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.

February the 13th, 2023 - Croatian fuel prices are thankfully set to fall once again this week, more specifically as of Tuesday, as the ups and downs of an ongoing fluid situation continue to hit back pockets, bank accounts and fuel tanks.

As Poslovni Dnevnik writes, when it comes to the hot topic of Croatian fuel prices, both diesel and petrol will be significantly cheaper as of next week, Minister Davor Filipovic announced during a recent appearance on Dnevnik Nova TV.

''On the 5th of February, the embargo on the purchase of Russian derivatives finally began. Therefore, nothing more can be taken from Russia by anyone in the European Union. Many feared that this would have a bad effect on the price of fuel, that is, that it would end up going sky high. However, the EU had prepared in time, and there are enough supplies," Filipovic pointed out.

"When you look, for example, at the movement of prices from last week until yesterday, if we were to calculate the price of diesel now, it would fall by 12 cents, which means around 90 lipa, and petrol would fall by three cents, which is equal to about 21 or 22 lipa,'' the minister calculated, before announcing that as of Tuesday there will be a significant reduction for Croatian fuel prices, for both petrol and for diesel.

He noted that for the entire time the issues with fuel have been going on, diesel has remained almost two kuna lower in this country due to the government's repeated interventions. When asked whether some traders will still be able to be somewhat ''loose'' with their pricing, which has been a hot topic ever since Croatia joined the Eurozone at the very beginning of 2023, Minister Filipovic stated:

"Well, life is always a two-way street. One cannot expect that on one hand, someone is asking for support from the government, asking for measures, and in response we provide maximum support, and then on the other hand, for example, retail chains are unable to send their own data. This is extremely wrong, and we should think about the wellbeing of the general public. This is what the government does all the time, and business entities should be doing this as well."

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

January the 14th, 2023 - The price increases we've witnessed up and down the country ever since the euro was introduced on the first day of this year have been rather astonishing. While most people expected prices to go up a little bit, what has been happening is ''pure profiteering'' as Plenkovic himself described it. The government has stepped in with some measures, and it seems Croatian stores are being put well and truly under the radar of the authorities.

Economy Minister Davor Filipovic has been very vocal about the measures set to prevent Croatian stories from taking advantage of not only inflation but of the introduction of the new currency, and it appears that the idea of Croatian stores having to send their price lists to the government every two weeks for the foreseeable future is now on the table.

As Poslovni Dnevnik writes, the deadline given by the government to all those who raised their prices unjustifiably to return them to what they were back before Croatia entered the Eurozone (December 2022), or sanctions would be imposed expired just a couple of days ago. Economy Minister Davor Filipovic repeated in an interview with Media Servis that either freezing the prices of a wider number of products or cancelling subsidies entirely is currently being considered in an attempt to combat this situation.

When asked why he was going off an the initial idea of having blacklists on which Croatian stores and service providers who had unjustifiably raised their prices would be placed, he replied that his ministry had sent a letter to the ten largest retail chains with the request that they provide the government with their respective price lists for about 80 products for the whole of last year.

"We've asked that they continue to deliver their price lists to us every two weeks, which we will put on the Internet and enable everyone to watch the price movements in the largest retail chains in one place. I'm not going to say that it is a black list, but if people can see it all and make a comparison in one place, it can be observed in that context,'' said Filipovic of the move.

"The State Inspectorate established that there was an increase in prices of food products from 6 to 20 percent, and that includes bakery products as well,'' he added.

You can read more about the scrutiny Croatian stores and other service providers have been placed under from the powers that be, which includes all authorities from the Tax Office to Customs and the State Inspectorate in our most recently published Week in Croatian Politics article, which discusses the topic at length.

October the 21st, 2022 - This week in Croatian politics saw everything from hopes of energy drink bans, the Russian media writing about Milanovic and former government ministers getting new jobs to gas prices, wage proposals and hospital construction plans.

MEP Biljana Borzan (SDP) thinks the Health Ministry and the Croatian Government should ban the sale of potentially dangerous energy drinks to minors

How many kids need to suffer the health consequences of consuming energy drinks before the government steps in and does something about it? Borzan asks, referencing the horrific case in which a twelve year old suffered a stroke.

"I've been warning people about this problem for years, I've submitted a proposal two times for a legal ban through Croatian parliament, but the Minister of Health and the government don't even care about it," said Borzan, recalling another energy-drink related death, this time of a thirteen year-old in Zagreb.

"I ask them, how many more children need to be harmed for you to do something about this? Whose interests are you defending with this carelessness and inaction?" asked Borzan. The MEP also pointed out that research shows that children and young people are increasingly drinking energy drinks, which are harmful to them in many ways, and a large number of children claim that they drink them because they need energy, which is of enormous concern.

On top of that, the very adult trend of mixing energy drinks with alcoholic beverages is also beginning to make an appearance among younger generations. Borzan believes the fact that energy drinks are even being consumed by kids should result in a ban on selling them to minors, but given the fact that kids are also mixing them with alcohol, nobody should be in two minds about the next move.

Koncar speaks out about employing controversial former government minister Darko Horvat, saying everything was strictly above board

Koncar rather surprisingly announced the employment of the former Minister of Spatial Planning, Construction and State Property, Darko Horvat, recently. Just keep in mind that Darko Horvat had to step down from his position as a minister within Plenkovic's government because of alleged corruption.

Koncar has stressed that despite the fact that they have employed a minister who had to step down, everything was done correctly and Horvat was selected for the position thanks to his qualifications as a graduate electrical engineer.

"Owing to the recent retirement of an engineer who strategically participated in technical and commercial work related to the field of electricity distribution, a job opening was announced as we were seeking an electrical engineer with significant operational experience in that area. Mr. Horvat was selected as a graduate electrical engineer with extensive experience in the field of electricity distribution, including experience in the field of business at both the Croatian and international level.

During the initial media announcements, incorrect information was circulating claiming that Darko Horvat was set to hold the position of adviser to Koncar's Management Board. In reality, his field of activity will be focused exclusively on the field of electrical distribution, Koncar stated.

After his resignation, Horvat activated what's known as the 6+6 option.

On February the 19th, when he was first arrested, Darko Horvat resigned from his position and activated the 6+6 option, which legally prevents him from being appointed to management positions within companies with which his former ministry or government cooperated. It isn't actually prohibited under the law for him to receive a fee for providing consulting services to or within a company in which the state has a three percent ownership. Koncar is 80 percent owned by Croatia's pension funds, the head of which is HDZ member Gordan Kolak.

Economy Minister Davor Filipovic has stated that there will be no shortage of gas for the Croatian market this winter, despite talks of the opposite being the case

It seems like all we're talking about recently is the spiralling price of gas and energy, and while the Croatian Government recently came to the decision that INA would sell all the gas produced here in Croatia to HEP, it turned out that this was simply not possible. INA has seven contracts that cannot be terminated. Minister Davor Filipovic commented on the situation.

''There's going to be enough gas, and that Croatian gas is going to be provided to all hospitals, schools, kindergartens and all institutions at a price of 41 euros. The government made a decision recently that is heading in that direction,'' said the Minister of Economy and Sustainable Development, Davor Filipovic, adding that the most important thing is that Croatian gas goes solely to Croatian institutions.

"It's known that we ordered INA to increase gas production by 10 percent. As for the change in the regulation, for seven customers there are fixed contracts that cannot be terminated unilaterally, to unilaterally terminate would be more harm than good and termination would mean those customers launching lawsuits against INA, and then INA would sue us. That's why we made that exception, and as soon as those contracts are finished, INA will be obliged to transfer all of the rest of that gas to HEP," explained Filipovic.

He noted that distributors who have experienced losses will be able to buy their gas from HEP, adding that both INA and MOL have taken a huge hit to their reputations owing to the recently exposed affair.

The Croatian Government offered teachers higher wages, but the Croatian Teachers' Union rejected their proposal for the second time

The Grand Council of the Croatian Teachers' Union unanimously rejected the Croatian Government's latest offer on wage increases which came to light on October the 18th. The new offer was deemed unacceptable because it wasn't even aimed at securing a greater increase in the base rate compared to their previous offer, but only at a different dynamic of the payment of the previously proposed increase in the base rate, the Croatian Teachers' Union announced when explaining the reasons behind their rejection.

"Increasing the amount we get for Christmas bonuses, holiday allowance and other such things can't compensate for the growth of the base rate or solve the issue of the salary lag either this year or next year. Therefore, the new offer was rejected,'' they stated.

The government initially offered the unions an increase in the salary base rate by four percent from October the 1st and two percent from April the 1st next year, but the unions refused to accept it. At the second meeting, they received a new offer, which was also binned.

Public service unions have been asking for an 8 percent increase in the base starting on October the 1st this year and another 5 percent starting on January the 1st, 2023.

Russian media discuss Croatian President Zoran Milanovic, claiming he has "admitted that NATO is partaking in the war in Ukraine" in his rejection of the idea of Croatia training Ukrainian soldiers

Recently, Milanovic stated that he isn't familiar with the idea of ​​European foreign ministers to train 15,000 Ukrainian soldiers here in Europe, but that upon hearing of it, he "doesn't support it".

"I don't support that idea because I don't support involving Croatia in this war more than it should be. It's bringing the war to Croatia. We stand in solidarity [with Ukraine] and that's as far as it should go," he said.

The Russian media were of course quick to twist Milanovic's statement and beliefs and have written extensively about how Croatian President Zoran Milanovic apparently ''opposes the training of militants". The Russian state news agency, TASS, reported his statements, and the RIA Novosti agency added that Milanovic had previously "emphasised that Russia and Croatia have become enemy states and had expressed concern about this fact." Russian Interfax writes that, according to the media, the Croatian Government had offered EU training for Ukrainian soldiers.

Regnum writes that Milanovic opposes the "training of Kyiv militants in Croatia" and that he doesn't support "any excessive interference in conflicts on the territory of the former Soviet Socialist Republic of Ukraine." Regnum also claimed that former Croatian football player and national team member Tomislav Dujmovic said around one week ago that Milanovic was ''on Russia's side'' and that he is ''observing the Russian-Ukrainian conflict more objectively than Prime Minister Andrej Plenkovic is''.

Milanovic opposed the training of Ukrainian soldiers, but also the sending of weapons to Ukraine because of the danger that the Croatian Army itself would run out of weapons, MKRU writes. Milanovic would agree to send weapons to Ukraine if Croatia is compensated, they added, before the Iz.ru made the strange statement that ''Milanovic has confirmed that NATO is participating in this conflict.''

Milanovic's statements were also reported by Kommersant, which focused instead on the statement that the training of Ukrainian soldiers would represent Croatia's interference in the war in Ukraine. Ruska Gazeta wrote that, in addition to Zoran Milanovic, the Hungarian Minister of Foreign Affairs Peter Szijjarto also rejected the idea of Europe training Ukrainian fighters.

Transport Minister Oleg Butkovic claims that "Croatia is much more successful in comparison to some other EU member states''

On a recent episode of the radio show ''And now for the government/A sada Vlada", the Minister of Maritime Affairs, Transport and Infrastructure Oleg Butkovic said that the Croatian Government has successfully dealt with some major challenges over the last six years, adding that they expect the growth of the Croatian economy in 2023, as in the last year, to be higher than the EU average.

On Tuesday, Prime Minister Andrej Plenkovic submitted the annual report on his government's work to the Parliament, which outlined economic growth of around 6 percent and the continuation of aid measures towards both people and companies throughout these challenging and in some cases truly unprecedented times.

"A very challenging year is now behind us, last year we achieved the third highest growth in the entire European Union and due to growth of 10.2 percent, we brought two packages into force with a total value of 26 billion kuna. In order get through this energy crisis as best as possible, the government also undertook a lot. Peljesac Bridge was finally completed and put into function, and on January the 1st, 2023, we'll finally enter the Eurozone and Schengen," Oleg Butkovic said during his time on the aforementioned radio programme.

He added that these are major developments, noting that they have at their disposal a package of 25 billion euros from the National Resilience Programme and a new financial envelope.

"We're ensuring not only reforms but the continuation of investments, and this opens up possibilities for this country's economic growth to be above the EU average in 2023 as well. The situation is good," stated the minister.

"Compared to other EU countries, Croatia has been much more successful," he believes.

The topic of the construction of the Blato hospital has reared its head once again, with the Health Ministry claiming that works will begin in two years

The construction of the National Children's Hospital in Blato (Zagreb) should begin in 2024, and in the coming weeks the call for tenders for the preparation of the conceptual design will begin, the Ministry of Health announced, emphasising that it will be the first hospital in the City of Zagreb to be located south of the Sava River.

This greenfield project worth around 300 million euros will be financed from the National Plan for Recovery and Resilience and other forms of European Union (EU) funding. The new children's hospital will span an area of ​​100,000 square metres in total, and construction is planned in two phases. About 50 thousand square metres of gross area will be built in each phase.

As far as land agreements with the City of Zagreb go, in the implementation of this strategic project, the Ministry of Health and the City of Zagreb are continuously holding working meetings in order to realise the transfer of city land in Blato through partnership cooperation, with the condition of the final and complete construction of the hospital. At the last working meeting in the Ministry of Health with the City of Zagreb, property and legal issues that need to be resolved were discussed.

Given that this will be the very first Zagreb hospital to be situated south of the Sava, he realisation of the Blato hospital project represents a significant contribution to global efforts to reduce greenhouse gas emissions, as all of its energy would come from renewable sources. It will also represent a big step forward in the territorial availability of healthcare services not only for the residents of the Croatian capital but also for everyone coming to Zagreb for treatment, especially from the south of the country.

''Although it seems that the road to the new Blato hospital will be a very long one, we mustn't lose sight of the fact that the idea and desire to embark on this demanding project took even longer. Despite the two-year battle with the global coronavirus pandemic and all of the other challenges that have since come to pass, the government and the Ministry of Health are taking the proper steps in order to successfully realise this strategic project for the healthcare system, which will provide the highest quality healthcare for children in Zagreb and all of Croatia,'' the Ministry of Health stated.

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

August the 19th, 2022 - The Republic of Croatia plans to position itself as one of the leaders on the new energy map of the European Union (EU), and this will be made possible by the National Energy Efficiency Action Plan for the period from 2022 to 2024 and the decision on the expansion of the LNG terminal on the island of Krk, which the Government made at a recently held session.

As Poslovni Dnevnik/Darko Bicak writes, to speak more specifically, the move regards the decision to build the Zlobin - Bosiljevo gas pipeline and increase the capacity of the LNG terminal on the island of Krk to 6.1 billion cubic metres of gas per year, with the total value of the investment reaching 180 million euros.

European Union money

As pointed out by the Minister of Economy and Sustainable Development Davor Filipovic, this is a strategic decision because it doubles the capacity of the LNG terminal on the island of Krk, and the construction of a new gas pipeline is underway.

"We're doing this in order to strengthen the security of gas supply across Croatia, as well as to position ourselves as a leade when talking about energy in this part of Europe. The total value of the investment stands at 180 million euros, of which 25 million euros will be invested in the expansion of LNG terminal's capacity, and 155 million euros in the expansion of the gas pipeline network," said Filipovic.

He added that European Union money will be used as much as possible in order to finance the investment, with the support of course from the state budget. Prime Minister Andrej Plenkovic also pointed out that this is a strategic and important decision for energy security and for the supply of gas to Croatia, apostrophising the importance of Plinacro's role, as well as the use of measures from the REPowerEU plan.

He assessed that Croatia is grafually becoming a regional energy hub when it comes to the high-quality use of terminals for liquefied natural gas. As an interesting fact, he singled out Germany, which doesn't yet have an LNG terminal of its own, and two such terminals, which should be built by 2024, will together have a capacity of 13 billion cubic metres of gas per year.

As Plenkovic himself stated, this means that one of Croatia's terminals is practically half of the capacity of Germany. The national energy efficiency action plan is extremely important in the context of the response to the current energy crisis and European efforts to reduce dependence on Russian gas following sanctions placed against the country for the invasion of Ukraine.

As explained by Minister Filipovic, in the period from 2014 to 2020, a decline in primary energy consumption was observed across the Republic of Croatia, as was a constant increase in final energy consumption. Such a trend was explained by the penetration of renewable energy sources and the improvement of the efficiency of production facilities in the production/transformation sector of energy, while in terms of immediate consumption, the effect of the implementation of energy efficiency measures could not neutralise the effect of economic trends and the increase in general consumption.

Back in pandemic-dominated 2020, Croatia achieved 18.7 percent lower primary energy consumption (364.6 PJ), i.e. 7.5 percent lower immediate energy consumption (269.5 PJ) compared to the target.

"The backbone of this plan is the provision of financial incentives for the energy renovation of buildings, especially residential ones, both from European Union sources and from the Environmental Protection and Energy Efficiency Fund," said Filipovic.

This plan will also be co-financed and implemented by European Union funds as well as the funds from various financial institutions. In addition to measures aimed at individual sectors and segments of energy consumption, the plan foresees the continuation of implementation of supporting measures, such as energy efficiency planning obligations at the local and regional level, energy audits, not to mention the energy certification of buildings and the proper promotion of energy services.

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

ZAGREB, 18 July 2022 - Economy Minister Davor Filipović said on Monday that for the next fortnight the price of petrol would be HRK 13.02 per litre, down from HRK 13.50, while the price of diesel would go up from HRK 13.08 to HRK 13.43.

Also, fuel prices on motorways and elsewhere will be equated and the government will extend the price cap on blue-dyed diesel to HRK 9.45 per litre for another two weeks, he told the press after a government conference call.

The retail margin stays HRK 0.65 per litre of petrol and diesel, as do excises of HRK 0.80 on petrol and HRK 0.40 on diesel.

"Without these government moves, the price of diesel would have been HRK 15.70 and the price of petrol HRK 14.92," the minister said.

(€1 = HRK 7.5)

For more, check out our politics section.

ZAGREB, 4 July 2022 - Economy Minister Davor Filipović said on Monday that the wholesale price of fuel would be restricted for the next two weeks so that major oil market stakeholders, including Ina, would bear the brunt compared to small companies, which had done well in previous years.

He underscored that the government aimed to protect citizens and help the economy, so fuel prices at off-motorway filling stations would be the same as in the past two weeks, namely HRK 13.08 for diesel and HRK 13.50 for Eurosuper 95 petrol. He added that fuel prices at motorway filling stations would be reduced to HRK 13.83 for petrol and HRK 14.28 for diesel.

Filipović said that under the latest government decision, the wholesale price would be limited for the next two weeks so that the most significant stakeholders in the oil market could bear most of the burden compared to small distributors.

"We have been continually communicating with retailers. In the past two weeks Ina did not increase its wholesale price, and small distributors on the most part sold their own stocks. Therefore, we can say that in the past two weeks they did not earn as much as they had planned," said Filipović, adding that in the next two weeks, INA would take on most of the burden and would not increase its prices for retailers to make it easier for them to operate.

He said that there were 40 small oil distributors and that in 2021 they generated total sales revenue of almost HRK 3.5 billion, and a profit of HRK 133 million. They operated equally successfully in 2020, the minister said. All of that should be taken into account and it is necessary to take a look at the bigger picture because we are in a delicate situation, Filipović said, adding that without the government's intervention, the price of diesel would be more than HRK 16.

Asked what the Prime Minister referred to when he mentioned tax scissors for profiteers, Filipović said that the government was considering all options and monitoring the situation and would act in the interest of citizens and the economy when it assessed it to be appropriate.

When asked if small distributors were unjustly complaining, he underscored that the aim was to limit wholesale prices. The situation is difficult for everyone, small distributors are not accustomed to it because their business has been successful in the past, he said.

"These past two weeks and the next two weeks will certainly not be easy for them, but I believe that we will all successfully overcome this situation together," the minister emphasized.

For more, check out our politics section.

July the 4th, 2022 - Unless the government once again steps in quickly with some measures to mitigate the harsh blow to the pockets of this country's drivers as inflation drags on, Croatian fuel prices are set to shoot up yet again this week.

As Poslovni Dnevnik writes, according to unofficial information from HRT, eurosuper could cost around 16 kuna, and eurodiesel more than 16 and a half kuna unless the government intervenes this week. The Economy Minister recently said that the decision will be made after the weekend, and the Prime Minister announced a session of talks within the government on the subject for Monday.

Eurodiesel on Croatian motorways currently costs 14.57 kuna per litre, and Eurosuper 95 costs 14.06 kuna. A litre of basic Eurodiesel costs 13.08 kuna at fuel stations that are not on the motorways.

Prime Minister Andrej Plenkovic has also announced the possible introduction of fuel vouchers if the situation fails to calm down.

"The introduction of fuel vouchers is possible this autumn, we're leaving that possibility open, but the government still has other tools at its disposal," Plenkovic said. "As for the vouchers, they'll go to those with lower incomes, and this is something that we have to do qualitatively and according to certain criteria," he added.

The head of the distributors' association: We're going to close the pumps on Tuesday if the government doesn't do something.

Armando Miljavac, the head of the Association of Small Oil Derivatives Dealers, says that on Tuesday, he will close the country's fuel stations if the government doesn't step in and do something. The association brings together more than sixty small dealers who manage about a hundred fuel stations throughout Croatia. "I don't know what to tell you. We're not very happy with this, these decisions should have been made already but here we are, we're still faced with uncertainty,'' said Miljavac for Index.

"If there is no decision on Tuesday that is acceptable for normal operations and the continuation of operations, we've decided to close the fuel stations. We've been trying to cope with this for eight months, we've exhausted all our reserves, the price differences have broken down...", continued Miljavac, adding that he wonders what will happen in autumn and states that things aren't looking good.

Economy Minister Davor Filipovic, We're considering all measures, there'll be a decision made today.

Minister Filipovic also commented on whether or not the government is preparing new measures ahead of Tuesday to try to tackle rising Croatian fuel prices, given the fact that further price hikes are expected. In an interview with Media Servis, Filipovic stated that there are still options when it comes to excise duties.

"We're considering all possible measures, so all options are on the table at the moment. We still have a few options when we talk about excise duties. We'll make a decision that will be beneficial, which will be satisfactory at this moment, but only when we see what the prices are going to actually be in the end,'' he explained, adding that decisions will be made today.

Fuel vouchers were announced as a longer-term measure to help the socially disadvantaged.

"This situation is so volatile that we can't predict what will happen in the next two weeks. Maybe in the next two weeks we'll have to react differently, not to talk about what the situation is going to be like come autumn. Vouchers are in the plan and they're scheduled to start sometime in autumn, but I'll talk more about the details when the time comes," said Filipovic.

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

ZAGREB, 30 June 2022 - The Croatian government on Thursday adopted schemes under which the HAMAG-BiICRO agency will approve loans for the green and digital transition from the funds of the National Recovery and Resilience Plan (NRRP).

The scheme called "investment loans from the funds of the National Recovery and Resilience Plan" refers to giving the green light for loans provided by the HAMAG-BICRO agency for small and medium-sized enterprises for the green and digital transition, Economy Minister Davor Filipović informed the government on Thursday.

The upper limit of a loan under this scheme is €100,000 at an interest rate of 0.8%, a grace period of up to 12 months and a maximum repayment period of 10 years.

The government also adopted a programme for subsidising the interest rate with funds from the NRRP.

This scheme aims to boost the resilience and competitiveness of SMEs, and the interest rate could be subsidised up to 50%.

Loans with at least five years of repayment are entitled to this facility.

The two schemes go into effect on the day of their adoption and are in place until the absorption of all the available funds for this purpose or until 30 June 2026 at the latest.

Prime Minister Andrej Plenković described these schemes as a strong encouragement to the Croatian economy.

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June the 9th, 2022 - Economy Minister Davor Filipovic was a recent guest on the 'A sada Vlada/and Now for the Government' radio show, where he discussed the situation with ongoing inflation and plans to try to mitigate the pressure on both people and the economy.

As Poslovni Dnevnik writes, new measures have come into force over the last few days, which should work to further stabilise the spiralling growth of fuel prices. Still, the question arises as to what can be expected in the weeks ahead, which Davor Filipovic touched on:

“We can know what will happen in the next two weeks. What will happen after that... I think, at least in these conditions of uncertainty, is impossible to predict. On Monday, we made decisions to reduce excise duties and trade margins. We've extended the period in which we calculate the prices of oil and oil derivatives, and this decree will remain force for the next thirty days,'' said the Minister, explaining the decisions recently made by the Croatian Government.

He added that it's yet to be seen what the situation will be on like on global oil markets, and that prices will be further formed accordingly.

"We went for a two-week interval to benefit our people and the economy. The price of fuel is now lower than it was for one entire week. If the prices of fuel on global markets do go down, then they'll go down in this country as well,'' Davor Filipovic pointed out, believing that, when all the circumstances are taken into account, people can be satisfied with what's been done so far.

"There will be no fuel shortages"

Speaking about the maneuver space of the Government, the Minister noted that there is space left in relation to excise duties, and that when it comes to petrol, it is about 36.37 lipa per litre at this moment in time.

"When we talk about diesel, then the space is a bit smaller, by about 16 or 17 lipa. In these extraordinary circumstances, all the options are on the table, we're analysing and monitoring what is happening on the market, so that we can respond adequately. We're going to do everything in our power to be shoulder to shoulder with people and with the economy," he said.

He also answered the question of whether there may be a shortage of fuel in Croatia:

“Our stocks are in accordance with the law, ninety days for oil and petroleum products. I dare say there will be no shortage. The reaction of distributors comes primarily because we've reduced the trade margin. For many years, they were delimited, and I'm of the opinion that in crisis situations, everyone must bear their part of the responsibility, including oil companies and distributors. Their reaction is such 'because we've cut their salaries' more than it being about a real danger of shortages,'' Davor Filipovic points out.

Asked whether additional aid packages will be provided for the most vulnerable among us, such as farmers and fishermen who are in a difficult situation due to the high price of blue diesel, the minister said:

"Since April the 1st, 2022, the Croatian Government has responded with a large package of measures amounting to five billion kuna. Were it not for the intervention of the Government, there would have been a larger increase in the price of electricity, and the same would've been true for gas. We're going to be monitoring the situation and making adequate and timely decisions, as we've done so far.''

"The plan is to double the capacity of LNG Terminal on Krk"

Minister Davor Filipovic also referred to the issue of Janaf and distribution, as well as the issue of LNG Terminal on the island of Krk.

"This new situation puts the Republic of Croatia in a position to become an energy hub and an important player when it comes to energy in this part of Europe. Janaf is in a situation where, with the existing capacities, we can satisfy, for example, all the needs of neighbouring Hungary. Janaf's capacity is 11.4 million tonnes, and Hungary needs 8.1 million.

Without any investment, we can supply oil to Hungary. With certain investments, Janaf can double those capacities. From that aspect, we're in a very good position. When we talk about the LNG Terminal on Krk, there is no European official, when I go to Brussels or somewhere else, who doesn't draw attention to the importance of it. It was a wise move by the government. The plan is to double the capacity of Krk's LNG Terminal to 6.1 billion cubic metres. In order to ensure the supply of Croatia, but also in order to be able to supply Slovenia. We're thinking about supplying gas to Bosnia and Herzegovina as well in the foreseeable future,'' he pointed out, adding that the whole situation makes Croatia a serious player on the new energy map of Europe.

A new package of sanctions against Russia is ready, and it regards a total ban on Russian oil imports. What is the situation here in Croatia?

"When it comes to oil, it's already being imported from other sources. Russian oil doesn't come to Croatia through Janaf. The focus is on the security of the energy supply in Croatia. Our underground gas storage will be replenished by November the 1st, 2022, to 90 percent capacity. HEP has been granted a state guarantee that it can take out a loan of 400 million euros, so that our hospitals and maternity hospitals can function smoothly,'' Filipovic assured.

Prices are rising day by day, and if this inflationary pressure continues, it will be harder and harder for the average person to get by.

"Inflation isn't only a problem being faced by Croatia but by the whole world. Prices are going up and everything should be done to mitigate these inflationary shocks on the economy,'' he pointed out, adding that they are looking for a way to help. He noted that it's true that the whole situation is slowing down growth projections, but that none of the world's experts believe that there will be a global recession.

"There will be cases where some countries will find themselves in such a situation, but not the global economy as a whole," he said.

Croatia's 2023 accession to the Eurozone will be extremely helpful

"Entry will make it easier for the country in any case, especially when it comes to crisis situations. There are going to be many advantages at our disposal when we enter the Eurozone. Currency risks will disappear, and conversion costs will also become a thing of the past. Numerous exporters welcome the decision, and tourists will benefit more. There will also be an increase in the country's credit rating, as announced by certain agencies,'' claimed Davor Filipovic, adding that the costs of introducing the euro in Croatia are minimal when compared to the longterm benefits.

"Very soon, we'll have a tender of two billion kuna, which will be aimed at micro, small and medium-sized enterprises. In order to use the money to increase competitiveness, to digitise processes, to use everything that can be used in the direction of the green transition," he said.

As for cutting parafiscal levies, Minister Davor Filipovic says they have already begun the process.

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