ZAGREB, 8 April (2022) - As a sign of solidarity, Croatia will send slightly over HRK 1.5 million (€200,000) worth of emergency aid to Ukraine at Ukraine's request, the government decided on Friday.

The aid comes from the available reserves and funds of the Economy and Sustainable Development Ministry, that is, the Commodity Reserves Directorate, the Culture and Media Ministry, and the Ministry of the Interior, that is, the Civil Protection Directorate.

In light of constant danger to the moveable and immoveable cultural heritage of the city of Lviv, Ukrainian museum workers have asked for help in the form of equipment to protect and evacuate the heritage, and help has also been requested in the form of medical equipment (first aid kits).

For more, check out our politics section.

March 27, 2022 - Several sources from the ruling coalition claim that Prime Minister Andrej Plenković has broken through and that a wider Croatian Government reshuffle will take place around May 30.

This began to be seriously considered after the arrest of Minister of Construction Darko Horvat, and especially after Uskok opened investigations against two other members of the Government: Minister of Labor and Pensions Josip Aladrović, who is suspected of favoring the employment of two people in 2018 and 2019 while being director of the Croatian Pension Insurance Institute, and Deputy Prime Minister Boris Milošević, who is suspected of mediating in "arranging" incentives for selected companies, reports Slobodna Dalmacija.

The idea of ​​a broader government reshuffle, according to sources, was terribly pushed by the latest affair that erupted after the Minister of Regional Development and EU Funds Nataša Tramišak publicly announced that she had received terrible threats but did not report them to the police until her public appearance, nor to her boss - the Prime Minister. They are convinced that Tramišak has already been de facto written off, especially after Prime Minister Andrej Plenković publicly said that "the whole situation with Minister Tramišak is extremely bizarre" and that "it is not yet completely clear to him".

''I will not make statements. The whole case was taken over by the police.'', was all that Minister Tramišak told Slobodna Dalmacija yesterday.

The idea has been ''cooked'' before

A source from the HDZ says that the story about the government's reshuffle was "cooking" even before the Tramišak case, that it will cover much wider than her, Aladrović and Milošević, and that it will take place between Easter (April 17) and Statehood Day (May 30).

''As for Minister Tramišak, it is clear that she no longer has any confidence. A more serious reconstruction is being considered, which would not only affect her and the members of the Government burdened with investigations (Aladrović and Milošević). There are executed people in the Government, such as the Minister of Agriculture Marija Vučković, and the stay of the Minister of Health Vili Beroš is still uncertain.'', says the source. He claims that the case of the Minister of Defense, Mario Banožić, is particularly interesting. He says that he is terribly untalented and that almost no one in the party supports him (anymore).

''But it would be too bold to claim that he lost Plenković's trust because Banožić is completely loyal to him.'', he says.

In addition to the mentioned names, in the context of the Government reshuffle, sources from HDZ and the ruling coalition parties note that the Minister of Economy and Sustainable Development Tomislav Ćorić could also leave the Government".

One of the sources claims that he received information that Tomo Medved (Deputy Prime Minister and Minister of Veterans' Affairs) could replace Mario Banožić as Minister of Defense.

''I think that would be a phenomenal move because the President of the Republic of Croatia, Zoran Milanović, respects him terribly, especially because of Medved's role in the country's defense. Therefore, Milanović could no longer score easy goals, as he does now with Banožić. However, I think that Plenković will not give up Banožić, not (only) because of their good relationship, but because of Milanović who would declare such a move his victory (in a clash with the Government and Prime Minister Plenković).

Ministers are silent

Deputy Prime Minister Tomo Medved was not in the mood yesterday to discuss the government reshuffle.

We did not receive any comment on the information on the government reshuffle from the others mentioned in that context: Deputy Prime Minister Boris Milosevic, Ministers Banožić, Aladrović, and Beroš, as well as from the Minister of Agriculture Marija Vučković.

Some of Plenković's coalition partners are also strongly advocating a broader government reshuffle.

- I am sure that there will be a reconstruction. Without going into, of course, whether they (Aladrović and Milošević, n. A.) Are guilty or not, it is objective that the burden of these investigations puts the Prime Minister in a position to go into government reshuffle. This is not in dispute or questionable at all. In addition, there are still some open topics in the public and it can be assumed that some other ministerial positions may be the subject of government reshuffle - says the head of the Reformists  Radimir Cacic. 

HSLS President Dario Hrebak is also a supporter of the (wider) government reshuffle.

''HSLS will continue to support the ruling majority, but we should not run away from the problems we have. As a serious party, we believe that Croatia does not need new elections because of everything that is happening in the world, as well as in the domestic economy. But that does not mean that we will not advocate certain refreshments in the Government within the ruling majority. I think it would be good to do that. But the final decision on the reconstruction is made by the prime minister. He is the prime minister, he is forming the Government, and he will best assess whether he needs reconstruction. HSLS sees its role as a party that will not blackmail or condition anything, but propose. We will certainly suggest that we need to refresh the Government because we have two more years of mandate and we are simply coming to a political position that requires us to make certain changes. I would like to mention once again that Prime Minister Plenković has a much broader picture. He should suggest when, in what way, and whether a government reshuffle is needed. HSLS will continue to support the ruling majority.'', says Hrebak.

Consultations have not yet begun

A source from the HDZ, who is also convinced of the government's spring reshuffle, says "serious consultations on the subject in the party have not yet begun".

"We haven't come that far yet," he says.

Clearly, there are those in the HDZ who believe that the government reshuffle should not go much further than those burdened with investigations such as Aladrovic and Milosevic.

''Why would Minister Tramišak, for example, leave the Government as part of a package that includes persons who are the subject of Uskok investigations? Unlike them, she is "pure", she received threats because she did not want to please anyone. After all, we will discuss her position in the Government on Tuesday at a meeting of the HDZ leadership. While the Prime Minister finds it bizarre that Tramišak did not report the threats to the police before she spoke about them publicly, it is bizarre to me that he has a Minister of Defense who has not been able to evict the Nazi for more than two weeks, and it is bizarre to me that in Zagreb, more than two years after the earthquake, reconstruction has not yet begun'', says the interlocutor from the ruling party.

For more, check out our politics section.

March the 11th, 2022 - Following last night's bizarre Zagreb explosion which involved the falling of pieces of aircraft and two parachutes close to Jarun, as well as many rumours, the government has issued an official statement.

Here it is translated into English in full:

''A meeting of the competent bodies of the security and defense system was held in the Office of the National Security Council, attended by the Deputy Prime Minister for National Security and Minister of Croatian Veterans Mr. Medved, Deputy Prime Minister and Minister of the Interior Mr. Bozinovic, Minister of Defense Mr. Banozic, Director of the Security Intelligence Agency Mr. Markic, Director of the Military Security Intelligence Agency Major General Kinder and Head of the Office of the National Security Council Mr. Franjic.

All relevant services were involved immediately after the crash of a military-type of unmanned aircraft, which, according to data collected so far, entered Croatian airspace from east to west, or from Hungarian airspace, at a speed of 700km/h and at an altitude of 1300m.

A criminal investigation is under way in co-operation between the criminal police and the military police, and other measures are being taken to co-ordinate the security and defense system, including international co-operation, especially with NATO, to determine all of the circumstances [surrounding this incident].''

Source: Vlada.gov.hr

For more on the Zagreb explosion, keep up with our news section.

ZAGREB, 3 March 2022 - The government on Thursday sent the parliament a bill on the introduction of the euro as legal tender in Croatia for first reading, and, among other things, the bill concerns the basic principles of euro introduction, possibilities of exchanging kuna for euros and the period of both currencies being in use.

Finance Minister Zdravko Marić said the bill defines that, after the Council of the EU decides to introduce the euro and adopts a regulation determining a fixed conversion rate, the government will make a decision announcing the date to introduce the euro, the fixed rate of conversion, the start and end date of both currencies being in use, and the start and end date of dual price display, as well as other issues related to euro introduction.

The bill also defines fundamental principles to introduce the euro, including the principle of consumer protection, the principle of banning unjustified price increases, the principle of continuity of legal instruments, the principle of efficiency and economizing, and the principle of transparency of consumer information said Marić.

Cash exchanges will be possible in banks, FINA financial agency branches, and post offices for a period of 12 months as of the introduction of the euro.

"Citizens will be able to exchange 100 notes and 100 coins per transaction without any fee. After the 12 months expire, exchanges will be conducted in the Croatian National Bank without any fee, and it will be possible to exchange notes for an unlimited period and coins for a period of three years after the introduction of the euro," he underscored.

The period of both kuna and euros being in circulation will last 14 days after euro introduction. The bill also contains details regarding exceptions (poker machines, slot machines, ATMs).

The bill also contains regulations regarding dual price displays as a measure to protect consumers. Commercial enterprises will be obliged to show dual prices clearly, visibly noting the exchange rate. That obligation will apply as of September this year and ends at the end of 2023.

The bill defines also exceptions from dual price display where that isn't practical, for example at market stalls, mobile sales, farms, warehouses, slot machines, recyclable packaging, gift cards, and so on).

The bill defines rules for the conversion of deposits in accounts, kuna payment orders, kuna loans, kuna leasing contracts, and the like as well as adjusting interest rates where necessary. The bill also envisages the obligation to report to clients about the conversion, which must not put consumers in a less favorable position than the one they would be in if the euro had not been introduced.

The bill also brings rules related to preparing the budget and financial plans for the year preceding the year of euro introduction, rules for business bookkeeping, rules on reporting, bodies in charge of oversight, and rules related to violations.

"And that is assuming Croatia meets the set conditions and the process of introducing the euro is completed and the euro is introduced on 1 January 2023," said Marić. 

A total of HRK 32.8 million of budget bunds has been secured in 2022 to implement the bill, plus an additional HRK 3.6 million in 2023 and HRK 0.9 million in 2024.

A total of HRK 13.3 million has been secured in the state budget for the financial plans of extra-budgetary users in 2022, and HRK 1.4 million in 2023.

County budgets for 2022 have been secured HRK 5.78 million while city budgets have HRK 15.89 million secured for 2022 for the implementation of the law.

Public consultation on the bill was conducted between 17 January and 15 February 2022 and 128 comments were submitted. The bill will be discussed under the regular procedure.

For more, check out our politics section.

ZAGREB, 24 Feb 2022 - Croatia will support the sanctions against Russia and is ready to provide Ukraine with humanitarian and technical assistance, Prime Minister Andrej Plenković said on Twitter on Thursday, calling on Russia to halt its military operations.

"We will support the sanctions package and are ready to provide humanitarian and technical assistance to Ukraine," the Croatian PM wrote, calling on Russia to immediately stop its military operations that put innocent people in danger.

Plenković met with Ukrainian Ambassador Vasyl Kyrylych on Thursday morning, saying that "the Croatian government condemns in the strongest terms Russia's invasion and aggression on Ukraine."

"This is a direct attack on democracy, international law, and Ukraine's sovereignty," he added.

The Croatian Ministry of Foreign and European Affairs tweeted that it was following the situation in Ukraine and exchanging information with other countries.

The Croatian Embassy in Ukraine is in contact with Croatian nationals and stands at their service for any consular and other assistance, the Ministry said.

For more, check out our politics section.

ZAGREB, 24 Feb 2022 - Croatian Prime Minister Andrej Plenković has strongly condemned Russia's invasion of Ukraine, calling on Moscow to stop the military attack immediately.

"We strongly condemn Russia's aggression and invasion of Ukraine. This unprovoked attack is a gross violation of Ukraine's sovereignty and international law," Plenković wrote on his Twitter account on Thursday morning.

"This is exclusively the responsibility of Russia, which we call upon to immediately stop this military attack."

"We express our solidarity with Ukraine and the Ukrainian people," the Croatian prime minister said.

For more, check out our politics section.

February the 19th, 2022 - The set of Croatian inflation measures which were revealed just this week and which aren't due to come into force until April the 1st this year have many companies with increasing bills biting their nails. For many, it isn't being dealt with quickly enough.

As Poslovni Dnevnik/Marija Brnic writes, while it's excellent that the government has recognised the spirit of the economy and the level of damage that can be caused by rising energy prices, this is only a rough framework and much will depend on how the implementation of Croatian inflation measures is defined and organised.

As such, the Croatian Government's package of measures to alleviate inflationary pressures was commented by Ivan Miloloza, the owner of Munja, one of the companies that has been seriously affected by the multiple increase in gas prices.

As presented by Prime Minister Andrej Plenkovic, the Croatian inflation measures are a package which is quite comprehensive, it has a wide range when it comes to how much of society it will cover, as it does for products for which VAT will be reduced. On top of that, there's a lot of assistance provided for enterprise owners and businessmen, who, just like ''normal'' people, will receive vouchers for covering part of the cost of gas, while farmers will receive support for the purchase of mineral fertilisers.

The total value of the package of Croatian inflation measures stands at a massive 4.8 billion kuna, and the largest part refers to households. Measures for the economy, according to the government, had to be of small value, and couldn't be targeted, for example, at gas suppliers, because what's been built into this package is possible only according to European Commission (EC) rules. These Croatian inflation measures will take effect on April the 1st.

The application coincides with the end of the winter season, so the government expects that the effect will be to maximise the impact on household budgets and preserve purchasing power, and thus contribute to the continuation of the trend of recovery and competitiveness of the domestic economy.

For those deeply affected by the drastic rise in gas prices, the word on everyone's lips now is just how the use of fuel/gas vouchers will look in practice. The realisation was announced through Hamag-Bicro, where they have no more information, but at the presentation it was said that the application of measures will not be retroactive. This is exactly what received the most negative assessments from business owners, especially from those who own smaller companies, whose gas costs exploded on November the 15th last year, increasing anywhere between three and seven times.

"This ordeal isn't going to end just because of this announcement, we won't be breathing a huge sigh of relief come April the 1st,'' they said from one of the enterprises from this affected group of company owners.

Micro, small and medium enterprises, with an annual consumption of up to 10 Gwh, will be able to count on coverage of up to 15 lipa per Kwh, and the subsidised amount will be deducted from their vouchers every month until March the 30th, 2023.

According to the government's estimate, about 600 million kuna will be needed for these Croatian inflation measures, and it should cover 99 percent of companies in that group. The largest consumer of gas in the economy, Petrokemija, will not be able to use this measure, but will partially feel the relief of the burden due to price shocks by the covering of the costs of farmers, who will receive subsidies for the purchase of mineral fertilisers.

They can count on subsidies of up to 20 hectares of agricultural land, for the first 10 hectares the price will be 450 kuna per hectare, and for the remaining ones - 250 kuna. These Croatian inflation measures are expected to cover about 88,000 farms across the country, and 200 million kuna is planned for the measure.

And for fishermen, about 2000 of them, 50 million kuna of support for the costs of blue diesel has been provided. The Croatian Chamber of Agriculture will discuss the measures in more detail as we move forward, but President Mladen Jakopovic expects that some producers will still be left somewhat dissatisfied. He also hopes that the Ministry of Agriculture will show some additional sensitivity to production, especially when it comes to livestock.

Farmers and producers are positive about the reduction of VAT on a number of products, and this regime includes gas and heat, for which the rate will be permanently reduced to 13 percent, the same amount as for electricity, while from April the 1st 2022 to March the 31st 2023, VAT on gas will be reduced by 5 percent.

The catering sector is hurt by the fact that coffee, tea and juices are not included in the list of food items which will have VAT reduced, which they have been asking the government to do for a long time now.

Reactions were immediately fueled by skepticism and the expectation that lower VAT would not be felt on final product prices. HOK pointed out that, since the package of Croatian inflation measures comes into force in a month and a half only, the question remains as to what extent a reduction in the prices of products and services can even be expected, given that a large number of business owners are already suffering damage.

The Prime Minister could only state that the government has taken the first step, and has called on everyone in the chain to show solidarity and not use the opportunity for profit, and he said that the engagement of consumer protection associations will now be important. HUP CEO Damir Zoric also called on customers to shun those who don't show solidarity in fighting rising inflation.

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

February 19, 2022 - Crisis in the Croatian government, as the USKOK launches investigation against several of its officials. Construction Minister Darko Horvat was arrested this morning for alleged abuse of authority, and an emergency meeting is underway. USKOK suspects that Horvat gave 2.6 million kuna in illegal incentives.

In addition to Minister Darko Horvat, as Telegram has learned, investigators have also focused on former Minister Tomislav Tolušić. Along with them, according to the information available so far, this latest procedure also applies to Horvat's former assistant Ana Mandac. Jutarnji List finds out that Deputy Prime Minister Boris Milošević and Minister of Labor and Social Welfare Josip Aladrović are also under investigation. According to the information provided so far, they are suspected of seeking employment through a connection and due to the granting of incentives.

According to currently available information, the Minister of Construction is associated with abuse of office and authority. Sources say investigators are investigating Horvat's role in the abuses suspected by his former assistant Ana Mandac. USKOK suspects that, at the request of Josipa Rimac, Mandac arranged support for craftsmen from the Ministry of Economy at the time when it was led by Horvat.

Horvat arrested

Minister Darko Horvat was arrested this morning, his lawyer Vladimir Teresak confirmed to Media Servis. USKOK suspects that Horvat gave 2.6 million kuna in illegal grants and incentives. According to information from sources close to the investigation, Minister Darko Horvat should be questioned by USKOK in the early afternoon. He will be brought to the USKOK headquarters in Vlaška Street in Zagreb, where he will be able to testify in the presence of a lawyer.

Photo: Vjeran Zganec Rogulja/PIXSELL

This morning, he was taken from Donja Dubrava in Međimurje, where his home had been searched since the morning. It is certain that investigators are following him to Zagreb, where the procedure in coordination with USKOK and the police will continue.

Finance Minister first to comment

The case was commented on by the Minister of Finance Zdravko Marić in a Croatian Radio show. He said he was surprised by the news of a police raid on Horvat's home.

"I assume that I am the first to speak on this topic, I have no knowledge and I cannot comment on that", the minister added. He referred to media allegations that Labor Minister Josip Aladrović, Deputy Prime Minister Boris Milošević, and former Minister Tomislav Tolušić were also being investigated.

"I mean, this is pure information from the media. I didn’t even get to read, driving to the show. But, any scandals do not have a positive effect on the Government", said Marić.

Emergency government meeting is underway

In addition to Minister Darko Horvat, the Minister of Pension System, Family and Social Policy Josip Aladrović, Deputy Prime Minister Boris Milošević, and former Minister Tomislav Tolušić were also targeted by investigators on Saturday morning.

The police started searching the house of the Minister of Construction, Darko Horvat, this morning. Although there is no official information, and no one from the Government has responded yet, 24sata finds out that an emergency meeting has been convened in the Government. Prime Minister Andrej Plenkovic is expected to address the media soon.

This is developing news.

For more, check out our politics section.

ZAGREB, 11 Feb 2022 - Parliament on Friday asked the government to verify the number and authenticity of the signatures collected for the Bridge party's referendum petitions to abolish COVID certificates and the crisis management team, and to include at least two representatives of each petition in the process.

The government was also asked to check if all the signatures were collected in line with the Referendum Act.

Parliament passed the relevant conclusions, proposed by the Committee on the Constitution, with 77 votes, while 32 MPs were against and 13 abstained.

Before the vote, parliament rejected amendments by Bridge and the Social Democratic Party to ask the State Electoral Commission, rather than the government, to verify the signatures in 30 days and the SDP proposal to establish a parliamentary task force, comprising three members from the opposition and four from the majority, to supervise the count.

Speaker Gordan Jandroković said recently he could not say how much the verification would take and that once the signatures had been counted, the process was back in parliament's hands.

If it is established that Bridge collected enough signatures, parliament can either call a referendum or ask the Constitutional Court to assess the referendum questions.

Bridge delivered the signatures to parliament on 24 January, saying they had collected 410,533 for the petition against COVID certificates and 409,219 against the national COVID crisis management team, more than the 368,867 required (10% of eligible voters) for a referendum to be called.

Bridge calls out majority for not allowing State Electoral Commission to count votes

Before today's vote, MP Marin Miletić of Bridge called out the ruling majority for not allowing the State Electoral Commission to count votes because "everyone would be sure in that case."

He appealed to the majority's conscience during the vote, telling them not to be afraid of citizens and to allow the referendum.

For more, check out our politics section.

February the 6th, 2022 - Just how does the Croatian Government plan to shield the average resident of this country from the ever-increasing prices for gas and electricity? There does appear to be somewhat of a plan in place.

As Poslovni Dnevnik writes, due to the current wave of exponentially rising prices, especially for energy, some EU member states have already adopted a package of measures to mitigate the price shock for residents. There is a lot of talk here in Croatia about inflation and prices, but the Croatian Government hasn't yet revealed the details of the aforementioned package of similar shielding measures.

However, it seems that it will be adopted earlier than it has been communicated so far, more specifically at some point during this month. At the same time, a solution to the gas crisis hasn't yet been found in Zagreb. Company owners are scratching their heads and don't know what to do with the huge bills they're getting, gas companies don't know what to do with their losses, and the city and the state are continually communicating in opposition as to who will pay the minuses and to what extent.

Prices in many shops have already risen several times and will continue to grow as this situation unfolds, but what's worrying many is the reports of a ''tsunami of price hikes'' which is set to arrive in April, when gas and electricity prices will rise even more. Everyone is waiting for the Croatian Government's package of measures with which, according to employers and the opposition, the powers that be are already running very late, as reported by N1.

"As for the thesis that it's late, no it isn't too late. There's nothing to be late for. We're working on a package of measures. This package of measures will affect all stakeholders in the system, in part companies. The idea is not to wait too long with this package, for it to be presented to the public and those interested during the month of February, in the coming weeks,'' said the Minister of Economy and Sustainable Development, Tomislav Coric.

Gas vouchers?

The poorest residents of this country who have already received electricity vouchers can now count on getting their hands on gas vouchers as well. It isn't yet known how many of them will have this particular possibility expanded to them and how many vouchers will be issued. As prices for both electricity and gas are sure to rise dramatically, the conclusion is clear:

"Two hundred kuna cannot be enough, but it's difficult to say at this moment in time how much the amount will have to go up. We ourselves tried to calculate whether it needs to be 300, 350, 400 or some other amount,'' said Kresimir Sever from the Independent Croatian Trade Unions.

A gas crisis in Zagreb

Meanwhile, a real gas crisis is happening here in the capital. When it comes to the city's gasworks, the supply is in such losses that bankruptcy is now a real threat, and the help of the state should not be counted on either.

"One should not expect from the Croatian Government, where the city government is in Zagreb, to cover the debt of the city gas supply in Zagreb," said Minister Coric.

However, Zagreb Mayor Tomislav Tomasevic claims that talks between the City and the Croatian Government are taking place. He admitted that part of the responsibility lies with the former administration headed by the late Milan Bandic, but there is also an objective circumstance - gas prices that are raging absolutely everywhere.

"There are also talks in various European Union countries between suppliers owned by local governments and the state, to absorb these blows, especially in the business sector, and also to enable the normal operation of these companies because there are many alternatives, all of which are bad for everyone,'' Tomasevic pointed out.

For more, check out our politics section.