Saturday, 30 March 2019

Croatia Spends the Most on Food in the European Union

According to food expenditure statistics, Croatia is still spending significantly more than the European average, with the British paying the least towards food and drink in all of Europe.

As Poslovni Dnevnik writes on the 30th of March, 2019, expenditures for transport of the average Croatian family were equal to the cost of housing and for the first time, they reached fifteen percent of the average household budget. Based on the Household consumption survey, which is otherwise conducted every three years, the Central Bureau of Statistics reported that the average Croatian family spent 82,530 kuna per household in 2017, which is a monthly cost of about 6,800 kuna.

Croatia takes first place when it comes to the amount allocated to food in the household budget, but it is about five percentage points less than ten years ago when every third kuna was spent on food, Večernji list writes. The other countries which follow Croatis are Romania, where 26 percent of the typical household budget goes to food, while in Serbia, which is considered a third country, yet remains an EU candidate, that stands at 22 percent.

According to data on food expenditures, Croatia is still significantly above the European average, where 12 percent of household budgets typically go on food and drink, and in developed western economies, that figure is usually between 7 and 10 percent. The dominance of food expenditures is a feature of poorer countries with lower wages. Food prices in Croatia are similar, if not more expensive than in Western Europe, while salaried employees receive three to four times lower salaries, which ensure a much higher quality of life and go on including things such as outings, recreation, travel, and further education.

In Croatia, there is still one item where the standard of living has remained the same to a certain extent, and that is the typical cost of housing and the consumption of energy, to which 15.7 percent of the household budget goes, while at the EU level, the energy bills and rent account for a much higher 24 percent of the typical household budget. The British pay the leasr for food, and it typically accounts for a mere 7.2 percent of the British household budget, yet on the other hand, 27 percent of a typical British household budget is spent on various housing costs. Only Cyprus, Lithuania and Malta have lower housing costs than Croatia.

When looking at nominal amounts, just a couple of years ago, the average Croatian household spent 21,353 kuna per year on food and drink, of which the highest costs are for meat, costing about 6,700 kuna, and non-alcoholic beverages, costing 1,900 kuna, these beverages were mostly coffee, mineral water and various types of juices. In Croatia, at least according to the latest statistics, there is actually less smoking and drinking going on, and alcohol and cigarettes have fallen below three percent of the typical household budget to 2.9 percent (2,421 kuna per year), for the first time ever.

In Croatia, communication costs continue to above the EU average, on which 2.5 percent of the household budget is spent. Bulgaria and Serbia are the most similar to Croatia in terms of spending, while communication costs in other post-socialist countries is significantly cheaper and accounts for about three percent of the typical household budget. The average Croatian family pays 4,113 kuna annually for telephone services, which is almost twice as much as it allocates for health care services. For transport, about 13,000 kuna is spent annually, while clothing and footwear have about 6,000 kuna spent on them.

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

Wednesday, 27 March 2019

Brexit Brits in Croatia - Simplified Jargon for Croatia's British Residents

A look at the possible Brexit scenarios and what they mean for Croatia's confused British residents.

Brexit has been delayed. If May can't get her deal through parliament, or if no other way forward is proposed, the UK could end up with a disorderly No Deal exit, despite parliament having voted overwhelmingly against it. If May passes her deal or parliament finds another route and that is passed then Brexit has been delayed until May the 22nd to allow for the necessary legislation to be passed. The UK cannot delay Brexit any further unless it agrees to partake in the European elections. Farcical, no? 

Anyway, La La Land, sorry... I mean Britain, aside, let's see how things currently stand for Croatia's resident Brits. I've tried to update you a lot, but as you know, the Brexit situation has changed more times than Boris Johnson has changed his political beliefs, so it doesn't always mean much. Still, let's give it a go.

May's deal/withdrawal agreement passes:

If, in the unlikely event May's deal passes during the third meaningful vote on it (third time lucky?), then the withdrawal agreement concluded back in 2018 will come into force on May the 22nd this year, giving way to a transition (implementation) period until what we currently believe to be the end of December, 2020. This however, could be extended and altered. 

What does this mean?

It means that you need to make sure you're correctly registered with the authorities (MUP/Ministry of the Interior) as a resident in Croatia. You need to be in possession of a valid residency permit or the white piece of paper proving you've been approved and you're just waiting for it to be made, before December 2020. If you're due to gain permanent residency (after five years of continuous, lawful residency in Croatia), you can apply for it as an EU citizen would during this time. In short, nothing will alter.

Here's a more detailed guide I wrote a few months ago.

May's deal fails again, parliament can find no way forward, No Deal occurs:

This remains unlikely as this is only the desire of a handful of people who seem hell bent on such an insane idea. Still, it could happen. You need to make sure you're correctly registered with MUP as stated above, and your registration, receipt of registration and/or residence permit will act as proof of your British citizenship and proof of you having been resident in Croatia before the UK's withdrawal from the EU. It's hugely important that you do this if you haven't already. 

Here's how you should prepare for all scenarios, this guide will help you make sure you're on the right side of the law should the UK crash out of the EU with no deal next month. 

Here are MUP's guidelines, with our explainers and points thrown in, in the case of a No Deal Brexit. Croatia has now finally confirmed it will protect British citizens living legally in Croatia and minimise any disruption as much as possible regardless of the Brexit outcome. Click the above link and read carefully. Here's MUP's original post on the subject.

Is there any new information?

Yes and no. Here's what we know so far: Croatia has committed to protect its British residents regardless of the outcome, which is good news. You can click here for an overview of each EU member state's guidelines for residence rights for Brits in the unwanted event of the UK leaving without a deal. It isn't in alphabetical order, so scroll down until you find Croatia, or don't, because I'll just write what you need to know here and explain each point as necessary anyway. Here goes:

''In order to provide for the regulation of residence status of UK nationals and their family members, who on the day of departure of the UK from the European Union have already registered their temporary or permanent stay or have been issued with a residence card pursuant to Title X of the existing Aliens Act, certain amendments to the draft proposal for the Act on EEA nationals and their family members have been proposed.  

Those provisions provide for keeping the existing residence status and lay down the right to work without obtaining additional authorisation (this provision will have no end date). 

The residence documents already issued under the existing Aliens Act will be recognised as temporary national residence permits for nationals of the United Kingdom and their family members after Brexit (option c). These temporary national residence permits will be valid maximum up to one year from the entry into force of the Act (or until their expiration date, if the said date is shorter).

An obligation has also been prescribed to replace residence documents within a year from the entry into force of the Act. New residence permits will be issued in the format laid down by Regulation 1030/2002. 

Pursuant to a special procedure, the draft Act will be sent before the Croatian Parliament for urgent legislative procedure.

b). On 19 March 2019 total of 655 UK nationals have regulated their residence in the Republic of Croatia (358 on temporary residence and 297 have permanent residence).

Having this in mind, we do not currently expect overburden of our administrative capacities.

We aim to implement a simple and straightforward procedure in order not to overburden UK nationals.

Therefore we are considering accepting applications for exchanging the recognised temporary national residence permits after 30 March 2019 (or no deal Brexit date) and issue first permits in accordance with Regulation 1030/2002 afterwards (in order to replace any temporary documents).

c). We have made a proposal for a recommendation addressed to all UK nationals and their family members residing in the Republic of Croatia who intend to continue residing in the Republic of Croatia, to register their residence in the Republic of Croatia in line with the provisions of the existing Aliens Act.

This recommendation was published on the website of the Ministry of the Interior https://mup.gov.hr/vijesti/information-concerning-the-future-relations-between-the-united-kingdom-and-the-european-union/283273

What does all that mean?

In short, legislation is being put forward to mean that the current residence document/permits you hold now, which were obtained via your EU treaty rights (the right to live and work in any EU member state) will remain valid for one year, or less if you're due to update them (renew or apply for permanent residence) in less than one year. 

This legislation will mean that essentially, British citizens already residing legally in Croatia will be treated like all other EU citizens and their unrestricted entitlement to access the Croatian labour market will remain as it is now - permanently.

There aren't many Brits living here, so there shouldn't be any particular extra burden felt by MUP or by individuals.

Eventually, residence cards obtained through EU law will cease to be valid for British nationals, but there's nothing to worry about, you simply exchange them for whatever the new ones will be. Croatia is considering beginning permit exchanges as of the 30th of March (however this might be worth bypassing considering the fact that the UK will almost certainly still be a member of the EU on that date).

Need an example?

1) Let's say you're due to get permanent residency this year. You'll apply for it as normal just like you were still an EU citizen, and you'll be granted under the same conditions as EU nationals. Ask the official if you'll need to alter it in a year's time. If you do, you won't be asked to make an application again, it will be a simple exhange for a new permit. It will still be permanent residence, just maybe a slightly different looking card.

2) You've still got a few years to go before you hit that magic five year mark. Your current temporary residence permit will remain valid for another year. Go and exchange it for whatever the new document will be as soon as MUP announce they're beginning exchanges to save you any extra burden. Ask at your local police station for information on this, or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it..

3) Let's say you've somehow managed to live in Croatia without any sort of residence permit (yes, it happens), you need to go and register your residence now and get a five year temporary residence permit. You can then exchange it for whatever the new document is when MUP begins exchanging cards, and then eventually get permanent residence.

What about healthcare?

If no other way forward is found and no further extension to the Brexit process is agreed, the UK will crash out of the EU. In this case, the EU health insurance card will cease to be valid for British citizens. As things stand, we can reveal that the Croatian Government is preparing a Draft Law Proposal on a Temporary Measure in the area of Obligatory Health Insurance designed to provide transitional healthcare arrangements after the UK leaves the EU to those who are residents in Croatia.

We'll update you as soon as we know more about what that means.

Make sure to follow British Embassy Zagreb on Facebook, and sign up for email alerts from gov.uk's Living in Croatia page, which is updated as soon as any new information comes out. Give our dedicated politics page a follow for much more on Brexit and beyond.

Friday, 22 March 2019

Vela Luka: Construction of Passenger Terminal and Fishing Port in 2019

As Morski writes on the 21st of March, 2019, a session of the Municipal Council of Vela Luka on the island of Korčula was attended by the county's deputy prefect Joško Cebalo, who expressed the wider county's support for all of the innovative projects currently being prepared and implemented by the municipality, which are aided by EU funds.

''This time especially, I'd like to emphasise sincere congratulations to all of the employees of Vela Luka's home for the elderly for the municipal award that will be given to them today,'' Joško Cebalo stated, adding that the project of energy renovation for the home, which is worth more than four million kuna, will soon begin.

Port infrastructure is still seen as a top priority for Vela Luka. Deputy Prefect Cebalo stressed the fact that this issue really is a matter over which the county's administration is continuing to take care and that one of its main priorities is the continued renewal and further construction of Vela Luka's highly important port infrastructure.

According to him, the county is currently preparing as many as eight projects worth over 500 million kuna in total, and the most important for Vela Luka's residents were highlighted, these include the construction of a new ferry-passenger terminal worth 60 million kuna, which should be implemented this year, and the project of the construction of a fishing port, for which the project documentation is currently being prepared.

''As the completion of the construction of Pelješac bridge will be the symbol of the first decade of Croatia's membership of the European Union, these two projects in Vela Luka will symbolise [our] development thanks to EU funds, as well as our care for the islands,'' concluded Vela Luka's deputy prefect.

Make sure to stay up to date on the construction of infrastructure in Vela Luka and far beyond by following our dedicated lifestyle and business pages. If it's just the island of Korčula you're interested in, give Total Korčula a follow.

Wednesday, 20 March 2019

3.1 Billion Kuna Secured for Projects in Krapina-Zagorje County

The continental Croatian county of Krapina-Zagorje and Krapina itself are both doing very well in terms of the amount of EU funds contracted for various projects over the last couple of years.

As Marta Duic/Poslovni Dnevnik writes on the 19th of March, 2019, Krapina is the seventeenth town in which the Ministry of Regional Development and EU Funds, in cooperation with institutions in the EU funds management and control system, have succesfully organised the informative and educational event ''Regional EU Fund Days'' with the aim of better informing the general public about the possibilities of funding from EU funds, as well as the strengthening of regional development and the overall social and economic growth of the Republic of Croatia.

Krapina-Zagorje County, of fourteen continental Croatian counties, is somewhere in the middle when it comes to using EU funds, while Krapina alone is currently implementing projects worth 125 million kuna.

"Although Krapina has been talking about EU funds for years, it took time to actually start something, with problems with the shortage of labour and at the same time a great deal of work [that needed to be done]. But today we can boast about a series of projects funded with EU funds," said Zoran Gregurović, Krapina's mayor.

"In just a little over two years, the intensity of the announcement of tenders has increased, and by the end of 2016, Croatia was at nine percent of contracted EU funds, a year later it was at 35 percent, and according to the results at the end of last month, we're currently at 64 percent of the contracted funds. In Krapina-Zagorje County, projects worth one billion and three hundred million kuna have now been contracted,'' said Velimir Žunac, State Secretary at the Ministry of Regional Development and EU Funds.

Croatia is, while taking into account the cost of European Union membership, in a plus, and by more than ten billion euros, by the year 2023, that figure will be even higher, the State Secretary encouragingly said. There was also an interesting panel discussion on the development of Krapina, where numerous projects were presented, indicating that Krapina-Zagorje County has some great potential across several sectors.

There are, therefore, projects currently being carried out, of which Crna kraljica (Black queen) is highlighted, a significant project worth 3 million kuna relating to the doing up and the renewal of the Old Town of Krapina, the Forma Prima sculpture park in Josipovac Forest, and the construction of a 300-metre-long pedestrian bridge connecting these locations. Other projects which involve street construction, kindergarten works and waste management are also in the works.

In addition to the above mentioned projects, Gregurović mentioned the problems that are also being faced.

"A large number of projects got the go ahead from our own resources too, which was a burden for us with regard to our financial capacity and the share of financing," Gregurović said, and as an example, he used the Sports and Recreation Centre in Podgora. It was approved, as was 40 percent of the cofinancing, and the city had to allocate 1.7 million kuna of its own finances to it. Although there is interest in the measures set out by the Rural Development Program, Gregurović says it is hampered by the high development index. "We lost points due to the development index when we registered for the Youth Centre, and we don't have enough resources to prepare the project documentation, so we hope the ministry will increase the funds that it allocates within the framework of the cofinancing of EU projects,'' said Gregurović.

Development would certainly not be possible without EU funds, said Vlatka Mlakar, head of the Public Procurement Department and EU funds of Krapina-Zagorje County.

"We've noted a positive contracting trend over the last two years, with the contracting rate in the area of ​​our county being 42 percent higher in 2018 than it was the year before. Looking at 2017 and 2018, the value of contracted projects stands at 1.3 billion kuna,'' said Mlakar. She added that more tenders mean more market demand.

She also announced a strategic project currently being implemented and worth 33 million kuna - the construction of a Business-technology incubator. Numerous projects have also been being carried out in the area of ​​education and health, including the project of energy renewal in nine schools, three of which are now complete.

"We're focused on the new financial period, we've got a lot of plans, and we have several strategic projects - the doing up of the hospital in Krapinske Toplice in the amount of 150 million kuna, then the Zagorje Scientific-education centre worth 120 million kuna, and a competence center worth 85 million kuna. Public procurement procedures are important because the success of every EU project lies there - the rules must be respected, as should be the procedures, the regulations, and the state commission's control procedures should be followed,'' Mlakar said.

Make sure to follow our dedicated business and politics pages for more information on EU funds across Croatia and much more.

 

Click here for the original article by Marta Duic for Poslovni Dnevnik

Wednesday, 20 March 2019

Croatia's Paradox: Work But No Workers, Workers But No Work

The Republic of Croatia is in a group of four European Union member states with a lower uncovered demand for workers when compared to one year earlier. The Croatian paradox of staff fighting over workers who either don't exist or don't want to work, while would-be staff complain about there being no jobs continues.

As Ana Blaskovic/Poslovni Dnevnik writes on the 19th of March, 2019, the workforce problem is rapidly becoming one of the most burning issues not only here in Croatia but across the European Union. In the last quarter of last year, Croatia ranked among the four EU member states with a lower uncovered demand for workers than was recorded during the same period last year, Eurostat figures show.

At the Union level, as well as at its very core in which the euro currency wains, the rate of vacancies grew to 2.3 percent during the fourth quarter of 2018. Just for comparison, this rate, which shows uncovered demand for labour, was 2.1 percent in the previous quarter, and 2.2 percent in the Eurozone.

The availability of labour in the last year has become the top theme for domestic employers. While a few years ago this issue was only mentioned from time to time, in the last surveys answered by business owners, it emerged at the very top of the list. In Poslovni Dnevnik's recent interview with AmCham, Andrea Doko Jelušić pointed out that when the last survey was taken, their members underlined this topic as the main constraining factor in 2018, while back in 2017, it was placed on the list for the first time ever.

Reflecting on the workforce as an inevitable issue of the competitiveness of the domestic economy, CNB/HNB Governor Boris Vujčić said on Monday that Croatia is specific in the EU because as many as 40 percent of working-age citizens don't work. "When looking at the employment rate, Croatia is the second worst in the European Union after Greece, which means that everyone else has to work harder to maintain the same level of living standards," said the governor.

The key to the mobilisation of this population, Vujčić believes, is to evaluate the positive changes in pension regulations which extend the working life. The EU and the Eurozone are currently experiencing the most problems with finding workers in the service sector, with the job vacancy rate standing at 2.6 percent. Industry and construction account for 2.1 percent in the EU, and 2 percent in the Eurozone. In Croatia, the vacancy rate in the fourth quarter fell to 1.4 percent, which was the lowest level in just over a year. The highest jump in labour demand for the same period last year was in the fourth quarter in the Czech Republic, Austria, Malta, and Germany.

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

 

Click here for the original article by Ana Blaskovic for Poslovni Dnevnik

Tuesday, 19 March 2019

High Number of HZZO Insured People Not Living in Croatia

Since as far back as 1998, when a person is left without work, their health insurance and the right to receive health care has been made possible by going and registering with the Croatian Health Insurance Fund (HZZO).

As Poslovni Dnevnik writes on the 19th of March, 2019, although thousands upon thousands of people have left Croatia in recent years, many of them are still being treated medically in their homeland, primarily because it pays off more than doing so elsewhere. This trend was warned about by the Croatian Association of Contracting Ordinations. They estimate that as many as 330,000 people who don't actually live in Croatia are still exercising the right to the country's health insurance benefits through HZZO.

As mentioned, since back in 1998, when a person becomes left without work, their right to health insurance is realised rather simply via registration with HZZO. At the same time, this person does not actually have to be regisered as unemployed officially, as was explained by HZZ. This leads to a large number of people working and paying their taxes over in Germany, and coming and getting their teeth fixed while on holiday in summer in Croatia.

This is apparently also an issue in the mind of the Croatian health minister, both financially and morally. "It's not fair to those who live here and who pay for health insurance, therefore HZZO will undertake and is already taking out certain measures [to attempt to deal with this issue]," said Minister Milan Kujundzic. Such measures will also soon be taken up by the European Union itself. Electronic data exchanges between member states is being introduced, which will help control those who are HZZO insured.

''According to the data we have, as of the 31st of December 2018, compared to 2017, we've got 40,850 less insured persons -  that's about 0,96 percent. Our records include some 60,000 workers who work for our _Crpatian+ companies in the EU,'' said the HZZO's director, Lucijan Vukelić. He emphasised the fact that HZZO has been caught up with the various problems of expatriates from Croatia who pay their taxes abroad and are still in HZZO's register, and are therefore treated for whatever ailments may bother them here in Croatia.

Vukelić also noted that HZZO should enter into a joint data exchange with the EU on the 1st of July this year. This data also includes non-EU countries, but involves them as they are economically linked to the EU. It is a bi task and a fairly painstaking process because there are many countries involved, both EU and non EU across the European continent.

There are numerous confusing laws that many misinterpret when it comes to health insurance in Croatia which came into force when Croatia joined the EU back in 2013.

EU countries with a public health system such as Poland and the UK made it so that, for example, British nationals who are resident in Croatia could use their EU health card to access healthcare in Croatia, effectively trading one public insurance policy for another. Such laws appear to have created more confusion than sense, and whether or not HZZO will manage to get to the bottom of the situation with its own nationals with MUP's help is yet to be seen.

Make sure to follow our dedicated lifestyle page for more.

Thursday, 14 March 2019

Brexit Brits in Croatia - MUP's Guidelines in Event of Any Scenario

MUP has finally spoken!

Where do things stand for you as British citizens lawfully resident in the Republic of Croatia? 

* When this article was first written, it was a draft law. This law was fully adopted in July 2019 and will come into force in the case of a no deal Brexit*

If you see a little * and italic font at the end of or underneath a sentence written by MUP, that's our little comment to give you our advice on the matter, too.

RESIDENCE:

Residence registration is very important in the case of any scenario for future relations between the European Union and the UK.
 
Therefore, all UK citizens and their family members residing in the Republic of Croatia are strongly recommended to register their residence as a British/EU citizen/apply for a residence card as a family member of a British/EU citizen.

Please click here and click on the following links: Form 1b, (for EU citizens, this needs to be clicked on for British nationals too) Form 2b (for family members of EU/British citizens who are third country nationals), of Form 3b for both EU/British citizens and his/her family members who want to apply for permanent residence.

* Please note that permanent residence can be applied for only after five years of lawful, uninterrupted temporary stay in the Republic of Croatia, you can have changed your address as many times as you like, but you must have been registered as legally living on Croatian territory for five years on an uninterrupted basis. Lawful, uninterrupted residency can be shown when applying for permanent residence with every ID card you've held, as the dates on them will attest to the five year time period. Some MUP officials claim you cannot apply for permanent residence until your temporary residence expires, others say you must be in possession of a temporary residence card which is still valid at the time of application. We advise you go to MUP and ask about your case individually, as they seem to alter this rule depending on who you talk to.

* According to EU law, the right to permanent residence ''after five years'' actually means five years + one day, but once again, MUP can misinterpret this and assume you need to come and start the process before the temporary residence expires. Don't leave it up to fate. At least go and ask in person before your temporary residence card expires.

* If you were not given an automatic five year residence permit when you first applied for some reason or another, and when you've renewed your temporary residence the official has taken your old ID card from you, there is no need to worry. Present the ID card you have and your legal residence will show up when a case worker checks you out to approve your permanent residence application.
 
Once the applicants have completed the registration of a temporary residence in accordance with the provisions of the Aliens Act (OG 130/11, 74/13, 69/17 and 46/18), they will be immediately issued with a Registration Certificate registration of a temporary residence in paper form, free of charge. If they wish, they can apply for a residence card (for which the administrative fee is to be paid in the amount of HRK 79.50).

* We strongly recommend you pay for the residence card, the white sheet of paper is merely confirmation of your residence/address, the residence card has your photo and details on it and acts as ID in Croatia. It is also weatherproof and easier to carry around on your person, which, just like nationals, you must and can be fined for not being able to present a form of ID if asked to by the police.
 
UK citizens who apply for permanent residence will be issued with residence cards (for which the administrative fee is to be paid in the amount of HRK 79.50).
 
Family members of UK nationals, who are not nationals of an EU Member State, are required to apply for a residence card/permanent residence card as a family member (for which the administrative fee is to be paid in the same amount of HRK 79.50).
 
UK citizens and their family members can register their residence at a police administration/police station according to their place of residence (The list of police administrations/police stations is available here).
 
The registration of residence and the relevant documents are a clear proof that their holder is a citizen of the United Kingdom or a family member [of said British national] who has already resided in the Republic of Croatia before the United Kingdom's departure from the European Union.
 
DRIVING LICENSES:
 
Starting from the day on which the United Kingdom of Great Britain and Northern Ireland leaves the European Union, UK driving licenses will be subject to regulations concerning foreign driving licenses.
 
UK driving licenses will be valid in the Republic of Croatia for up to one year from the day that the United Kingdom of Great Britain and Northern Ireland leaves the European Union. After that, they will have to be replaced with Croatian driving licenses and the applicant will have to submit a certificate of medical fitness to drive.
 
UK nationals and nationals of other countries who are holders of UK driving licenses are advised to apply for the replacement of their driving licenses with a Croatian driving license as soon as possible.

Applicants who submit their application before the date on which the United Kingdom of Great Britain and Northern Ireland leaves the European Union will be able to replace their UK driving licenses under the conditions set for the replacement of EEA driving licenses in which case it is not necessary to submit a certificate of medical fitness to drive.
 
Both the EU driving licenses and the former paper driving licenses are equally recognised.
 
UK driving licenses are replaced with Croatian driving licenses without any obligation to take a driving exam/test, regardless of the category of vehicle listed on the UK driving license.

Border checks on persons at the EU external border (This section does not apply for travel in the Common Travel Area between the United Kingdom and Ireland):

EU law on border checks at the EU external borders on persons distinguishes between the control of EU citizens and of third country nationals. As of the withdrawal date, the control of UK nationals on entry and exit from the Schengen area as well as to and from Member States for which the decision on lifting internal controls has not yet been taken, but which apply Schengen rules at their external borders, will follow the rules for third country nationals.

(Please note that UK nationals who are members of the family of an EU citizen exercising their right to free movement are subject to the rules set out in Article 5 of Directive 2004/38 / EC of the European Parliament and of the Council of OJ L 158, 30.4.2004, p. 77.) On 29 April 2004, the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States, OJ L 158, 30.4.2004, p. 77.)

This means that they will no longer enjoy facilitations at the borders provided for EU citizens, nationals of the contracting states of the European Economic Area, and Swiss nationals ("EU / EEA / CH citizens") related to the free movement rights. In particular, UK citizens will not be entitled to use the separate lanes provided for EU / EEA / CH citizens to carry out checks at border crossings and will be subject to thorough checks of all entry conditions for third country nationals upon entry.

The entry checks for UK citizens will include verification of:
 
The possession of a valid travel document for crossing the border; the document must have a validity of no more than ten years, and shall remain valid for three months after the intended departure from the Member States; (Please note that UK national passports issued before the withdrawal date remain valid travel documents).
 
The duration of the stay:

For short stays in the Schengen area, UK citizens will be subject to restrictions on the authorised duration of stay within the Schengen area (with a maximum of 90 days in 180 days); for long stays, they will in principle require a residence permit or a long-stay visa issued by national authorities, under the national rules; The identity and the nationality of the third country national and of the authenticity and validity of the travel document for crossing the border, and in particular, if an alert has been issued in the Schengen Information System (SIS) for the purpose of refusing entry and checking potential threats to public policy, internal security, public health and international relations; the purpose (eg tourism or work) and the conditions of the intended stay (eg accommodation, internal travels); the existence of sufficient means of subsistence (i.e. having sufficient means to pay for the intended stay and return travel). ("Schengen-visa"), when the transitional period for the stay in the United Kingdom is reduced by the amount of the short-stay visa ("Schengen-visa"), on 13 November 2018 the Schengen area is 90 days within a 180-day period and it is now up to the European Parliament and the Council to adopt this proposal. - visa requirements, following the visa reciprocity principle.)

Travelers are advised to confirm, prior to travel, the validity of travel documents and to ensure that they fulfill all the above conditions before they travel to the EU. The non-fulfillment of any of the entry conditions may result in refusal of entry issued in accordance with the procedure laid down in Union law with respect to third country nationals.

Checks on exit include verification of:

The possession of a valid travel document for crossing the external border; verification that the person did not exceed the maximum duration of stay in the territory of the Member States; relevant databases similarly as upon entry checks.

WHAT DOES THIS JARGON ACTUALLY MEAN?

In short, this is nothing we haven't advised before and we applaud MUP for confirming things.

Make sure you're registered and in possession of a residence card which acts as proof of your lawful residence in the Republic of Croatia before the United Kingdom's withdrawal (if it ever happens) from the EU. In other words, these act as your acquired rights that you were entitled to before a law change, ie, your EU treaty rights.

Apply for permanent residence when you hit the magic five year mark.

Switch your driving license over to a Croatian one now, even though you don't need to right away, why bother with the headache?

You won't be able to use the EU lanes when arriving in an EU country using a British passport anymore.

Croatia is not in Schengen, but when travelling to and from Schengen, you might be subjected to more questions than you're used to.

If your passport is nearing its end, apply for a new one now to save you the bother.

We'd like to thank MUP, all sarcasm aside, for setting out some guidelines. This means that all Brits who have legally resided in Croatia, still live here, and have proof of that, will be fine even in the event of a No Deal Brexit. If May's Withdrawal Agreement manages to pass, then that will come into force. Click here to read that. If Brexit is delayed (likely), or Article 50 is revoked (unlikely, but possible), keep up with us for info.

Make sure to follow our dedicated politics page for much more on Brexit. Sign up to email alerts from the British Embassy in Zagreb for any alterations. Click here for MUP's post.

Wednesday, 13 March 2019

Croatian Demographic Crisis Leaves Room for Surprising Exceptions

One might naturally expect continental Croatian counties, which aside from the capital of Zagreb tend to be less developed owing to the fact that Croatia's main economic branch of tourism still tends to largely bypass these areas, to boast the highest number of residents who have gone abroad. While this tends to be the case, and Slavonia unsurprisingly tops the list, the causes for such movement aren't necessarily what you might expect them to be, and there are some rather surprising exceptions...

As Poslovni Dnevnik writes on the 13th of March, 2019, the mass exodus from Croatia abroad is in direct correlation with the economic strength of a particular part of the country, but the actual economic strength (or weakness) of a particular region doesn't necessarily result in the mass emigration of the local population from individual less developed parts of Croatia.

These trends have been highlighted by data taken from the Central Bureau of Statistics, which in turn correlates GDP per capita in a given county with the number of people who have gone abroad. Of course, GDP per capita per county isn't fully accurate, perhaps the more accurate summonses for this topic are the average wage and the percentage of those registered as employed, but the data still clearly shows how developed each Croatian county is at the given time, Novi list writes.

When it comes to GDP per capita per county, Novi list has taken the recently published data from the Central Bureau of Statistics for 2016 and looked at the number of persons who went abroad, ie, the population of a county, and the number of inhabitants in the county for 2016 and 2017. Moving abroad appears to have intensified back in 2017, when 47,352 people left the country, up from 36,436 people in 2016.

In 2016, which is the first year in which Novi list's journalists looked into, no more than two or more percent of the population moved abroad from any county. Most of these people were from Požega-Slavonia (1.72 percent) and Vukovar-Srijem (1.67 percent), while in the following year of 2017, three counties saw that number rise above two percent (Sisak-Moslavina, Brod-Posavina, Požega-Slavonia) and one, Vukovar-Srijem, was over three percent.

At the top of the emigration list unsurprisingly lie less developed, poorer Croatian counties. Back in 2017, the largest number of those going abroad was recorded in Vukovar-Srijem County, followed by Brod-Posavina, and Požega-Slavonia, in fourth place came Sisak-Moslavina County. All of the above mentioned Croatian counties are located in continental Croatia, which is still very much bypassed by the country's main economic sector - tourism.

Vukovar-Srijem County recorded a dramatic rise in those leaving to go abroad in only one year, from 1.67 percent to 3.2 percent of the population.

However, in spite of these negative demographic trends, it appears that GDP per capita doesn't actually have to be the cause of the large-scale ''outflow'' of persons abroad, as is shown by Krapina-Zagorje. In both years, 2016 and 2017, this Croatian county recorded the least amount of persons going abroad. The situation is similar with Bjelovar-Bilogora County, yet another continental county in which one might naturally expect the Croatian demographic crisis to bite hardest.

Krapina-Zagorje County is specific to something else, too, along with the southern Dalmatian Dubrovnik-Neretva County, it is the only Croatian county in which the number of those who left to go abroad was lower in 2017 than it was back in 2016.

The research concludes however that the largest number of persons who have left Croatian soil to go abroad come from Slavonia, the least are from Istria, Zagreb, and Rijeka.

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

Tuesday, 12 March 2019

Međimurje Most Favourable Region for Doing Business - But Why?

Data continues to show that beautiful Međimurje County is the most developed county of continental Croatia after the City of Zagreb, the only one over 50 percent more developed than the EU average.

As Poslovni Dnevnik writes on the 12th of March, 2019, this year, Međimurje is among the winners in the category of creating a favourable entrepreneurial environment, the efficiency of the public administration, incentives and investment in infrastructure through EU funds.

The award was presented by one of the most prestigious and highly respected business media outlets in the world, the Financial Times, as part of its fDI Magazine, a publication that analyses global business activities across the world.

To briefly recall, last year, Međimurje was recognised as one of the top ten regions in the European Union. This new award was based on the analysis of the European Statistical Office (EUROSTAT), the Central Bureau of Statistics and other competent public authorities. According to the Economic Power Index, Međimurje is one of just two counties that recorded a two-place shift, and the only county in continental Croatia which GDP was higher in 2014 than it was back in 2008, resulting in GDP growth of 2.8 percent.

According to some of the measured criteria of the role of public administration, Međimurje County has, among other things, the lowest public sector expenditure in Croatia, and according to the data of the Institute of Public Administration and the European Commission (EC), it also boasts the highest grade according to the criteria for transparency of Croatian local and regional self-government units.

Furthermore, the official statistics for the second year distinguish Međimurje County as the region which invested the most in education, and the high degree of use of EU funds in creating quality health care conditions, investment in infrastructure, culture, and the protection of natural values (resources) ​​has enabled Međimurje's transition to a group of above-average developed counties compared to the average in the Republic of Croatia.

In addition to all of the above, Međimurje's economy recorded an unemployment rate of five percent, the largest amount of exports in when compared to imports, export growth of 14 percent, employment growth of five percent, total income growth of 11.8 percent, while gross profit of the economy was higher by 9.2 percent, net profit was 13.2 percent higher, which in turn increased revenues by 11.8 percent.

The efficiency of Međimurje's public administration was assessed through the speed of issuing building permits, rational budget management, the role of the regional development agency, the county energy agency and the technology innovation centre. Investment in the knowledge centre was created by creating the prerequisites for start ups by building new premises worth 12 million kuna, withdrawing EU funds for the construction of the "Metalska jezgra" research centre (32 million kuna) and the centre for competence in nechanical engineering with a total value of 50 million kuna.

The award ceremony was held in France, and the following warm words were said about Međimurje:

"The key to your success is in the synergy of public administration, the private sector and the [local] population. Međimurje County has once more, in this way and with the obtaining of a new prestigious award, justified its title and its image as the most entrepreneurial county in Croatia. All this is a result of systematic work, a clear strategy and the proactive promotion of investment opportunities. For this year's choice, fDi Magazine has analysed data on economic potential, the working environment, cost efficiency, infrastructure and positive business environment(s) in as many as 112 locations,'' said the director of fDi Magazine, adding that, at this point, the most important economic and social issue is Brexit, where the Financial Times devotes a lot of attention to the analysis of the future of the European Union after Great Britain leaves (if it ever actually does, that is).

Sarah Russis, head of fDi Intelligence and GIS Planning, emphasised the role of digitalisation as an important link to the region's economic development and planned investment.

"We're aware that investors, entrepreneurs and public administration officials are doing demanding jobs, and therefore it's important to recognise and support every innovation, result, and effort invested in creating a positive entrepreneurial environment, and the incentives that facilitate the ease of day-to-day business."

''This is award is proof of a systematic and thoughtful strategy. Our goal is to attract value-added investments that lead to better working conditions. It's important to emphasise that many existing foreign investors have decided to expand their capacities and have confirmed that Međimurje is a location for long-term business success. Key activities that Međimurje County conducts are post-investment care, attracting new investment in key sectors, a marketing strategy for attracting FDI investments to Medjimurje County, and education for small and medium entrepreneurship. The Redea institute for public development is also a kind of "one stop shop" institution that monitors entrepreneurs through all administration challenges,'' stated Darko Radanović.

"This award is, above all, a recognition to all those who create added value and contribute the most to economic results. The residents of Međimurje are productive, valuable and resourceful, entrepreneurs are struggling in very challenging business conditions, mayors are successfully attracting money from EU funds, all based on a clear vision, a quality strategy and set goals. That has to be valued and I'm glad it was recognised by magazines like the Financial Times. But we're not going to stop there, we understand this as a challenge to be even better because, after Brexit, many investments will be redirected to other EU countries and we intend to use [that opportunity]. This resettlement process [of investment] has already begun, the potential of Međimurje has been recognised, which has been proven by a reward for the second year in a row, so, I hope that Croatia will model itself on other countries and jump on the train, recognise that this is a new moment and take advantage of its chance,'' said Medjimurje County Prefect Matija Posavec.

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

Tuesday, 12 March 2019

Vinkovci's Spačva to Invest Fifty Million Kuna in 2019

Through a project worth 45 million kuna and with welcome co-financing from the European Union, an innovative new product involving Slavonian oak doors is currently being developed in Vinkovci.

As Suzana Varosanec/Poslovni Dnevnik writes on the 11th of March, 2019, Vinkovci's Spačva wood industry, with its 865 employees, is going from strength to strength

Last year, the industry achieved fifteen percent higher revenues than it did back in 2017, and the same positive trend is set to continue throughout 2019. With a net profit of seven million kuna in 2017, Spačva's profit in 2018 was higher than fifteen million kuna.

A new phase of development, based on innovation and further competitiveness, has now been launched, and our struggle for raw material is going to lead us to the abandonment of the unlawful distribution of raw materials which is breaking the market and the transition to a market model,'' Spačva's Josip Faletar said, adding that the majority of the wood and the processing of it would be done in Slavonia, and in that case, the Vinkovci-based Spačva would employ 200 new workers in a boost to Slavonia's dwindling economy.

The company has been deprived of its old, burdensome commitments, and since last year it has been primarily focused on development projects, two of which are currently under way, and they're also preparing other new projects, which are of an innovative character and have been carefully developed in close cooperation with the scientific community.

The largest project in progress is worth 45 million kuna and is being co-financed by the EU, the project in question is the development of a new product made from sturdy Slavonian oak, which, with its charm, looks and high quality would likely easily conquer the demanding European market. This project has been in the works for four years now and is going according to plan, said Faletar, and along with experts from Spačva, a dozen scientists from the Zagreb and Osijek forestry faculties are also working hard on it.

Moreover, by the end of this year, Vinkovci's Spačva will announce the completion of a project worth more than 30 millio kuna which has been financed entirely from its own sources and loans. Namely, the company plans to achieve better raw material utilisation, at higher speeds and with greater flexibility in the process of tailoring customer requirements to the EU's single market.

Revenues from this Vinkovci company's sales in 2018 amounted to close to 230 million kuna, out of which on foreign markets in thirty countries, sales amounted to 73.08 percent, in the amount of 167.6 million kuna. The most important export countries are Italy, Serbia, France, Germany, and Romania. In the period from 2013 to 2018, Vinkovci's Spačva invested more than 100 million kuna into its machinery, equipment and infrastructure, and in 2019 it plans to invest a further 50 million kuna.

Make sure to follow our dedicated business page for much more on doing business in Croatia and the overall investment climate in various sectors within the country.

 

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

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