ZAGREB, 14 April, 2021 - The National Recovery and Resilience Plan calls for extremely transparent criteria for selecting projects and contractors, as well as defining criteria which will protect the domestic economy, the Croatian Exporters Association said on Wednesday.

One of the priorities is for hundreds of thousands of young expats to return to Croatia, the association underscored.

Croatian Exporters said that they welcomed the 2021-2026 draft national plan, aimed at strengthening economic and social resilience of the Croatia economy, that is, "mitigating the social and economic impacts of the crisis and contributing to the green and digital transition", because many of the recommendations and requests they had been sending to the government in recent years had been partially taken into account.

However, they warn that there are some questions and doubts about the planned allocation of funds for the national plan's components, 54% of which should be earmarked for the economy.

"Have key performance indicators been defined, analyses conducted and effects of planned projects on long-term sustainable and harmonised growth and development of Croatia quantified? (...) Planned investments covered by the National Plan will certainly increased Croatia's GDP in the next six to eight years, but we doubt whether it will increase the long-term GDP growth rate," Croatian Exporters said in the review they sent to the government.

They are also under the impression that the domestic production and export processing industry has been neglected in the national plan.

"Digitalisation and the green economy... won't be sufficient drivers for a big step forward in the development and progress of the domestic industry. At the same time... projects aimed at infrastructure, energy, construction and tourism won't contribute to a significant improvement in the poor structure of the Croatian economy," the exporters' association said.

They also consider that it is necessary to define criteria that will protect the domestic economy.

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ZAGREB, 13 April, 2021 - The ruling Croatian Democratic Union (HDZ) caucus said on Tuesday that the National Recovery and Resilience Plan was a developmental document that is based on necessary reforms and that its objective is Croatia's overall economic development.

HDZ whip Branko Bačić told a press conference in Parliament House that with that document Croatia received the highest amount of all EU member states according to its GDP. "And that is one of the indicators that one loves Croatia through deeds and not words," claimed Bačić.

He underscored that there is no strict difference between funds for the real sector and public investments because both sectors have to interact with the aim of developing Croatia's economy.

HDZ MP Marko Pavić explained that the plan relates to one-quarter of the €24.5 billion that Croatia has negotiated with the EU for the next 10 years, which is twice as much as Croatia had until now.

Pavić rejected opposition claims that not enough funds were foreseen for the private sector.

Croatia is near the top of EU countries with regard to allocations for the private sector, about one-third are direct allocations and more than half are indirect through public procurement, he underscored.

Direct allocations for the private sector in Spain, Portugal and Estonia, for example, are at 30%, in Lithuania between 10 to 20 percent and nothing in Germany, he added.

Pavić: Government is open to suggestions and constructive proposals from the Opposition

Andrej Plenković's government has shown that it knows how to obtain funds and that it has the creativity and know-how to use those funds, claimed Pavić and added that the government is open to any suggestions and constructive proposals from the Opposition.

Referring to the one-off COVID supplement for pensioners that the government announced on Monday, Bačić denied that this was a pre-election move. "Any measure can be considered to be a pre-election move regardless of when it adopted... The COVID supplement has occurred now when the government reached an agreement with its partners," he said.

Bačić commented on the initiative for stricter penalties for Ustasha symbols, reiterating that the HDZ advocates a comprehensive rule for the use of symbols of all totalitarian regimes.

Defending the use of symbols of just some totalitarian regimes opens new ideological debates and arguments that do not contribute to anything, and the only way to approach the matter is to have an equal distancing from all undemocratic totalitarian regimes, he said.

The use of the 'For the Homeland Ready' needs to be banned except when wartime units commemorate events in which their fellow fighters were killed, he added.

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ZAGREB, 13 April, 2021 - The main Zagreb Stock Exchange (ZSE) indices rebounded on Tuesday, with the Crobex rising by 0.26% to 1,887 points and the Crobex10 by 0.07% to 1,182 points.

Turnover at the close of the trading session was HRK 3.45 million, 500,000 lower than on Monday.

None of the stocks passed the turnover mark of one million kuna. The highest turnover, of slightly over HRK 500,000, was generated by the stock of the Podravka food company. The price of its share fell by 0.72% to HRK 550.

A total of 36 stocks traded today, with 12 of them registering share price increases, 12 recording price decreases and 12 remaining stable in price.

(€1 = HRK 7.570542)

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ZAGREB, 13 April, 2021 - The Bridge party on Tuesday criticised the government's National Recovery and Resilience Plan, noting that investing in the public sector will not finance economic recovery but rather cause new scandals and clientelism.

"Each kuna invested in the private sector will yield a return of four kuna and each kuna invested in the public sector means a maximum return of one kuna, if the money is used efficiently, which in Croatia is not the case," Bridge MP Zvonimir Troskot said at a news conference.

He said that he condemned the stigmatisation of people who think critically about the National Recovery and Resilience Plan as "people whose patriotism is dubious."

Ruling HDZ MP Grozdana Perić last week said that those who criticise the National Recovery and Resilience Plan "do not love Croatia."

"Grozdana Perić and the prime minister's special advisor on economy, Zvonimir Savić, are not the only economic strategists. There are the Institute of Economics, the Croatian Employers' Association, the Entrepreneurs' Association as well as independent economists who are saying that the National Plan is not good," said Troskot.

"If entrepreneurs are again disregarded, we won't have money for wages, pensions or COVID allowances," he said.

Bridge against banning "For homeland ready" salute

Bridge MP Nikola Grmoja commented on initiatives to ban the Ustasha salute "For the homeland ready."

"As regards the insignia of the Croatian Defence Force (HOS), that is a legal unit of the Croatian Army. We are not for bans but rather for education and clear distancing from all totalitarian regimes, Fascism, Nazism and Communism alike," said Grmoja, noting that one should not link HOS with the 1941-45 Independent State of Croatia and the Ustasha.

"Banning symbols turns them into a fetish, and we don't want that," he said.

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ZAGREB, 9 April, 2021 - The Zagreb Stock Exchange's Crobex index went up 0.06% to 1,889.05 points on Friday, while the Crobex10 dipped 0.07% to 1,185.06 points, and regular turnover was only HRK 3.5 million.

No stock crossed the million kuna mark and the most traded one was the Valamar Riviera tourism company, turning over HRK 888,000. It closed at HRK 29.50 per share, the same as on Thursday.

Forty-one stocks traded today, with 13 increasing in price, 14 decreasing and as many staying the same.

(€1 = HRK 7.569904)

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ZAGREB, 9 April, 2021 - In March 2021, producer prices of industrial products increased by 1.5% compared to February 2021 and by 3.5% compared to March 2020, the Croatian Bureau of Statistics said on Friday.

On the domestic market, producer prices increased by 1% compared to February 2021 and by 3.2% compared to March 2020, while on the non-domestic market they increased by 2% compared to February 2021 and by 3.8% compared to March 2020.

In March 2021, as compared to February 2021, prices of energy increased by 4.3%, prices of durable consumer goods by 1.5%, prices of intermediate goods by 1.3%, prices of non-durable consumer goods by 0.3% and prices of capital goods by 0.2%.

As compared to March 2020, prices of energy rose by 13.5%, prices of intermediate goods by 2.2%, prices of durable consumer goods by 1.4%, and prices of capital goods by 1.2%, while prices of non-durable consumer goods fell by 0.5%.

In March 2021, as compared to February 2021, producer prices increased in Manufacturing by 1.8% and in Electricity, gas, steam and air conditioning supply by 0.1%, decreasing in Mining and quarrying by 4.4% and remaining stable in Water supply; sewerage, waste management and remediation activities.

As compared to March 2020, producer prices increased in Mining and quarrying by 50.3%, in Manufacturing by 2.9% and in Water supply; sewerage, waste management and remediation activities by 0.6%, while decreasing in Electricity, gas, steam and air conditioning supply by 2.0%.

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ZAGREB, 9 April, 2021 - The Voice of Entrepreneurs association considers that the National Recovery and Resilience Plan, as proposed by the government, will destroy the chances for economic recovery, and calls for a radical change in the document.

In order for the National Recovery and Resilience Plan to have a greater impact, priority should be given to investments in the private sector, the association said in a statement issued on Friday.

Entrepreneurs think that the plan will not direct enough funds to small and medium-sized enterprises and that that will have a negative impact on the entire economy.

Unlike other countries, they add, Croatia does not intend to direct most of the funds from the recovery plan to the business sector and the most affected companies, sectors and citizens.

The current recovery and resilience plan relies mainly on state and local government projects and projects with low and long-term returns, and in some cases negative returns, which is contrary to the general goal of rapid recovery, the association said.

It is true, they add, that the plan envisages distributing 54% of the funds for the business sector and 46% for reforms in the public sector, but the 54% intended for the business sector includes investments in public companies that have so far demonstrated low efficiency, such as wastewater projects, waste management, road and transport infrastructure construction.

The National Recovery and Resilience Plan is thus not aimed at helping the private sector and encouraging the competitiveness of the Croatian economy, the association of entrepreneurs said, stressing that the existing plan is not oriented towards rapid recovery of domestic demand, investment in high return projects and technological innovation.

They call for prioritising private sector investment and focusing on high return projects.

Last week, the government presented the National Recovery and Resilience Plan for 2021-2026, which contains project proposals in six areas, worth a total of HRK 49.08 billion.

Of that, 54% is intended for projects in the business sector, 15% for education, science and research, 12% for building reconstruction, 10% for public administration and justice, 5% for health care and 4% for the labour market and social protection.

Digitisation and green energy transition feature in all six areas in the document.

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ZAGREB, 8 April, 2021 - The Zagreb Stock Exchange (ZSE) indices on Thursday continued rising and the stock market saw a turnover of HRK 12.5 million, of which HRK 6.2 million was generated by a block transaction with Atlantic Group shares.

The Crobex rose by 0.35% to 1,887.88 points and the Crobex10 by 0.21% to 1,185.88 points.

The main indices rose for the second consecutive day, reaching their new highest levels since the end of February 2020.

Regular trading amounted to HRK 6.3 million, 2.8 million more than on Wednesday.

Another 6.2 million was generated in a block transaction with Atlantic Group shares.

Only the HT telecom operator turned over more than one million kuna in regular trading, around 1.02 million, with the price of its shares falling by 0.26% to HRK 193.

(€1 = HRK 7.567065)

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ZAGREB, 7 April, 2021 - The Zagreb Stock Exchange (ZSE) indices rose on Wednesday amid a modest turnover, totalling only HRK 3.5 million.

The Crobex went up 0.30% to 1,881.26 points and the Crobex10 rose by 0.48% to 1,183.39 points.

Turnover was modest, only HRK 3.5 million, around 2.2 million less than on Tuesday.

The most traded stock was the HT telecommunications company, generating a turnover of HRK 281,700, with its price going up 0.31% to HRK 1,605 per share. 

The ZSE reported that as of 8 April the Dukat dairy producer would no longer be listed on the ZSE. After the transfer of a minority shareholder interest in Dukat was entered in the court register on Tuesday and the interest was transferred to the account of the main shareholder, B.S.A. International, the Belgian daughter company of the French Lactalis, the ZSE will no longer list Dukat's shares.

Minority shareholders, who held 139,880 or 4.66% of Dukat shares, will get HRK 928 per share.

(€1 = HRK 7.560970)

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ZAGREB, 6 April, 2021 - A total of 4,165 new passenger cars were sold in Croatia in March 2021, an increase of 52.9% on the same month of last year, according to the data provided by the Promocija Plus market research agency.

The increase in sales is seen as the result of a more favourable buying environment than last spring when the country was under tighter restrictions to contain the coronavirus outbreak.

In the first three months of this year, Volkswagen sold the most new cars in Croatia - 1,810, accounting for 17.2% of total sales. It was followed by Škoda with 1,408 vehicles sold and a market share of 13.4%, Hyundai (414 vehicles, 5.8% share), Renault (595, 5.6%) and Dacia (591, 5.6%).

The Škoda Octavia remained the best selling model, with 214 units sold in March, ahead of the Dacia Duster (192 vehicles), the VW T-Cross ( 167), the VW Golf (143) and the VW T-Roc (137). Thirty-one Teslas, 18 Porches and 2 Ferraris were also sold last month.

Since the start of the year, 5,535 buyers (52.6%) bought petrol vehicles, 3,053 (29%) opted for diesel-fuelled vehicles, 141 (1.3%) chose electric cars, 323 (3.1%) purchased vehicles powered by natural gas, and 1,467 (13.9%) preferred hybrids.

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