Tuesday, 7 May 2019

EC Revises Down Croatia's 2019 GDP Growth to 2.6%

ZAGREB, May 7, 2019 - The European Commission on Tuesday revised down its GDP growth forecast for the Croatian economy for this year from 2.7% to 2.6%, underscoring that GDP will have finally surpassed the pre-crisis level this year.

"Croatia’s economy is expected to continue growing at a moderate pace over the forecast horizon. Household consumption remains strong as disposable incomes continue to benefit from steady growth of employment and wages, in an environment of low inflation. Participation rates are projected to keep increasing gradually as more jobs are being created. Continued growth in tax revenue and contained spending growth are expected to maintain the government balance in a mild surplus and the debt ratio on a steady declining path," the EC said in its Spring Economic Forecast released in Brussels on Tuesday.

The Commission predicts that economic growth will continue to slow down to 2.5% in 2020. In its previous Interim Winter Economic Forecast in February, the Commission projected Croatia's GDP growth at 2.7% in 2019 and 2.6% in 2020.

Following last year's budget surplus of 0.2% of GDP, the EC now estimates that this year's surplus could be 0.1% of GDP and 0.5% in 2020. At the same time the share of public debt in GDP could be reduced from last year's 74.6% to 70.9% in 2019 and to 67.6% in 2020.

Economic growth in the fourth quarter of 2018 was disappointing at a mere 0.1% compared to Q3 which led to a lower annual economic growth than had been expected, which in 2018 was 2.6%, the EC underscored. The slowdown in Q4 owed to the negative contribution of net exports, as goods exports declined in the last quarter while growth of imports accelerated. On the other hand, household consumption remained strong and investment picked up, most notably in the public sector through EU funding.

At the start of 2019, good exports appear to have rebounded, while sales in the retail sector posted some of the highest monthly growth rates in recent years. At the same time, growth of manufacturing output remained volatile and imports kept expanding buoyantly, the report notes.

According to the EC, growth in 2019 and 2020 will be driven by private consumption supported by the positive labour market outlook. Low inflation and steadily increasing tourist receipts and remittances are also likely to support real disposable incomes.

Financing conditions and business expectations remain supportive of private investment, but the main push to capital formation is expected from the public sector, as shown by the pick-up in capital transfers from EU funding at the end of 2018.

Demand for Croatian exports appears to be weakening in line with the projected economic slowdown in the EU. Growth of goods exports is expected to stabilise above the low rate observed in 2018 but significantly below the high rates observed in preceding years, to 3.2%.

Growth of tourism, which represents the main component of export of services, is also expected to remain robust but also at rates below those recorded in past years. It would increasingly rely on stronger per-capita spending while increases in the numbers of overnight stays and arrivals appear to be slowing.

Inflation has been curbed by VAT cuts.

The EC forecast notes that despite the high unemployment, labour shortages in some sectors are becoming more apparent. As the labour market tightens, employment growth should moderate - after last year's rate of 2.4%, the EC expects employment to grow by 1.6% in 2019 and by 1.3% in 2020.

Nevertheless, the EC says both the number of unemployed and the unemployment rate are expected to reach their historic lows by 2020. The EC estimates that this year's unemployment rate should fall to 7.8% compared to 8.5% in 2018 and continue to fall in 2020 to 6.9%.

Real wage growth is expected to strengthen, underpinned by strong labour demand, public sector salary increases and an increase in the minimum wage in 2019.

At the start of 2019, headline inflation was kept subdued by decreasing prices of unprocessed food, mostly due to the significant reduction in the applicable VAT rates. The EC estimates that inflation could be 1% this year, down from 1.6% in 2018 and that it would accelerate in 2020 to 1.2% despite the reduction in the general VAT rate by 1 percentage point at the beginning of the year.

A possible further slowdown in external demand poses a downside risk to the forecast period. At the same time, stronger than expected transfers from EU funds could further boost domestic demand, the EC said.

More news about Croatia’s GDP growth can be found in the Business section.

Sunday, 28 April 2019

More Than Third of Graduates with Diplomas in Croatia Unemployed

As Mirela Lilek/Novac writes on the 27th of April, 2019, Croatia's situation still isn't good: the country is continuing to ''produce'' graduates with the third lowest employment rate in the whole of the European Union, and as a result, taxpayers pay more and more money for them. According to new data from Brussels, based on a comparative survey of youth employment among Croats with diplomas earned in the last three years, a third of highly educated people aged between 20 to 34 in Croatia have no jobs. Only Italy and Greece are worse.

Of the 28 countries EU member states, Croatia ranked 26th with a 66 percent employability rate. Four positions above Croatia lies Romania, Bulgaria is six places above, and Slovakia is nine places above. Croatia's neighbour to the north, Slovenia, is eleven places above Croatia, Poland is thirteen places above (impressively right behind Ireland and Denmark), and the Czech Republic, with an 89.9 percent employability rate which has impressed the European Commission's experts - has risen to an enviable fourth place.

Malta is in first place in Europe as an employer of its graduates with diplomas, the employment rate of Maltese students stands at a very impressive 94.5 percent, even better than Germany, which boasts a rate of 90.9 percent, followed then by the Netherlands, the Czech Republic, and then Austria. The EU average is on the rise, back in 2014 it stood at 76 percent and in 2018 it stood at 80.2 percent. Unfortunately, the Croats have been close to the bottom for years, more specifically for fifteen years, as it has a below-average rate of employability in relation to the EU. Of course, rather than attempt to fix the problem directly, the Croats are doing what the Croats always do - continuing to debate and argue over who is (more) to blame for such embarrassing conditions.

Economists see the issue as being that the Croats aren't adapting easily to the market, and that Croatia also has an old education system. At Croatia's universities, they argue that the key issue isn't Croatia's higher education institutions, but an underdeveloped labour market, low personal income, and demotivating working conditions. Experts from the European Commission have given a relatively simple answer: Investing in education will benefit everyone in Europe.

Let's see how they explain their theories in some of the country's universities, starting with the largest "producers" of graduates in the entire country, the Faculty of Philosophy and Economics in Zagreb.

''We're aware of the importance of linking study programs and labour market needs. In this regard, the Faculty of Economics makes an effort to make it easier for students to access the labour market by establishing multilateral cooperation with companies and respectable institutions that enable students to perform high-quality professional practices,'' stated Sanja Sever Mališ, who deals with strategic partnerships and projects at the Faculty of Economics in Zagreb. The basic message from this particular Zagreb university is that "they connect students and employers so their best students can find work even during their studies." Therefore, there is no concern for them.

On the other hand, Vesna Vlahović-Štetić, Dean of the Faculty of Philosophy, admits that Croatia's humiliating placement at the bottom of the employability scale of graduates is still something to be very concerned about and therefore the causes of that need to be looked at.

''I assume that part of the problem lies in insufficient development and the ability of the economy and the public sector to absorb newly graduated students. On the other hand, the question is how many colleges and higher education institutions meet the needs of society with their respective programs. At the state level, in some professions there's hyper-production, and in others there is a lack of experts. Additionally, study programs should be regularly updated and developed to meet not only society's needs but also predict what competences professionals will need in the future,'' the dean says.

Data obtained through the HKO project of the Faculty of Philosophy shows that the employability of their students in the year after graduation is 75 percent. They believe this is the result of "the excellent professional and generic competences of their graduates".

"We're convinced at the Faculty of Philosophy that the study programs need to be further improved, so we have just started the study reform process and I'm sure the future employability of our students will be even better," says the university's dean.

The rector of the University of Rijeka, Snježana Prijić Samaržija, doesn't want to run away from the fact that Croatia's universities do hold a share of the responsibility for this issue but, again, she's convinced that Croatia's higher education institutions are't the key cause of the problem, but the underdeveloped labour market definitely is.

Rijeka University has eleven faculties and four departments. On their official page, they point out that they are a modern European university and a centre of excellence within the region and beyond, and that they are responsible for the social and economic development of the community. Samardžija claims that she doesn't want to relate the worrying data on the high rate of unemployed with higher education, but that "it should be borne in mind that higher education is a better job-finding guarantee, such as landing a permanent position,"

"Of course, it's possible to say that the employment rate would be higher if universities, by some automation, increased their quotas for the job-type deficit and reduced those profiles for which the employment bureaus take care of. In that sense, people often say Croatia's institutions and their enrollment policies aren't adapted to the labour market. However, the situation isn't quite that simple.

For example, the market seeks shipbuilding engineers, we have shipbuilding studies and a corresponding quota at the University of Rijeka, but there's a fall in interest for those studies. We can understand the students' fears about the situation with Croatia's shipyards, but the fact is that the need for this profession is still growing. Similarly, despite the lack of mathematics and physics teachers and the excellent studies we have, the interest doesn't match the employment opportunities,'' she explained.

The University of Rijeka decided to put seven studies ''into retirement'' this year, and isn't accepting students for them. Those are acting and media, dental hygiene, computer science in combination with professional studies of medical-lab diagnostics, mechanical engineering, shipbuilding, and electrical engineering.

On the other hand, there's a considerable level of interest in studies that don't guarantee quick and permanent employment at all, such as the arts, cultural studies, and psychology.

''Young people choose studies according to their personal interests, not just employment opportunities. They don't necessarily just want a permanent job, many of them are accustomed to gaining work experience in different institutions, at different places of work, and in different countries. More and more, they prefer to individually define the curriculum through courses and practical competences beyond their study program(s), which will make their expertise comparatively more special and desirable. In the midst of a sluggish and non-ethnological labour market, more and more students enjoy prolonged youthful relationships with their parents or rent apartments,'' says Snježana Prijić Samaržija.

"I don't want to run away from the responsibility of the university, we're constantly thinking about the jobs of the future, we're working on increasing the quota for the deficit professions and improving our students' competences to reduce the unemployment rate. However, time is needed to see the results of these measures because the higher education cycle lasts for at least five years. It should be understood that universities can't just simply increase quotas for occupations for which there's a labour market need because new employment is frozen,'' noted the Rector of the University of Rijeka.

As Croatia's paradoxical situation of having no work but plenty of jobseekers, yet plenty of work and no staff, it's hard to predict the outcome of education system reforms as the market and its needs can alter so rapidly. Will Croatian students simply continue to trickle away on the stream of a proverbial leaking tap out into Western Europe, leaving Croatia with the rather unenviable title of a country that educates its citizens for work abroad? It's likely such a scenario will continue at least for the foreseeable future. Whether or not Croatia will manage to make the necessary alterations to fix that aforementioned ''leaky tap'' in time remains to be seen.

Make sure to follow our dedicated lifestyle, politics and business pages for much more.

 

Click here for the original article by Mirela Lilek for Novac/Jutarnji

Monday, 15 April 2019

Croatia's Woes Leave it Second Only to Bulgaria in Underdevelopment

The problem of emigration in Croatia has been further underlined by weak economic indicators, after Bulgaria, Croatia is the most underdeveloped country in the EU, explains economist Zdeslav Šantić.

As Tomislav Pili/Poslovni Dnevnik writes on the 14th of April, 2019, bringing Croatian average salaries closer to the average salaries of Western Europe, and strengthening institutions, are major factors which could significantly reduce the outflow of people from Croatia to work overseas, according to a study by the Brussels think tank, Centre for Economic and Political Studies (CEPS), which was published last week.

In a piece of research entitled "Mobile Workers of the European Union: A Challenge for Public Finance?" authors Cinzia Alcidi and Daniel Gros discuss current trends in labour mobility within the European Union, and the challenges faced by the countries from which such a workforce leaves.

The research suggests that in the last ten years, the mobility of workers has increased considerably in the EU. While in 2007 only 2.5 percent of workers had left their home countries, in 2017, the share of the mobile working population of the European Union grew to 3.8 percent. Increasing the mobility of European workers is the result of two factors, states CEPS. The first is the enlargement of the EU to the east having occurred in two waves, and mobility has increased much more, especially after the accession of Romania and Bulgaria to the EU back in 2007. Apart from the east-west direction, recent years have seen more labour force mobility from the southern EU member states to the north, due to debt crisis and unemployment growth.

The latest data referenced by CEPS shows that Romania, Lithuania and Croatia have the highest share of workforce abroad, far above the European average. Nearly 20 percent of Romanian citizens earn their money in other EU member states, in Lithuania it is 14.8 percent, and in Croatia, 13.9 percent. For Croatian economists, such data doesn't really come as a surprise.

"Increasing emigration over the last few years was expected, and the experience of other new EU member states has shown that after EU accession and the labour market opening, emigration strongly increased, and in Croatia, the problem of emigration is further underlined by weak [domestic] economic indicators.

Croatia had one of the longest recessions in Europe, lasting six years in total. At the same time, even after recovery began, the growth dynamics remained insufficient in bringing Croatia closer to the EU's economic growth. Today, Croatia, after Bulgaria, is the least developed country,'' says OTP banka's economist Zdeslav Šantić.

"The accelerated outflow of the working-age population is particularly evident with the opening up of [Croatia's access to] the single European market since 2013, which was further strengthened by the deep recession in Croatia. However, with the exit from the migrant crisis, emigration from Croatia, especially among the working-age population, has not diminished but accelerated. Migration motives can be different - from differences in incomes, to employment opportunities, to structural factors,'' emphasised Zrinka Živković Matijević, an analyst from RBA.

"The very last factors - a weak institutional environment and (unfavourable) expectations of future economic prosperity (quality of education, satisfaction and trust in politics, future opportunities for generations to come) - are the most common motives for migration of citizens of a particular state who have a higher level of education. In that context, it isn't surprising that the countries which the most emigration are those with the lowest social progress index.

Regarding the convergence of wages, the fact is that at the very beginning of the transition process, Croatia had a high exchange rate, ie, a higher level of wage adjustment with the EU compared to other new members, following only Slovenia, the RBA analyst said.

"Meanwhile, the pace of wage growth and the standard of measured purchasing power parity in other countries has increased considerably since 2004, while GDP measured by the purchasing power parity in relation to the EU 28 average remains at approximately the same level (around 60 percent of the EU average), stagnant or comparatively behind,'' explained Živković Matijević.

Unfortunately, in Croatia, the problem of emigration is not a consequence of current economic trends, Šantić added, saying that the high perception of corruption and nepotism, inefficient state institutions, the huge importance the state carries in overall economic trends and the lack of transparency in the public sector further encourage young people to leave.

"When talking about the emigration of young people, it's worth mentioning that there's a lack of a housing care strategy. There's no regulated rental market yet, but young people have only the option of buying property through multi-year borrowing, and government measures are aimed solely at boosting property purchases,''

An interesting detail in the CEPS survey is the share of faculty-educated mobile workers. Although the usual theory often claims that those who find it the "easiest to leave'' are the highly educated, research shows that this is not the case, especially in the case of new EU members such as Croatia.

Make sure to follow our dedicated business and politics pages for much more.

 

Click here for the original article by Tomislav Pili for Poslovni Dnevnik

Friday, 12 April 2019

Croatia in Plus of 14.4 Billion Kuna from EU Membership

As Poslovni Dnevnik writes on the 11th of April, 2019, in terms of the use of EU funds, the Republic of Croatia has a total of 10.7 billion euros available to it, and at this moment in time, 66 percent of allocations have been contracted, almost 85 percent of the tenders have been announced, while 21 percent of the funds have been disbursed to their respective beneficiaries.

As one of the members of the European Union, Croatia has paid 19.7 billion kuna into the EU's joint budget since its accession back in the summer of 2013. The Republic of Croatia has since received 34.1 billion kuna in the same period, resulting in a welcome plus of 14.4 billion kuna, the Ministry of Regional Development and EU Funds stated.

''With the faster and better absorption of EU funds available, this difference will continue to grow. At present, more than 80 percent of all public investments and 8,306 private companies in Croatia are funded by the European Union's non-refundable funds,'' the aforementioned ministry added in its recent press release.

For the purpose of achieving economic and social growth and the development of Croatia at all levels, the financing of large infrastructure projects in the areas of transport, health, science, entrepreneurship, environmental protection [have taken place], such as the construction of Pelješac bridge, currently the largest and most important project in Croatia, the upgrading of Dubrovnik Airport, the upgrading and the electrification of the existing Vinkovci-Vukovar railway line which is of significance for international traffic, the modernisation of tram infrastructure in Osijek, investment, the equipping and reconstruction of hospitals and health centres, the construction of computer and data clouds, the research and education centre for health and medical ecology and radiation protection, the construction and renovation of student homes, the construction of business zones, the management centre for Krka National Park, the Vučedol archaeological park, etc...

''Since joining the European Union, the general economic trends in Croatia show that they're going in a positive direction: the increase in gross domestic product (GDP); the reduction of unemployment; the growth of exports, especially in the European Union, as a result of Croatia's free access to the EU's single market which consists of 500 million inhabitants.

The stable environment within the EU also favours the development of tourism as an extremely important economic branch [for Croatia]. With regard to fiscal policy, a major step forward has been made, and significant efforts have been made in the field of public finances, while trends that have been extremely unfavourable have also been reversed, along with the many opportunities that are offered by EU funds,'' the ministry said in its statement.

Make sure to follow our dedicated politics page for much more.

Thursday, 11 April 2019

European Commission: No Comment on Alleged Croatia-Slovenia Spying Affair

ZAGREB, April 11, 2019 - The European Commission on Wednesday declined to comment on Slovenian media reports saying that the Croatian Security-Intelligence Agency (SOA) had wiretapped conversations between Slovenian officials.

EC spokesman Margaritis Schinas told Slovenian reporters that the EC had seen the media reports but did not wish to comment as the matter was a bilateral one and the EC was not familiar with it and had no details about it.

National intelligence services and related questions fall within national jurisdiction and it is up to member-states to control their services, Schinas said, adding that the EC did not have intelligence services or spies and was not concerned with intelligence matters.

Asked about the alleged attempt by the Croatian government to prevent media reporting about the case, Schinas said the EC supported media freedoms and pluralism within the scope of its jurisdiction. The responsibility to protect media freedoms and pluralism in line with European values rests primarily with member-states, he said.

Asked if EC President Jean-Claude Juncker would discuss the matter with the prime ministers of the two countries, Schinas said that he did not believe the matter would be discussed.

The Croatian government and SOA have dismissed allegations of involvement in attempts to influence Slovenian media or in the wiretapping of conversations between Slovenian officials.

Croatian Prime Minister Andrej Plenković confirmed on Thursday morning that he had briefly met with his Slovenian counterpart Marjan Šarec on the margins of an EU summit in Brussels, saying that he would like the two countries to resolve their problems at the negotiating table.

Asked if they discussed Slovenia's criticism of Croatia over the rule of law, Plenković said that there was nothing new about it. "This is a continuing rhetoric. I would like Croatia and Slovenia to sit down at the table and resolve their problems. We are looking forward to Prime Minister Šarec coming to Dubrovnik today for the China+16 summit when we will talk again."

Slovenia has accused Croatia and its intelligence service of wiretapping its officials and of an attempt to interfere with Slovenian media to get them not to report about it.

"There's no big drama about it and it's nothing new. The European elections are coming up and everyone needs a little topic to show that they are protecting their national interests," the Croatian Prime Minister said.

More news about the border issue between Croatia and Slovenia can be found in the Politics section.

Thursday, 28 March 2019

European Commission Approves Grants for Fruit, Veg and Milk in Schools

ZAGREB, March 28, 2019 - An amount of 250 million euro was approved by the European Commission on Wednesday for the free distribution of fruit, vegetables and milk for 20 million children throughout the EU in the 2019/2020 school year.

The national budget allocations were adopted today. 145 million euro was set aside for fruit and vegetables, and €105 million for milk and other dairy products. The distribution programme is complemented by educational measures that teach children about agriculture and promotes healthy eating, the European Commission said in a press release.

Croatia will receive 1.66 million euro for fruit and vegetables and an additional 800,354 euro for milk.

According to the law that has been applicable since 1 August 2017, 2 previous schemes were combined under a single legal framework which is focused on an enhanced educational dimension.

Countries participating in the programme are expected to prepare strategy outlines for a period of 6 years, noting objectives and priorities, target groups (primary schools, for example), products (apples and carrots for example) and education activities (farm visits, school gardens, training).

"Thanks to the EU School Scheme, our young citizens can benefit from the nutritious, safe and high-quality food that our European farmers produce, while also learning about where it comes from. The Commission is proud to contribute to this important educational journey, establishing healthy habits from a young age," Agriculture and Rural Development Commissioner Phil Hogan said.

More news about EU funds can be found in the Business section.

Thursday, 14 March 2019

EU Commission: Croatia Closer to Euro Area

ZAGREB, March 14, 2019 - The European Commission Vice-President for the Euro and Financial Stability, Valdis Dombrovskis, said in the European Parliament on Wednesday that Croatia's exit from the Excessive Macroeconomic Imbalance procedure was a step towards entry into the euro area.

The EC in February said that Croatia had overcome excessive macroeconomic imbalances, which Dombrovskis recalled at a plenary session of the European Parliament.

Croatia's economy still suffers from macroeconomic imbalances but they are no longer excessive. That's good news, especially in the context of Croatia's preparations for participation in the European Exchange Rate Mechanism and eventually membership in the euro area, Dombrovskis said during a debate on a draft resolution called the European Semester for Economic Policy Coordination: Annual Growth Survey 2019.

The European Semester was launched in 2011 with the aim of harmonising the member states' economic and budget policies. It is part of a wider reform of the economic management of the EU designed to guarantee the stability of the member states' public finances, encourage economic growth and prevent excessive macroeconomic imbalances.

Croatia had been among countries with excessive macroeconomic imbalances since 2014. In its latest report, the EC says that economic development has contributed to the gradual correction of the existing imbalances, notably those related to high levels of public, private and foreign debt. However, in order to maintain that situation, Croatia must continue implementing structural reforms.

More news about the introduction of euro can be found in the Business section.

Wednesday, 27 February 2019

EU: Croatia No Longer Experiencing Excessive Imbalances

ZAGREB, February 27, 2019 - Croatia, which was identified with excessive imbalances in 2018, is found to be experiencing imbalances now, according to the conclusions which the European Commission made in its European Semester Winter Package in which Brussels assesses member states' progress on economic and social priorities.

The European Semester was introduced as a tool to coordinate economic policies so as to fend off future crises.

In 2014, the EC established that Croatia was in the category of countries in excessive deficit procedure, and Zagreb managed to leave that procedure in 2017.

The latest report underscores that Croatia is found to be experiencing imbalances. "Economic developments have been contributing to a gradual correction of existing imbalances, notably those related to high stocks of public, private and external debt, and in that way leading to a reduction of risks," the report says.

"Policy action and commitments that would help a sustainable correction of imbalances have been stepped up recently, and their full, swift and effective implementation will be crucial," reads the Croatia section.

The EC warns that remaining vulnerabilities are linked to high levels of public, private and external debt in a context of low potential growth. However, they have been narrowing over the past years, which is was supported by robust nominal growth, above estimated potential.

"The negative net external position remains large, but has been improving due to continued current account surpluses," the Commission says.

"Private sector deleveraging is ongoing, though its pace is set to abate as credit growth and investment recover. The budget balance has been in surplus since 2017 and public debt has declined notably since its 2014 peak," the Commission says, praising "a prudent fiscal policy."

"The financial sector is well-capitalised and profitable while non-performing loans, although declining, remain elevated.

"The foreign currency exposure of corporations and households has reduced, but remains a vulnerability. Policy action has been stepped up with the adoption of a pension reform and new legislation to improve the fiscal framework. Other relevant policy measures are in the pipeline and their thorough implementation remains crucial for strengthening the resilience of the economy," the Commission says.

In its latest document, the EC says that apart from Croatia, another nine member-states are experiences imbalances: Bulgaria, France, Germany, Ireland, Romania, the Netherlands, Portugal, Spain and Sweden.

Three countries -- Cyprus, Greece and Italy -- are found to have excessive imbalances.

More news about Croatia economy can be found in the Business section.

Tuesday, 26 February 2019

“It's Not Commission's Role to Solve Croatia-Slovenia Border Row”

ZAGREB, February 26, 2019 - Frans Timmermans, the current vice-president of the European Commission and the lead candidate of the Party of European Socialists (PES) for the next EC president, told the Slovenian news agency STA on Tuesday that the Croatia-Slovenia border dispute was a bilateral issue and that the Commission was "crystal clear" in its response to that case.

This Dutch politician and diplomat said in the interview that the Slovenia-Croatia border row was a bilateral issue and that the arbitration award on the matter should be implemented.

The Commission was crystal clear about that and I can't see why someone does not want to understand that, Timmermans was quoted as saying before his official visit to Ljubljana on Thursday.

He went on to say that the parties to the case cannot absolve themselves from the responsibility for the matter and shift it to the Commission.

Last year, the Commission refused to join Slovenia's complaint against Croatia which is accused by Ljubljana of violating European law by refusing to implement the arbitration ruling.

Zagreb refuses to implement the arbitration award, insisting that the arbitration process was compromised by Slovenia.

Timmermans also criticised the current European Parliament president, Antonio Tajani, for his recent controversial statement at a memorial ceremony for Italians killed in the aftermath of the Second World War by Yugoslav partisans.

Tajani's statement about "Italian Istria and Dalmatia" has provoked public outcry in Slovenia and Croatia, after which he sent letters of apology to top officials in Ljubljana and Zagreb. Tajani, an official of the Italian party Forza Italia and a member of the European People's Party group in the European Parliament, insists that his comment was "in no way a territorial claim".

Asked by STA if Tajani's speech was reason enough for his resignation, as demanded by Social Democrats in Slovenia and Croatia, Timmermans said he would not insist on his resignation but criticised Tajani for instrumentalising the past in his speech. History should be left to historians, Timmermans said.

On 23 February, three months ahead of European Parliament elections, European Socialists held a congress in Madrid, at which they confirmed Timmermans as their candidate for president of the European Commission and presented the programme with which they will compete with the Conservatives and the Eurosceptics.

A delegation of Croatia's Social Democratic Party, led by its president Davor Bernardić, attended the Madrid congress.

More news on the Croatia-Slovenia border dispute can be found in the Politics section.

Sunday, 24 February 2019

Croatian EU Commissioner Neven Mimica Ranked Second to Last

ZAGREB, February 24, 2019 - Commissioner for Competition Margrethe Vestager has been voted the best member of Jean-Claude Juncker's European Commission, according to the results of a survey by public affairs firm Burson Cohn & Wolfe (BCW), prepared in collaboration with EURACTIV. Croatian EU commissioner Neven Mimica is second to last.

The results were presented in Brussels earlier in the week. The online survey was conducted between October 9 and December 3 last year among 1,769 persons. Most respondents were residents in Belgium (38.5%), the UK (10.2%), and Germany (5.6%). Many respondents were business people, EU staff, media, NGOs and national governments.

Respondents gave their verdict on the performance of each individual commissioner, ranking them from 0 to 10.

With an approval rating of 50.2%, Vestager of Denmark was the only commissioner to achieve a score above 50%. The Commission's average approval rate was 46%.

EU foreign affairs chief Federica Mogherini (49.6%) came second, followed by Commission First Vice-President Frans Timmermans (46.9%), and EU trade Commissioner Cecilia Malmström (44.7%).

At the bottom of the scale is Tibor Navrascics, the EU’s education Commissioner from Hungary, who was credited with an approval rating of only 19%, just behind Croatia’s Neven Mimica, the EU’s development aid Commissioner, with 20.6%.

The report says that Mimica "has aligned development policy with the UN’s Sustainable Development Agenda, taking account of environmental and social factors. He has prepared the planned merger of 12 development funding streams into one, the €89.2 billion Neighbourhood, Development and International Cooperation Instrument. Last year, he helped launch formal talks on the EU’s relationship with 79 African, Caribbean and Pacific (ACP) states after 2020. In the wake of the 2015 migration crisis, he adapted budget plans to include measures 'addressing the root causes of irregular migration', attracting criticism that he was diverting money for anti-poverty programmes – this may have been a factor as to why he came second last in the Scoreboard."

With 20% of votes, Vestager was also the clear favourite to become the chief of the EU executive, followed by Finland’s former Prime Minister Alexander Stubb (7%), Timmermans (6%) and Barnier (5%).

More news on Croatia and the European Union can be found in the Politics section.

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