Sunday, 19 May 2019

Croatia Edges Closer to Eurozone, Official Request Coming Soon?

Just how ready is Croatia to join the Eurozone? The topic is one that has many sides to it and a lot of opposition from both the public and from certain politicians and political parties, yet it seems the Croatian Government is steaming ahead with their plans for the country to enter into the Eurozone and abandon the kuna.

As Poslovni Dnevnik/Jadranka Dozan writes on the 19th of May, 2019, the Croatian Government has proposed urgent amendments to the ZOKI, which creates a normative framework for the accession process to the banking union, a step that implies officially applying for the country's entry into the ERM II Exchange Rate Mechanism.

However, the Republic of Croatia has not yet submitted the aforementioned type of official request for entry into the ERM II Exchange Rate Mechanism, which is considered to be one of the first steps towards official entry into the controversial Eurozone.

This news could see more steps actively taken to enter into the banking union and establish "close co-operation with the European Central Bank (ECB)", which is usually part and parcel of a request to enter the ERM II.

In addition to the fact that the process of close co-operation with the ECB was the subject of a panel discussion on the first day of the Croatian Money Market conference in Opatija in Kvarner, the Croatian Government issued a proposal for a supplement to the Credit Institutions Act on Wednesday for public consultation, which refers precisely to the creation of a normative framework for the assignment of certain tasks to the European Central Bank.

In practice, this means, in the first instance, Croatia's inclusion in a Single Supervisory Mechanism (SSM), and that means that in the furure, the ECB will be able to carry out comprehensive assessments of such credit institutions, while for example, Asset Quality Review has so far covered euro-denominated countries.

At the aforementioned Opatija conference, the introductory speech on the path to Croatia's entrance into the Eurozone was given by an envoy to the President of the Republic of Croatia, with the Croatian Minister of State Property, Goran Marić, also having a part to play. It was stated that the single currency is one of the important aspects of unification, ie, in Croatia's accession to the European Union, and that Croatia has an obligation to respond readily and properly to this process.

That means, as was stated, the need to carry out all of the necessary preparations - monetary, political and others, including those aimed at the wider public, with a view to understanding the changes and eliminating fear, propaganda and potential insecurity. The main focus of the presentation of the Governor of the Croatian National Bank (HNB/CNB) Boris Vujčić was the macroeconomic prospects and challenges, and this is usually a reference to structural reforms without which Croatia will lag behind in reaching the level of development of much older EU member states, especially in terms of Croatia's development in comparison to other, older member states of the Union.

Croatia's business climate in us is still not good enough, remotely. To improve the country's overall business environment, the governor emphasised that what is particularly important is the raising of the quality of Croatia's institutions which greatly affects the general level of investment into the country, and that this is a key to faster productivity growth.

Therefore, in the first quarter of 2019, the indicators are solid: strong growth in industrial production, personal consumption and construction, the continued growth of exports (as well as imports) and favourable labour market trends (but with the increasing and very concerning problem of a lacking labour force owing to Croatia's demographic crisis).

In the case of economic slowdown today, however, there is a significant fiscal space that, at least according to Boris Vujčić, should be used in the case of a recession occurring. Otherwise, the Croatian National Bank expects to further reduce surplus on current and capital account balances this year, as well as significant appreciation pressures on the Croatian kuna.

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

 

Click here for the original article by Jadranka Dozan for Poslovni Dnevnik

Wednesday, 15 May 2019

How are Croatian Towns, Cities and Counties Doing with EU Fund Withdrawal?

Just how do various Croatian towns, cities and counties compare in terms of EU fund withdrawal? Some unlikely names have appeared on top...

As Novac/Gradonacelnik.hr writes on the 14th of May, 2019, through the Rural development program, the Republic of Croatia will have over 2.3 billion euro (over 17 billion kuna) from EU funds provided to it to boost competitiveness of agriculture, forestry and processing industries from 2014 to 2020.

The aforementioned EU funds will also be used to improve general living and working conditions, ie, the construction of necessary infrastructure such as kindergartens, fire stations and social housing in rural areas.

As of the end of January this year, at least according to official data, of this more than 17 billion kuna, 10.37 billion kuna was contracted for projects, and a little more than half of that contracted amount was paid out.

Croatian cities, according to that same data (APPRRR), have withdrawn more than 438 million out of a total of 5.66 billion kuna in the past five years. As many as fifteen Croatian towns that are on top of the list in terms of the withdrawal of EU funds from the rural development program are smaller towns, when taking the per capita amount into consideration. That list of Croatian towns which withdrew the most money per capita was led by Nin with 4915 kuna per capita. In total, this ancient town close to the popular destination of Zadar has withdrawn 13.4 million kuna. The town of Nin readily awaited the Rural development programs from 2014 to 2020, Mayor Emil Ćurko stated.

''Investments in project documentation were prepared, public-legal conditions were prepared, investment took place in human resources, all for the purpose of the withdrawal of EU funds. The projects are large, infrastructural, necessary, and we've prepared them so that the maximum amount of European Union funds are used. From each measure, we tried to extract the most funds allowed by the tender condition. We've shaped a project team working on the preparation and implementation of EU projects and we believe that we'll continue to do even better,'' said Ćurko.

Among several other things, Nin received approval for the construction of a kindergarten worth 9.2 million kuna, out of which 6.6 million kuna is being provided by the EU, and 2.6 million kuna is from Nin.

Following Nin are Hrvatska Kostajnica (2745 kuna), Klanjec (2717 kuna), Opuzen (2377 kuna), and Mursko Središće (2276 kuna), followed by Skradin, Grubišno Polje, and Ozalj.

Orahovica has withdrawl 7.4 million kuna until now, and in December, the town was approved once again for almost nine million kuna for the reconstruction and extension of a kindergarten.

''There are still a lot of projects in the plan of the authorities when it comes to other EU funds. They have been prepared in the past year and a little over six months, and the more funds we withdraw from the EU and state funds, the more there is in the budget, which will raise the standard of Orahovica's citizens through various programs,'' said Mayor Ana-Marija Petin.

Mursko Središće, in turn, led the list of total funds received from the Regional development program by the end of January, with 14.3 million kuna of withdrawn funds. This small town in the northernmost part of Croatia received 6.8 million kuna for road construction to help develop the economic zone and 7.4 million kuna for the construction and equipping of kindergartens.

Following in terms of the total amount of funds is Koprivnica, with 13.9 million kuna of withdrawn funds, followed by Slatina with an amount of total withdrawn funds standing at 13.8 million kuna, with Nin coming fourth place with the same amount, and with Karlovac coming fifth on the list, having attracted less than 12 million kuna. Karlovac used those EU funds for the construction of kindergartens, totalling 4.4 million kuna.

On the list of Croatian cities and towns that have withdrawn the most funds, there is another medium-sized town - Bjelovar, which has withdrawn 11.5 million kuna.

In terms of Croatian counties, the Eastern Croatian county of Osijek-Baranja has contracted the most EU funds, or more precisely 1.3 billion kuna for numerous projects. Following are Sisak-Moslavina, Virovitica-Podravina and Pozega-Slavonia, all of which are continental counties.

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

 

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

Sunday, 28 April 2019

''Don't Leave Croatia, I Thought it Would be Easier in Time, I was Wrong''

The economic situation in Croatia is far from promising, and with more and more Croats flocking to Western European countries like the United Kingdom, Ireland and Germany, it seems that the country's massive staff shortages and concerning demographic crisis aren't about to be over any time soon. 

However, just how much milk and honey really flows through the rivers of Western Europe, or is it all just a myth? Having been raised in the UK and having lived in Croatia for years now, I can quite confidently state that neither milk nor honey can be found at least in the British isles, and while the economic conditions are indeed more stable and safe, the idea that huge wage packets and a perfect life are waiting for you when you step off the plane in London is farfetched, to say the very least.

Wages typically (not always, of course) match the cost of living, and when you need to pay over £100 for council tax per month and have your heating turned on for several months per year to cope with the cold temperatures and miserable weather, suddenly that fatter pay packet doesn't seem as appealing as it did at first.

As Croats from all corners of the country continue to go and try their hand abroad, thanks to Croatia's accession to the EU and the freedom of labour, many are faced with shocks which only longer than three months in their newly adopted Western European countries can show up.

As Novac writes on the 27th of April, 2019, Marko Mihaljević, a 27-year old Croat with a Masters degree, went from Babina Greda in Vukovar-Srijem County (Eastern Croatia) to the bustling German city of Frankfurt seven months ago, and managed to get a job in construction. He is one of the very many young Croats who haven't been able to find a job in Croatia, so they placed their hopes and dreams for a better future in the hands of one of the Croats' favourite countries to go and seek work - Germany.

However, just like in the United Kingdom, there are no rivers flowing with milk and honey in Germany either, and Marko soon found that out for himself.

"I thought it would get easier in time, but everything's harder," Mihaljević explains in a short Facebook video he posted in which he discusses the matter.

He shared his experiences of leaving Croatia and working in Germany via the aforementioned Facebook video, and told his fellow young Croats still in Croatia not to go abroad if they weren't absolutely sure of everything, because he himself thought things would be very different.

''I'm spending my days doing this job. I'm not trying to throw anyone under the bus, nor am I trying to talk badly about any job, because I've never underestimated anyone in my life, but I'm doing a job for which I don't even need a primary school education. Having a Master's degree sounds nice, but I've got to break my back here from morning til night for my bare existence because that's [gaining respectable employment with a Master's degree] not allowed in Croatia. Why is it not allowed? Because I'm not in any political party,'' Marko stated bluntly.

He says he's angry that as a man with a Master's degree, he has to work in the construction industry, but he currently has no choice,'' writes Fenix ​​Magazine.

Make sure to follow our dedicated lifestyle  page for much more on the Croatian demographic crisis and the mass exodus of Croats to Western Europe.

Saturday, 27 April 2019

Croatian Fruit Arriving in Slovenia and Austria Just 24 Hours After Harvest

The Croatian fruits and vegetables are being sold through the FinotekaDostava.com website, in order to successfully cut out the middleman.

As Miroslav Kuskunovic/Agrobiz/Poslovni Dnevnik writes on the 27th of April, 2019, Croatian fruit and vegetable producers, as well the producers of other Croatian value-added products, have begun to use the benefits of the common EU (single) market and the ability to place and sell products in Austria and Slovenia, for now. On the FinotekaDostava.com website, customers from Croatia, Slovenia and Austria are able to order products from Croatian OPGs from the comfort of their own homes. Once ordered, the produce is freshly and carefully packed and delivered to their addresses directly from Croatia.

"Finoteka's specificity is that we don't store our fruit and vegetables, but we function with the ''from the field to the table within 24 hours'' principle. This literally means that some fruit or vegetables that are growing right now in a garden in Croatia are going to be sent out in package delivered to someone's doorstep in Vienna, Ljubljana or Zagreb the next day,'' said Hrvoje Kolman, the owner of Finoteka Dostava.

Kolman has been placing and selling products from Croatian OPGs since back in 2008 in this manner. However, his website first became the most well known a few years ago when, through his search engine, a huge amount of fruit from the Neretva Valley ended up being sold and sent throughout Croatia when a ban on exports of agricultural products to Russia from the EU was first introduced.

"Our delivery is as good on the islands as it is on the mainland. The quality of the service and the delivery speed is the same regardless of whether you live in the city or in the most remote place. All our fruit and vegetable packages arrive within 24 hours of harvest, whether you're in Croatia, Slovenia, or anywhere in Austria,'' says Kolman. He explained that the Austrian market has been being tested over recent months, while they have been present on the Slovenian market for more than a year now.

"We deliver about 100 packages per month to Slovenia. Asparagus have been doing well these days, and strawberries, cherries and other fruits and vegetables will begin soon,'' says Kolman.

The prices of Croatian quality products are, however, slightly lower than those on sale in Slovenia and Austria, which is why it is expected that such sales from Croatia could become very attractive indeed. Croatian farmers deliver their products to Finoteka, the products are carefully reviewed, and depending on the order, they're packed on that same day and then sent out. Croatian farmers get to cut out the middleman, and consumers don't have the worry of eating food which is of unknown origin, it's also GMO free, it hasn't been stored, and it hasn't been sprayed.

"It's very important for us to know who we're cooperating with. We choose good producers above all, those to whom agriculture isn't just a business but also a pleasure. We choose those whose eyes shine when they talk about their products. Finding and selecting such people is are biggest challenge," says Kolman.

Make sure to follow our dedicated Made in Croatia and business pages for more information on Croatian products, Croatian companies and OPGs, Croatian services and much more.

 

Click here for the original article by Miroslav Kuskunovic/Agrobiz on Poslovni Dnevnik

Monday, 22 April 2019

600,000 Residents in Croatia Were Born Abroad, Where Are They Located?

The unemployment rate for young people up to 29 years of age is the highest among Croatia's domestic population, and the lowest among young people from third countries.

As Poslovni Dnevnik writes on the 21st of April, 2019, the Republic of Croatia is among the countries of the EU with the best integrated immigrants from third countries, which can only be met with surprise by those people who do not know that these ''immigrants'' are actually mostly just Croats born in neighbouring Bosnia and Herzegovina, followed by a few immigrants from Serbia, Germany, Slovenia, Kosovo and Macedonia.

According to the latest census, 584,947 (13.7 percent) of the population of Croatia were born abroad. The number of migrants are as follows: Serbia (9 percent), Germany (5.8 percent), Kosovo (3.5 percent), Slovenia (3.4 percent), Macedonia ( 1.7 percent). Immigrants to Croatia, predominantly from Bosnia and Herzegovina, are doing much better in terms of the employment rate of young people up to 29 years of age, meaning that they're significantly better integrated into the Croatian labour market than those born in Croatia and those from other EU countries.

This data were presented by sociologists Snježana Gregurević and Sonja Podgorelec, and social geographer Sanja Klempić Bogadi from the Institute for Migration and Ethnicity in the presentation "The Influence of Immigrant Groups on the Social Cohesion of the Receiving Society - the case of Croatia".

A large number of Croatian residents born in Bosnia and Herzegovina are the result of labour migration during the socialist period of Yugoslavia and immigration during the Bosnian war. Most immigrants from Bosnia and Herzegovina live in Zagreb (98,579), Split-Dalmatia County (36,864), Zagreb County (35,427), Brod- Posavina (29,537) and Osijek-Baranja County (28,051), these are the "entrance" Croatian counties, those closest to the border regions of Bosnia and Herzegovina, with the exception of Dubrovnik-Neretva County, from which emigration towards Croatia was the most intensive,'' stated Klempić Bogadi.

By the year 2015, Croatia, along with Serbia, Germany and Austria, was the most common destination for immigrants from Bosnia and Herzegovina. However, since 2016, the trend is for the Bosnian population to migrate to Germany and Austria, and the number of such persons in Croatia and Serbia is steadily decreasing.

"According to Eurostat's data, immigrants from third countries, predominantly immigrants from Bosnia and Herzegovina, are better involved in the Croatian labour market than the domestic population and immigrants from other EU countries in terms of the employment rate of young people aged from 15 to 29. The employment rate of young people from third countries in Croatia is higher by 18 percent when compared to the employment of domestic youth,'' said Snježana Gregurović.

As stated, the unemployment rate for young people up to 29 years of age is highest among the domestic Croatian population, and is actually the lowest among young people from third countries.

"Because of their small share of the total population of Croatia, immigrants haven't endangered or undermined the country's social cohesion. Because of the modest share of the immigrant population in Croatia who do not have Croatian ethnic origin, and the large share of those who do have it, the integration challenges are not yet posing any sort of significant cost to the state, or a threat to the domestic population,'' says Podgorelec.

In Zagreb, the largest concentration of immigrants from Bosnia and Herzegovina live in Sesvete, where the research "Influence of immigrants from Bosnia and Herzegovina on the socio-demographic development of Croatian urban regions" was conducted on a sample of 301 people aged 18 and over born in Bosnia and Herzegovina.

Most of them (93.4 percent) were ethnic Croats, ethnic Serbs made up 3.7 percent of them, Bosniaks made uo 2.3 percent, and 0.7 percent was made up of others. Otherwise, 85.2 percent of Croats born in Bosnia and Herzegovina and living in Croatia are actually Croats, 6.3 percent of them are actually Serbs, and just 6 percent are Bosniaks.

A third of respondents hold dual citizenship, (Croatian and Bosnia and Herzegovina). Almost half of them work, of which 68 percent are mostly in trade or the construction industry. 14.6 percent are unemployed, those who stay at home make up 6.6 percent, pensioners make up 29.2 percent, and students and pupils in education make up 2.7 percent. The largest number of immigrants from Bosnia and Herzegovina living in Sesvete have secondary education, and 6,3 percent have higher education.

"Most respondents feel very welcome in the local community, they have a strong sense of belonging to the Croatian society, and they vote in large numbers during elections in the Republic of Croatia, but are exceptionally poorly involved in any organisation and/or civil society. Given the fact that many of them also have Croatian citizenship and therefore they vote in the elections in the Republic of Croatia, many are significantly less interested in political developments in Bosnia and Herzegovina, which shows a high level of political integration,'' concluded Podgorelec, reports Večernji list.

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

Friday, 19 April 2019

Croat in Germany Reveals Whether or Not Life Really is Cheaper There

A Croatian YouTuber in Germany reveals all about double standards when it comes to your weekly shop...

All too often the Croatian media is plagued by depressing stories of Croats fleeing the country in search of better lives elsewhere. Since Croatia's accession to the European Union, this trend has only grown worse and the level at which emigration from Croatia has been is hardly sustainable for the country these people are leaving behind. 

Many people leave realising that hard work and a difficult adjustment period awaits them, however many assume Western European nations like the UK, Ireland and Germany boast rivers of milk and honey and that everyone earns a huge amount for doing very little, and well, the basic fact that higher wages are typically designed to manage the high cost of living seems to bypass many in their lust for a better economic situation. Some stay, and some return with a stark realisation that life abroad isn't quite as easy as they expected.

With all that said, just how much difference is there in the general price of things between Croatia and Germany? One Croatian YouTuber who moved to Germany back in 2014, just one year after Croatia's accession to the EU, made a video for all those would-be Croatian emigrants.

As Novac writes on the 18th of April, 2019, Ivan Lovric, the oner of the YouTube channel Lovra who moved to Germany with his family in 2014, compared some basic food prices in Germany to those in Croatia in his new video.

''I thought it would be a really good idea to buy some stuff in a shop in Germany, and get my wife to buy the same things over in Croatia. To make a comparison and check whether or not it's really, as it's often said, that it's cheaper in Germany,'' explains Lovra in his video's introduction, which is in Croatian.

They arranged for Ivan's wife to visit the exact same store, a German merchant which has their own stores in Croatia, and buy the same basic foods like bread, milk, eggs, and flour. Although Ivan didn't want to name the store in his video for various reasons, he says that it will not be difficult for people to realise which store it is when they see the branded products.

The first product that the pair checked was bread, more precisely ciabatta. Ivan bought it in Germany and paid the equivalent of 5.13 kuna, and his wife spent 5.99 kuna for the exact same thing here in Croatia. The difference is a mere 86 lipa, less than 1 kuna, so Lovra concluded that that's not so terrible. Once again, the next difference is very small, but again, it leans in favour of Germany when compared to the Croatian price of milk. One litre of milk in Croatia stands at 4.99 kuna, and in Germany, at a lower price of what would be 4.61 kuna. A packet of toast and and a kilograms of fries (chips) in Germany, is cheaper by about 1.50 kuna when compared to Croatia, while sour cream is cheaper in Croatia, sold at 2.99 kuna, whereas in Germany it costs 3.64 kuna.

Still, the biggest surprise, and not in a positive way, are eggs. A box of ten eggs for which Lovro gave 8.85 kuna, his wife paid a significantly higher 13.49 kuna here in Croatia, almost five kuna more. The difference is almost 3 kuna more when comparing the prices of Nutella, a favourite of many. Over in Germany, a 400g pack costs 20.75 kuna, and in Croatia it costs 23.49 kuna.

In the end, Lovra paid a total of 131.54 kuna for his basket, and the exact same basket from the exact same German store, but in Croatia, was almost 20 kuna more, or 150.03 kuna.

''Yes, I unfortunately have to say that in Germany it's cheaper than it is in Croatia. There's not a big difference, but I believe that when everything is calculated at an annual level, the difference is a lot bigger,'' concluded Lovra.

He also added the fact that the average wage in Croatia is considerably lower than in Germany, and thus Croats have a lower standard of living than the Germans.

If you're able to understand Croatian, watch Ivan's video here:

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Thursday, 18 April 2019

Picula: Stronger European Union Support for Control of Croatian Borders

Strasbourg, 18 April 2019 - Croatian MEP Tonino Picula supported the report on the proposal of the regulation on the European [Union] border and coast guard during the last plenary session in Strasbourg.

"I'm glad that we'll have stronger support from the European Union in the control of our borders and European [Union] borders,'' he concluded during yesterday's debate on the report on the proposal of the European Parliament.

Croatia's MEP Picula was the initiator of the successful extension of the European Coastal and Border Guard for the Schengen area along the external borders of the European Union, including the Republic of Croatia, and he stressed how the new agency will help to better protect the borders in order to preserve free movement inside the European Union.

Thus, today the Croatian foreign border is protected a part of Schengen, and the Republic of Croatia has the funds of the European border and coast guard available to it, which greatly eases the job of border officials.

The European Border and Coast Guard consists of the border police and coastal police of member states and the agency for the European border and coastguard, more specifically Frontex, and was established in the autumn of 2016. 

"Since I come from Croatia, the country with the longest foreign land border in the EU, I especially support the work of the agency along the external borders of the Union, not just the Schengen area, from which we are still closed off with barbed wire,'' he pointed out.

Only four months after Croatia's accession to the Schengen Information System, it was done 75 million controls and identified over 4000 offenses. This proves the importance of Croatia as a partner in securing the external borders of the European Union and justifies its quicker connection Schengen area.

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

Wednesday, 17 April 2019

High Economic Expectations for Croatia's Brod Port Project

Despite the odd investment here and there, continental Croatia rarely gets a look in when compared to the coast, particularly when compared to Dalmatia. In Eastern Croatia, more specifically Slavonia, the situation is even more depressing, but it seems that not everything is as bleak as we sometimes like to imagine and even portray.

As Suzana Varosanec/Poslovni Dnevnik writes on the 16th of April, 2019, the economic expectations from the Luka Brod (Brod Port) project worth more than 100 million kuna are high. Through the construction of new port infrastructure, the project has become the driving force for the development of Brod-Posavina County, as was highlighted by the Croatian Government.

As stated, the much anticipated construction of new port infrastructure is the driving force for the development of this Slavonian county, this was highlighted at the eighth session of the Council for Slavonia, Baranja and Srijem, and according to the prime minister, it's essential for the Croatian Government and local self-government units to do everything to create the proper conditions for economic development that will end the mass exodus of citizens from Croatia.

Until now, contracted projects with EU funding amount to 9.7 billion kuna, stated the Minister of Regional Development and EU Funds, Gabrijela Žalac. Another 1.85 billion kuna are contracted investments from the state budget.

For the strengthening of the Croatian economy, the development and enhancement of competitiveness, projects such as Brod Port are of great importance, stated the Croatian Chamber of Commerce's Mirjana Cagalj. This is also an incentive for the development of a local environment that is particularly burdened with the exodus of the resident population who are leaving in their droves owing to the unfavourable economic situation, contributing to Croatia's worrying demographic crisis.

Its exceptional traffic position provides great potential for the development of the new port in Slavonski Brod in an intermodal logistics centre, which, according to Cagalj, would work to influence its future strategic role in international container traffic because Brod Port is located on the border of Croatia and Bosnia and Herzegovina, near the crossing of the railway corridor X and the road corridor Vc, which is an international entry port for the EU.

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Click here for the original article by Suzana Varosanec for Poslovni Dnevnik

Tuesday, 16 April 2019

Croatia's AD Plastik Contracts Job Worth 48.6 Million Euro for EU Market

While bleak and uninspiring stories about the state of the Croatian economy and doing business in Croatia continue to circulate across news and media portals as well as in newspapers, not everything is so bleak, you just need to look a little harder. Croatia's AD Plastik has contracted brand new jobs for the European Union market worth a massive 46.8 million euros.

As SEEbiz writes on the 16th of April, 2019, Croatia's AD Plastik d.d. has contracted the new jobs for the European Union for the PSA and FCA Group.

The job of the production of speaker carriers for the Citroen Picasso and C-Elysee PSA Group cars was contracted, which is worth 1.7 million euros, with the start of production scheduled for 2020 with a projected eight-year duration. With the very same buyer, the production of side panels for the Citroen C3 in the value of an additional three million euros, with the start of production planned in 2020, is also in the works, with a projected duration of four years.

New operations for the production of guardrails/handrails for several PSA Group vehicles (Peugeot 208, Peugeot 2008, Citroen DS3 Crossback and Opel Corsa) have been agreed with a total value of 20 million euros attached to them, with a projected ten-year duration, and the works begining during 2019. The Opel Adam Crossback is yet another vehicle from the aforementioned group, for which the engine manufacturing, costing 1.4 million euros, has been contracted with Croatia's AD Plastik, with the anticipated start of serial production being next year, and the duration of the project standing at seven years.

Croatia's AD Plastik d.d. also arranged and contracted 20.7 million euros' worth of new jobs for the FCA Group for the Jeep Compass and Fiat 500e cars. For the Fiat 500e, interior components and air intakes will be produced at AD Plastik's factories, and the total value of the project is 13.9 million euros. The project duration is projected at eight years and serial production is planned for 2020.

For the Jeep Compass, handgrip production contracted at 6.8 million euros has been agreed and the start of serial production is planned for next year with an estimated four year project duration.

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