ZAGREB, 30 June, 2021 - The imminent visa waiver for Croatian citizens and the advanced negotiations on double taxation avoidance, are a good basis to strengthen trade and investments between the USA and Croatia, it was said on Wednesday at a conference on  doing business in the U.S. market. 

The hybrid conference was organised by the Croatian Employers' Association (HUP) in cooperation with the US Embassy in Croatia and two consulting companies -- the Armatus Prudentia and Trans-Atlantic Market Development -- which are engaged in helping Croatian businesses to come out on the US market.

The US Embassy's charge d'affaires, Mark Fleming, said that the US continued to be the best place for doing business in the world. With a market of 325 million consumers it is the most attractive and strongest consumer market in the world and it can help companies to build global success.

Fleming underscored Croatia's progress towards the aim of having the U.S. visa waiver program being applied on its citizens as well as the advanced negotiations on concluding a double taxation avoidance agreement.

It's time to strengthen bilateral trade and investments, the diplomat said and added that he expects more Croatian companies to explore the possibilities of doing business on the American market in the years to come.

He said that some Croatian companies were already doing business on the US market such as Infobip, Five, Infinum, HS Produkt, Šestan Busch, Dok-Ing and others.

HUP president Mihael Furjan thanked former US ambassador Robert Kohorst because huge steps were achieved during his ambassadorial term and as a result a double taxation avoidance deal should be signed soon.

Croatia mostly exports medicine and handguns to USA

Furjan said that Croatia's exports to the US were relatively low, and mostly involved medicine and handguns, however, there were at least 50 IT companies doing serious business in the USA.

"If you wish to come out on the global market to develop business then the most important step is entering the US market...if you succeed there you will succeed anywhere," said Furjan, underscoring the importance of competitiveness, cost efficiency and good ideas aimed at attracting consumers.

There are huge American investments in Croatia which are not that evident because many are coming via the Netherlands due to efforts to avoid double taxation, he said.

Businessman: easier to do business in USA than most European countries

Emir Avdić of the Trans-Atlantic Market Development company confirmed that the most popular pistol in the US is the one produced by HS Produkt in Croatia.

Avdić claimed that it is easier to do business in the US than most European countries. The US is known for its minimal red tape and it is quite easy and cheap to launch a business there, he added.

He cited low import tariffs compared with other markets, access to global supply chains which could facilitate accessing other markets like Canada and Mexico as advantages..

Mauro Lukić from the Croatian, Armatus Prudentia consulting firm said that the conference has motivated Croatian businesses to internationalise their business.

The wish is to strengthen economic relations with the USA, said Lukić, expressing hope that this will add a new rhythm and impact a gradual growth of Croatia's economy.

 For more about politics in Croatia, follow TCN's dedicated page.

June 30, 2021 - In 2019, an agreement was reached on the start of the Croatia-Slovakia scientific cooperation. The June 18 conference held at the University of Zadar presented the current progress in that agreement.

Along with countries such as Serbia, Slovenia, and Northern Macedonia, Croatia is a south Slavic country. The former Socialistic Federation of Yugoslavia got its name because of southern Slavs, a branch of Slavs, ethnolinguistic groups that arrived in Europe along with many other groups in what history remembers as the „Migration Period“, when Europe was dominated by the Western Roman Empire.

Other Slavic countries include Russia, Poland, Bulgaria (also south-slave, but not part of Yugoslavia), Czech Republic, Ukraine, Belarus, and also West Slavic country, Slovakia.

Sharing ethical and cultural heritage and diplomatic relations (formed on March 1, 1993), saw the intellectual cooperation with Slovakia raised on a high level and produced so much material, it required an entire scientific conference.

As reported by Ivo Pilar Social Research website, June 18 saw Zadar University host a conference „Intellectual relations of Croatia and Slovakia“, prepared by Slovakian-Croatian Board for Humanistic Sciences lead b professor Martin Homza from Comenius University in Bratislava and Ivo pilar Social Research Institute headmaster dr. Željko Holjevac.

The conference was supposed to be held last year but was canceled due to coronavirus, and the 2021 edition was managed in a hybrid model of the event, mixing live and online ways for participants to meet. Twelve Slovakian and Croatian scientists reported on the theme, and key Slovakian and Croatian players on the subjects of education attended and made speeches at the opening ceremony. This includes professor Zvjezdan Penezić, Zadar University's vice-chancellor. Peter Susko, Slovakian Ambassador in Croatia, Marián Zouhar, dean of the Bratislava's Faculty of Humanities and Social Sciences, Staša Skenžić from Croatian Ministry of Science and Education, as well as Martina Klofáčova from the Slovakian Ministry of Science and Education.

„Slovakian-Croatian Board for Humanity Sciences is active since 2019 as part of the program of collaboration between two ministries for science and education with the goal of developing bilateral scientific and educating activities in the field of history, linguistics, Latinism, art history, ethnology, and archaeology“, informed Ivo Pilar Social Research Institute about the program goals.

Is there a Croatian diaspora in Slovakia? Yes. You can learn more about the Croatian diaspora on our TC page.

For more about science in Croatia, follow TCN's dedicated page.

ZAGREB, 29 June, 2021 - Croatia can be satisfied with the agreement on key issues from the Common Agricultural Policy (CAP) reform package because it takes into account its most important demands, Agriculture Minister Marija Vučković said in Luxembourg on Tuesday.

At a two-day meeting in Luxembourg, EU agriculture and fisheries ministers on Monday confirmed the agreement on the reform of the CAP, reached with the European Parliament last week.

Vučković said Croatia was glad its most important demands had been taken into account, concerning the treatment of areas with natural constraints, animal welfare and certain exemptions and flexibility regarding small farmers.

The new CAP rules, to be in force from 2023 to the end of 2027, oblige member states to respect the social and labour rights of agricultural workers, encourage farmers to apply greener farming practices, envisage incentives for smaller farms and young farmers and advocate making financial support to farms more conditional on their results and performance.

Now that political agreement has been reached on the new CAP, the path is clear for both legislative institutions, the Council and the Parliament, to formally vote the new rules in.

The ministers also reached agreement on a control regulation that refers to fisheries.

Vučković said that monitoring and control in the fisheries sector were very important and that Croatia had made significant progress in recent years, notably regarding the application of innovations and new technologies in control and monitoring.

She commended the Croatian fisheries sector for undergoing a very important and difficult transformation, underlining the need to preserve the country's fishing resources, fishing fleet, small fishermen and their traditional way of life.

Vučković also called at the Luxembourg meeting for the continuation of support to wine makers, beekeepers and fruit and vegetable farmers.

For more about politics in Croatia, follow TCN's dedicated page.

June 23, 2021 - The ninth article in the series, "Friends of Croatia: Croatian Protocol Guide", brings you more details from the Protocol guide for diplomatic missions accredited to the Republic of Croatia issued by the Ministry of Foreign and European Affairs to ease the arrival of the foreign diplomatic representatives to Croatia.

With diplomatic immunity already being mentioned in this series, we saw that the Croatian Ministry of Foreign and European Affairs (MVEP) following the terms of the 1961 Vienna Convention on Diplomatic Relations, dedicated a special part to diplomatic immunity in its Protocol guide for diplomatic missions accredited to the Republic of Croatia. This guide is another confirmation of how MVEP, as it previously explained to TCN, finds diplomatic relations very important, particularly representing the interests of Croatian companies and the Croatian economy, which back in March was evident in a successful agreements FM Gordan Grlić Radman achieved for Croatian entrepreneurs on the Egyptian market.

„In a constant effort to provide, in a timely fashion, quality support to diplomatic missions, diplomats, and other members of missions, the Diplomatic Protocol is happy to present a brief guide for diplomatic missions with useful guidelines concerning ceremonies and visits, and privileges and immunities. The guide is meant for information purposes only, and we hope it will help diplomatic missions and their members enjoy successful terms in office in Croatia“, says the opening of the Protocol guide. Guide also points out how „The Diplomatic Protocol of the Ministry of Foreign and European Affairs is the principal address for diplomatic missions accredited to Croatia“.

Apart from previously mentioned diplomatic immunity, the guide also explains the details of welcoming new diplomats as well as the procedure of escorting the diplomats on their departure from Croatia.

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Ground/air arrivals

So, when the Ambassador arrives in Croatia, the Diplomatic Protocol, Ceremonies, and Visits Department informs the competent authorities. What is interesting is that the rules in the protocol differ in practice pending how Ambassador comes to the country.

„If the Ambassador arrives by a road border crossing, then the head of the Ceremonies and Visits Department will schedule the earliest convenient date for a visit to the newly appointed Ambassador at the official residence or the Embassy of the sending state“, explains the guide.

The other option is by airplane.

„When the newly appointed Ambassador enters the state territory of the Republic of Croatia for the first time at a border crossing at the Zagreb International Airport, his/her VIP treatment will have been arranged and, during office hours, he/she will be greeted by the head or a representative of the Ceremonies and Visits Department“, says the guide.

The Embassy also sends a diplomatic note to the Diplomatic Protocol to arrange details and date regarding the presentation of credentials to the President of the Republic of Croatia and of copies of the credentials to the Head of the Diplomatic Protocol of the Ministry of Foreign and European Affairs of the Republic of Croatia. This is important as it confirms the Ambassador is not just a visitor but a legitimate representer of his/her country and appointed by the authorities of the country that enjoys bilateral relations with Croatia. And proper goodbyes at the end of the Ambassador term are in order as well.

„When an Ambassador is to depart from the Republic of Croatia, his/her Embassy will send a note to the Diplomatic Protocol advising of the date and time of his/her departure. The Ceremonies and Visits Department then notifies the competent authorities of the time and place of his/her departure from the state territory of the Republic of Croatia. VIP treatment at Zagreb International Airport will be arranged“, explains the guide.

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Friendly and safely

As foreign ministers frequently travel to other countries, embassies have a key role in making those visits.

„An Embassy in the Republic of Croatia notifies the Diplomatic Protocol in a diplomatic note of the visit of a Minister of Foreign Affairs to the Republic of Croatia. All further details concerning the visit are conveyed to the Diplomatic Protocol in a diplomatic note. In the case of an official or working visit, the Ceremonies and Visits Department is responsible for the logistic support. The Ceremonies and Visits Department will in further communication with the Embassy in the Republic of Croatia arrange the details of the organization of the meetings requested. This includes accommodation in the previously agreed format, transport, protocol and security. At the proposal of the Ceremonies and Visits Department, or at the request of the Embassy, free time will be organized as well. If the proposal is accepted, the Ministry of Foreign and European Affairs will cover the expenses of the proposed part of the program“, explains the guide.

There is even an interesting prescription regarding the safety of politicians visiting the country. As the guide points out, the arrival of a protected person, delegation and security staff needs to be announced at least 48 hours prior to entering the territory of the Republic of Croatia. Pending on the rating of the protected person varies the allotment of firepower allowed to be carried in Croatia by the security staff. Three pieces of firearms along with ammunition for the Head of State, 2 pieces of firearms for a Parliament Speaker or a Prime Minister, and one piece of a firearm for the Minister of Foreign Affairs or a Head of an International Organization and Institution. Of course, this norm can be changed pending „on the basis of the judgment of the security department in charge, or on the basis of reciprocity“.

„When announcing the arrival of a protected person, delegation and security staff, a detailed program of activities needs to be submitted“, informs the guide.

Info such as times of arrival in and departure from the Republic of Croatia, the border crossing to be used for entering and exiting the state territory of the Republic of Croatia, personal information including passport numbers of nationals of non-member states, ID numbers for citizens of EU Member States as well as brand, type and a serial number of firearms and quantity of ammunition that foreign security staff will be bringing into the Republic of Croatia must be provided in the program of activities.

It may sound a bit strict but easily manageable by professionals in a friendly bilateral relationship, allowing to conduct diplomatic relations without fuss. One such important recent visit to Croatia came from the US Department of Homeland Security Officials in Croatia regarding visa-free travel. No doubt, these established rules were vital for that visit as for many others to come in the future as Croatia continues to nourish diplomatic ties with its allies.

To read more from the series "Friends of Croatia", follow TCN's dedicated page.

For more about diplomacy in Croatia, follow TCN's dedicated page.

ZAGREB, 23 June, 2021 - Despite the considerable setback dealt by the pandemic, Croatia has a rare opportunity in the next five years to restore its economy to health and to ramp up the public investments necessary for appreciably higher growth rates with the help of EU funds, an IMF mission says in a Concluding Statement.

"Following a painful contraction of 8 percent in 2020, the economy looks set for growth between 5 and 6 percent in 2021 driven by a rebound in the services sector and investment - provided the pandemic does not provide further unwelcome surprises," the mission says the statement published on Wednesday after visiting Croatia as part of regular consultations with member states.

"With sufficient luck regarding tourism outcomes, and a successful vaccination drive within the next months, growth could even exceed 6 percent this year. Assuming the pandemic fades by the end of this year, growth could remain high over the next few years, if the country makes full and timely use of the potentially sizable forthcoming inflow of EU funds," according to the statement.

"Since the first quarter, the recovery has picked up noticeably with areas like construction and manufacturing already reaching activity levels higher than in 2019. Overall, the number of registered unemployed persons has fallen by nearly 13 percent since a year ago. However, tourism and directly related sectors are yet to fully recover. This process is likely to take another year or two."

Swift measures by the authorities

"Between the pandemic and two large earthquakes, Croatia has been severely tested, and the country’s resilience has come through. The economic contraction in 2020 - painful as it has been -was not as severe as those experienced by many other economies with a strong tourism component. This is mainly due to the swift measures enacted by the authorities," the IMF staff said.

"Support measures must remain in place until the health of the population and the economy have been fully restored. As conditions improve, support measures need to rotate toward preparing the workforce for the post-pandemic world, and facilitating balance sheet repair of viable businesses. Thereafter, the challenge of once again reducing deficits and the public debt whilst shifting growth into a new high gear must be taken on. The generous funding from the EU represents a historic opportunity, to help meet these challenges successfully - an opportunity that must be fully utilized, in a timely fashion," the IMF mission said.

Not the right time to further cut taxes

Noting the government's support measures, the mission said, "Just as these support measures were essential during the worst of the crisis, they must now be better targeted to lagging sectors of the economy - and they must remain in place till the economy has more fully recovered."

"It is paramount that a vaccination drive be as successful and widespread as possible, that extra healthcare costs are fully met and arrears in the healthcare system are reduced to the maximum possible extent," according to the statement.

"Complementing the use of funds such as the European Social Fund, fiscal resources saved this year due to improving conditions can also be usefully redeployed to train more workers in sectors like greening and digitalization."

"In sum, in the view of IMF staff, the most important fiscal goal in 2021 is to focus on spending available resources wisely to restore the economy to health. If this is successfully accomplished this year, it will more firmly ground the efforts to reduce the deficit and debt over the next few years," said staff said in the Concluding Statement.

"Regarding revenues, the authorities need to conserve all available resources to meet any unexpected expenditures into 2022, and well beyond. This is one clear lesson from this completely unforeseen shock the world has suffered. We hold that this is not the right time for any further tax cuts or weakening of the tax base. Current conditions are still far too fragile for the country to afford them," they said. 

Recovery and Resilience Fund provides unique opportunity for economic development

They said that there were few doubts that a post-pandemic "will be more digitalized in the most basic aspects of our lives, and that it should be greener. In these two areas, Croatia has great strides to take, from which there will be a sizable return on investment, for decades to come."

The IMF reiterated that "our most important recommendation was to raise public investment, for the sake of future growth. Now, that conviction has only deepened, as it is important to acknowledge a singular aspect in which Croatia is actually better off than it was before the pandemic."

That is "the generous allocation of EU Funds, including from the Recovery and Resilience Fund (RRF). The RRF resources amount to 10.6 percent of GDP in grants to be utilized by 2026."

"These funds reflect a truly unique opportunity along the path of economic development, which many countries in the world are not fortunate enough to have. It is important for all stakeholders in Croatia to fully understand the significance of this opportunity. These funds are available, but they need to be absorbed efficiently, and in a timely manner. They must also be accompanied by needed reforms," the IMF said.

"Thanks to the influx of these EU funds beginning towards the end of this year, Croatia can significantly upgrade its public capital stock, decarbonize its economy, catch up with digitalization, and improve its maritime and rail transport systems. If the projected investments go according to plan, we currently assess that the funds from the RRF alone could add as much as 2.9 percentage points to real GDP over the next twenty years."

Opportunity to reduce income gap in relation to EU

"When the effects of the planned reforms, as well as the other EU structural funds are put together, Croatia now has its best chance since independence to significantly narrow the current 35% gap in per capita income with respect to the EU average," the mission said.

It added that "the prospect of living in a vibrant society with prosperity rapidly converging to EU levels could cause the young to fundamentally re-evaluate their future, thereby further stemming the tide of outward migration. That, in turn, would have the positive effect of reducing risks to the sustainability of the healthcare and pensions systems. It is very much possible now, and unlike ever before, to start a virtuous cycle - and to definitively escape past vicious circles."

The authorities have requested a Public Investment Management Assessment from the IMF, to take place in August 2021, the statement noted. "This assessment will help prepare an action plan to help make sure investment spending is effective, is sensitive to climate change related considerations and supports sustainable long-term growth."

The authorities’ National Recovery and Resilience Plan "has laid out major complementary reform commitments across five components: green and digital economy, public administration and judiciary, education, science and research, labor market and social protection, and healthcare. These are essential for the flexibility Croatia needs to operate its economy smoothly, once inside the eurozone."

Reforms needed for stronger public finance

Within the reform areas where the strength of public finances is the focus, IMF staff re-emphasizes the importance of support, from all stakeholders, for civil service and administrative reforms, "including a modernization of the public salary system, as well as improving the territorial organization of sub-national governments."

Support is also called for ending "stop-gap measures to take care of healthcare arrears, through an overhaul of its cost structure" and "exploring a more sustainable revenue base, to preserve healthcare quality standards."

The IMF also recommends the development and implementation of a full-fledged strategy for state-owned enterprises (SOEs), "including the separation of core from non-core businesses, and a strengthened oversight system for the former to ensure that they contribute their fair share to the budget by remaining financially durable after their public service obligations are met. The authorities’ commitments to sell some non-core SOEs over the next few years is a promising start." 

Also recommended is ensuring the long-term sustainability of the pension system, given population aging.

In addition to these areas, constantly improving the competitiveness of the Croatian economy through active dialogue with the private sector, remains essential.

"For the forthcoming increase in public investment to have maximum effect on the economy’s growth rate, it must be complemented by increases in private investment, as well. Reforms to the framework of debt restructuring, insolvency, and efforts to further improve predictability and efficiency in legal procedures remain central to unlocking more resources from investors, as it allows them to invest with greater confidence."

Banking system liquid and sufficiently capitalized

"Monetary policy remains highly expansionary, within the exchange rate anchor in place since 1993. This stance is appropriate given the need to nurse the economy fully back to health," the IMF staff said.

The recent pick-up in inflation is more likely than not to be transitory in nature, but should inflationary pressures prove more persistent than in the euro area, the central bank "may consider reducing excess liquidity in the banking system, while maintaining exchange rate stability."

"The banking system has remained liquid and is on average well capitalized," the mission said, adding that there was more than enough money to meet the demand for corporate loans.

Housing lending remains strong, while uninsured household cash loans have decreased, which the IMF said was positive.

Although the ratio of non-performing loans to total loans has remained stable, the so-called stage II loans, a forward-looking indicator of future asset quality problems, has risen - particularly for non-financial corporations. This development warrants continued close monitoring."

"The pandemic has not affected the upward trend in house prices in Zagreb and coastal areas. To the extent that housing purchases are not driven by excessive household borrowing, they do not constitute an immediate financial stability risk," the IMF said.

However, this also requires continued monitoring by the central bank, If circumstances require it, the central bank "might wish to consider putting in place more formal macro-prudential measures (than the current implicit debt-service-to-income ratio included in the Foreclosure Act)."

"Despite the considerable setback dealt by the pandemic, Croatia has a rare opportunity, over the next five years, to restore its people and economy to health. It can ramp up the public investments necessary for appreciably higher growth rates, with the help of EU funds. Such opportunities should not be taken for granted. The onus of efforts is not exclusively on the authorities. All stakeholders in society must offer them the support for vital reforms, while doing their parts to re-energize private investment, and innovation. Adopting the euro will help remove some existing economic frictions by removing exchange rate risk. Yet, reaping the full benefits of the currency union requires strong focus and preparation. A brighter future is very much within reach. The time to act is now," according to the Concluding Statement.

For more about business in Croatia, follow TCN's dedicated page.

ZAGREB, 23 June, 2021 - Documents that were confiscated from the Dubrovnik State Archives and were found in the Salzburg Diocese Archives were handed over on Wednesday in the presence of Croatia's Minister of Culture and Media Nina Obuljen Koržinek and Croatia's Ambassador to Austria Danijel Glunčić.

The operation ended successfully with the return of Croatia's cultural heritage, Minister Obuljen Koržinek said, noting this isn't the first or last time this has been done.

Ambassador Glunčić underscored that the Salzburg Diocese had full understanding that the medieval documents could not be considered to be part of Austria's or Salzburg's history.

The documents involved are two pontifical documents which the diocese was immediately prepared to return to Croatia, and this was also approved by Austria's state authorities, he said, adding that the documents will be placed in Dubrovnik's Archives.

Police working on issues related to cultural heritage

Police Director Nikola Milina said that the police were working on cultural heritage issues, adding that they have had good results so far.

A soon as the information was released, the Croatian police contacted the police in Austria and the documents were quickly identified which led to them being returned, he said.

Digitalisation to facilitate return of other missing documents

Director of Dubrovnik State Archives Nikolina Pozniak is convinced that digitisation will contribute to other documents that have gone missing from the archives and other institutions to be returned.

The head of the archive's collection, Zoran Perović, explained that the documents returned today are two pontifical bulls dated 1189 and 1252. The first notes that the Pope is deploying Archbishop Bernard to Dubrovnik while the other bull refers to the appointment of an archbishop to be a judge in a dispute between the Bar and Dubrovnik Archdioceses.

For more about politics in Croatia, follow TCN's dedicated page.

ZAGREB, 22 June, 2021 - North Macedonia and Albania have met all the criteria to open EU accession negotiations as soon as possible and Kosovo deserves visa liberalisation, Croatia's Foreign and European Affairs Minister Gordan Grlić Radman said on Tuesday in Luxembourg.

"Albania and North Macedonia have met all the criteria and we believe that accession negotiations should be opened with them as soon as possible," said Grlić Radman upo arriving in Luxembourg for a General Affairs Council meeting.

The General Affairs Council is composed of foreign or European affairs ministers of the member states. They convened today to discuss preparations for an EU summit in Brussels on Thursday and Friday on migration, enlargement and the stabilisation and association process.  Furthermore, the Portuguese presidency will inform the EU ministers about the work of the Conference on the Future of Europe.

One of the more important topics to be debated within Article 7 is the rule of law in Hungary and Poland.

Accession intergovernmental conferences with Serbia and Montenegro will be held on the margins of today's meeting, but without opening or closing any policy chapters. So-called political intergovernmental conferences are a new approach in the accession process.

Agreement still has not been reached to open negotiations with North Macedonia due to objections by Bulgaria and no progress is expected before elections in Bulgaria scheduled for next month.

There are no blockades regarding Albania, however some countries do not wish to separate the issue of opening negotiations with Albania and North Macedonia.

Grlić Radman that Croatia supports the motion for liberalising the visa regime for Kosovo as soon as possible.

Croatia would like talks on candidate status for Bosnia and Herzegovina to be launched as soon as possible too, said Grlić Radman and once again underscored the need for the election law in that country to be changed so that it ensures the equality of all three constitutent peoples.

For more about politics in Croatia, follow TCN's dedicated page.

June 21, 2021 - An exciting new step for Croatian energy efficiency is happening at the Energy Institute Hrvoje Požar (EIHP), as the Institute makes significant changes to its building which will also help to educate other experts for energy efficiency.

As the Energy Institute Hrvoje Požar (EIHP) gave great support and input in REPLACE Project that brings energy efficiency to Rijeka and Kvarner region, just put a new log in Croatian energetic efficiency. The start of June saw the contract for granting non-returnable funds for founding nZEB- the National Training Center on Nearly Zero Energy Buildings, EIHP reported on its website. The project is financed from the „Energy and Climate Change“ Fund, part of the Financial Mechanisms 2014 – 2021 in Croatia, courtesy of the European Economic Area (EEA).

1,600,000 Euros is the total value of this project on which EIHP collaborates with the Faculty of Civil Engineering, University of Zagreb. The goal is to empower all the actors in reconstructing buildings to meet the nZEB standard.

With the center being established in the building of the Požar Institute undergoing reconstruction at the moment, it will be a vivid example of the modern technologies that are implemented in nZEB design.

„We will show and share with the widest professional community the solutions that will be developed through this project. The whole process of reconstruction will be followed and documented, and detailed, and serve as an example in the training program as the Institute becomes the first public building in Croatia reconstructed in such a manner. With the appliance of green energy technologies (electrification of heating and cooling systems with a crane that uses shallow geothermal source, integrated photo charged electric plant on the roof, energy containers, efficient lighting), we also wish to include E-mobility, which is certainly the future of traffic as well as accomplish complete digitalization of all technical systems the building is using. That way, the building will be the showcase example of the double transition – green and digital“; said the EIHP headmaster, Dražen Jakšić.

Jakšić attended the signing of the contract, along with the regional development Minister Nataša Tramišak, Norwegian Ambassador Haakon Blankenburg (as Norway also supports the Financial Mechanisms 2014 – 2021), Ministry secretary of economy and sustainable growth dr. Mario šiljeg, and the Faculty of Civil Engineering dean dr. Stjepan Lakušić.

„After this pandemic, we will not develop by repeating the things from before. A historical change is afoot, and we will meet it with green development and with new 'Green Deal'“, concluded Jakšić while Minister Tramišak also pointed out that securing financial mechanisms for advanced technologies and energy renewal.

Learn more about Croatian inventions & discoveries: from Tesla to Rimac on our TC page.

For more about science in Croatia, follow TCN's dedicated page.

June 17, 2021 -The eighth article in the series, "Friends of Croatia: Japanese Embassy", saw TCN reporter Ivor Kruljac sit down with Japanese Ambassador Misako Kaji and discuss all things regarding diplomatic relations between Japan and Croatia. Overall, Croatia and Japan are friendly countries with many shared values. With Croats and their expertise in improvisation and the excellent crisis response of the Japanese, the two countries can benefit greatly by learning from each other.

Croatia and Japan officially established diplomatic relations on March the 5th, 1993.

I was nervous while the taxi drove me to the Ambassador's residence. Japan is known for punctuality, and I worried whether or not I'd manage to make it on time as my cab was trying to break through Zagreb's midday rush. But in the end, I managed to arrive ahead of schedule. It was great that I wasn't late, but that's still clearly a very far cry from the punctuality of a country where a train conductor apologised when the train left the station 25 seconds ahead of schedule.

As I was rewinding the questions I had prepared in my head, I thought about greeting my interlocutor-to-be. Handshakes are a bit of a risky thing due to the coronavirus pandemic, but even if that annoying virus was somehow erased from existence, in Japanese culture, people would still greet each other by bowing. Do I need to bow, or does the Ambassador need to follow the Croatian culture of handshaking (or perhaps bumping fists in these pandemic-dominated times)?

Cultural Attache, Yutaro Nishida welcomed me to the premises, and at last, introduced me to the Japanese Ambassador Misako Kaji, who welcomed me with a smile, respect, and kindness. The debate on whether to bow or fist-bump was resolved by doing both, with both sides respecting and accepting each-others cultural background. For safety, I kept my mask on while the Ambassador removed hers so that her voice could be more clear as the interview was recorded. I moved my mask only occasionally to drink the amazing traditional green tea that was served during the interview, which was paired well with a warm and friendly atmosphere from the official representative of Japan in Croatia.

Misako Kaji graduated with a BA in the economy at the University of Tokyo, followed by an MA in philosophy, politics, and economy at no less than Oxford University. Inside the Japanese Ministry of Foreign Affairs, she served in the Japanese Embassies in the UK and Vietnam, but also in Japanese EU and UN missions. As an Ambassador and deputy of the main representative, Kaji also served in Japan's Delegation to international organisations in Geneva. In Japan, she was the deputy spokesperson for the Japanese Prime Minister and was a professor at the Tokyo and Hitotsubashi Universities. Ambassador Kaji also has quite some experience with the United Nations (UN). She was a special advisor of the high committee of the UN Refugee Agency (UNHCR) as well as a member of the UN Advisory Committee on Administrative and Budgetary Questions and a member of the advisory committee of the UN Peacebuilding Fund. She has represented Japan in Croatia since May 2019. Two years and twenty days, as she stated on the day of the interview that occurred last Friday.

Japanese culture is beloved in Croatia

''If you'd asked me a year ago, I would've said the Adriatic sea, the scenery, and the colour blue, all of these wonderful UNESCO heritage sites and nice people ready to help when you're travelling,'' started Ambassador Kaji, explaining what she had found most interesting and impressive in Croatia.

''But, after two years, I have something more to say, and what I like about Croatia is the 'Japan' I encounter in Croatia, and that is a very positive discovery. I didn't realise Japanese culture was so widely embodied in a variety of Croatian minds,'' noted ambassador Kaji.

The most recent instance was last week's handover ceremony of the Foreign Minister's Commendation to the Croatian Origami Society, which took place at the Ambassador's residence. Some of the members have been engaged with this artistic papercraft (taught in Japanese kindergarten) for over 20 years now.

''They are very much interested and dedicated without being imposed or forced to be, and its members included chemistry students, medical doctors, and even an 11-year-old boy. There were so many different categories of profession, and some even folded Origami while on probation, and that is where they'd encountered the art of origami,'' continued the Ambassador, fascinated with such love for one of the essentials of Japanese culture, keeping hold of plenty of works donated by participants of the ceremony.

The handover ceremony of the Foreign Minister's Commendation to the Croatian Origami Society, June 2021 © Japanese Embassy Croatia

She is also particularly delighted with Biograd na Moru, a Croatian city in the Zadar area that not only commemorates the Atom Bomb falling on Hiroshima and Nagasaki but also has a metal crane bird as a monument to this dreadful tragedy that occurred on August the 6th, 1945.

''There is a legend that cranes live for a thousand years, so they are often used as presents for somebody who has been met with disasters or illness. In Hiroshima, they have a thousand cranes (made in the origami technique) folded and presented for the wish of peace,'' explained the Ambassador. Such a ceremony was also seen in Biograd na Moru, initiated by mayor Ivan Knez with a large metal crane made to outlast paper for generations to come.

The Japanese martial art of Karate is also popular in Croatia with some quite good successes achieved by Croatian athletes. Last month, the European Karate Championships were held in Poreč, where Ambassador Kaji was invited and was again fascinated with the use of the Japanese language and overall traditions despite there not having been a single Japanese athlete present there.

With so much of Japanese culture being present here in Croatia, it's difficult to say what the most beloved aspect of Japanese culture is for the Croats.

Before the pandemic struck, Ambassador Kaji remembered the Japan Day event in Zagreb's popular Mimara Museum, which saw huge attendance and a presentation on Japanese food, sake (Japanese rice schnapps) degustation, Ikebana (flower art), a tea ceremony, bonsai (aesthetical horticultural shaping of small trees), martial arts such as Karate, Judo, Kendo, haiku poetry workshops, calligraphy, Igo chess and much more.

2019 was also a big year for a Japanese promotion with the 2020 Olympic Games, which saw Croatian athletes from the 1964 Olympics attend the promotion for 2020. Additionally, for Japan, as Ambassador Kaji pointed out, the Paralympic Games are an important measure for the general success of the Olympics, which was evident in the ParaBOX installation (where visitors were challenged to find a ball in complete darkness), and the presentation of the Japanese car company Toyota's car which is designed to be able to be driven by people with disabilities.

However, when it comes to younger people, particularly students of Japanology (which Croats can study at either Zagreb or Pula University), one cultural trend emerged.

''The Japanese language is very tricky to learn, so I asked one graduate student how she first encountered Japan and heard the language, and it was anime,'' Ambassador Kaji recalled. She added that the Japanese cartoon art of anime became pretty universal and is no longer limited only to Japan. (The same goes for Japanese comics such as manga, with both of these pieces of pop culture being incredibly diverse in genres and having something for everyone, covering all social groups and even not avoiding vivid graphic images of violence and/or sex).

''At the Foreign Ministry of Japan, we have an award from a world competition because of the promotion of manga, but without trying to focus or push deliberate energy into that promotion,'' stated Ambassador Kaji.

As Japanese pop culture, anime and manga are indeed very popular here in Croatia, which is visible at the Pandakon conference that is held annually at Zagreb's Močvara club. Fans often dress up as their favourite characters, and there are often rewards for the best cosplay.

However, there are also heated debates between fans and people in the manga/anime industry that also affect Croats. On the one hand, representatives of the anime and manga industry are unhappy with cosplay, viewing it as a copyright infringement and believing that fans should be paying for cosplaying these characters. On the other hand, fans say they are just trying to show love and appreciation for their work, and they are also promoting and attract new audiences. It's indeed true that someone might not know what is ''Deadman Wonderland'', but upon seeing a brilliantly crafted cosplay of Shiro, they may ask the cosplayer about the character and then watch anime or read manga.

Ambassador Kaji says the Japanese Government is aware of the problem.

''Earlier in January, the Minister for the "Cool Japan“ Strategy (with Cool Japan being a brand strategy, aiming to disseminate Japan's attractiveness and as a unique culture throughout the world), Shinji Inoue said that he was aware of an opinion among the cosplay community rising, and this could be a real legal problem. It was important to secure an environment in which people can enjoy cosplay at ease, without worrying about possibly breaching laws. So, the Minister declared that he would come up with ways to deal with it but has not yet specified what those ways will be,'' explained the Ambassador. 

Friendly Nations: sharing values, but trade could be better...

The cosplay question is one of the political issues in Japan, but when it comes to politics, what exactly is going on between Croatia and Japan?

''We're friendly countries; we share the same values. Unfortunately, you can't speak your own mind in every country, but Croatia and Japan belong to those countries where you're free to have as many children as you want, free to say what you like, free to travel where you want, free to choose your own vocation. In other words, we're both free countries that share the same values, democracy, human rights, and rule of law,'' said Ambassador Kaji, adding there are occasional disagreements, but that is normal and nothing to worry about.

The Emperor and Empress of Japan grant an audience to the Speaker of the Croatian Parliament Gordan Jandroković and Mrs Jandroković during their visit to Japan upon the invitation of Speaker Oshima of the Japanese House of Representatives, June 2019 © The Imperial Household Agency

Kaji also pointed out that Croatia is pretty prevalent in Japan thanks to its sporting heroes. ''Everybody knows who Modrić and Čilić are; Croats are disproportionately present in world sport,'' she said.

Ambassador Kaji also rates Croatian EU membership as a great advantage.

''Through the EU, you're very well represented. When Croatia held the European Council Presidency during the first half of 2020, one of the most important parts of Croatian foreign policy concerned the Western Balkans and you advocated the EU's perspective for them as we don't want to roll back into a conflict or the changing of the borders after such a great sacrifice,'' Ambassador Kaji stated, referring to the war back in the '90s.

An important instance of that is the Zagreb Declaration from June the 22nd, 2020.

''We're part of the group that supports the European idea, and through that, the Croatian idea, as we share the same values,'' confirmed the Ambassador.

She added that while it may seem far away, the issues of the Balkans are relevant to such ideas like the Free and Open Indo-Pacific, and advocating the peace and freedom of nagivation, for example, is required on both locations, and Japan sees Croatia as a partner in that regard.  

Ambassador Kaji also regularly contacts the Croatian Ministry of Foreign and European Affairs (MVEP), the Government, Parliament, the President's office, various cultural institutions, sports institutions such as the Croatian Judo Federation, the Croatian Karate Union, and the Croatian Olympic and Paralympic Committees, educational institutions, local government units and more. She also works on maintaining friendly ties with other ambassadors and diplomats in Croatia.

''My diplomatic colleagues know that only those who are blessed get to be stationed in Croatia,'' revealed Ambassador Kaji, not hiding her happiness for representing Japan in this Southeastern European country.

She is also particularly excited about going to Virovitica this week since she has never been. The visit is to attend the exhibition on Japanese pottery titled ''Yakishime: Earth Metamorphosis'' which is coming to Virovitica after already having been held in Vukovar and Pula.

Commenting on the most frequent contact she keeps in Croatia, she said that it's very hard to say, but statistically, maybe the Japanese Embassy communicates the most with MVEP. ''We're only two minutes away from the Ministry,'' said Ambassador Kaji.

Of course, not everything can be equally balanced and trade is unfortunately currently sitting on pretty low branches of the overall tree.

''When it comes to trade, we made up only 0.28% of Croatia's exports with tuna being a major portion - which is nice. In addition, when it comes to investments in Croatia, only 0.5% of all investments come from Japan. So there's room for improvement there,'' stated Ambassador Kaji with optimism.

Some of the instances of trading and business between the two countries can be seen in the Japan-based company Nipro taking over Piramida, a Croatian pharmaceutical packaging producer from Sesvete near the City of Zagreb last month.

A visit to Nipro PharmaPackaging Croatia, June 2021 © Japanese Embassy Croatia

Knowledge – the way forward while not forgetting culture or tradition

As mentioned, Japanese culture is widely popular and much loved among Croats, the Japanese love Croatian athletes, and the two countries share friendly relations. Both Croatia and Japan have their traditions and cultural heritage. With ever-present technological development, some people in Croatia do fear that progress will lead to Croats forgetting their traditions, ways, and cultural heritage. On the other hand, Japan has seen huge technological development evident in very fast internet, modern trains, robotics, and more. Yet, their tradition and culture remain well preserved. What's the secret, and how can technological advancement be balanced with keeping a focus on tradition?

As Ambassador Kaji explained, the gist is to ''keep your spirit, but introduce technology''. While the Ambassador believes that the path of economic development makes sense in the long term, it wasn't always so easy. In the past, economic development was accompanied by pollution, and Japanese people, apart from developing health issues, entered an atmosphere that wasn't very kind to their traditional ways. But things have improved since then.

''In the 21st century, people and governments are more focused on green technologies and digital technologies which can be friendly towards and resonate with keeping up with traditions. Like when drinking tea, you have a ceremony, but the leaves for the green tea need to be carefully nourished in a kind environment, so that isn't very compatible with mass production or polluted air. But when, for example, you use the wind to produce energy, that's a nice eco-friendly way that co-exists with traditional culture,'' explained Ambassador Kaji.

She added that this way of co-existing then becomes mutually supportive and crafted to be resilient and long-lasting. That being said, new technologies also need to be carefully crafted to keep an eye on traditions, and improvisation is troubling in that regard.

''If you show respect for tradition, and you use academic knowledge or research, then there must be a way of remaining aligned with tradition and pursuing technology to have them both be mutually supportive,'' concluded Ambassador Kaji, and her belief about Croatia's technological development is that it will not be fatal to Croatian tradition.

Speaking of tradition, traditions form habits that then become accepted in various societies. With the already mentioned Japanese love for punctuality and the general perception of the Japanese as organised people that like order and plans, the perception of Croats can be quite the opposite. Many see Croats as laid back and relaxed, not making a fuss if they are a bit late. However, Ambassador Kaji sees a different picture of the Croats from her experience, particularly when it comes to Croatian women.

''A cleaning lady from Slavonia that comes to clean my office every day just starts working and cleans meticulously. She doesn't leave one small thing out and she is very responsible. In Japan, you don't see so many women gardening, and here, the women that watch over my garden are very powerful and professional, and that is very impressive,'' she noted. The work ethic and responsibility are something she sees with all of the Croats working for her.

''When it comes to Japan, we plan for perfection, so the dark side of that characteristics is, for instance, being late with the vaccination rollout. There are all sorts of verifications that take place there, making sure everyone can get them, and yes, they're proven safe abroad, but we had our own evaluations done, and that was the main reason we've been criticised for being too slow. Here in Croatia, you're really good at improvising. We can learn from each other,'' Ambassador Kaji said, sharing her observations on the habits of Croats and people in Japan.

She added that one such thing where Croatia can learn from Japan is crisis response, particularly when it comes to earthquakes.

At the Civil Protection Headquarters for Dealing with the Aftermath of the Petrinja earthquake in December 2020, March 2021 © Japanese Embassy Croatia

Post-earthquake reconstruction by Japanese experts: Zagreb's buildings can keep their looks and also become safer

Japan is famous (or as Ambassador Kaji rated with a humorous touch, perhaps notorious) for regularly having earthquakes. Tsunamis happen as well. This was even noticed by reporters from the Croatian paper Jutarnji List, who, when following the earthquakes in Zagreb and Petrinja, interviewed Ambassador Kaji in search of advice on living with earthquakes. An equipped backpack with water, food, batteries, and lights ready for evacuation, along with agreeing on a location at which were to meet with your loved ones, are some great bits of advice for planning once you accept that earthquakes can happen at any time, anywhere.

''You can't stop earthquakes, but if you're prepared, you can mitigate the damage they cause and protect lives. People often think earthquakes happen, and that's that, but earthquakes are never over,'' said the Ambassador when recalling that interview.

''I was at my residence when the Zagreb earthquake happened more than one year ago, and the epicentre was just three kilometres away. It was pretty bad but not serious with only small cracks on the wall,'' recalled Ambassador Kaji, not seeming to feel unsafe in a Japanese earthquake-conscious building, while Croatia isn't always so aware that the Earth's plates can move and cause total chaos.

The earthquake that gave Zagreb such a heavy blow in March 2020 is a normal monthly, if not weekly, occurrence in Japan. The country's ultra-modern buildings and skyscrapers were built to sustain such rumbling, but even the traditional signature Japanese style of architecture (such as the signature Pagoda of Horyuji, the oldest wooden high-rise Japanese building built in 680A.D.) sustained numerous earthquakes over centuries, as Japanese builders always had to try to cope with earthquakes. But, with Zagreb being proud of its architecture, particularly in the downtown area, can the Croatian capital possibly preserve its signature look but also become safer for its residents if such magnitudes or higher strike once again?

''I asked some Japanese experts about whether or not it would be possible to preserve the nice, historic architecture of Zagreb and not just totally transform it into a modern but very common city, and they said it was possible. That needs investment, but there are ways to somewhat reinforce the basic structures and preserve their looks,'' assured Ambassador Kaji. She also added that the speed and focus of reconstruction is something Croatia can learn how to be better at from Japan.

Towards the Tokyo 2020 Olympic and Paralympic Games, December 2019 © Japanese Embassy Croatia 

The Adriatic is nice, but UNESCO heritage really excites Japanese people

With data acquired before coronavirus, Ambassador Kaji stated that there were 150 Japanese nationals living in Croatia, and 150,000 Japanese tourists visited the country. What several people noticed was that while many foreigners come to Croatia primarily to enjoy the coast and swim in the Croatian Adriatic, Japanese tourists can rarely be seen on the beach and prefer sightseeing.

''Japan is surrounded by the sea, so the sea isn't something amazing to them, but Japanese people are very interested in cultural heritage, and when something is recognised by UNESCO, people in Japan really rejoice. So, the Japanese are very much interested in historical or artistic values Croatia offers,'' explained Ambassador Kaji, clarifying why so many Japanese tourists can often be seen as frequently in continental Croatian towns and cities and not just on the coast.

Despite some Croats sometimes being a bit xenophobic or looking differently at people of other races, Ambassador Kaji was surprised when asked about whether there were any racial issues that Japanese people experienced and reported in Croatia.

''I don't know if things were different before regarding racial issues, but the story I heard when I came to Croatia was that back in 2011, many Croats gathered in front of the Embassy of Japan with flowers, candles, and cranes to express their grief and support regarding the Fukushima Tsunami and the earthquake,'' said Ambassador Kaji.

Just like those who came with flowers, the Embassy is equal and open, too. The Embassy issues scholarships for people wanting to study in Japan twice a year, and apart from being open to anyone that wants to travel to Japan and get informed about the country and visa requirements, the Embassy also has a library people are welcome to come to and read through Japanese books and literature.

Apart from being in regular contact with other colleagues based in Croatia, Ambassador Kaji also regularly contacts the Croatian Ambassador in Japan, Drazen Hrastic.

''Before I left Tokyo, we had dinner together, and now we talk often, as well,'' said Ambassador Kaji with a smile.

With Japanese culture being so appreciated in Croatia, and Croatian sporting heroes and UNESCO heritage being so beloved in Japan, spiced with common political values and friendly diplomatic relations, Croatia and Japan truly have the chance to learn from each other and continue to work on the further nurturing of their diplomatic ties, and their shared trade.

If you're a Japanese citizen or a Croatian citizen in need of information, here is how you can reach a Japanese diplomatic mission in Croatia:

In Zagreb:

Japanese Embassy

Adress: Boškovićeva 2

Mail:

Consular Section: This email address is being protected from spambots. You need JavaScript enabled to view it.

Political Section: This email address is being protected from spambots. You need JavaScript enabled to view it.

Economic Section: This email address is being protected from spambots. You need JavaScript enabled to view it.

Section of Culture / Public Relations: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone number: +385 1 48 70 650

In Split:

Consulate Office

Adress: Marasovićeva 67

Mail: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Phone number: +385 21 32 35 80

And of course, you can find all the latest news concerning Japanese-Croatian relations on the official website.

To read more from the series "Friends of Croatia", follow TCN's dedicated page.

For more about Japan - Croatia relations, follow TCN's dedicated page.

ZAGREB, 16 June, 2021 - Croatia encourages the remaining EU countries who have not done so to recognise Kosovo's independence, Croatia's Foreign and European Affairs Minister Gordan Grlić Radman said on Wednesday, which is a move that Serbia certainly will not be pleased with as it does not recognise the sovereignty of its former southern province.

Kosovo declared its independence in 2008 and it has been recognised by about one hundred countries, including all EU member states with the exception of Cyprus, Greece, Romania, Spain and Slovakia.

"Croatia encourages the remaining five EU member states to recognise Kosovo because that would contribute to stabilising the region and Kosovo itself," Grlić Radman told reporters.

Today Grlić Radman is participating at the international GLOBSEC conference in Bratislava, convened to discuss also the situation in the western Balkans.

Croatia's foreign minister said that three things were key to the region's stability: respecting countries' territorial integrity, equal constitutional rights of Bosniaks, Serbs and Croats in Bosnia and Herzegovina, and the establishment of mutual trust after the 1990s wars.

"The territorial integrity of Balkan countries needs to be preserved and respected, hence without changing borders like we heard over the past few months in some much-vaunted non-papers that were heading in that direction," said Grlić Radman.

He believes that trust can be achieved through sincere talks, by resolving the issue of the war missing, processing war crimes and providing justice for the victims.

Speaking about BiH, he said the country is trapped between two political tendencies - centralism, or rather unitarism, and separatism.

"That undermines the foundations of a stable BiH and negatively reflects on the status of the Croat people in BiH," he underscored.

He reiterated Croatia's stance that the multi-ethnic BiH needs to reforms the election law to eliminate any form of discrimination and violation of equal rights.

Grlić Radman said that Croatia is a "sincere advocate" of BiH's Euro-Atlantic pathway and that at all international forums it keeps that country in the limelight because it is in its interest to have a stable, functioning and prosperous country in its neighbourhood.

For more about politics in Croatia, follow TCN's dedicated page