on the projects he had started in the Municipality of Murter-Kornati. In other words, he remained the boss despite the lurid accusations against him.

Finance Minister Marko Primorac says Croatia doesn't need to worry about its banking system

Minister of Finance Marko Primorac recently spoke about the new package of government measures and other topics as a guest on HRT's Dnevnik. Following the deeply concerning cases of Credit Suisse and the collapse of the American bank Silicon Valley, he said that we here in Croatia need not worry about the situation with the banking system.

"We've been continuously pointing out that the measures that end up being adopted must be targeted, short-term, aimed at those who need help the most, and this is how we've structured all of our packages of measures so far. The total amount of this package of measures, which is comprehensive and targeted at people who need help the most, as well as at business owners, stands at one billion and 700 million euros. In addition to ensuring the continuity of our energy supply and acceptable energy prices, it will also ensure a more peaceful life for our business owners and for people in general,'' Primorac assured.

''Income support, first of all for groups that need this help, pensioners, people who only receive the minimum guaranteed help, child benefit, long-term unemployment, vulnerable groups who need help... rest assured that we'll provide it,'' he pointed out.

"HEP has borne a significant burden of this crisis. Of course, we're going to do everything, not only to keep HEP on its feet, but also to ensure the continuity of the healthy and stable operations of HEP. This isn't in dispute, the funds are being provided for this in the budget but the mechanism by which we will do this it depends on several factors that we are now discussing,'' he said, adding that he is also discussing this with the EC.

''We will not allow HEP's operations to be jeopardised in any way, and its projects such as GoGreen or solar power plants will have the total support of the government,'' he emphasised.

He said that the condition of the state treasury is standard. "Revenues are of course growing, financial appetites - expenditures, state costs are growing, aid packages are also costing. The state's finances are stable. We've been monitoring the developments within the tax system and designing the tax policy, and we will continue to do so. Our tax system is consumption-oriented, which is why it's dominantly related to the collection of value-added tax revenue," he said.

"Income tax is first and foremost the income of local units. I'd like the questions to be directed towards them a little bit more. Opposition MPs should talk to their mayors, if they're ready to bear that burden, let them, for example, reduce the surtax to the minimum level. If they're able to do that, then we'll consider some further measures in the context of income tax relief," he said.

Minister Primorac also commented on whether we here in Croatia should be worried about the situation with banks - referring to the cases of Credit Suisse and the collapse of the American bank Silicon Valley from California.

"What happened in America was due to highly specific circumstances. The Croatian banking system is adequately capitalised - compliant with Basel standards, for example, this wasn't the case in America. In the context of the discussions we held at the Council of EkoFin and the Eurogroup, of course it was an issue that worried us. According to the reports of the European Central Bank and all relevant stakeholders, we can all remain calm for now," he concluded.

Health Minister Vili Beros claims that 2400 Croatian doctors take home a higher monthly wage than Plenkovic

As they should.

Health Minister Vili Beros was a recent guest of Croatian Radio's Interview of the Week. It was during that appearance that he pointed out that the goal of this government is to reform the healthcare system. He then explained the steps of the reforms that are currently being planned. He announced the presentation of new preventive health examinations for next Friday, after the first amended laws are submitted to the parliamentary procedure.

He said that he isn't at all interested in his level of popularity as a minister and that he's only interested in his efficiency and what he does for the betterment of the healthcare system. "I'm interested in my efficiency and functionality in relation to the healthcare system, primarily in regard to patients, and then for all other parts of the healthcare system," said the minister.

A lot of remarks are coming in about the inefficiency and problems within the healthcare system, which the minister himself says. He recalled that on the first day after he was appointed minister, he was a guest on the Croatian Radio programme and spoke about the healthcare system, which is flawed.

"However, the coronavirus pandemic came and we lost a year and a half defending ourselves against the coronavirus. During that period, and even after that, we also found strength, opportunities, and the will to establish a certain reform. The reform that is being planned, which is founded and which has its own content and meaning, is precisely there to eliminate all these allegations. There are also a number of complaints about it, but I can say that we've also received praise for the functioning of the healthcare system," he added.

When asked whether he would continue his mandate, Minister Vili Beros replied that it was a difficult question to answer, but that he would do his best to implement the elements of the reform.

"I'll do my best to implement these elements in the context of our reform that we set as a task. I will tell you this - strengthening public health is our priority," said Beros. The minister added that the next Friday will be the presentation of new preventive health examinations, and he also referred to health literacy.

"We're talking about the development of health literacy, we already have some concrete results, an agreement with the Ministry of Education on that path. We need to develop health literacy from a young age," said Beros, adding that national preventive examinations for the early detection of numerous tumors are all that we really do in the context of prevention.

Considering that this is a pre-election year, Beros was asked whether or not it was a bit late for any reforms, to which the minister replied that such thoughts are calculative.

"I don't have the time or ability, nor am I the kind of person to calculate. I really want to establish those changes in the healthcare system that will be positive for everyone, especially for patients. My personal mission is to bring the patient back into focus," he explained, adding that government determination on this issue is strong.

"Things can always be better, let's not forget that I'm a doctor myself, and of course I understand their fight for higher salaries. But you have to look at the broader context, we're in the post-pandemic era. Since 2016, their incomes have grown by 43 percent. I will clearly answer their requests and listen to all of their objections," he said, adding that he suspects that there are other motives in the whole story.

"I wouldn't go to a protest, that's not the way to solve this problem... In the end, there are over 2,400 doctors in Croatia who have a higher salary than the prime minister. And I won't even tell you how many of them earn more than me, which doesn't even matter. I'm only saying it in the context of talking about the material rights of doctors," he said.

For more on Croatian politics, make sure to keep up with our dedicated section. Our Week in Croatian Politics articles are published every Friday.

March the 10th, 2023 - This week in Croatian politics, we've had a rather poor response to Plenkovic making it illegal to leak information from active investigations, Milanovic has claimed that people are drowning in corruption, and pensioners have had some relief from paying certain health insurance contributions. Oh, and there's been talk of price increases, again.

Plenkovic made leaking information an act punishable by law last month, and it's proved wholly unpopular

Index writes that the Promocija plus agency recently conducted some research for RTL regarding the announcement of changes to the Criminal Procedure Act and the Criminal Code. These alterations to the law would make the leaking of information a punishable act, and a survey was conducted from March the 1st to the 3rd on a sample of 1,300 respondents with a standard error of plus or minus 2.7 percent and a confidence level of 95 percent.

Most respondents have indicated that they don't support criminalising the leaking of information from investigations, which is the government's plan. The majority, i.e. 51.4 percent of respondents are against this idea, while 34.5 percent support it.

14.1 percent didn't know or didn't want to answer. Among those who are in favour of making the leaking of information a punishable act, as expected, are HDZ voters (55.6 percent of them support it), followed by those who vote for HNS (80.6 percent of them support it), those who would vote for the Suverenisti (64.5 percent) and Bandic's party (59.1 percent).

While the Prime Minister is making little to no effort to hide that he is bothered by the political damage that results from the disclosure of information from investigations, the respondents see this very reason as the main trigger for changing the law. 51.1 percent of respondents think this is the sole reason for the idea. At the same time, 13.1 percent of them think that the reason is the protection of the rights of all persons involved in investigations, and even the protection of the investigative procedure, which is what 10.1 percent of respondents think.

People believe that the biggest victims of such a change would be journalists

Only 4.9 percent of respondents believe that the main reason for changing the law is the independence of the judiciary. According to Prime Minister Plenkovic's announcement, leaking information from judicial investigations will become a criminal offense, and the goal, as stated, is to prevent information and details from investigations from being released to the media.

The prime minister claims that he isn't trying to stifle any media freedom, but the main victims of this kind of judicial maneuver are precisely journalists, and this is what almost 37.5 percent of respondents believe. 8.9 percent believe that judges and court officials will suffer, and 8.4 percent of the survey participants believe that the public itself is the main victim.

President Zoran Milanovic says that the Croatian public is ''drowning in corruption'' and that the current situation is worse than it was during Ivo Sanader's reign

Milanovic is no stranger to simply blurting out whatever he thinks, with little to no regard for anyone he might offend, and the arguments between him and PM Plenkovic have become somewhat iconic. He has taken another swipe at Croatian politics as run by Plenkovic and stated that the Croatian public is ''drowning in corruption'' and in a ''worse state than when Ivo Sanader was in charge''. 

"When someone comes and tells me that they're ending their cooperation with the president of the republic [in reference to Plenkovic allegedly saying that to him], who was elected democratically, then that's a clear violation of the Croatian Constitution, I'm surprised that that person is still the prime minister, and that someone in the parliament supports that. Let's take a good look at ourselves because Plenkovic is now violating the constitution,''

Milanovic then went on to quote a list of names and positions within either the government or within society that he believes Plenkovic arranged for his own benefit, and even dragged members of his family into it all.

''You people are absolutely drowning in corruption, this whole situation is worse than the one Ivo Sanader caused. At least he only stole for himself,'' Milanovic stated, before continuing with more quite jarring statements about Plenkovic being arrested in Brussels.

Government session closes with the abolition of health insurance contributions for pensioners and VAT amendments

The amendments to the VAT Act proposed by the government at the most recently held session have resulted in the retention of lowest VAT rate yet on gas and some other energy products, and the amendments to the Contributions Act have abolished additional health insurance contributions payable by pensioners.

Amendments to the Law on VAT

According to Plenkovic, the government is proposing changes to the VAT Act, which will see it retain the VAT rate of five percent on deliveries of natural gas and heating from thermal stations. This includes fees related to these deliveries, as well as for deliveries of firewood, pellets, briquettes and wood chips even after March the 31st of this year.

"We're continuing with the reduced rate of VAT on gas, pellets, briquettes, wood chips, and we're going to extend this measure for another year. In this way, we're successfully enabling everyone to be supplied with these types of energy sources on time and at the lowest possible rate," Plenkovic said.

"We support pensioners"

When it comes to changes to the Law on [Health Insurance] Contributions, the proposal is to abolish the payment of an additional contribution for health insurance, which includes about one million pensioners, to whom the said contribution will be paid at the expense of the state budget. This will refer to around 32,000 such individuals.

"We support Croatia's pensioners, and another 32,000 of them will keep what they have been paying so far as part of their regular pension," Plenkovic said.

Freedom House says corruption continues to represent a very serious problem for Croatia

Political rights and civil liberties are generally respected in Croatia, but corruption and discrimination against certain minorities remains a very serious and real concern, Freedom House stated in its 50th annual report on the level of freedoms across the world.

Compared to last year, Croatia lost a point and now has 84 - 35/40 for political rights and 49/60 for civil liberties. Civil and political rights are generally respected in Croatia, but corruption in the public sector remains a serious problem, according to the Freedom House report.

As key events last year, they cited the arrest of various big names from the world of Croatian politics, the staggering INA affair and the fulfillment of the conditions for Croatia's entry into the Eurozone and Schengen despite these issues. The American non-governmental organisation warned that Roma, Serbian nationals, ethnic Serbs and members of the LGBTIQ+ community continue to face discrimination. It also noted the presence of far-right groups and people who promote discriminatory values in public spaces as a legitimate concern.

Irena Weber, the Croatian Employers' Association (HUP) president, talked about price increases and about Croatia's lack of competitiveness economically

Irena Weber from the Croatian Employers' Association (HUP) commented on various economic topics for N1 television, from tax policy to government measures to unjustified price increases and the issue of non-working Sundays.

HUP's salary taxation model

HUP has proposed an increase of salaries through tax relief in such a way that the non-taxable part of an individual's salary rises from 533 euros to 663 euros and that the tax bracket of 20 percent is reduced to 15, and that 30 percent of the income tax is applied only to salaries greater than 50,000 kuna. The amount that local self-government units would lose would be compensated by the introduction of a 10 percent tax on apartment rent. Commenting on the HUP initiative, Finance Minister Marko Primorac said that it was not particularly well thought out.

"The idea was to draw attention to the fact that the income tax burden in Croatia is very much an issue, while, on the other hand, income from other sources is practically not subject to taxation. The intention was to point out that in this country, in which we continuously swear by education, work and similar, work is heavily taxed while we have a large number of people who don't participate in payng income tax whatsoever,'' said Weber.

"The idea is to start discussing all of that. We're arranging a meeting with the Minister of Finance and we need to open this topic properly because there is a large amount of unfairness in the distribution of the tax burden from labour in relation to property tax. With this kind of tax burden on labour, low productivity and the like, we're quite uncompetitive as a country,'' she added

She also pointed out that the government has relieved the tax burden on wages in several rounds already, but also that this increase coincided with strong GDP growth. "Croatian GDP grew by over 20 percent, which is an excellent result even in European Union terms, but that also coincides with the increase in income into the budget."

When asked how much employers raised prices, Weber says: "The domestic labour market continually lacks the staff, employers are fighting to get their hands on every possible worker, there's a real struggle. The problem of labour shortage is also being solved by importing labour from abroad, which isn't efficient either. The State Bureau of Statistics (CBS) announced that wage growth stood at 9.3 percent. We have information from our survey that HUP members increased the wages they pay out by over 15 percent, and yesterday morning we had a meeting with the trade unions, the merchants had raised their wages by over 20 percent. We really must keep raising wages."

"There were no unjustified price increases''

Weber and other HUP members support the continuation of the government's measures to limit energy prices. However, she believes that the issuing of fines for retail chains and others in the trade sector that didn't send the government a list of their products and their prices for the so-called ''white lists'' will not come to pass: "I think all of that was nothing more than speculation.''

She added that inspections carried out showed that almost no irregularities were found even in several hundred checks. "In addition, the CBS published data on price growth in January and February - 1.3 percent in the beverage, food and tobacco sector, which confirms that there was no unjustified price increase there. Retail chains played perhaps the most significant role in the conversion of the euro as an important channel."

"It's not pleasant for me to see any kind of jump in prices either, but we need to look at the bigger picture, inflation is a global problem, we know how the prices of energy, the cost of labour, the price of packaging, and raw materials have risen. With such a price shock, it's logical that the price of the final product also rises. I think that prices will start to stabilise," added Weber.

At the end, she commented on the government decision on non-working Sundays: "We cannot support any ban. HUP is against any restriction of the right to work. This is not the time for that."

For more on Croatian politics, make sure to check out our dedicated section. For a weekly roundup of what's been going on, keep an eye out for our Week in Croatian Politics articles which are published every Friday.

March the 3rd, 2023 - This week in Croatian politics, we've had government failings and alleged GDPR violations, the plight faced by doctors and other healthcare professionals being ignored by the powers that be, and Plenkovic was put to the competency test.

The government's proposed "white list" of stores fails spectacularly, here's how

The state has proven once again that it likes to interfere in things it doesn't actually remotely understand, according to Branimir Perkovic. When it comes to thinks in which it should not be involved at all, it ultimately does badly. The most recent blunder of all is the famous so-called "white list" of stores and others operating within the trade sector, hastily drawn up to protect the government from having to deal too much with politically unpleasant price comparisons of stores in Croatia and other Eurozone countries.

This "application" (which it actually isn't) had been being announced for weeks by many at the helm of Croatian politics, primarily by Minister Davor Filipovic. On the eve of its presentation by Filipovic's ministry, a media conference was held where the project, which they persistently and wrongly referred to as an app, was presented.

"We think that this way of informing the public is very good and that white lists will help people make decisions when purchasing things and will be able to give confidence to retail chains that have decided to be transparent," Filipovic said the day before the price movement ''app'' was released to the public. In the weeks leading up to the site's launch, he repeatedly spoke about this, praising the project and emphasising its importance.

After no more than a few days, according to Filipovic's announcements, it became clear that practically nobody anywhere was making any purchase decisions based on the government app that isn't an app. For starters, although it's persistently presented as an "app", it's actually just a regular website. Someone in the Ministry of Economy should know that the apps are intended for use via mobile phones and tablets, and currently the so-called white list of Croatian traders exists only as a website.

Nobody uses the government website, it allegedly violates the law and it's impractical

The real problem is that it isn't useful at all, as evidenced by the low to no use of it. The ministry boasted that it was visited a total of 34,789 times from February the 17th to March the 2nd, but most of these visits (a massive 60 percent of them) were made in the first two days alone.

After the first seven days of the site being live, the daily number of visits dropped to less than 1000, and in the past seven days it is less than 700. It's obvious that the users have assessed that it isn't a useful tool, and most of don't return after visiting once. There was such a rush to create the "app" that the Electronic Communications Act and the General Data Protection Regulation, i.e. GDPR, were entirely forgotten. The state has therefore managed to do something new that allegedly violates the laws of that same state. Not only that, but the state would severely punish both private companies and individuals for the same omission.

In this way, the Personal Data Protection Agency (AZOP) will only inform the competent institutions, in this case the Ministry of Economy, that they should comply with the GDPR as soon as possible. Because as things currently stand, according to Croatian and European Union law, this app, site, or whatever it is, violates the privacy of its users.

"The analysis of the website found that the site does not have a cookie banner for consent to the processing of personal data, and stores two cookies on the equipment of the user/visitor of the site, which requires the prior consent of the user,'' replied the Agency for personal data protection upon receiving Telegram's inquiry about the GDPR issue.

It's hard to believe that all of the listed prices are the same in all branches of certain stores across the whole country

The truth of the data on it is also not being checked by anyone. Maybe the prices in the three retail chains (Konzum plus, KTC and Tommy) really are as they are stated on it, although it's quite hard to believe that the same price is valid for so many products throughout Croatia. Every regular store visitor has noticed that the price of a certain product is often not the same even in the same city/municipality in different stores of the same retail chain.

"That site was created only so that politicians would give the impression that they're doing something"

"The goal is to influence possible price increases and the trend of inflation, because when people see who is correct, they will know how to appreciate it," said Minister Filipovic when launching the "app". But the people ignored his little project. Money was spent, no effect was had.

"I don't see how a movement-price page can be relevant for anyone on any topic," IT expert and analyst Marko Rakar commented for Index. "That page was created only so that politicians would give the impression that they're doing something," he concluded.

An app that isn't app, that no one uses, that doesn't protect the privacy of its users and the accuracy of which is questionable. For "only" 26,000 euros. It could have been worse. In fact, there were worse projects, if we only take a trip back in time to the infamous CRO card saga, a more or less forgotten failure of the Tourism Ministry.

A vote of confidence (or no confidence, as the case could have been) in PM Andrej Plenkovic took place recently

The world of Croatian politics is a turbulent one, and Plenkovic is usually somewhere in the limelight. The vote of confidence in Prime Minister Andrej Plenkovic confirmed recently that the majority of MPs remain behind him, and it also revealed that as many as seventeen MPs from the opposition that rather loudly initiated the proceedings in the first place didn't bother to show up for the vote at all.

Who among the opposition didn't even bother to come cast a vote?

Davor Bernardic (Social Democrats)
Erik Fabijanic (Social Democrats)
Katica Glamuzina (Social Democrats)
Rajko Ostojic (Social Democrats)
Sanja Udovic (Social Democrats)
Emil Daus (IDS)
Marin Lerotic (IDS)
Sinisa Hajdas Doncic (SDP)
Ante Kujundzic (Most/Bridge)
Zeljko Lenart (HSS)
Natalija Martincevic (Reformisti/Reformists)
Marijana Puljak (Centar/Centre)
Zeljko Sacic (Hrvatski suverenisti/Croatian sovereignists)
Dario Zurovec (Focus)
Vinko Grcic (Independent)
Stjepan Kovac (Independent)
Miroslav Skoro (Za pravednu hrvatsku/For a just Croatia)

Who abstained?

Milan Vrkljan (Za pravednu hrvatsku/For a just Croatia)

There were 74 opposition MPs in the parliament, and 56 of them raised their hands as a vote of no confidence in Plenkovic and his leadership as Prime Minister.

"Those who didn't even bother to turn up and aren't sick or have no other valid reason not to come will have to explain this within their own parties," said Pedja Grbin (SDP). "The ruling majority is still at 77, and that says we still have those who don't see, don't want to see, pretend not to see, or are completely aware of everything and don't really care what's happening to this country at all," he asserted.

Nikola Grmoja (Bridge/Most): We didn't even think it was possible to gather enough hands anyway

Regarding the fact that the opposition didn't come out in full force, Nikola Grmoja from Most pointed out that they didn't even think it was possible to gather enough hands to topple the prime minister anyway.

"A vote of no confidence is an instrument used by the opposition to warn people about the state of society, about all the scandals, the fact that Plenkovic's associates are trading in influence and that he himself is mentioned as the one in whose office Gabriela Zalac's controversial software was presented... So the opposition did everything it could could, we can't do more than this. If we could, then we would be the government," Grmoja pointed out, adding that this is the largest number of votes the opposition has collected in a vote for an initiative.

Bencic: They voted with their absenteeism

When asked what about those who didn't bother to come to vote, Sandra Bencic (We Can!/Mozemo!) said that not coming is justified for some who have a medical reason for not being present or were prevented by legitimate obligations. But those who don't have it, she added, voted by not attending anyway.

Bencic clarified to a journalist's question that Milan Vrkljan will no longer be invited to opposition meetings and agreements because he cannot participate as a member of the majority in opposition agreements.

The European Union provided the funds to help Croatia in its post-earthquake mess one year ago, but the government is only now ordering prefab housing for those affected by December 2020's Petrinja earthquake

The Ministry of Spatial Development, Construction and State Property has published the Draft Procurement Documentation in EOJN - Prior consultation with interested economic entities for the subject of procurement: The procurement of mobile and modular prefabricated/dismantled houses, including technical specifications.

What kind of housing has been ordered?

The plan is to acquire 500 wooden houses with a size of 25 m2 for one to two people and the same housing spanning 35 m2 for two to four people. The total estimated value of the procurement is 14 million euros (without VAT), and the open high-value public procurement procedure is divided into six groups that refer to the area of Sisak-Moslavina County.

As prescribed, the housing unit must have one space that serves as a kitchen and living room, then a bathroom and one or two bedrooms. It will be equipped with basic equipment - sanitary facilities, kitchen elements, basic appliances, such as a stove and refrigerator, a dining table, beds, and so on.

"Aside from the primary use for the purpose of temporarily taking care of the users whose houses were damaged during the Petrinja earthquake, the houses in question are planned to be moved and used for other purposes later. Accordingly, they must be made in such a way that they can be quickly dismantled and transported to another location without damage,'' reads the competent ministry's documentation preceding the public tender.

EU money has been available for this for more than a year now

Minister Branko Bacic also spoke about the initiation of the preliminary consultation procedure for the procurement of the aforementioned wooden mobile homes for the temporary accommodation of users at a recent government session. He invited Croatian manufacturers and builders of wooden prefabricated houses to participate in this consultation and assist in the procurement of such wooden houses.

The ministry also plans to finance the wooden houses with money from the European Union Solidarity Fund. The problem with the whole story is that this money has been available to Croatia for more than a year now, i.e. since December the 30th, 2021. Things move painfully slowly in Croatian politics, and it should be noted that volunteers had been erecting similar wooden houses in Banovina for several months after the earthquake, and the government is only now starting this process, years after the terrible Petrinja earthquake struck Central Croatia.

A temporary solution once again, and at the last minute before the chance to use EU money expires - again

Instead of wooden houses, which typically make for much more comfortable accommodation, many victims of the Petrinja earthquake are still living in small, cramped tin containers. The government is only now planning the acquisition of more comfortable accommodation, but again it's temporary. There isn't much talk about proper, permanent replacement houses yet.

In addition, the government found itself in a race against time, because the opportunity to spend European Union money from the Solidarity Fund expires in just four months, which means that the work must be completed by the end of June. If nothing else, the government at least, after more than two years, finally realised that tin containers and container settlements are an ugly picture that says everything about the non-existent state of the reconstruction ''process''.

The plight of doctors is still being ignored by the government, and the Croatian Medical Chamber is growing frustrated

The Croatian Medical Chamber (HLK) recently announced that a government decision on amendments to the Regulation on job titles and job complexity coefficients in public services is a clear message of them simply continuing to ignore requests from doctors and other healthcare professionals.

The aforementioned government decision on amendments to the Regulation on job titles and job complexity coefficients in public services, which again doesn't contain changes to the coefficients for the three groups of doctors that were agreed with the Ministry of Health last year in August, is a clear message of continuing to ignore doctors' requests, it is stated in the Chamber's press release.

HLK assesses that it is obvious that, for the time being, there's absolutely no political will to meet the demands of grossly underpaid and overworked doctors, and thus neither to make key decisions for the sustainability of the public health system and the remaining doctors in Croatia. The Chamber referred to the meeting back in August last year at the Ministry of Health, when doctors were promised concrete deadlines for correcting these coefficients.

Croatian doctors are demanding the urgent regulation of the salary coefficient system

The Croatian Chamber of Physicians, the Croatian Physicians' Union, the Coordination of Croatian Family Medicine and the Croatian Association of Hospital Physicians demanded urgent regulation of the existing system of salary coefficients for certain categories of physicians.

Medical associations demanded that the government equalise the coefficients of focused specialists with narrow specialists who specialised according to earlier rules, equalise the coefficients of doctors working in primary healthcare with doctors working in hospitals, and to raise the coefficients of residents as well.

Back in August of last year, HLK reported that it had agreed with the Ministry of Health that the deadline for correcting coefficients for doctors was to be the end of 2022, i.e. that these costs must be planned in the budget proposal for 2023. That deadline expired more than two months ago.

For more on Croatian politics, make sure to check out our dedicated section. For a weekly overview, keep an eye out for our Week in Croatian Politics articles which are published every Friday.

March 2, 2023 - The Croatian Prime Minister Andrej Plenkovic met with Ukraine's Minister of Energy German Galushchenko, and on that occasion he emphasized that Croatia shall continue helping Ukraine in the country's ongoing struggle. Croatia's help will continue to cover all the key aspects. 

"During the meeting, full support was given to the Ukrainian people in the fight for freedom, and it was pointed out that Croatia will continue with political, economic, financial, humanitarian and military assistance to Ukraine," the official press release by the Croatian Government states, as reported by Index (HINA).

At the same time, readiness for cooperation in the fields of energy, restoration of Ukrainian energy infrastructure, as well as ensuring energy security of Ukraine in conditions of Russian aggression was expressed, to which Croatia has already contributed as part of international efforts to help Ukraine, the press release further concludes.

P-TECC covers 24 countries of Central and Eastern Europe

Incidentally, the Ukrainian Minister of Energy German Galushchenko is participating in the 4^th ministerial meeting of the Partnership for Transatlantic Energy and Climate Cooperation (P-TECC). P-TECC is a multilateral initiative led by the US Department of Energy.

P-TECC covers 24 countries of Central and Eastern Europe and is complementary to the Three Seas Initiative with an emphasis on energy infrastructure, interconnection and security. This year's meeting of P-TECC in Zagreb started yesterday with a business forum, while a ministerial meeting will be held today.

Croatia's Prime Minister Andrej Plenkovic will also participate in the opening of the meeting of the Partnership for Transatlantic Energy and Climate Cooperation, today, on Thursday, March 2, 2023, at 8:30 a.m., at The Westin Hotel in Zagreb, at Izidora Krsnjavoga 1.

For that occasion, the Croatian Prime Minister will be accompanied by Croatia's Minister of Economy and Sustainable Development Davor Filipovic.

For more, make sure to check out our dedicated News section.

January the 30th, 2023 - The Croatian Government is stepping up its game in putting the pressure on stores and good and service providers. Many have allegedly unjustifiably increased their prices following Eurozone accession, and now they're receiving rather unpleasant questionnaires about their price lists and VAT.

As Poslovni Dnevnik/Josipa Ban writes, the state (with considerable delay, might I add) is now asking retailers and others providing goods and services to provide it with information on their item prices before and after the reduction of the VAT rate back in April last year. They say they need that information for their analytics.

On February the 6th this year, yhe addresses of as many as 30,000 retailers will receive a query in which they'll have to justify whether they increased, decreased or froze the prices of certain items on sale in their stores after the state lowered the general VAT rate for some products at the beginning of April 2022 (at 5 and 13 percent). This was announced by Finance Minister Marko Primorac at the Tax Conference held at the Faculty of Economics in Zagreb recently.

"The goal is not to punish them, but this will be part of the analytical basis for the subsequent assessment of the effects of the regulations so that we can enact better tax regulations and rates in the future. We're going to monitor what the prices were before the reduction of the VAT rate, just before the reduction, the day after the reduction of the VAT rate and the day when the next price change occurred," explained Primorac.

The form that traders will receive through the ePorezna (eTax) system will have to be filled out and submitted by February the 22nd, 2023. This form, unlike the one requested from the largest retailers by Davor Filipovic, Minister of Economy, due to doubts about price increases after the introduction of the euro, will not be optional. Enterprises will have to fill it in and send it back, otherwise they will face misdemeanor fines.

With this, at least as Primorac has claimed, the Croatian Government wants to obtain analytical confirmation of what is already widely known among Croats, namely that the reduction of tax rates is usually not felt by customers, that is, products don't actually end up becoming cheaper despite the tax reduction.

However, the timing of sending such a questionnaire to traders is interesting, so one cannot avoid the impression that this is a kind of pressure being put on them because most of them didn't agree to be on the so-called "white lists" of the Ministry of Economy and Sustainable Development, which were supposed to enable the comparability of price movements.

As it seems, however, they don't currently have an instrument with which they could force traders to submit their price data before and after the introduction of the euro, so the Ministry of Finance decided to use the VAT change from April last year to put them in the hot seat. Then, the VAT rate was reduced on a number of food products, such as meat, eggs, fish, oil, butter... down to five percent, while natural gas, firewood, briquettes, wood chips, heating from thermal cells were reduced to a slightly higher thirteen percent.

The fact that this is the first time that the Croatian Government has used questionnaires to check whether prices have been lowered or not after lowering the VAT rate also supports the suspicion that it is a form of backhanded pressure on traders. It's also known that tax relief was implemented on several occasions, and there was never a systematic check of its effect.

In addition to this news, Primorac also announced that they're currently working on changes to improve the efficiency of tax debt collection. They, as he explained, often end up in the statute of limitations, so the changes will establish new finance departments at the Administrative Courts, which will be dedicated to tax debts. Amendments to the Court Registry Act, which are also underway, will prevent those with debts from opening new businesses.

On top of all of that, he announced, the creation of a platform for comparing taxes in EU member states is now being considered. The goal is to dispel misconceptions that the income tax in Croatia is too high. "Income tax in Croatia stands at 28 percent, while the EU average is currently 38 percent. The story about the excessive tax burden on labour just doesn't hold much water. We have to demystify that," said Primorac.

For more, make sure to check out our news section.

January the 20th, 2023 - This week in Croatian politics, we've still more or less been talking non stop about inflation, Schengen and Eurozone entry and of course - ongoing price increases, but that isn't all. From meetings with Azerbaijani officials and Google's top brass to new ways of injecting even more bureaucracy, let's take a glance at the last week.

The government is set to introduce a special ID card for state institution employees, a move which will cost millions

Just when you thought Croatia couldn't possibly have more forms of card that you need to carry around with you, it goes and introduces yet another one, this time for the employees of state bodies. Yes, you're right, this is precisely what the country needs to be spending time on during difficult social and economic times. Still, we may as well visit the subject - as Index reports, despite being firmly in the shadow of the heated debate regarding the military training of Ukrainian soldiers in Croatia, the final proposal of the law on the official identity cards for state body employees, has remained strong.

Here we have just another way of spreading the plague of needless, time wasting bureaucracy among the Croats, and it is going to cost a pretty penny (or two). What is an official ID card for a state employee anyway, and why bother with it? Those are valid questions, so here is what Article 4 of the Final Bill on the matter says: "An official ID card is an electronic public document by which an employee of a state body proves their official status and electronic identity."

"An official ID card is to be used as a means of electronic identification and authentication to access electronic services, to activate other authentication or signature means, and to sign acts for which the user of the official ID card is authorised," it is stated in paragraph 3 of the same article.

In addition to the above, this card "can be used for physical identification and contactless application for the purpose of registering entry into the premises of a state body and for other purposes prescribed by special regulations".

I'm sure you'll agree that this additional bureacratisation in a society already perversely obsessed with red tape is something that we all really require.

There is plenty of opposition to this, both from the world of Croatian politics and from various other experts in this field. Most people will oppose the sheer amount of cash coming from somewhere that will be poured into this. 

The opposition criticised this idea last summer, believing that this law is utterly redundant, unnecessary, that without it the state would have saved a massive 5.8 million kuna, and so on.

"This law makes no sense, it should be withdrawn, why the new cost?'' asked Zeljko Pavic, a parliamentarian for the Social Democrats, who also went on to explain that there are already ready-made services that can be used without such ID cards which enable greater flexibility.

State Secretary Josip Salapic also stated that these identity cards "are in line with the development of the information society and digitisation", which is why it is "necessary to enable state and judicial officials as well as civil servants and state employees both simple and quick access to various databases and applications that are used to perform business and electronic signature of acts".

He added that around 60,000 official state body employee ID cards now need to be changed, of which 30,000 would be financed with EU funds. The new cards would be valid for three years, and one would cost 125 kuna.

Plenkovic has been busy meeting with all and sundry, from Google's boss to the the president of Azerbaijan

PM Andrej Plenkovic has recently held numerous bilateral meetings on the sidelines of the World Economic Forum (WEF) in Davos, with, among others, the Secretary General of the OECD, the President of the European Investment Bank, the head of Google and the head of Visa Europe.

He took to the social media platform Twitter to tweet that he had met with Werner Hoyer, head of the European Investment Bank (EIB), an institution which, at least according to Plenkovic, has so far directed seven billion euros through various loans to both the public and private sectors in Croatia.

"We're discussing project cooperation as well as global financial challenges," the tweet reads.

In Davos, the Prime Minister also met with representatives of the Global Citizen organisation, whose activities, as he wrote, Croatia continues to strongly support. At the meeting with the Secretary General of the Organisation for Economic Cooperation and Development (OECD), Mathias Cormann, he discussed Croatia's accession to Schengen and the Eurozone as the final strategic step of the country's integration into the circle of the most developed countries in the world.

"We also exchanged opinions regarding the economic situation in Europe and efforts to overcome energy and inflationary pressures," tweeted Plenkovic.

Meetings with the head of Google, the president of Azerbaijan, the president of the European Parliament also took place during what was a very busy week for the PM. Google's president of global affairs, Kent Walker, was also on the list of Plenkovic's meetings, as was the head of Visa Europe, Charlotte Hogg, with whom he discussed potential cooperation and investments.

He discussed the further strengthening of relations between Croatia and Azerbaijan with an emphasis placed primarily on energy and economic cooperation with Azerbaijani President Ilham Aliyev, and he also met with the President of the European Parliament, Roberta Metsola.

"We're grateful to the European Parliament for supporting Croatia's accession to Schengen and the Eurozone. We've been discussing the continuation of aid to Ukraine, the European [Union] path of Southeastern Europe, and the green and digital transition," concluded the Prime Minister on Twitter.

He also met with the Serbian President, Aleksandar Vucic.

Economist Damir Novotny claims that the government is trying to turn the trade sector into ''enemy number one''

What with the recent introduction of the euro as Croatia's official currency and the scrapping of the kuna, price hikes as a result of inflation and of the introduction of the new currency have been the hottest topic since the new year began. The government has stepped in and has involved all of the relevant authorities in making sure those stores and service/goods providers who are unjustifiably raising their prices lower their prices to what they were back in December 2022, but not everyone feels their moves are correct.

Economic analyst Damir Novotny was a guest on N1 television's Novi Dan/New Day, during which he commented on price hikes and inflation trends, as well as the government's moves as a result of the above.

Commenting on the new data on inflation and whether it is a decreasing trend, Damir Novotny said: "It's possible, but not because of the movement on the Croatian market, but because of the global movement. This is happening on large markets such as those of the USA, France, etc, and that will spill over to Croatia. It's possible that the trend of slowing growth will spill over into Croatia, but prices will not return to what they were back in 2020."

When asked why most products are cheaper in other countries, which is especially evident after the introduction of the euro, the economist explained the details:

"The main reason is the difference in the tax burden. In Croatia, until recently, there was one rate, 25%, and it's higher than the VAT rate. That rate is very high compared to the rates in Austria, Germany, Italy... not to mention the reduced rates. Austria has 9.5% VAT on all food products, including pet/animal food, taxed at significantly lower rates than in Croatia. Lastly, excise taxes in Slovenia are very low. Here in Croatia, there is an excise tax on plain water, while in Slovenia such an excise tax is very low or non-existent. Jana is therefore cheaper in Slovenia. Another important component of price growth in this country is the long-term closed market. While we had one monopolist, one litre of oil cost 15 kuna back in the year 2000, which is a very high price. And thirdly, in a short period of time over the summer, Croatia has a sudden increase in demand for all goods due to the tourist season. Ten million people come to the Croatian market, the demand increases and those people are ready to pay almost any price."

When asked whether or not it is really realistic to expect what the government is asking from traders in reality, which is the return of December prices, Novotny pointed out:

"For the past twenty years, every single government has chosen an enemy in the private sector. Milanovic's government turned the banking sector into enemy number one. Now this government wants to make the trade sector the enemy, they constantly talk about traders being dishonest. This isn't the discourse of market-oriented economies... Of course, the government needs to have an institutional framework to try to protect consumers and force retailers to disclose product defects, but that's impossible. Hundreds of thousands of items cannot be controlled."

When asked if it was possible to reduce the VAT and whether it would affect the movement of prices, he said: "I think it's impossible. Once the VAT is raised, which was done by Jadranka Kosor, it can't be reversed. The government relies on VAT when it comes to tax revenue, which is the most important source of tax revenue and it is indeed a generous tax. The government will probably maintain this tax burden, and this individual reduction leads to nothing. Government interference in prices is a wrong direction for government policies.

The government reacted, at least in my opinion, unnecessarily abruptly, there was hysteria, the media from Germany, Turkey, Poland, Slovenia called me, asking what was happening. Europe saw that something was happening in Croatia, but they didn't understand why it was happening. Prices have been rising across the entire EU."

Novotny pointed out that it is not true that Zagreb is unjustifiably raising its water prices: "That is not true, the price of water was terribly low here."

He also noted that he doesn't expect any further price increases, explaining that we have now passed the first energy shock and that we won't see a sharp rise in prices again. "I see that retirees are the ones who complain the most, and it's true that pensions are very low in this country, the government needs to intervene there if anywhere," concluded Novotny.

Now the Eu(ro)phoria surrounding Eurozone and Schengen accession has died down, Plenkovic and Milanovic are back to falling out with each other

Plenkovic had a recent interview for French television during which he discussed the vote in the Croatian parliament on the training of Ukrainian soldiers. He said that journalists keep asking him about it and he has to explain to them repeatedly what it's all about.

"It's not a denunciation, I heard what Zoran Milanovic said about all this. Imagine coming out with some thesis that Croats are some kind of American slaves. These are serious theses, what kind of anti-American policy, anti-NATO policy is that? These absurdities never end. These are very serious political mistakes that people in the political community are shocked by. They ask: 'Hello, what is Croatia saying here!?'' he stated, saying that those who have been observing the situation will know precisely where Croatia stands when it comes to the Russia-Ukraine war, and that is firmly by the side of Ukraine and firmly against Russia.

"I'm talking about this again because journalists keep asking me about it," he repeated, before opening fire on Milanovic again. "He's leading an absurd policy against Croatian interests..." concluded the Prime Minister when discussing his disapproval of Milanovic's recent bizarre statements about being ''America's slaves''. The two have had an ongoing issue for a long time now, and never miss an opportunity for the claws to come out.

For more on Croatian politics, make sure to check out our dedicated section and follow our Week in Croatian Politics articles which are published every Friday.

January the 13th, 2023 - This week in Croatian politics has been dominated by many stores and service providers upping their prices and allegedly taking advantage of what's known as ''rounding'' following Croatian Eurozone accession. Plenkovic has also been busy dismissing ministers once again, and the reaction to that has been varied. 

Price rises are hitting pockets and bank accounts

Croatia officially (and finally) entered the Eurozone on the 1st of January, 2023, with the kuna still permitted to be used as legal tender until the 15th of this month, after which only euros will be allowed to be used to make payments for goods and services across Croatia. As most people expected, there were price increases which came along with the euro, and while this is something that has occurred to some extent or another in all countries which have adopted the bloc's single currency, introducing it during a period dominated by economic woes and inflationary pressures likely didn't help much either. 

Shops have increased their prices for many basic goods and in some cases, there appears to not have even been an attempt made to hide it. With individuals feeling the blow to their back pockets and bank accounts more than ever, the government was asked to step in and control the situation, with many claiming that companies are taking advantage of the introduction of the euro. 

Some politicians, such as Kreso Beljak, believe that PM Andrej Plenkovic already spends too much time meddling with things that politics shouldn't be spending much time on, and although he himself has admitted that he has been hopping over the border into Slovenia to do his shopping because it's cheaper, he has said he doesn't blame Plenkovic for the euro price hikes. He believes that the market and the level of demand determines the price of goods, and that Plenkovic's government should spend more time making sure wages match the cost of living rather than spending time trying to lower prices.

It's easy enough for someone such as Beljak who lives in Samobor, which is very close to the Slovenian border, to shop and spend less in Slovenia, especially now Croatia has joined Schengen and the border between the two nations is no more, but most of the population expects government intervention. A recently held government session saw the matter discussed at length. The differences between Slovenia and Croatia and why the same products are cheaper over the border have also been explained.

The government did decide on some measures to try to combat the issue with price hikes following euro introduction, however, and Plenkovic has made no effort to hide his sheer disappointment with those trying to take advantage of the situation.

Plenkovic promises action against ''unjustified price increases''

"This is nothing other than pure profiteering and we oppose it," Plenkovic said about unjustified price increases in his opening speech at the aforementioned recently held government session. He announced that inspections will be carried out in stores and called on them to lower their prices to the level they were at before the introduction of the euro. The government also tasked the Ministry of Economy to use all possible measures to collect complete and accurate information on price movements and monitoring.

"We found that some individuals have obviously seen fit to take advantage of the euro conversion to raise their prices for no reason. I'd like to thank the business entities that adapted in accordance with the proper regulations and those who didn't impose any unjustified price increases," said the Prime Minister.

He said that they and most other people were expecting minimal price increases, but that we're unfortunately now witnessing something else entirely, which is profiteering. He stated clearly that his desire is to protect individuals during this transition period and recalled the measures that the hovernment adopted during the COVID-19 crisis.

Then he talked about inflation, a burning topic for Croatian politics of late. "What's happening to us is happening to everyone else as well, but everyone else [in Europe] has a higher rate of inflation than we have here in Croatia and we're fighting against a phenomenon that reduces peoples' purchasing power, and that's why we'll sanction all phenomena that leads to an increase in inflation. The purpose of introducing the euro is to empower the domestic economy, not that the state gives billions and that someone gets rich at the expense of the people, so it's important that everyone understands that those who are doing this will not get away with it and that the state will act, and it will act on behalf of everyone," he said.

"There's just no justification for what has increased, for people to raise their prices like they have, it's pure greed. The government will do everything in its power to prevent this from continuing to happen. All authorities will contribute to uncovering unfair practices and everyone will be tasked to act on this. I call on everyone to distance themselves from those who have unjustifiably raised their prices, I'm also calling on all business entities to revise their prices and adjust them back to those from the end of December," said Plenkovic.

"The state will not simply sit back and watch this happen without doing anything about it. Everyone who thinks that they can cast a dark shadow on the strategic success of the state will not succeed. The Tax Office, Customs, and the State Inspectorate all know this. They will go out into the field to correct what individuals are doing for absolutely no reason," the Prime Minister warned.

The measures, as explained by Economy Minister Davor Filipovic

"All business entities, including credit institutions and other financial service providers, and all those who have raised their prices against the law, are obliged to revise the retail prices of their goods and services and make sure that they're determined by the price levels of December the 31st, 2022," Minister Filipovic said.

"The inspectorate, tax, customs, ministries, Croatian National Bank (CNB) will implement increased levels of supervision over entities within their jurisdiction without delay," he said.

In addition, the Ministry of Economy will be put in charge of preparing and launching a digital platform for monitoring prices.

State Inspectorate boss Andrija Mikulic chimes in on increased monitoring, inspections and supervision

The head of the State Inspectorate, Andrija Mikulic, spoke about price increases and unjustified price increases and the number of inspections being carried out at this moment in time. "We've started with the inspections," Mikulic assured, adding that more than 8,000 inspections have been carried out since September. "We found 1,744 violations of the law," he added.

"Since January the 1st, 2023, we've received an increased number of reports about price increases, whether in trade, catering and hospitality or service activities. Bearing in mind that business entities freely set their own prices, inspections have begun based on the received reports. From January the 2nd to the 4th, over 200 inspections in the field of retail trade were carried out, including at bakeries and service activities, mainly hairdressing, body care and different kinds of maintenance services.

"We will determine whether price increases we uncover are unjustified or not. If it is established that they can't be justified, misdemeanor measures will definitely be taken".

In the service industries (hairdressing salons and the cosmetics/beauty field), increases ranging from 10 to a whopping 80 percent were observed. In the tourism industry, within which 151 inspections have been carried out, about 50 irregularities were observed, as well as price increases of up to 10 percent. In 306 inspections, 96 violations were determined.

Mikulic assured once again that the proper measures will be taken against those who are taking advantage of the introduction of the euro and of inflation in order to try to pull the wool over peoples' eyes and line their own pockets at the expense of individuals.

For more, make sure to check out our dedicated section, and keep an eye out for our Week in Politics articles which are published every Friday.

January the 6th, 2023 - This week in Croatian politics, we've once again been dominated by headlines (both good and bad) about the introduction of the euro in Croatia, the country's accession to the Schengen passport-free zone, and price hikes.

Croatia finally joins Schengen

After being a member of the European Union (EU) since July 2013, Croatia has now finally taken a step into much deeper integration by joining the passport-free Schengen zone, the largest such zone on the planet, which enables the totally free movement of over 400 million people. The move will facilitate the ease of travel into and out of Croatia though land borders, with airports set to follow in March. The scenes we've all unfortunately become familiar with of endless queues at the Slovenian border to enter the country each summer, sometimes going on for hours on end, are now a thing of the past. With the opening of the Peljesac bridge back in July 2022 also, very similar queues at Neum (neighbouring Bosnia and Herzegovina's only small piece of coastline) were also resigned to the history books.

Croatian Schengen accession was long awaited, and a nail-biting decision process saw the southeastern European nation readily accepted, while two other candidates, Romania and Bulgaria, still have to wait. For a nation which relies extremely heavily on tourism and for which tourism is its strongest economic branch by far, passport-free entry from the rest of the Schengen zone will be of an enormous benefit, as for a great many people, Croatia is a country one can drive to without much of an issue. The same can be said of air traffic, which will (as mentioned above) begin following the new Schengen rules in March, by which planes coming into the country from other Schengen member states will be treated as domestic flights.

Businesses and particularly Croatian exporters have made no effort to hide their elation with Schengen membership, as it is something the latter in particular have been hoping and pushing for for many years now.

Croatia joins the Eurozone and officially adopts the euro as its currency

The big news doesn't end with joining Schengen, with the country also joining the Eurozone on the very same day (the 1st of January, 2023). No country has ever successfully joined both of these EU zones on the very same date before, and Croatia has had a lot of adjusting to do despite having a long time to prepare for the changes to both border and monetary policies. The scrapping of the kuna, which has been Croatia's official currency since May 1994, and the adoption of the bloc's single currency, has been a mixed bag for most of the population. While many are thrilled about further EU integration and no longer being victims of exchange rate fluctuations, others are mouring the loss of Croatia's control over its own monetary policy (despite the fact that the kuna has been stable and also tied to the euro in many ways for years), and are worried that prices will quickly start shooting up for all kinds of goods and services.

While people scramble to use the last of their kuna and annoying little lipa coins given the fact that kuna cash can still be spent across the country until the 15th of this month, change will only be returned in euro banknotes and coins. Introducing the brand new currency during inflation which is still spiralling is far from ideal, and many price hikes which we've seen since the introduction of the euro have unfortunately been the result of not only a new currency, but the difficult economic situation we're still finding ourselves in during the post-pandemic, raging Russia-Ukraine war period.

Many forget that the reason there was no referendum on joining the Eurozone or not was because it was signed and sealed and agreed when the country joined the EU. Unlike nations which had been founding members or were very old members, such as the United Kingdom, which could freely opt out of ever adopting the euro, it was part of the deal for Croatia and as such the referendum on joining was also the referendum on adopting the bloc's currency.

Some have raised their prices, and the government is on their case

Keen eyes have been observing the prices in the first week of euro adoption, with some going up and some staying as they were. Certain goods and services are slightly more expensive than they were in the pre-euro era, while others, such as the prices for tickets issued by Croatian Railways (HZ), have remained the same as they were when they were being expressed solely in kuna.

Plenkovic has even been threatening stores and the government has thought up the idea of creating a so-called ''black list'' of companies which have increased their prices following Eurozone accession, which some have referred to as a stupid and useless idea. The government has openly stated that it will not the body to drag prices back to what they should be, but that it will do everything in its power to force the businesses trying to cheat the situation for a euro or two more to do it themselves. Measures to tackle these abuses have been outlined here.

It's more than safe to say that people are rightfully feeling betrayed after months and months of being told by the powers that be that any prices increases will be temporary and minimal. You can read more on price increases and so-called ''price rounding'' by clicking here.

For more, make sure to check out our dedicated politics section and keep an eye out for our Week in Croatian Politics articles which are published every Friday.