July the 9th, 2021 - Croatian political stability is key to sending out the message to the world that it is safe and worthwhile to invest in the country, as small countries like Croatia have little other choice in such a big proverbial pond.

As Poslovni Dnevnik/Vecernji list writes, inventions and innovations should be strongly encouraged in all sectors, and it is naturally necessary to accelerate the digitalisation of industry and the state at all levels, initiate rapid and effective public administration reform, reduce bureaucratisation, state apparatus costs and corruption, and shape a long-term strategy.

All of the above, and basing it firmly on activities related to blossoming sectors in Croatia such as robotics, biotechnology, artificial intelligence and applied cognitive science, is one of the conclusions of the recently held and fourth Rings of the Business Forum Zagreb 2021, where the Ring (Prsten) Association of Croats of Bosnia and Herzegovina discussed how to quickly and efficiently adapt and continue doing business in coexistence with the ongoing coronavirus pandemic.

Pavo Zubak, president of the Ring, which brings together more than 230 businesses operating across Croatia with about 11,000 employees and generating 5.5 percent of Croatia's GDP, said they were acting affirmatively, looking to the future, and trying to build partnerships with representatives of the executive branch and harbour a relationship full of trust.

"Behind us is a difficult and challenging period, and before us lie new challenges and opportunities that we can and must take advantage of. Therefore, it's important to communicate openly in order to jointly prepare projects that can mostly be co-financed from European Union (EU) funds,'' Zuban stressed, emphasising the importance of Croatian political stability for further economic progress.

Prime Minister Andrej Plenkovic (HDZ), the patron of the forum, said that Croatian political stability was the goal of the Government because it was the first indicator that investments could be safely made here.

On the topic of this year's Ring Forum Opportunities and threats facing the Croatian economy in the post-pandemic period, the Minister of Economy and Sustainable Development Tomislav Coric said that there are many challenges that we must overcome. One of them is the absorption of more than 200 billion kuna in various financial envelopes, available over the next ten years.

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As Poslovni Dnevnik writes on the 15th of May, 2019, the saga with the former Cavtat ''Macedonia'' hotel could well have a happy end, Večernji list reports.

The story dates back to the year 2013 when a group of investors announced that the currently abandoned and devastated site will the luxury Aman resort built there. Things were of course rather complicated, which isn't remotely unusual, and in the meantime the ownership structure of the investor's company has changed, but the key player, Greek entrepreneur Petros Stathis, didn't think for even one moment to walk away from the planned and desired Cavtat investment.

Passionate about business and temperamental like any real Greek, he is the owner of several Aman hotels and resorts groups, including Aman Sveti Stefan in neighbouring Montenegro and over in Venice. Business wise, he's mostly focused on the Balkan region. He is active in both banking and real estate world and was even the director of the famous Athenian Football Club AEK.

Unlike many before him, the industrious Petros Stathis refused to give up on Croatia, and at the end of last year, in Croatia's southernmost town in the extreme south of Dalmatia, he intensified his efforts to finally get the project of Cavtat's Aman resort off the ground. Otherwise, Aman is a chain of luxury hotels in 34 locations in as many as 21 countries, and the first resort under that name was opened back in 1988 in Phuket.

Such resorts usually have only fifty rooms, and each guest is matched by four employees on average. In an interview with Vecernji list, Petros Stathis revealed that things really are finally getting going, being ''raised from the dead'' as it were, and that such a resort in Croatia, more precisely in Cavtat, is no longer just fiction.

Soon, you're coming to Croatia, does this mean that the Aman project in Cavtat is definitely going ahead?

I can say with pleasure, that the short answer to your question is yes!

I'm thrilled to be able to say that we've made progress and we expect the machines to return to their location at the end of this year. Otherwise, it was never the case whether or not the Aman Cavtat project would be realised or not, but as I mentioned before, we had a complicated beginning and we had to overcome many obstacles.

It's great, of course, to return to Croatia, but this project, believe me, is more than me. This is also about Croatia and our partners and people from this community. Our focus has always been on the future and the realisation of the resort in Cavtat so that the country could further profit through the Aman project, just how other countries have benefited from it. Whenever we start these types of projects, we want to complete it according to the plan, but it's rare that all factors are in our full control.

A project of such magnitude requires coordination and cooperation. We made a huge effort and we were lucky that we had positive support from many sides. Soon it will be six years ago since the construction of the luxury Aman resort at the location of the former Macedonia hotel in Cavtat was first announced, the first machines even arrived at the construction site, but soon after that it all stopped.

What made everything slow down over the last few years?

It's no secret that this project has a complex history. Since taking ownership of the site, we have been working hard and working with all involved parties to resume construction.

Why is Croatia interesting for you to invest in and is it easier to invest in Montenegro, for example?

As an international company, we always look globally.

Each country has a different approach to investment and development. I personally love your beautiful country and its people. I have strong family ties in Croatia and I've spent many happy moments here. Croatia is a wonderful country, rich in history, with beautiful nature and positive people with a positive business attitude that reaches international business boundaries. But the potential offered by Cavtat is the most attractive part of this story.

This is a great opportunity for us and will have a major role in current investments in Croatia. Our goal for Croatia is the same as for any other country in which we've built and invested, which is to create the best we can and leave a lasting, positive legacy of which the country can be proud. The goal of this project is to build the most beautiful resort in Croatia, in keeping with the environment and local infrastructure.

This opportunity is huge and we hope to act as a catalyst for further internal development in Croatia, now and also in the future. It's incredible when you think that more foreign tourists visit Croatia than, for example, Australia. And this is almost double the annual level. Tourism makes up more than 12 percent of Croatian GDP, and this money goes to local wages, through the construction of hotels and other related projects.

This country has a talented, entrepreneurial workforce. Half of the population speak English, but Italian and German are also spoken. And just look at the innovations you're responsible for! Everything, from chemical pencils to parachutes, bulbs, MP3 code, all created by Croats. It's time for Croatia to become more significant on the world stage, and we want to play a key role in that story.

What is the value of the investment in Cavtat and when will the new hotel be completed?

This is a huge 50 million euro project that will build the best of the best in Cavtat. This is our approach to building every resort. To provide the best. We wouldn't even launch the project if we couldn't achieve the best possible. This isn't just a hotel. This is an investment in the development and the future of Cavtat, through which we'll support local development, jobs and employment. We'll start with the works at the end of this year, and later on we'll inform you about our opening plan.

How will the Aman resort in Cavtat look and what will it offer to its guests?

Personally, I can hardly wait to see how it will look once when it's done. This is a new level of design and unification with the landscape, and local, natural materials will be used. If you look at any other Aman resort we've built, including the ones in Montenegro in Sveti Stefan, you'll get a very good idea of ​​what Aman Cavtat will be like.

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From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia's Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.

Croatia has earned itself a less than positive reputation among foreign investors, alright, let's not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ''Anything but Croatia'' in foreign investment circles, and many are simply bypassing the country entirely. That's not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?

While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ''taking over'' by investing heavily in Croatia's many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?

As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese "bofl" goods they've spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded "Made in China" mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito's rotting memorial complex in Kumrovec, of Rijeka's port, and even football stadiums, Slobodna Dalmacija writes.

Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.

''Don't be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,'' prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn't have any sort of idea of ​​introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.

''The Chinese don't invest because they have a lot of money and they want to go around giving it out. There's no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,'' says Cvrtila.

Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.

Cvrtila notes the US administration's estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn't think well of. However, China is now quietly placing all of its cards on the economic side of the story.

''In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can't stop, while it's riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they're in the ports, in Montenegro, they're dealing with the construction of a motorway, in Croatia, they're building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country's economic performance,'' says Cvrtila.

China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don't have a lot of foreign investment.

''Europe has survived a difficult financial crisis and there is no "free finance" which would enter JI Europe. China's investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,'' emphasises Cvrtila.

Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.

Unfortunately, Croatia hasn't used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It's also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don't have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,'' concludes Cvrtila.

Therefore, there's no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.

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Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji

Chinese-Croatian relations grow ever closer as the Chinese expand their business empire in Dalmatia, not merely stopping at Pelješac bridge. The Chinese are now setting their sights on a vehicle factory in southern Croatia.

As Poslovni Dnevnik writes on the 7th of April, 2019, an army of unemployed people, almost three thousand of them in total who are registered at the employment centres in Metković and Ploče in the Neretva region, received the news with understandably huge enthusiasm.

The Chinese will re-launch the Neretva valley, Slobodna Dalmacija writes, breathing life back into a part of Dalmatia that really needs it. Apart from the fact that they are already working on the aforementioned construction of the much anticipated Pelješac Bridge, the Chinese will soon embark on yet another major project in Croatia - a factory for electric cars and scooters in the Nova sela business district, which has so far been being developed in the Neretva valley's Kula Norinska area, but at a very slow pace.

This slow page is set to change a lot when the Green Tech Group, registered as a company in Zadar by Karl Soong along with Croatian entrepreneurs Mladen and Anthony Ninčević, starts with the construction of electric vehicles intended for the markets of Central and Eastern Europe down in Nova sela.

There are many unemployed people living in and around the Neretva valley, which is close enough yet just a bit too far away from potential employment in tourist areas like Dubrovnik. This news naturally brought a smile to the faces of many seeking steady work as in Kula Norinska, work began on the infrastructure in the future business zone in Nova sela, thus making this potentially enormous capital project start right there on ground in Dalmatia.

Twenty people would be employed to start things up at Dalmatia's brand new factory. However, when investment in the production of electric scooters, automobiles and batteries begins to add up and things gain some motion, up to 500 workers will be able to gain employment in various positions in the electric vehicle production facilities.

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''ECA has never been supported by the Croatian administration even though we have linked the islands and the coast without the use of one kuna of state money,'' says D. Thiele, the representative of German investors who were shoved from pillar to post in an attempt to get the seaplane project off the ground again.

As Sasa Paparella/Poslovni Dnevnik writes on the 4th of April, 2019, two and a half years after inspectors of the Croatian Civil Aviation Agency (HACZ) grounded all four of ECA's airplanes for allegedly endangering flight safety back in August 2016, European Coastal Airlines (ECA) and the project of returning seaplanes to the Adriatic sea has now definitely collapsed. Soon, the dismantling of twelve airports on the water will begin, this encompasses all of the pontoons designed to receive ECA's airplanes set up at sea ports from Lošinj to Hvar, to Lastovo.

It's difficult to find someone willing to return the seaplanes to the Adriatic. German investors, who started the project all the way back in 2001, are extremely dissatisfied with the behaviour of the Croatian authorities.

"The ECA project has never been really supported by the Croatian administration. Investors from Germany and Malaysia have invested 25 million euro in the project to set up the transport infrastructure which is necessary for seaplane traffic. They did so without the use of one kuna from the state, and without an HBOR loan, even though we did apply for them. We have linked the islands and the coast and we employed 150 people,'' recalls Dietmar Thiele, executive director of OTAGO Beteiligungs GmbH, representing German investors and their Chinese partners from the Shanghai Jet star company, who were more than willing to invest in the reconstruction of seaplane traffic on the Adriatic.

Despite the total and utter lack of support from the Croatia authorities, and sometimes allegedly faced with the opposition of local and port authorities, the German investors were still able to launch the project and get all of the necessary permits to start the operations of the first hydro carrier in Europe.

"Regular lines began in 2014, and in August 2016, ECA performed 60 flights per day connecting 11 destinations, it transported up to 600 passengers per day and earned a daily income of up to 40,000 euro, as planned. However, the administrative overhaul of ECA prevented further business, resulting in enormous costs, which stalled any further funding of the project. HACZ grounded the seaplanes due to, as was noted, those established deficiencies. The unreasonableness and the illegality of this grounding has already been confirmed by four court witnesses, and this has lead us to a court dispute,'' Thiele stated.

To the contradictions that ECA was facing huge debts and would have otherwise failed because the model was not market-friendly, the response is as follows: "The business plan was based on achieving the project's profitability after five years, with seven seaplanes and 23 seaports," they added that every airline in the world plans for losses during their very first years of doing business, as they plan to cover said losses with the company's capital.

He added that the new Chinese investors were ready for the further financing of assets and new loans, the debts remained with the German investors, and the fleet would have been financed through leasing. Although the seaplanes have not flown since 2016, the project didn't fall away into the abyss immediately, but has been attempting a new beginning - some co-owners of ECA are opening a prebankruptcy process and are finding new investors from China's Jetstar.

The judge gave them two chances.

The Chinese wrote their intention to confirm that they want to invest 15 million euro in the project's renewal, to open a new company and to transfer the concession to twelve certified airports. The Chinese also sent that letter to the judge at the Commercial Court in Split, Velimir Vuković, who gave them an additional four months to complete the planned investment, but the executive powers failed to show any understanding.

In June 2018, the investors sent an official letter of intent to the Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, from whom they received no answer. In August 2018, they asked for an answer once again. However, in communication with the then State Secretary for Maritime Affairs, the receipt of the letter was confirmed, but any official response has remained entirely absent. At the end of the prescribed four month period, Judge Vuković was forced to open bankruptcy proceedings in September 2018, resulting in the collapse of all of the existing concessions, and the investors naturally withdrew.

Much like with answering the letters from the investors, Minister Butković's office failed to answer why investors didn't get an answer when asked by Poslovni Dnevnik to comment on the matter. Instead, the portal was told: "The Ministry fully supported the project of the introduction of seaplanes and regulated the legislative framework by amending existing laws in the field of maritime and air transport, as well as the adoption of the Ordinance on water airports. Representatives of the Ministry assisted the investor in the realisation of the project,'' the letter went on to state all of the apparent ways in which the aforementioned ministry helped. This letter, which came much, much too late, didn't do much for the exhausted would-have-been investors, of course.

However, not entirely beaten, the foreign investors have initiated several litigation claims for damages and lawsuits against HACZ. They informed the German Embassy of everything, ​​as well as the Chinese diplomacy.

The collapse of the seaplane company began with a real tragedy back in June 2015 when, as the German investors themselves say, "two irresponsible Croatian ECA pilots, without having a license to fly that type of airplane, illegally took a small seaplane from the Lake company to four places, and because of their inability and their failure to comply with the flight rules, caused a plane crash resulting in two dead and one seriously injured pilot. Although two persons were killed in the accident, the State Attorney's Office in Split hasn't opened an investigation into the matter for more than 3.5 years.''

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Click here for the original article by Sasa Paparella for Poslovni Dnevnik