April the 28th, 2021 - The Croatian National Recovery and Resilience Plan, which has been met with many criticisms and questions, is set to arrive at the European Commission's door this week. 

As Poslovni Dnevnik/Ana Blaskovic writes, Portugal is the first EU member state to submit its own national recovery and resilience plan to Brussels, with twelve more countries announcing that they'll do the same by the end of the week, including Croatia - officially launching a two-month evaluation.

The formal delivery deadline for not only the Croatian National Recovery and Resilience Plan, but that of all EU member states is April the 30th.

That being said, half of the countries will still spend time ''polishing'' up their respective plans. The European Commission have stated that they'd much rather see the delivery of quality over quantity, saying on Friday: ''The plans are meant to cover the next six years, it's important that they're done properly and nothing will happen if they end up being sent later. We want EU member states to submit a ready and finished plan, not one with holes.''

Subsequent negotiations are indeed possible, they pointed out from the EC, but "for the sake of efficiency we want to limit that possibility".

Questionable projects will also enter the race...

Assessing the strategic documents of the 27 remaining EU member states is an enormous share of work for about a hundred people from several segments of the EC, and the plan of Andrej Plenkovic's government alone will boast about 700 pages when it is completed, and only a summary of about 80 pages has been published and made public, attracting attention and criticism.

In typical Croatian style, this combination of a very large volume of text and only a short time to compile it resulted in a great deal of concern and skepticism on the part of experts who worried that due to limited resources, questionable projects will end up flying under the radar.

EU member states must direct at least 37 percent of their money to the green transition, at least 20 percent to digitalisation on the principle of not causing significant damage to the climate and the environment, and the guiding thought is reforms to emerge more resilient after recovery from the ongoing coronavirus crisis.

How countries will use the available funds (in the Croatian case, 6.3 billion euros of non-refundable cash and 3.6 billion euros in loans) is left to the member states depending on the structure of their respective economies, but in line with specific recommendations issued to them (CSR).

As touched on, the Croatian National Recovery and Resilience Plan has come under significant and quite fierce criticism that too much money has been directed to the public sector and infrastructure to the detriment of the private sector. The "green" threshold has been exceeded by the majority, and in many cases the figure is over 50 percent, so Brussels estimates that this could generate around 250 billion euros in investment.

At the same time, more than 50 billion euros are to go to energy efficiency and the renovation of buildings. High on the list of priorities is green mobility, investments in railways, e-mobility, electric charging stations and the like. Many have also skipped the digital minimum, which means more than 130 billion euros will go to investments in high-speed networks, the digitalisation of public administration and even cross-border projects, of which there are many at the EU level.

Robust control systems

With coronavirus still hovering quite ominously in the foreground, as much as 28 percent of the money will go to the healthcare sectors and social cohesion; from renovating and building hospitals, to strengthening primary care and linking up the social welfare and healthcare systems.

Journalists were naturally interested in whether the fund could finance (higher) salaries in healthcare, but this isn't an option because it represents multiple costs.

The key message is the expectation that members will “establish robust spending control systems”. After the advance payment, the next tranches will depend on the fulfillment of the objectives. A missed goal means the stopping of these payments, and by that point there is very little room left for negotiations.

"The EC can decide on a partial payment, but the amount of the payment is a discretionary decision," they stated from Brussels.

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

ZAGREB, 23 April, 2021 - Prime Minister Andrej Plenković on Friday received European Home Affairs Commissioner Ylva Johansson for talks on migration and Croatia's accession to the Schengen Area, the government said in a press release.

The officials discussed the New Pact on Migration and Asylum, which aims to halt arrivals of irregular migrants since the migrant crisis of 2015 and 2016, and to make the Union and member states better prepared for efficient migration management, the press release said.

Prime Minister Plenković underlined that for Croatia, as a country of the EU's external border, it is exceptionally important that the talks on the new pact define key issues such as responsibility and solidarity, procedures on the external borders, strengthening cooperation with third countries, efficient implementation of readmission of migrants who are not entitled to stay in the European Union and legal migration paths.

Significant investments in technical equipment to supervise the border and its border police enables Croatia to successfully protect the EU external border and the country is ready to protect the external Schengen Area border, he underscored. 

Plenković and Johansson discussed Croatia's accession to the Schengen Area. At the the Home Affairs Council meeting on 12 March Commissioner Johansson confirmed that Croatia had successfully completed the evaluation process and ensured the full application of Schengen rules and she supported the adoption of the relevant political decision in that regard.

The two officials also discussed migration trends in neighbouring countries and underscored that in order to reduce the permanent migrant pressure on the Croatian border it is key to better manage migrations along the entire East-Mediterranean route, the press release concluded.

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

ZAGREB, 14 April, 2021 - Prime Minister Andrej Plenković said on Wednesday that the European Commission in cooperation with the EU member-states was trying to ramp up the deliveries of Pfizer COVID vaccines in the second quarter of 2021.

Plenković informed his cabinet that earlier in the day he had talked with the EC President Ursula von der Leyen and that she informed him of the plans about a faster Pfizer COVID vaccine rollout in the second quarter of 2021.

The relevant information will soon be discussed by other relevant bodies.

Plenković called on the Croatians to comply with anti-epidemic measures and to behave responsibly.

He warned that for eight consecutive weeks, Croatia had been registering a rise in the number of confirmed infections with the novel coronavirus and in the number of related deaths.

We are trying to catch up with the inoculation rate and curb the spread of the virus, he added.

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

ZAGREB, 20 March 2021 - On the occasion of the International Day of Forests,  the VIDRA war veteran association on Saturday held a news conference outside the European Commission office in Zagreb, accusing the Hrvatske Šume, the state-owned forest management company, of manipulating citizens and EU institutions.

Hrvatske Šume manipulates and uses citizens for unlawful forest work. It falsifies business documents to mislead EU institutions and acquire undue financial benefits, the association and members of its Green Unit, a forum against forest destruction, said.

"We are glad that there is a growing public awareness of the importance of reforestation, but the public must know that Hrvatske Šume receives funding for its activities, including reforestation, from both the EU and the Croatian state. Hrvatske Šume uses citizens, even the Croatian Army, to do volunteer work for which it has taken the money and which it has pledged to do," VIDRA head Vesna Grgić said.

She noted that "it is even more scandalous that the way Hrvatske Šume increases its biological forest renewal rates. In other words, it uses volunteer work to improve its reports that are sent to the EU," Grgić said, recalling that the Green Unit had on several occasions filed reports about this with the competent Croatian institutions. Still, they failed to respond, which was why VIDRA sent a detailed report, including on excessive cutting down of trees, to the European Commission, which is now checking the allegations.

Grgić also claims that since 2013, when upon its entry into the EU, Croatia assumed obligations arising from the European Directive Natura 2000, "forest destruction has been reported in forests protected under Natura 2000 that is up to 300% greater than in forests not covered by the special protection regime."

Grgić called for "imposing a years-long ban on any felling of trees, imposing the obligation of reforestation and punishing the perpetrators of the ecocide that has been going on in Croatia for years."

She also said that the Green Unit "has information on wrongdoing" in hydraulic fracturing in Croatia.

For more news, follow TCN's dedicated page.  

March 18, 2021 - Croatian Tourism Minister Nikolina Brnjac welcomes the European Commission's digital green certificate proposal. 

HRTurizam reports that the European Commission adopted a legislative proposal to establish a common framework for digital green certificates and an additional proposal to ensure that digital green certificates are issued to third-country nationals residing in the Member States or Schengen countries and visitors entitled to travel to other Member States.

Digital green certificates are digital evidence proving that the traveler has been vaccinated against COVID-19, has recovered from it, or has a negative test result. Apart from possible uses in health care, the certificate also serves for the safe free movement of citizens of one European Union country in another.

Of course, the digital green certificate has no meaning if EU countries do not accept it. That is why the European Commission has announced that it will work closely with the European Union members. Namely, cooperation is needed to find technical solutions for the use of certificates as soon as possible. The authenticity of certificates can be verified safely throughout the EU and finally enable the mutual recognition of certificates or endorsements throughout the European Union. Member States are still responsible for deciding which public health restrictions for travelers can be lifted and will apply the same to travelers holding a digital green certificate.

Digital green certificates will meet data protection, security, and privacy requirements. For the certificates to come to life by the summer, EU member states must speed up preparations and their introduction. The European Commission will help develop a legal solution for a common framework for vaccination, testing, and recovery certificates to facilitate free movement within the EU. Member States are expected to establish technical solutions at the national level rapidly. In this way, certificates could be issued and verified securely anywhere in the European Union.

Digital green certificates should be established based on interoperability guidelines, which define common data sets and unique identifiers for vaccination certificates. A common data set for test results is already agreed upon by Member States.

Certificates will be issued in digital or paper form. Both versions will have a QR code containing the necessary basic information and a digital signature to ensure that the certificate is authentic. Certificates shall be made available free of charge in the official language or languages of the issuing Member State and English.

All persons, vaccinated and unvaccinated, should use digital green certificates when traveling within the EU. To prevent discrimination against non-vaccinated persons, the Commission proposes not only issuing an interoperable vaccination certificate but also a COVID-19 test certificate and a certificate for those who have recovered from COVID-19.

If Member States accept proof of vaccination to lift certain public health restrictions such as testing or quarantine, they would be required to accept vaccination certificates issued under the digital green certificate system under the same conditions. This obligation would be limited to vaccines authorized in the EU, but Member States may accept other vaccines.

The digital green certificate will be valid in all EU Member States and can be used by Iceland, Liechtenstein, Norway, and Switzerland. The digital green certificate should be issued to EU citizens and their family members, regardless of nationality. It should also be issued to third-country nationals residing in the EU and visitors entitled to travel to other Member States.

The digital green certificate system is a temporary measure. It will be suspended after the World Health Organization declares an end to the extraordinary public health threat caused by the COVID-19 pandemic.

For the proposal to be ready before the summer, it needs to be adopted quickly by the European Parliament and the Council. At the same time, Member States must apply the reliability framework and technical standards agreed within the eHealth network to ensure the timely introduction of digital green certificates, interoperability, and full compliance with personal data protection. The goal is to complete the technical work and proposal in the coming months.

The certificates will be available free of charge and are expected to be implemented by the summer, i.e., from 1 June.

The Minister of Tourism and Sports, Nikolina Brnjac, stated that Croatia welcomes any document that will facilitate tourist movements through uniform and predictable rules.

"The EC today adopted an important proposal for a common framework for the recognition of certificates, which should facilitate free movement during the pandemic. As a tourist country, Croatia welcomes any document that will facilitate tourist movements through uniform and predictable rules. In the forthcoming discussions in the Council, which must agree on the final version of the document, we will advocate that the announced certificate in no form constitutes a restrictive factor for free movement and that it is not discriminatory. In parallel with the preparations for adopting this document at the EU level, the Government of the Republic of Croatia regularly coordinates positions regarding border crossing conditions, taking into account the epidemiological situation in the Republic of Croatia well as in the major markets. Facilitation is also being intensively discussed with the EU Member States as well as third countries," Brnjac said and emphasized that to ensure predictability for business entities in tourism, the Government will make a detailed decision on the conditions for entry of tourists into the Republic of Croatia, which will be in force at least until the establishment of a common European model.

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ZAGREB, 9 March, 2021 - The Croatian government on Monday adopted a conclusion authorising Health Minister Vili Beroš to sign an order for the procurement of the Pfizer Inc./BioNTech COVID-19 vaccine.

The conclusion was adopted in line with an agreement signed between the European Commission and Pfizer Inc./BioNTech Manufacturing GmbH on 17 February 2021.

The funds for the procurement of the vaccine will be secured by the Croatian Health Insurance Fund.

The EC has so far signed six agreements on the upfront purchase of vaccines against COVID-19 on behalf of EU member states. The February 17 agreement between the EC and Pfizer refers to the purchase of an additional 200 million doses.

 For more about COVID-19 in Croatia, follow TCN's dedicated page.

ZAGREB, 5 March, 2021 - Brussels will leave it to Zagreb to decide on how to distribute money from the EU Recovery Fund, the Friday issue of the Jutarnji List daily reports, noting that there are no restrictions on aid to enterprises. 

There are no strict limits in drafting the national recovery and resilience plan, through which around HRK 45 billion of EU funds will be made available to Croatia to help it recover from the crisis caused by the coronavirus pandemic, in terms of how much funds can be allocated for public investments and how much for private investments, as there is no such distinction in EU regulations.

This conclusion is based on a reply from the European Commission, after the Croatian Employers' Association asked that at least 50% of the available money be disbursed in direct grants for investments by the private sector, instead of spending most of the HRK 45 billion on investments in the public sector.

According to an interpretation presented earlier by Croatian negotiators and published by Jutarnji List, entrepreneurs would have access, through the National Recovery and Resilience Plan, to direct grants and loan subsidies and guarantees in the maximum amount of HRK 4.5 billion, or only 10% of the available amount. In citing the amount, Croatian negotiators referred to restrictions imposed by the EC.

Zvonimir Savić, PM Andrej Plenković's advisor and national coordinator for the National Recovery and Resilience Plan, has nonetheless said that around 30% of the HRK 45 billion could end up in the private sector, if one takes into account the involvement of businesses in planned public projects, from research and development, energy transition and development of innovative tourism to stronger food supply chains, the daily says.

ZAGREB, 11 February, 2021 - Croatia's Gross Domestic Product is estimated to have contracted by 8.9% in 2020, while it is expected to rise at a rate of 5.3% in 2021 and 4.6% in 2022, the European Commission says in its latest Winter 2021 Economic Forecast, published on Thursday.

The economy's contraction in 2020 "is mainly attributable to the impact of the COVID-19 pandemic on service exports, particularly tourism, which suffered greatly due to the fall in demand for air travel and the imposition of travel restrictions in many countries."

Croatia's private consumption also fell, reflecting the accumulation of involuntary and precautionary savings.

Following a better-than-expected third quarter, the country's GDP is estimated to have contracted again towards the end of the year as pandemic suppression measures were reintroduced in December.

This contraction is lower than the previous projections of -9.6%, as stated by the EC in its Autumn Economic Forecast. However, the latest forecasts about the rise in 2021 are smaller in comparison to the previously projected recovery at a rate of 5.7%, while the projected growth for 2022 has been revised upward from 3.7% to 4.6%.

"Real GDP is forecast to bounce back by 5.3% in 2021, as domestic demand should rebound once pandemic containment measures are phased out and more people are vaccinated.," the EC says.

"Pent-up demand, coupled with a gradual recovery in the labour market, is expected to boost private consumption. Investment should rebound on the back of the already strong dynamics in the construction sector, supported by rebuilding efforts following the strong earthquakes in the Banija region and Zagreb.

"A gradual pick up in longer-term investment projects, is also expected. The recovery in external demand, however, is expected to be uneven. Goods exports are expected to increase strongly on the back of the improved global outlook but services exports are projected to remain subdued in both 2021 and 2022 compared to their 2019 levels.

"This is mainly because the recovery in the travel and hospitality sectors are likely to take several years. This forecast does not include any measures expected to be funded under the Recovery and Resilience Facility, posing an upside risk to the growth projections.

"HICP inflation rate dropped to 0% in 2020 on the back of a strong decline in energy prices, while core inflation remained broadly stable at around 1%. As the effect of last year’s fall in oil prices dissipates, inflation is expected to pick up slightly in 2021 but should remain subdued throughout the forecast horizon (1.2% in 2021 and 1.5% in 2022)," reads the Croatia section of the EC Winter Economic Forecast.

Croatia ranks 3rd in terms of expected rise in 2021, fourth in terms of fall in 2020

For the sake of comparison, Spain is expected to have the most robust recovery in 2021, at  a rate of 5.6%, France follows (5.5%), and Croatia ranks third among the 27 EU member-states.

When it comes to the economic downturn in 2020, Spain again tops the ranking (-11%), Greece is  the runner-up (-10%), and Malta ranks third (-9%), while Croatia comes as fourth with a negative growth rate of 8.9%.

ZAGREB, 17 January, 2021 - The basic criterion for Croatian consumers when choosing food is price, followed by safety, while origin is in the 6th place, the Smarter consulting company said on Tuesday in a statement on the survey of European consumers' attitudes published in December 2020 by the European Commission.

The survey has shown that for 54% of Croatian respondents price was the most important criterion when choosing food, and Croatia is one of 17 European countries whose consumers consider this factor one of the three most important.

The origin of food ranked sixth among the ten criteria for choosing food as every third respondent in Croatia (32%) opted for it.

Croatian food processing companies must realise that regardless of food quality, it has to be produced at competitive prices, at least as long as price is the primary factor for the Croatian consumer when choosing food, Smarter said in an analysis of the survey results.

Food safety another important criterion for Croatian consumers

Food safety is the second most important criterion for Croatian consumers (50%), which shows consumers' awareness of the importance of that component but can also be a consequence of frequent cases of food not meeting safety standards on the Croatian market, Smarter said.

Food taste was ranked third by Croatian consumers, with only 37% of respondents using that criterion as the main one when choosing food, and it is followed by the expiry date (35%).

This criterion, Smarter said, also places Croatia among four European countries with the highest percentage of consumers considering it one of the most important criteria. These are mostly countries that joined the EU later (Bulgaria, Latvia, Lithuania, Romania), and more than a third of respondents in those countries underscored the importance of that criterion when choosing food.

The nutritional composition of food is the fifth most important criterion for Croatian consumers when choosing food (34%), and according to Smarter, that piece of information could be important to domestic food producers.

Despite the prevalent opinion that the origin of food is important to domestic consumers, according to the survey, it is the 6th criterion out of ten when buying food in Croatia, Smarter said.

They think that such a result (32%) can be disappointing, especially when compared to Slovenia or Denmark, where choosing a domestic product is the most important criterion for 57% and 43% of consumers respectively.

The survey of European consumers' attitudes was conducted in August and September 2020 with the aim of determining consumers' attitudes towards and expectations of long-term sustainability of food production in the EU.

In Croatia, the survey was conducted on a sample of 1,019 respondents, using the "face to face" interview method.

Asked about the main elements affecting their decision to buy food, European consumers cited food taste as their first criterion, food safety was ranked second and the cost of food (price) was ranked above the sustainability of its production.

ZAGREB, Dec 28, 2020 - European Commission President Ursula von der Leyen on Monday expressed readiness to help Croatia and told it to stay strong after three strong earthquakes rocked the country this morning.

"Stay strong Croatia! After a powerful earthquake struck this morning, the EU_Commission is in contact with Prime Minister Andrej Plenkovic and the Croatian authorities. We are following the situation closely and stand ready to help," she tweeted.

Plenkovic thanked von der Leyen and the Commission, saying that Croatia appreciated their support.

"It will be vital as we work to rebuild Sisak, Petrinja and the Sisak-Moslavina County, just as we also cooperate on reconstructing Zagreb after the March earthquake," he tweeted.

Central Croatia between Zageb and Sisak was rocked by a magnitude 5.0 earthquake at 6.28 a.m. Two more quakes struck the Petrinja area around 7.50 a.m., one measuring 4.7 and the other 4.1 on the Richter scale.