Investment in Croatia continues despite problematic red tape, and thanks to EU funds (among others), Istria County is set to see a huge cash injection for their numerous ports.

As Poslovni Dnevnik writes on the 4th of March, 2019, Istria County is the founder of five port authorities: Pula Port Authority, Rovinj Port Authority, Rabac Port Authority, Poreč Port Authority and Umag-Novigrad Port Authority, which are expecting big investments this year, according to a report from Glas Istre.

In Pula, the completion of the new 130-metre-long coastline is expected, which will surely contribute to the further overall growth of maritime traffic in the busy Port of Pula. The construction of the new operational coast/shoreline is a project which has been being carried out in several phases, and the latter part of it is worth 3.5 million kuna. Another significant move is that at the end of this year, the design of the passenger terminal project in Pula should begin.

In addition to the ''doing up'' of Pula's coastline, Pula Port Authority is also expecting several other projects to begin, including the replacement of pontoon at Bunarina, the continuation of the promenade towards Veli Vrh, the redoing of the coastline in Fažana, as well as the harbour in Krnica, and works on the beloved Brijuni island which stand at about seven million kuna.

In 2019, Rovinj Port Administration plans to build the San Pelagio communal port, estimated at a value of 32 million kuna, in which Istria County, the City of Rovinj and Rovinj Port Authority will jointly participate.

Significant investments, announced by county prefect Flego, are also expected in the area of ​​the Port of Rabac. The plan is to reconstruct the Trget communal barges, the value of which is estimated at 13.3 million kuna.

Other projects in the works are the construction of a primary breakwater in the port of Rabac, estimated at 72 million kuna, for which a financing model is currently being sought, while the project of Brestov Port, worth 23.7 million kuna, is set to be financed through European Union funds.

Poreč Port Authority is also expecting a number of projects, and the most significant of them all is extension is the existing naval structure in Vrsar Port, which serves as a home for fishing vessels, amounting to 10.5 million kuna. With the extension of the existing area, fifteen brand bew anchorage sites will be provided, meeting the needs of Vrsar Port, as one of the most active fishing centres on the western coast of Istria.

In addition, progress is being made on works on the Barbaran breakwater, through with Poreč Port Authority continues to invest in the Poreč aquatorium. This is the most important investment this year in Poreč, worth 4.8 million kuna, which is financed from the aforementioned port authority's own funds, Istria County and the Ministry of Maritime Affairs, Transport and Infrastructure.

A welcome 5.1 million kuna was allocated by the EU Maritime and Fisheries Fund to the Umag-Novigrad Port Authority, for the demolition of the old pier and the construction of a new one in Savudrija harbour, seventeen new lighting posts, the introduction of video surveillance cameras, and the installation of an ''eco-island'' for waste separation for local fishermen.

In addition to all of the above, another major project is under preparation for the construction of the new Dajla-Belveder port, and all the necessary permits to get the green light are now underway.

The start of construction is planned for this year and will continue through 2020. The construction of the port will provide sixty communal berths, a landing place for fishing vessels and an appropriate operational shoreline for small boat excursions. The project value amounts to 24.3 million kuna, with the funds provided by the Ministry of Maritime Affairs, Transport and Infrastructure, Istria County, the City of Novigrad, and the Umag-Novigrad Port Authority.

Make sure to stay up to date with investment in Croatia, doing business in Croatia, and the overall business and investment climate by following our dedicated business page.

Click here for the original article by Glas Istre

It goes without saying that the EU has more positives than it does negatives, at least for most countries, but what of its ultra-stringent rules when it comes to fishing policies? Dalmatian and Istrian fishermen have some vastly different experiences when it comes to carrying out the task at hand, but they share one thing in common - EU rules seem to be unfairly pushing Croatian fishermen towards tourism and away from fishing, making a workforce more and more difficult to come across, and to keep hold of.

''In 1998, I asked some of my elders how I should distribute my earnings. They said: Fifty percent goes to the company, fifty percent goes to the crew. I still stick to those rules today, I've never deviated from them, so I don't have any problems with my crew,'' says fisherman Ante Juran from Vrsar.

As Morski writes on the 3rd of March, 2019, while fishermen in Istria have managed to keep their heads above water (no pun intended) for now, some alarming data has arrived from down south in Dalmatia, some boat owners are complaining that they can't find fishermen to work for them for love nor money. In Tribunj in Šibenik-Knin County, claims suggest that as many as ''fifty fishermen'' are missing. The crews are difficult to find, meaning that more often than not, there is an unskilled labour force working on the ships, compiled with people from all parts of Croatia simply looking for employment, and there is also a workforce from neighbouring Bosnia and Herzegovina and Serbia present.

The media say that one Ugljan entrepreneur invested 2.9 million euros in a new fishing vessel, and is now "desperately seeking twenty fishermen'' to work on board. It has been claimed that nobody will fish even for a guaranteed wage of one thousand euros per month, at least according to a report from Glas Istre. Is that possible? In these paradoxical times - probably.

In Istria, everyone is reluctant to talk about the matter, but they all solemnly confirm that there are less and less available fishermen wanting to work, that is, there is no qualified or even unskilled labour willing to go fishing on these vessels. Vessels specifically built for ''commercial'' fishing are plagued by this issue. Only one such boat can be seen along the Rovinj coast, other places are occupied primarily boats that take tourists back and forth in the summer. Robert Momić, chair of the fishermen's guild at the Croatian Chamber of Trades and Crafts, says that the EU's often highly stringent rules don't leave much leg room, and they actively encourage fishing boat owners to focus mainly on tourism, leaving fishermen with little choice but to stray from this traditional industry, too.

''The system limits the fishing trade and more and more fishermen are finding that real profit lies in the transport of tourists. It's easier to make money driving tourists around to record how dolphins jump around in the open sea than to fish with respect to quotas and various other restrictions. The EU's operational programs should help fishermen stay at sea, and this doesn't go without boosting investment in new ships. Given the restrictive measures, there are fewer fishing days and, consequently, it's harder to pay workers and to keep up with tax obligations properly. One thing is certain: The fishing industry remembers better days, in today's legal environment, only big fishing vessels (ships of about thirty feet in length) can make money and offer decent salaries to each crew member, and a large vessel like that requires an average of nine crew members. The problem with us in Istria is that this season coincides with the height of the tourist season, when it's even more difficult to find crew members,'' says Robert Momić.

Make sure to stay up to date with our dedicated lifestyle and business pages for much, much more.

Click here for the original article by Ello Velan for Glas Istre

As Index writes on the 26th of February, 2019, a panel discussion and a study on the restructuring of Agrokor organised by TMA Europe was held today in Zagreb. Its speakers were Agrokor's extraordinary commissioner Fabris Peruško, his deputy Irena Weber, as well as other most important people who were involved in restructuring the formerly ailing company which once threatened to collapse the Croatian economy almost entirely.

Alastair Beveridge from AlixPartners and Goran Horvat of KPMG Croatia also spoke, as N1 reports. Peruško stated that if this key Croatian company was in Germany, it would have had 650 billion euro impact on the budget.

In addition to describing the impact it would have had on the budget over in Germany, Peruško also added that if Agrokor existed in Germany, it would be able to employ a massive 900,000 people and the suppliers themselves would have five million employees.

He detailed the entire history of Agrokor's long and often agonising restructuring process, from its liquidity and its huge debt problems, all the way through to the development of a special law to the settlement process.

"The Agrokor administration tried to resolve the situation, and at the same time the government attempted to create Option B in case the management failed to come up with solutions with large banks and suppliers. The existing law didn't foresee a procedure for such a large company and the government issued a law on April the 6th based on the Italian case of Parmalat, and Agrokor's leadership resigned, after which the extraordinary administration entered [into the company] on April the 10th,'' stated Peruško.

The law protected 60,000 jobs in Agrokor and prevented spill overs to other suppliers, ultimately stopping the chance of bankruptcy of Agrokor's numerous affiliated companies.

''As I said at the beginning, we're talking about more than 3.5 percent of revenue in the Croatian budget, and we've prevented the spilling over of this to other countries because Agrokor is the largest employer in Slovenia and Bosnia and Herzegovina, and the second [largest] in Serbia, it all coincided with the tourist season and Agrokor is the largest supplier of tourism infrastructure. The economy has recovered from the recession and a new shock would have had a devastating effect on the economy,'' said Peruško, announcing the following steps in Agrokor's restructuring process, ie the transfer of operations to its mirror companies, as well as the business plan.

Alastair Beveridge from AlixPartners, a company which was a frequent target of ex Agrokor boss Ivica Todorić's accusatory blog posts, referred to Agrokor's restructuring as being unique in this region and said that one of the biggest problems (which is rather characteristic of administrative bodies in all sectors in Croatia in general) was the lack of information. He added that the amount of cash was shockingly mininal and that at one point, a mere ten kuna alone sat in the gigantic company's account. Beveridge's remarks are a terrifying reminder of what could have become of Agrokor, its many suppliers, jobs, and the Croatian economy.

"Many companies had ceased their production, so one of the issues was launching production, and that's what we needed to collect cash for. We had to look at each business well and set priorities. With nearly fifty assistants, we raised almost 400 million euros. I think it's a big step to borrow money to such a huge company. In the end, we had two offers, only one could manage to arrive in time, we managed, with the help the Croatian National Bank, to secure 540 million euro of fresh money which came in early June, which saved the company,'' Beveridge said.

For more on Agrokor and the business and investment climate in Croatia, follow our dedicated business page.

As Croatia's increasingly alarming negative demographic trend tightens its grip over the country and its economy, there seems to be more people insured by the Croatian health system (HZZO) than actually live and work here...

As Index/Marko Repecki writes on the 26th of February, 2019, due to the negative demographic trends and a fairly low birth rate, Croatia has now worryingly fallen below four million residents, according to the estimates of demographers, but at the same time, there are miraculously 4,145,169 persons who have Croatian Health Insurance from HZZO.

This means that more people are apparently entitled to Croatian health insurance than are actually really living in Croatia. This phenomenon is not entirely new, because when we look at some of the data for the previous years, it can be seen that there are approximately between 90 and 120 thousand people who seem to be insured with HZZO, therefore using the services of the Croatian health system, than actually live here.

Who exactly are these people who have HZZO health insurance and don't live in Croatia?

Index readily asked HZZO to explain just how this difference of Croatian health system users came about, and they answered that there are persons who are still considered as insured persons in Croatia, although they don't actually live here.

"On the 31st of January, 2019. 4,145,169 insured persons were registered in the Croatian Health Insurance Institute (HZZO). Please note that in some cases the person is still considered to be an insured person, even though they don't live Croatia. As an example, we include: active Croatian insured persons with residence in another EU member state (such as an actively insured Croat who lives in Slovenia), beneficiaries of Croatian pensions who have moved to the territory of another [EU] member state, and our delegates doing temporary work in another member state (a worker whom a Croatian employer sent for temporary employment in, for example, Germany). In all these cases, it regards persons who remain insured persons of HZZO, but they also enjoy the right to health care in the territory of other member states, in accordance with EU regulations on the coordination of the social security system,'' HZZO's statement said.

Index also sought further clarification on who is actually considered an actively insured person, and they got the following answer:

"An active insured is a person who is employed and pays contributions for compulsory health insurance, which are paid by their employer. Such insured persons do not pay health insurance contributions in the country where they live, but their contributions are paid in the country where they work. A person can't be insured in two EU member states, but is insured in the country in which they work, and in the territory of the other [member] state in which they're living, they have the right to full healthcare, just like all of the other persons with health insurance in that [member] state, on the basis of having health insurance in their country of work. For example, an actively insured person works in Croatia and lives in Slovenia, he is then entitled to full health care on the territory of Slovenia, at the expense of the Croatian Health Insurance Institute,'' HZZO replied.

The head of the Lipa Association (Udruga Lipa): "We pay 23 billion kuna every year for healthcare, and the system is breaking down"

145,000 people seems a huge number if we're talking about people who live abroad, yet work in Croatia, or are retirees with a Croatian pension yet live in another EU member state. Index asked the Lipa Association for a comment:

''We at the Lipa Association don't know why HZZO has a higher number of insured persons than the population of Croatia according to DZS and to demographers,'' said Lipa's Zoran Löw, but he referred generally to the catastrophic state of healthcare. Although Croatian workers to pay out a sum of money for access to state healthcare, the Croatian Health Insurance Institute, Croatia's chief health system funder, spends around 23 billion kuna annually, in five years, that comes to a huge amount of 115 billion kuna. We're witnessing the complete disintegration of the system where people literally die on roads, and examinations are being waited for for months, and in some cases, for years.

Löw added that they forwarded an open letter to Milan Kujundžić, the Croatian Health Minister back in 2017, warning of the need to include private institutions in the state's health system.

"In many EU countries, private institutions providing health services are integrated into the system so that they compete equally for jobs funded from the public system. Let's just list some: the Netherlands, Sweden, Portugal, Germany... And this is not just about simpler institutions such as labs or family medicine, the're also serious clinics. In this way, it introduces some healthy market competition and the whole system becomes more agile and financially viable. Unfortunately, in Croatia, this approach is viewed as the privatisation of the healthcare system. This government and its health minister obviously don't have the courage to come out with such an initiative and stand behind it,'' they stated from Lipa.

Make sure to stay up to date with news on the Croatian health system and much, much more by following our dedicated lifestyle page.

Click here for the original article by Marko Repecki on Index.hr

What can Croatia do to up its currently extremely poor investment game? With non-EU countries like Macedonia and Serbia, which are typically considered to be less developed than Croatia, making things far easier for entrepreneurs than Croatia, and our neighbour to the north, Slovenia, pulling huge sums of cash for investment from Europe, just where is Croatia going wrong?

As Poslovni Dnevnik/Darko Bicak writes on the 22nd of February, 2019, Croatia has one of the most incentive boosting legal frameworks for investment in Europe, which is openly recognised by everyone in the EU, but there is a problem in implementing these investments, as there is in the projected image of Croatia as a tourist destination rather than an investment destination. This was stated at the opening of the recent conference " InvestCro - Is Croatia Ready for New Investments'' which was organised in Zagreb, it is held as a year-round multimedia project jointly organised by Poslovni Dnevnik, Večernji list and 24sata.

Darko Horvat, Minister of Economy, addressed the conference:

"Everyone sitting here today has the same desire: If we can't make Croatia more desirable for investments, we at least should become aware that we're not that bad either. We have to work on our own confidence, because if we don't believe in ourselves, how will those who come here to invest feel when they encounter problems. It's especially important that people from the field - mayors and entrepreneurs, who can share the problems they encounter on a daily basis - also participate in the conference.

When you analyse today's renowned global and Croatian TV stations, portals, newspapers... you'll see that Croatia is a country offering the sun and the sea. To sum up how much Croatia has invested into being recognised as a tourist destination, it's clear why we're not seen as an investment Mecca. We don't have any marketing that would allow investors to see and recognise our country as being desirable for investment.

Our only "marketing" is a negative one through investors who did come to Croatia and haven't managed to succeed, and are talking about that abroad. Those who succeeded and didn't encounter any serious problems, and that's the majority, are generally silent and just do their work because nobody else asks them anything,'' Horvat said.

He added that the huge problem Croatia has is that during the accession period for EU membership, negotiations were carried out and the EU's laws were taken on without question, and they weren't "localised'' through the implementing of acts, which is why the bureaucracy and the judiciary system are so slow and dysfunctional today.

"Now that we're a full member [of the EU], we have to work harder to purge the regulatory framework that hampers us and prevents us from developing. With all the problems we have, Croatia has been growing steadily by 2-3 percent, but the problem is that those around us are growing 2-3 times faster than we are. Therefore, we must implement processes that will accelerate investment and the ease of doing business. When it comes to opening a company, we have seven steps and the whole process for the company to start doing business lasts longer than 30-40 days, although the registration itself lasts just fifteen minutes. We must take for example Estonia or Macedonia, which are at the top of the competitiveness ladder, and not be 150 places behind,'' noted Minister Horvat.

He also pointed out that the issue of the speed of issuing building permits is the biggest problem in big cities, primarily in Zagreb.

"Things are happening and they just need to be promoted. If the Slovenes have managed to attract 14 billion euros in investment from Western Europe, and we've only had 3.8 billion, then it's clear to see that we have some serious problems," said Minister Darko Horvat.

Zdenko Adrović, Director of the Croatian Association of Banks (HUB), highlighted the importance of public debate on the challenges of investing in Croatia.

"The aim of this project is to open up a series of investment issues in Croatia, and this year marks the 20th anniversary of HUB, and this year we want to stimulate the discussion about investments and the role of the banking sector in it. The IMF concluded that there is a need to alleviate bureaucratic obstacles and that would be very welcome, as would providing stronger legal certainty involving a fast and efficient justice system. Without a proper justice system there's little hope in expecting any sort of investment wave, we're not even among the top thirty [countries for investment]. A very well-known British business paper recently concluded that the sun and the sea  aren't enough,'' Adrović warned.

He also added that the establishment of a company in Croatia lasts several times longer than it does in our immediate neighborhood, including in countries like Serbia and Macedonia, both of which are outside of the EU, and which we usually consider to be considerably less developed than Croatia. Vladimir Nišević, editor-in-chief of Poslovni Dnevnik, stressed the importance of the media in promoting important social values, and Croatia's investment climate is certainly one of them.

"Without healthy investment and economic development there will be no other social advances such as curricular reform and the like, although the current Uljanik problem is one of the burning issues of the Croatian economy and society, it's much more important to look at how our country and our society will look in twenty years,'' Nišević rightly concluded.

Make sure to stay up to date with news on Croatia's investment and business climate and everything you need to know by following our dedicated business and politics pages.

Click here for the original article by Darko Bicak for Poslovni Dnevnik

The British Embassy in Zagreb has released a video for British citizens living and working in Croatia in which UK Ambassador to the Republic of Croatia answered a few common questions from Brits worried about their futures in Croatia after Brexit.

The video, aimed at answering the questions of worried British residents in Croatia in the case of an unwanted and disorderly but still possible No Deal Brexit, saw Andrew Dalgleish sit down and respond to a handful of concerns put to the embassy by Croatia's Brits, of which there are well under 1,000 legally registered.

If you're a British citizen living in Croatia and you're concerned about your rights after the United Kingdom withdraws from the European Union, which, if all goes to plan, will occur at the end of next month, make sure to follow us as we bring you all the information you need, as and when it happens.

If Theresa May's deal is passed, this article will tell you in detail what that means for you as a British national in Croatia.

If an unwanted No Deal Brexit occurs, MUP (Croatian Ministry of the Interior) has assured both Balkan Insight and TCN that British citizens with a biometric residence permit (temporary or permanent residence/privremeni ili stalni boravak) should be able to continue their lives broadly as they do now, and that the proper measures for that will be introduced. Although Croatia hasn't yet delivered any public assurances like several other EU countries have, in the spirit of reciprocity, Croatia will follow.

MUP's statement to me can be found here, along with the direct translation.

For information on how you can work to prepare and thus further safeguard your rights in the event of Britain crashing out of the bloc at the end of next month, read this article.

Make sure to stay up to date and/or sign up for email alerts from the British Government's Living in Croatia page in case any changes to your rights do occur.

In the meantime, make sure you're registered with the authorities in Croatia and are in possession of a valid biometric residence permit before the 29th of March, 2019.

For more on Brexit and on Croatian politics, give our dedicated politics page a follow.

Andrew Dalgleish talks about the unwanted yet still possible No Deal outcome, what this means for Croats in the UK, what it could mean for Brits in Croatia, and how, if at all, Brexit will affect Croatia's tourist industry.

While many British citizens in Croatia remain worried for their future in the country, rest assured that we at TCN, along with the British Embassy in Zagreb, will continue to do our absolute best to keep you informed of any changes, should they occur at all, to your rights to residence, access to healthcare, the labour market, and your access to Croatia's social security system.

We have already written numerous articles on what Brexit is likely to mean when it comes to British citizens living in Croatia with regulated status (biometric residence permit of either temporary (privremeni) or permanent (stalni) residence (boravak), which was your right to claim as EU citizens. I'd like to preface this by saying that there is no need to do anything but remain calm despite the sheer lack of information provided to you, we're fully aware of your concerns and will seek to assure you as best as we can along the way.

MUP has assured TCN in private correspondence with me that British citizens, even in the unwanted event of a No Deal Brexit, who have a valid residence permit of some kind, will not be seen as illegal persons living on the territory of the Republic of Croatia on the 29th of March this year. Please click here for the full article on that, as well as ways to safeguard and prepare, here for MUP's statement to Balkan Insight, and here for Paul Bradbury's meeting with Andrew Dalgleish, the UK Ambassador to Croatia, which took place a few weeks ago. Should the UK leave with May's deal on the UK's Withdrawal Agreement, click here to find out what that means for you.

Although the following article doesn't talk quite enough about the rightful worries and fears of Croatia's resident Brits, the number of which is well under 1,000, Andrew Dalgleish sits down to discuss what a potential No Deal Brexit might mean should it occur, and sought to reassure that British tourists, who are among the most numerous European visitors to Croatia, will continue to come.

As Mark Thomas/Slobodna Dalmacija writes on the 19th of February, 2019, before Britain's (planned) exit from the European Union scheduled for March the 29th this year, we talked with UK Ambassador to the Republic of Croatia, Mr. Andrew Dalgleish, to find out what the future of the always positive relations between Croatia and the UK are set to become.

"Croatian citizens living in the UK shouldn't worry if Britain leaves the European Union without agreement because the [British] Government has taken all the measures to protect [EU] citizens [living in the UK at the time of exit]," the ambassador stated.

The British Government ''is making a huge effort to reach an agreement'', and the outcome of Brexit for Great Britain has two scenarios, at least in this phase of negotiations; the UK leaving the EU, should it continue to stand by its current position, either with or without agreement. Whatever the solution turns out to be, it will bring new questions, as well as new solutions, in terms of citizens' rights.

If Britain leaves the European Union on March the 29th, how will it affect the status of Croatian nationals living in the UK in the case of a No Deal Brexit?

Since the beginning of the negotiations around Brexit, Prime Minister Theresa May has been very clear on this issue: Citizens should not be bargaining chips, the lives of people and their needs are what is really important here. Then, when we came to the end of the negotiations, the prime minister said that regardless of what would happen [regarding the UK's withdrawal from the bloc], Croats and other citizens of European Union countries (EU27) who are legal residents of the United Kingdom of Great Britain and Northern Ireland will basically hold the same status and enjoy broadly the same rights as they did before the 29th of March, 2019.

Croats should not immediately see any change in their current status in the UK. This is a real indicator of how much Britain truly does appreciate the citizens of other European Union countries living in the UK. No matter what other EU members do in return, the prime minister has been very clear on this matter.

After March the 29th, EU citizens will be able to live normally in the UK, enjoying continued unimpeded access to all the social, health and education services just as they have until now, and the direction further negotiations will take is yet to be seen. There will be procedures to explain to citizens what the futre will look like after Brexit and we want to let them know that we do care about everyone.

At this point there are two possible Brexit scenarios, "Brexit with an agreement" and "Brexit without an agreement", and whatever option is accepted will affect what will happen on March the 29th...

Yes, the British Government is absolutely devoted, with all of its efforts, to reach an agreement. How exactly this arrangement will look remains to be seen. However, it is crystal clear to the government that reaching an agreement is the best way to leave [the EU].

Also, we as the government are highly responsible, which means that we have to prepare for this second scenario [No Deal Brexit] that we wouldn't want, but which could happen. That's why we want to reassure Croatian citizens living in the UK that they don't have to worry if Britain does leave without a deal, because the [British] Government has taken measures to reassure them that they do care about them.

Agreement or not, how will Brexit affect your role as [UK] Ambassador?

Of course, it's already influenced my ambassador's role. I was all set to be the ambassador before the referendum was actually held, I actually arrived in Zagreb three weeks after the referendum. Of course, that means all my preparations changed overnight. But Brexit is real and we've got to face it.

Relations between Great Britain and Croatia have lasted longer outside the European Union than they have within it. Brexit will certainly be a challenge because many of the questions related to our two peoples are being solved at a table in Brussels.

Since we [Britain] will not be sitting at the table in Brussels again, we will make even more of an effort in the future to get London and Zagreb to directly negotiate, more than we did before, so there's a chance there.

How are the negotiations with the Croatian Government progressing, if an agreement [between the UK and the EU] is not reached, and what about the rights of British nationals in Croatia?

Prime Minister May was very clear at the very beginning of negotiations that the [British] Government would take care of the rights of European Union citizens in the UK after March the 29th, so we hope that other [EU] Member States will act in the same way.

The European Commission has stated that it hopes that, after Brexit, all EU member states will be ''generous'' and offer British citizens good conditions, however, each of them will do so in their own way. Discussions are being conducted not only with Croatia, but with other EU member states. Of course, the Croatian Government, as well as the British Government, is hoping for a scenario in which the UK withdraws from the EU with a deal.

It's very important to point out that in the case of a No Deal Brexit, there are many technical questions that require answers, some of which are what it will mean to be a legal citizen (resident) here, to gaining the right to health care, and many other issues.

All of this requires very demanding preparation and this is what we're doing at this moment with the Croatian Government.

Do you think Croatian tourism will suffer a sort of shock after Brexit?

"There is no intent on either side of causing problems in people's lives, going on holiday is a natural thing that people need. No government in these negotiations has said that obstacles should be put in place in order to make things for the tourist industry more difficult in the future. Of course, if there's an agreement, then every side and every country knows where their place is.

In the event of a No Deal Brexit, we must take care to resolve all of the technical issues and that the British [continue to] come to Croatia on holiday, which is the intention of both Croatia and the UK. I don't see the probability of any problem, as long as we're all doing our jobs in the meantime.

Make sure to stay up to date with everything you need to know about Brexit and Croatia and what might alter for you by following our dedicated politics page.

Click here for the original article by Mark Thomas on Slododna Dalmacija

Croatia has many issues, and rather surprisingly, a big one is with the proper withdrawal of EU funds. What exactly is the problem, and how can it be fixed? The topic of EU funds in Croatia and the upcoming financial period is explored by Ana Fresl.

As Lucija Spiljak/Poslovni Dnevnik writes on the 20th of February, 2019, Poslovni Dnevnik sat down with Ana Fresl, the director of the PJR consultancy group to discuss the EU's new seven-year financial period and expectations, Croatia's severe lack of EU project experts, common mistakes, how the country made the most of the last financial period and what awaits us as the ''How to prepare for the 2021-2027 financial period'' conference. Croatia is looking to learn from other EU member states and their own respective experiences when it comes to strategic development and implementation of EU projects on the 6th and 7th of March, 2019, in Trakošćan, Croatia. How can the problem with the withdrawal of EU funds in Croatia be rectified?

You've been the director of Croatia's largest companies for EU funds since the very beginning. How many people and companies have you consulted with and educated on EU projects?

When it comes to EU funds, it's correct to say that I've really been around since the very beginning, from the Ministry of Finance and the Central Financial and Contracting Agency, to EU programs and projects, after which I opened my own company in 2009 and I was recently re-elected as the president of HUP - Association for Professionals for EU Funds. I have offered consultation for over 350 EU projects, I've been a public advisory expert on 20 technical assistance projects. I have more than 500 days of education in Croatia and beyond behind me. The interest in EU funds is very high, as can be seen from the recent tenders for small and medium-sized entrepreneurs who were applying for available funds within mere seconds.

The Minister of Regional Development and EU Funds, Gabrijela Žalac, stated that we lack 2,700 experts for the implementation of EU projects. How can we attract and interest people, what are we doing in that regard, do we have any specific figures?

The figure of 2,700 experts was obtained by my own company, PJR, based on the extensive research that we carried out within the project of the Ministry of Regional Development and EU Funds.

We have investigated the absorption capacity of about 500 EU funded users, and that's the number of qualified experts which confirmed that we're missing that number at the Croatian (domestic/national) level. There's a lot involved, lots of education, training, seminars just for training. In PJR, we launched an EU mentorial program, EUment, which is aimed at educating students, all those looking for or changing jobs, or those who are juniors in organisations and want to learn to be better, and see a chance for that with EU funds.

The program lasts for six weeks and the person passes through each department in the company and meets and works with experts. There is a big interest in this, and I believe there is in other programs, too. Our oldest and most visited educational program is the PJR Academy - a simulation of EU project implementation through five days of education. After all the years that we've been doing this, we're seeing more and more interest because we have new enthusiasts who are interested in learning.

Who mostly uses and withdraws EU funds? How successful are we when it comes to withdrawing, and how much are we to use?

Most of the money is withdrawn by Finland, the least is withdrawn by Spain. There is enough time for improvement until the end of the funding period, and in parallel, Croatia has to prepare for the new (financial) period of 2021-2027, in which many rules will be changed, and higher financial capacities will be being expected from users, not just human. When it comes to witnessing the real effects of the EU funds on employment, the economy, the quality of public administration and various areas that have been invested in in the Republic of Croatia, we still have to wait, and in a couple of years, most of the projects will be over and their effects will start to affect society.

How should we then get going on the eve of a new era, and in what area are we usually making the most mistakes?

The biggest problem is undoubtedly the slow system and unrealistic goals. At the beginning of each year, indicative plans are published with the lists of all of the tenders that are planned to opened during that year and the date of the call for the tenders is always listed. All of these tenders are always late, some of them by five to six months.

At this point, for the European Social Fund, there are still no announcements for 2019, and it's already mid-February! Each tender is unique, requiring the special consideration of opportunities, some time of preparation, and the most important part - human and financial resources. Once a tender is opened and the project is sent, a wait for the results commences, which is known to have lasted for as long as one year, and that's too long for entrepreneurs and their markets.

Those who manage to succeed end up encountering new problems in project implementation, the most common mistakes lie in public procurement and the lack of project success indicators. What each consultant would say is that they need to be realistic. It's tempting to write that you'll hire ten workers because it does, for example, bring in the most points in project evaluation but you should be realistic because if you don't end up opening up the ten new jobs at the end of the project, then you haven't met the indicators, you need to take responsibility, and you have to return part of the EU funds awarded to you.

What will the 2021-2027 financial period bring us? What challenges lie ahead of us?

The new financial period brings with it a large number of changes. For Croatia, this is a very challenging period because this is the first time in which we'll be participating from the very beginning in the planning and the creating of a new seven-year financial framework.

This year and next year are set to bring changes within the current programs because there will be less money, and therefore, there will be less tenders, too. Some of the most important changes are that total allocation in ESI funds will be reduced due to the United Kingdoms's exit from the European Union; the plan is have money in the amount of 351.8 billion euros for all members, and the amount will be available through several different funds together.

The amount of 8.8 billion for Croatia for the period 2021-2028 can be seen as a significant reduction compared to the previous period if absolute allocations are being considered, but if we look at how much this is per capita, there is no relative reduction because of the fall in the number of residents in the Republic of Croatia. The biggest change is that the maximum funding rate for less developed regions, of 85 percent, in which Croatia falls, will be reduced to 70 percent.

Make sure to stay up to date with our dedicated politics and business pages for more on EU funds in Croatia and much, much more.

Click here for the original article/interview by Lucija Spiljak for Poslovni Dnevnik

We're still not sure how things stand entirely when it comes to Brexit, or whether it will happen at all. Despite the now agonising insanity of this senseless process, let's have a look at the current situation (which will probably have altered a few times before I finish this article. I wish I was being sarcastic).

After a trend of crushing defeats had become the humiliating norm for the enfeebled PM, Theresa May finally had her day (sort of) in the latest vote on various amendments to her withdrawal agreement. MPs voted against no deal - which should effectively take the catastrophic threat of the United Kingdom crashing out of the European Union without a deal in place at the end of next month off the table entirely - had it not been a non-binding amendment.

British MPs also voted against an Article 50 extension, which would have allowed for the two year window allowed for negotiations when a member state declares its intention to leave the bloc to be extended for a period which would have been agreed upon had it passed.

So, what happened in layman's terms? What happened is that the Commons continued the insanity by voting against a no deal, making it clear that the United Kingdom leaving the EU without a deal in place was not in anyone's interest, nor should it be the British Government's policy, but they also voted against extending the time needed for any further negotiations. A bit odd, you say? A bit chaotic? Yes, it is.

Instead, MPs gave Theresa May a mandate to go back to Brussels to attempt to renegotiate the troublesome Irish backstop, which acts as an insurance policy to prevent a hard border between the Republic of Ireland and Northern Ireland. The EU has already stated that the backstop is part of the deal and cannot be opened up again. Britain is, once again, experiencing an impasse. With the now internationally weakened United Kingdom stuck between a rock and a hard place, what does this mean for British nationals living and working in Croatia?

A look at the current scenarios:

Theresa May's withdrawal agreement is ratified by the UK and the EU:

We've already covered what will happen if Theresa May's initial withdrawal agreement ends up being passed, which, as the clock runs down to the rapidly approaching and ominous date of March the 29th, when Britain is due to leave the European Union after over forty years of membership, could still end up being ratified.

If the British PM manages to arrange new terms with the EU regarding the hated Irish backstop, however unlikely, then the withdrawal agreement has decent chances of being ratified later this month. If that happens, the fate of British citizens in Croatia will be firmly secured. Life will go on as normal until the end of December, 2020, when the implementation period ends. If you are resident in Croatia, registered with the authorities and have a biometric residence permit (privremeni/stalni boravak), you'll continue life as you do now. You'll be able to apply for permanent residence as normal after racking up five years of legal residence in Croatia and as such gain almost all of the rights Croatian nationals enjoy, after a further three years, you can also apply for citizenship if you want to. If you already have permanent residence, you're already sorted.

Under May's deal, those with permanent residence will be allowed to leave their member state of residence for five consecutive years without losing their status, which essentially means you have it for life. Read this article for more detailed information on that.

Article 50 extension:

The clock is ticking, and the dreaded Brexit day is fast approaching. A delay is becoming increasingly likely, despite having been voted against recently, it doesn't mean this won't become necessary to avoid a tragic no deal exit. If this occurs, nothing will alter for you until a new Brexit date is confirmed.

EEA/EFTA style agreement:

Several countries, including Norway and Iceland, are in the European Economic Area but are not members of the EU, in fact. These two countries still abide by the four freedoms of the single market in order to obtain unrestricted access to it, one of which is the free movement of people, which means that should Britain opt for some sort of ''Norway-style agreement'' as a too-little-too-late Plan B, the free movement of citizens will remain as it is today. This means nothing will alter for you, and you don't need to do anything.

No deal Brexit:

Should the world's fifth largest economy end up crashing out of the world's largest trading bloc without a deal in place, the consequences will be dire for the country's economy. Dark days would be ahead of a Britain all alone in the world, with the threat of the worst economic situation since the recession potentially becoming a reality, all normal thinking individuals want to avoid this horrendous possibility. Such a scenario would have an extremely negative impact on the UK and the EU, and this situation will likely never become government policy. Britain is a European country and needs close ties, and a free trade deal, with the EU.

As I have written before, many EU countries have already come out to reassure British citizens living in their countries that their rights will be protected if a no deal does end up happening, with some such as Malta being extremely generous and offering Brits permanent residency (a renewable document valid for ten years) should this occur.

The European Commission has asked EU member states, including Croatia, to take a ''generous approach to British citizens who are already living on their territories''.

While such comments are a disgraceful abandonment in the eyes of many, especially after the UK respectfully unilaterally guaranteed the rights of EU citizens already living in the UK, all three million of them, the EU cannot make a similar unilateral guarantee in the event of a no deal Brexit as it is not a national body. Despite that, the good intention of the EC/EU is clear - the expectation of member states to protect British citizens who have made life choices based on the treaty rights that derived from their citizenship of the Union.

Unlike some other EU countries, Croatia is yet to speak publicly on the matter, but MUP has made clear that Croatia's intentions are entirely in line with the wishes of the European Commission when it comes to fully protecting British nationals who are living in Croatia with regulated status (biometric residence permit) on the 29th of March, 2019, should the UK crash out of the EU with no deal in place. I have been in contact with MUP and I translated their response, which we also published in another article detailing the work TCN will do with the British Embassy to keep information flowing: 

''The Republic of Croatia considers that it is of great importance to protect both the citizens of the European Union in the United Kingdom, and the citizens of the United Kingdom in the European Union. The European Commission's intention is to ensure a high degree of tolerance for UK nationals already residing in an EU member state. Such reflections and efforts are in line with the objective of the Republic of Croatia that the citizens of the United Kingdom and members of their families who have a regulated status in the Republic of Croatia are not regarded as illegal persons on the date of their [the UK's] departure from the European Union, that their residence and unimpeded access to the labour market in the Republic of Croatia is allowed. In this regard, the Republic of Croatia will take the necessary measures to regulate the stay of UK citizens who, at the time of the United Kingdom's departure from the European Union, have regulated residence in the Republic of Croatia, in accordance with the European Commission's guidelines.''

Please read this article for further information, including a statement from MUP provided to Balkan Insight which also, along those same lines, suggested that the assurances and guarantees Croatia's 600+ resident Brits need will be forthcoming once the details on issuing new documents are finalised. 

Given the fact that London has already unilaterally given rights to all EU citizens in the UK and will enshrine the rights of Croats in the UK into British law, rest assured that Croatia will respond in the spirit of reciprocity when the finer details are ironed out.

No Brexit at all

This is still a possibility, and should Article 50 be revoked and Brexit cancelled, nothing will alter and we'd remain with the good old status quo. This is unlikely, but remains possible.

What should you do if you live in Croatia to protect yourself against any outcome?

First of all, do not panic. Second of all, read the list below.

1) Make sure you are registered with the police and are in possession of a valid residence permit.

2) If you move, make sure to inform the police of your move at the local police station in your new city or town.

3) Make sure you have any documents you need, these will vary in different situations. For example, if you have purchased a house or taken out a rental contract, make sure to keep any papers that attest to that fact.

4) Convert your British driving license to a Croatian one here.

4) Make sure to stay up to date by following the British Government's Living in Croatia page for updates as and when they come. Sign up to receive an email about any updates.

5) Read this article and follow the links specified for information updates, the Brexit hotline, the Facebook page of the British Embassy, and an email contact.

Just to add, the EU recently confirmed that British nationals will NOT need a visa to travel to the EU for short trips (90 days in any 180 day period) even in the case of a no deal Brexit. If you're in possession of a valid residence permit from an EU country, you will not be subject to the rules placed on British citizens living in the UK travelling to the EU for holidays. 

The Schengen area is currently made up of 26 countries and Croatia applied to join back in 2015, two years after its accession to the EU. Croatia is not yet in Schengen, but hopes to enter soon. The Schengen area, named after the Schengen Agreement, will facilitate visa-free access for British citizens on short stays of less than 90 days. Again, if you are a registered resident of any of the Schengen countries, this rule will not apply to you regardless of your nationality.

Make sure to stay up to date by following our dedicated politics page, and by following the British Embassy in Zagreb with the #UKNationalsinCroatia tag.

After a decade of silence and complete inactivity, the Croatian Government is moving once again towards the temptation of a highway construction project towards Dubrovnik, a move initially started by former PM Ivo Sanader.

As Kresimir Zabec/Novac writes on the 2nd of February, 2019, after a rather unnecessarily lengthy and of course unclear title, the conclusion of the ''study documentation for the road connection of southern Dalmatia to the motorway network system of the Republic of Croatia from the Metković junction to the future Pelješac bridge and from the Doli junction to the City of Dubrovnik'' (yes you can take a breath now), which was adopted during Friday's Government session held in Dubrovnik, has actually led back to the beginning of re-activating the old plan to build a highway to Dubrovnik.

The last time constructing a highway to Dubrovnik was mentioned was way back in 2009, ten whole years ago, when a construction contract worth 3.675 billion kuna was signed in Osojnik in the presence of the controversial former Prime Minister Ivo Sanader, an amount which didn't include the VAT for the planned Doli - Dubrovnik section. Although the contracts were indeed signed, the money for this project was never secured, therefore the works never started and all in all, time went by and people simply forgot about it for the most part.

Although there are permits, projects and designs from that time that still exist and could be acceptable today, Croatian roads (Hrvatske ceste) will spend 4.06 million kuna this year to take a better look at the southern Dalmatian transport system in the area of ​​Dubrovnik-Neretva County and its link with the existing highway network, and determine the feasibility of any highway construction from the existing Metković junction to the future Pelješac bridge, and then from Doli to the City of Dubrovnik. They'll also rule whether or not it is simply better to use the highway through neighbouring Bosnia and Herzegovina.

EU co-financing

Croatia's Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, has already jumped the gun when it comes to the talks held on Friday, stating that the Ploče - Dubrovnik motorway will be built, but the question is when. He is counting on the EU being prepared to co-finance the project in the next operational period. However, some insist that a study is needed because the road image itself has changed over the past ten years, not only in southern Croatia, but also in Bosnia and Herzegovina. The motorway was built behind Ploče and the where the future Pelješac bridge will be, in neighbouring Bosnia and Herzegovina, the construction of part of the Vc corridor from Počitelj to the border with Montenegro through Popovo polje has also begun.

Compared to ten years ago, the highway would now be changed somewhat. Back then, the route went from Ploče to the border with Bosnia and Herzegovina at Neum and then continued on the other side down south to Dubrovnik.

It was estimated that eighty kilometres of highway from Ploče to Dubrovnik could cost around 732 million euros.

Today, it is assumed that the direction would go from the current Karamatići junction to the Pelješac junction, from where traffic will go down to Pelješac bridge. That equals approximately twenty kilometres of brand new highway sections. The traffic would continue along the new Pelješac road to the Doli junction, and from there 29.6 kilometers of highway would be built leading down to Dubrovnik.

According to the old 2009 project, a total of thirty objects needed to be built, of which there were ten viaducts, nine tunnels, and eight underpasses. Back then, the price of one kilometre of construction was 16.5 million euros without VAT, equalling a total of almost half a billion euros without VAT. The price of the construction of the highway from Karamatići to Pelješac is as yet unknown, but this section is also a very demanding part of the project as the route passes through the Neretva valley, so a high level of environmental protection will be required. Owing to all of the above, estimates are that the entire highway from Ploče down to Dubrovnik could stand at a massive 800 million euros.

Make sure to stay up to date by following our dedicated lifestyle and politics pages. If it's just Dubrovnik and the extreme south of Dalmatia you're interest in, give Total Dubrovnik a follow.

Click here for the original article by Kresimir Zabec for Novac.jutarnji.hr