Wednesday, 2 June 2021

Finance Minister Zdravko Marić Says Croatia in Safe Financial Zone

ZAGREB, 2 June, 2021 - The budget revision, proposed by the government today, keeps Croatia in a safe financial zone, Finance Minister Zdravko Marić said after the cabinet's meeting on Wednesday.

The proposed budget changes set the general government deficit at 3.8% of GDP, and the government believes that this increase still keeps Croatia in a safe zone in terms of economic and other activities as well as in terms of the opinion of credit rating agencies and the European Commission, he added.

The government is committed to reducing the public debt from 88.7% to 86.6% of GDP, this year, Marić said, announcing one more revision of this year's budget.

The proposed revision, adopted today, will probably be on the government's agenda next week.

The minister said that he was looking forward to a meeting with Zagreb's new mayor Tomislav Tomašević, and that he and his team would be at the disposal of the newly elected local authorities.

"As far as Zagreb is concerned, I am sure that the mayor and I will meet to discuss several things," he said, explaining that with regard to additional borrowing, laws were clear and applied equally to everybody.

Among the topics to be discussed with Tomašević is a limit on borrowing, he said in a comment on the topic of possible new borrowing, explaining that the amount needed to service debts and cover loan guarantees this year must not exceed 20% of last year's revenue.

With regard to the purchase of fighter jets for the army, Marić said that the government would be guided by pragmatic criteria only. Therefore, a certain amount could be paid as an advance this year, he added.

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

 

Wednesday, 26 May 2021

Friends of Croatia: UNICEF - Croatia an Example to the World When it Comes to Breastfeeding

May 27, 2021 - The sixth article in the "Friends of Croatia: UNICEF" series explores the work of the UNICEF Office for Croatia. What is done regarding children's rights in Croatia, positives, and negatives, and how can you help if you want to?

To ensure that our world even stays the same, let alone improves, new generations are essential. But, before they grow old enough to participate in society, society must first take care of the youngest ones to grow and develop. Society must ensure for kids that they grow up in families filled with love, make sure that kids can go to school, that they are healthy, safe from violence, that they are not hungry or thirsty, and give them overall opportunity to make it in the world. 

Basically, children have rights, and they are in more detail elaborated in 54 articles. For more details, have a look at the Convention on the Rights of the Child that came to power on September 2, 1990, by the United Nations (UN) General Assembly.

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Regina M. Castillo, UNICEF office for Croatia representative with children with disabilities in Centre Tomislav Špoljar in Varaždin © Marin Ilej/UNICEF

The UN is dedicated to seeing this Convention is being respected, and United Nations International Children's Emergency Fund, commonly known as UNICEF, specializes in the issues of children's rights. Established in the aftermath of World War II, UNICEF has been at the frontlines of humanitarian crises, armed conflict, and natural disasters.

„Undeterred by the scale of the crises, we rise to the challenge, reimagine what is possible and respond by helping millions of children survive and thrive. Our on-the-ground expertise has reached more than 191 countries and territories, through committed partnerships and a passion for innovation“, says UNICEF on its official website.

Croatia signed and agreed with the Convention, and UNICEF today has its own office in Zagreb. Furthermore, it's worth noting that UNICEF has existed for 75 years, and despite firstly coming to Croatian territory while the country was part of the former Socialist Federal Republic of Yugoslavia, UNICEF has been with Croatia since the organization was established.

„Many people do not know that UNICEF helped to eradicate malaria in Croatia and that UNICEF played a key role in the development of modern dairy. Dairies were built in Zagreb, Rijeka, and Split, and factories for the production of powder milk in Osijek and Županja. Milk was distributed in schools, and for many children, it was their only meal during the day“, says Regina M. Castillo, UNICEF Office for Croatia representative.

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Regina M. Castillo, UNICEF office for Croatia representative © Marin Ilej/UNICEF

The UNICEF representative is elected for a five-year mandate, and Regina M. Castillo came to her function in Croatia in 2019. Her career in the UN started in 2001 and was in charge of economic and social questions in the Executive Office of the UN chief secretary Kofi Annan in New York. This was followed by Castilla moving to work in the mutual program for HIV/AIDS, known as UNAIDS. She was first the director of private sector partnerships in Geneva (2006-2012) and then moved to be the director for Bolivia, Ecuador, and Peru (2012-2015). She majored in International relations and public politics.

Born in Nicaragua, she first started her career in the 1990s as a diplomat, and she was also the headmistress for international trade in the Nicaraguan Trading Ministry.  

Helping Croatia before it was cool (or an independent country)

Castillo went on to continue that after World War 2, UNICEF fed six million children every day, which included many children in Croatia.

„One of those children was our dear colleague, prof. Josip Grgurić, who is still working tirelessly for the youngest. He still remembers the yellow cheese that was part of UNICEF's humanitarian package for families, as well as the chocolate that he then tasted for the first time. He later worked at the children's hospital in Klaićeva, which UNICEF helped found, and he still works hard on UNICEF’s Child-Friendly Hospital Initiative“, says Castillo indicating how valuable but also inspiring UNICEF can be to children. Castillo added that in the Homeland War, UNICEF was the first organization on the ground, making sure that children and families received the necessary psychosocial support and humanitarian packages. After the war, they educated children on how to protect themselves from landmines. 

Today Croatia developed, joined NATO and EU, and is a modern European country. With such progress, there have been many improvements in respect to children and their rights.

„Croatia has a low mortality rate of children under the age of five, extremely low stunted growth rate due to inadequate nutrition in the first years of life and the enrolment rate of children in primary school is almost 100 per cent“, pointed out Castillo.

„Croatia is an example in the world when it comes to the promotion of breastfeeding. It is rare that all public maternity wards in a country have the status of 'Child-Friendly Hospital'. With the support of UNICEF, partners have organized a network of breastfeeding support groups, and now we have more than 200 support groups in Croatia“, added Castillo on what the world can look up to this small South-Eastern European country.

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Regina M. Castillo at Human milk bank © Marin Ilej/UNICEF 

Still, there are some issues Croatia needs to address and are far from ideal at the moment.

„There are still differences when it comes to access to services for children, depending on where they live and the conditions in which they grow up. Children with disabilities, as well as children from the poorest families, especially in rural areas, often do not have the opportunity to attend kindergarten and do not have the same access to specialized health services and therapies as children in urban areas. The focus of UNICEF in Croatia is on the most marginalized children: children with disabilities or developmental delays, children growing up without adequate parental care, children from minority groups, children at the risk of poverty and exclusion. UNICEF’s programs are focused on the well-being and protection of every child, with a special focus on the most vulnerable children“, pointed out Castillo.

Campaigns and programmes such as “Every child needs a family”, “The first three are the most important”, and “Stop violence among children” are perhaps the most known public action by UNICEF in Croatia, but returning to the good practices of breastfeeding, Castillo emphasizes the establishment of the Human Milk Bank in her current mandate.

„Thanks to the Human Milk Bank, prematurely born and seriously ill newborns (who do not have access to their own mother's milk) can receive milk donated by other mothers. We continually work on reducing the risk of disasters, support the development of quality foster care and provide support to parents in the upbringing and care of children through workshops and we work a lot with young people“, said Castillo.

In general, UNICEF has different types of offices in countries, and regarding the Croatian office, it’s a Country Office. In other words, most of the resources (human and financial) are invested in programs in Croatia. Castillo says that the five-year mandates have priorities that are determined in cooperation with partners. And while 80 percent of the funds raised are invested in programs for girls and boys in Croatia, there are funds and support programs for children outside of the country.

“For example, in 2018, UNICEF supported child health care in parts of Ukraine affected by the conflict and helped the building of five inclusive children's playgrounds in two refugee camps in Jordan in cooperation with the Ministry of Foreign and European Affairs in 2019. Through the ‘Schools for Africa’ program ​​, which includes many kindergartens and schools throughout Croatia, UNICEF supports the education of girls and boys in Madagascar", Castillo listed several examples. 

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Regina M. Castillo, UNICEF office for Croatia representative with children on Media Literacy days press conference with Radovan Fuchs Minister of Science and Education, Krešimir Partl, State Secretary at Ministry of culture and media and Robert Tomljenović, Deputy Director of the Council for Electronic Media © Marin Ilej/UNICEF 

Overall, the UNICEF Office for Croatia works closely with the Croatian Government, and most notably, with the Ministries of Social Welfare, Education, Health, and the Ministry of Foreign and European Affairs. Other partners also include experts (Croatian experts, but also building on expertise and good practice from all over the world), professional associations, academia, services providers, and NGOs.

“UNICEF’s goal is to connect all stakeholders and to advocate and support systemic change for the well-being of all children. System change is a gradual process, and it can be challenging, but when it comes to children’s rights, every step forward is well worth the effort”, explained Castillo.

Croatian citizens showing support for UNICEF

On one hand, Croatia is a good country with low mortality rates of kids and a role model for breastfeeding promotions. On the other hand, however, peer to peer violence (on whose suppression the aforementioned “Stop violence among children“ campaign works heavily on), and unequal approach to education between rural and urban areas show Croatia has both its ups and downs. Unfortunately. The downside sometimes overshadows all the positive things.

One such instance was the tragic death of a two-year-old girl from Nova Gradiška on Easter Sunday. The death of a severely injured girl, who was brought to Zagreb's children's hospital after suffering abuse and heavy beating from her biological parents (and from whom the girl was taken and given to a foster family but was then returned back to biological parents), sparked controversy and citizens outrage, culminating in changes in social welfare law, as well as sacks and investigations in the welfare center in Nova Gradiška.  

„We are deeply saddened by the tragic death of two-and-a-half-year-old Nikoll on Easter Sunday. There are no words to express the pain of such a terrible event. Unfortunately, there are no simple and quick solutions to prevent violence against children. For years, UNICEF in Croatia has been continuously and persistently working in the field of child protection, educating experts from the social welfare system, but also other experts who work with children and families, such as experts from the health care, education, and justice systems. UNICEF implements various support programs for parents, and it is fully committed to the development of foster care and the improvement of the legislative framework. However, UNICEF is also aware that society as a whole, has a long way to go to achieve the goal that every girl and every boy is guaranteed the best possible care and protection. UNICEF will continue to work actively, persistently, and dedicatedly with all partners to achieve it”, commented Castillo.

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Regina M. Castillo talking on Media Literacy days press conference © Marin Ilej/UNICEF 

However, Croatians recognize the importance of the UNICEF mission. Before Covid, UNICEF annually collaborated with the Museum of Illusions on the Museum of Reality exhibition which displayed the problems children faced worldwide, but which also showed what changes and solutions UNICEF brought to those areas. 

“Experience tells us that citizens are ready to support the youngest, in Croatia and beyond. Implementation of our programs would not be possible without the support from citizens and companies that placed the focus of their CSR activities precisely on children. We especially value the support from our Childhood Guardians, donors who support our work with regular monthly donations and allow us to regularly conduct our programs for boys and girls, as well as react quickly with much-needed assistance in crisis situations like the earthquakes in Croatia and the COVID-19 pandemic that affected all families. UNICEF is always in the field with the most vulnerable children and their families”, notes Castillo.

In the end is important to note, that while children are recognised as a particularly vulnerable group, all human rights apply equally to children. 

“All the rights enshrined in the Convention apply to every child, regardless of a child’s country of origin, gender, religion, and nationality. Every child, by birth, has all his/her rights, the right to grow up in a safe environment, to have a family, to have access to health care and education, to be able to play and develop his/her interests and reach his/her full potential”, concludes Castillo.

The five-year mandate is an agreement that sets priorities in advance, so Castillo warned that there is no opportunity for making donations outside of that framework. UNICEF office occasionally does get messages from citizens who need advice or help on issues outside of that frame, but nevertheless, UNICEF can offer them help by referring them to institutions and addresses that can offer citizens the necessary support, financial support, or information. 

With expertise mentioned several times throughout this story as the insurance of delivering the best solutions to issues children face, UNICEF is always on the lookout for new people. If you want to make a change in the world while earning a fair wage yourself, check out what expertise UNICEF is looking for right now.

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Regina M. Castillo on a foster family gathering © Marin Ilej/UNICEF 

UNICEF Croatian Office is situated on Radnička cesta 41/7. To inform the public of their work, they built a considerable presence on Facebook, Twitter, Instagram, Youtube, and Linkedin. You can also find all UNICEF-related info for Croatia on their official website, and contact them via mail: This email address is being protected from spambots. You need JavaScript enabled to view it. or on phone numbers: +385 1 2442 660 and +385 1 2442 661. You can use the website to donate to a cause in Croatia too. Additionally, there are numbers: +385 1 4095 855, +385 99 2692 196, and +385 91 621 1039 for more details on donating to Croatia as well as e-mail address This email address is being protected from spambots. You need JavaScript enabled to view it.. You can also leave a donation to UNICEF in your will, and a phone number +385 1 3031 640 specializes for the issue in Croatia. If you find yourself in Croatia and you want to volunteer for UNICEF, more info can be found by sending a mail to This email address is being protected from spambots. You need JavaScript enabled to view it. and on phone number +385 1 3031 646.

And of course, you can donate for a good cause to UNICEF for any action the fund is internationally involved in. 

To read more from the series "Friends of Croatia", follow TCN's dedicated page.

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

Tuesday, 25 May 2021

Montenegrin Health Minister Jelena Borovinić Bojović Thanks Croatia For Vaccine Donation

ZAGREB, 25 May, 2021 - Montenegrin Health Minister Jelena Borovinić Bojović said in Zagreb on Tuesday that Croatia's donation of 10,000 vaccine doses was significant for Montenegro's efforts to inoculate its population against COVID-19.

In early May the Croatian government decided to donate 30,000 doses of coronavirus vaccines to Bosnia and Herzegovina and 10,000 doses each to Montenegro and Kosovo.

After meeting with her Croatian counterpart Vili Beroš, Borovinić Bojović thanked Croatia for that "big friendly gesture and great solidarity."

The donation of 10,000 doses will be "very significant in the process of mass inoculation that is currently underway in Montenegro," she said.

Croatia's Health Minister Vili Beroš underscored that Croatia's care for its neighbouring countries.

"I hope that we will contribute at least a little in the fight against this disease," said Beroš.

The two ministers discussed cooperation in the transplantation programme with Borovinić Bojović underscoring that Croatia has "shown especially good will to help us in resolving that problem."

She added that they discussed the signing of a memorandum of understanding that would enable Montenegrin doctors to come to Croatia for further training regarding transplantation surgeries.

The Croatian transplantation programme has been recognised beyond the borders of our country, said Beroš.

He underscored Croatia was willing to help Montenegro in that regard.

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

Tuesday, 25 May 2021

Employers Propose Continuation of Government COVID Subsidies

ZAGREB, 25 May, 2021 - The Croatian Employers' Association (HUP) has proposed measures for maintaining liquidity and launching private investments which include retaining jobkeeping measures and covering a portion of fixed costs, ensuring favourable loans and prolonging loan maturity.

In expectation of COVID measures and lockdown of businesses being lifted, HUP addressed Finance Minister Zdravko Marić and underscored that maintaining liquidity is not only relevant during the lockdown period but should be extended for a longer period, and that recovery can only be possible if investments are boosted.

HUP proposes that jobkeeping measures be extended even after busines restrictions are lifted until such time that  all enterprises generate at least 90% of their pre-pandemic revenue in 2019. HUP believes that abolishing support measures for the economy should be gradual, depending on the epidemiological situation, but also on the circumstances in each individual sector so that Croatia is not faced with a wave of bankruptcies and layoffs.

HUP also calls for a portion of fixed costs to continue to be covered, taking account of the percentage revenue has decreased, and for facilitating access to loans for liquidity and working capital, including guarantee schemes for micro, small and medium-sized enterprises.

HUP advocates possibly transforming a portion of loans into grants and for the moratorium on loan maturities to be extended for existing loans, along with state guarantees, at least until the end of this year and longer if need be, based on transparent criteria.

HUP proposes additional support loans for exporters and enterprises investing in the 4.0 industry, and support for investments by large companies through increased support for EU co-funded projects.

It also recommends the possibility of deleveraging debts between companies to prevent a chain reaction, and for non-recoverable loans to be identified faster, as well as speeding up bankruptcy procedures, and introducing additional tax cuts.

"We believe that government subsidies to cover the disrupted economic activities due to the COVID crisis should continue until such time that enterprises can do business normally and save jobs without that support," HUP said.

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

Thursday, 13 May 2021

Parliament Speaker Gordan Jandroković Says There Will Be Third Public Call For Supreme Court Head

ZAGREB, 13 May, 2021 - Parliament Speaker Gordan Jandroković said on Thursday that the third public call for applications by aspirants for the position of Supreme Court President would be published and that there was enough time left to select the Supreme Court head.

As for today's press release of the government in which it warns that President Zoran Milanović's favourite for the chief justice, Zlata Đurđević, was not in favour of the model that exists in most EU countries, where judges are appointed by the executive authorities, but rather juxtaposes the election of judges by an independent body with the model in which judges are elected in the parliament, Jandroković said that the government had offered a well-argued discussion.

The government's press release indicates that the programme of Milanović's candidate shows that she is in favour of reinstatating political influence in the process of the election of judges, said Jandroković.

Asked by the press whether he had read Đurđević's programme, Jandroković said that he had read the segments important for politics, and that "it is more that evident that she is in favour of the political election of judges."

Jandroković recalled that it was not correct to claim that the problems in the judiciary had started in the 1990s, adding that the problem had deeper roots dating back to the period of the former Yugoslavia and the Communist system.

It is not easy to elevate the judiciary to a level at which it is absolutely unbiased and all judges behave professionally, however, efforts have been made for years in this regard, he added.

Jandroković said that when it came to President Milanović and his invective, he had endured them calmly for months.

All that time I have endured defamation, Jandroković said, adding that the tit for tat response ensued after "the bully" (Milanović) kept insulting him.

On Wednesday, Jandroković called Milanović  "a clown with an inferiority complex." 

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

 

Thursday, 13 May 2021

Croatian Government: Zlata Đurđević Not in Favour of Model For Election of Judges As Exists in Most of EU

ZAGREB, 13 May, 2021 - The Croatian government said on Thursday that the candidate for the Supreme Court president Zlata Đurđević is not in favour of the model for the election of judges as exists in most EU countries.

Quoting parts of Đurđević's programme, the government says that Đurđević is not in favour of the model that exists in most EU countries, where judges are appointed by the executive authorities, but rather juxtaposes the election of judges by an independent body with the model in which judges are elected in the parliament.

The government stresses that unlike the model currently in force in Croatia, which was part of obligations assumed with the country's EU membership, that model is the least represented and exists in only two member-states - Slovenia and Latvia.

To elect judges in the parliament would be "a major step backward, notably with regard to judicial autonomy and the perception of judicial autonomy," says the government.

It recalls that until the amendment of the Constitution in 2010, the Sabor elected only members of the State Judicial Council, while the concept under which all judges would be elected by the parliament never existed in Croatia's legal order.

"To have all judges elected by political parties, regardless of which party is in power, would pose a major risk in terms of the politicisation of the system and would not guarantee the election of the best and most qualified candidates," the government says after analysing parts of Đurđević's programme entitled "Judiciary as a branch of government without democratic legitimacy."

The government adds that the system of that kind would constitute a departure from the existing standards "which have shortcomings and leave room for improvement but which are still a far better solution than the appointment of judges by politicians."

Also, the introduction of such a system would be harmful for Croatia's reputation, bearing in mind the content and importance of the mechanism of rule of law oversight in the EU as well as the National Recovery and Resilience Programme, the government says.

It also notes that Đurđević did not always consider the current modal as bad or questioned the autonomy of the Croatian judiciary.

Quoting her opinion published in a law journal in 2018, the government recalls that Đurđević, while criticising court autonomy in Hungary and Poland, said that "one should not doubt the existence of an appropriate normative and institutional framework for the autonomy of Croatian courts."

That normative and institutional framework has not changed since 2018, says the government.

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

Friday, 7 May 2021

PM Andrej Plenković Says Gov't to Continue With Active Employment Policy

ZAGREB, 7 May, 2021 - Croatian Prime Minister Andrej Plenković, who is taking part in the Social Summit in Porto, said on Friday that his government would continue with its active policy towards workers because it considered workers to be important.

"After four years we are again focusing on social rights, workers' protection, social inclusion and dialogue, equal opportunities, the possibility to help our workers across the EU through the principle of European solidarity and to save jobs through cooperation," Plenković told reporters upon arrival in Porto, Portugal, where the summit is taking place.

Portugal, which has been chairing the EU since January, is hosting the summit at which the leaders of the EU's 27 member states will try to put into practice a document called "The European Pillar of Social Rights", agreed to four years ago.

Among the 20 principles stated in the document, are training and lifelong learning, gender equality, fair pay and workers' participation in talks on forms and conditions of work.

"In that regard, Croatia has done quite a lot in the past 15 months," said Plenković.

"We have saved jobs, supported workers, as well as employers. Numbers speak for themselves, today we have more insurees than we had last year, and what is more important, we have more than we did in 2019," he said.

"We have invested more than €10 billion in workers' wages, secured funds for those who had to work shorter hours, as well as for fixed costs, making it possible for more than 120,000 employers to keep their workers and pay wages," he said.

Croatians, just like citizens of other EU countries, have felt the health and economic consequences of the coronavirus crisis. Thousands of workers have lost jobs and many fear poverty.

According to figures form the Croatian Employment Service, the unemployment rate in Croatia is 9.3%.

"The state has exempted many from paying both taxes and contributions. We will continue with an active employment policy," Plenković said.

Portugal's Socialist government in January set strengthening social rights in Europe as on of its priorities during its EU presidency, which ends in June.

The European Commission in March presented a plan under which the number of poor people in the EU would be reduced by 15 million by the end of 2030.

The forum in Porto focuses on that plan and PM Plenković is expected to participate in a panel discussion on that topic later in the day.

The Porto summit is taking place one week after International Workers' Day, when workers across Europe once again pointed out their difficult situation.

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

 

Thursday, 29 April 2021

Government Establishes National Council for Development of Social Policies

ZAGREB, 29 April, 2021- At its meeting on Thursday, the government adopted a decision to establish the National Council for the Development of Social Policies and launched a procedure for the preparation of a Strategy for the Demographic Revitalisation of Croatia by 2031.

"Social security and welfare for our socially vulnerable citizens is one of the primary objectives of this government's activities. That is an area for which we foresee significant investments in the coming period, partly from the budget and partly from EU funds amounting to more than HRK 5.5 billion," Minister Josip Aladrović said.

At the same time, in an effort to improve the quality and efficiency of social policies, the National Council for the Development of Social Policies will be established as an advisory and expert government body, he added.

"It will contribute to the development of the government's social policies through proposals and expert opinions from which our citizens will have the most benefit," Aladrović said.

Council members will be appointed by the government at the ministry's recommendation. The Council will comprise representatives of state administration, professional chambers, the academic community, civil society organisations and other organisations that can contribute with their knowledge and experience, he added.

The Council will in particular be responsible for monitoring and improving the social security system. It will monitor the implementation of international agreements and existing regulations relating to social security, as well as the needs and standards of social services and other issues. It will also make recommendations for measures and development and monitor activities in social planning and development of the social welfare system.

The Council will convene as necessary, at least once a month. Council members will not be paid for their work, and the Council's work will be transparent and public.

Funds for the Council's activities will be ensured from the ministry's allocation in the state budget.

Demographic revitalisation a key national issue

The government also adopted a decision to launch a procedure for the preparation of a Strategy for Demographic Revitalisation until 2031. The government commissioned the Central State Office for Demography and Youth to prepare a strategy and to appoint a task force.

"The issue of demographic revitalisation is a key national issue for the survival and development of Croatia," state-secretary in the Central Office for Demography Željka Josić said.

Demographic revitalisation is one of the priority areas of the National Development Strategy until 2030 which sets out guidelines for demographic revitalisation and priorities that will contribute to resolving negative demographic trends.

The strategy deals with areas such as material and non-material support, housing, tax reliefs, public health, education, life-long learning, labour market and mobility, said Josić.

This decision aligns the document with the Strategic Planning and Development Management Act as the key strategic document for national strategic development.

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

Thursday, 29 April 2021

Government Adopts Draft National Recovery and Resilience Plan, to Send it to European Commission

ZAGREB, 29 April, 2021 - The Croatian government on Thursday adopted the Draft National Recovery and Resilience Plan (NPOO) 2021-2027, worth HRK 49 billion, and it will send it to the European Commission for final harmonisation.

The document, which has more than 1,100 pages, contains descriptions of 77 reforms and 152 investments on which EU funds will be spent. It has five components and one initiative: the business sector, with investments amounting to HRK 26.2 billion or 54% of the total amount; public administration, justice and state assets (HRK 4.36 billion or 10%); education, science and research (HRK 7.5 billion or 15%); labour market and social protection (HRK 2.09 billion or 4%); health (HRK 2.56 billion or 5%); and the initiative "Reconstruction of buildings", with planned investments amounting to HRK 5.95 billion or 12% of the NPOO funding.

Sixty-six percent of the amount or HRK 32.15 billion is intended for recovery while 34% or HRK 16.5 billion is intended for resilience.

PM Andrej Plenković said the NPOO was a key document that "will enable us to use, in the next five years, more than HRK 47 billion for structural reforms and investments that will contribute to our economic recovery and make us more resilient to future crises."

If necessary, by the end of 2023 Croatia will also be able to seek loans in the amount of around €3.6 billion or HRK 27 billion, he said.

Economic recovery primarily refers to investments in those sectors that can guarantee fast economic growth in the short and long run, as well as job preservation and job creation, said Plenković.

Each component has 'digital' and 'green' elements, the goal being to reach the targets of 20% of investments being directed to digital transformation and 37% of investments being directed towards green transition.

Macroeconomic effects

According to projections, the NPOO's effects are expected to contribute to a real GDP growth in 2021 of 5.2% instead of 4.9% without the NPOO, while growth in 2022 would be 6.6% instead of 5.2% without the NPOO, and in 2023 it would be 4.1% instead of 2.7% without the NPOO. In 2024 the effects of the NPOO would result in a 3.4% economic growth instead of 2.5%, and in 2025 it would help achieve a 2.7% growth rate instead of 2.5%.

The government expects the implementation of the NPOO to cumulatively increase GDP by an additional 4.2% in 2025 in relation to 2020.

In the last year of its implementation, 2026, the NPOO will have resulted in GDP being close to HRK 17 billion higher than it would be without the NPOO.

Concrete examples of NPOO implementation

PM Plenković said that the implementation of the NPOO would make it possible to achieve the European target share of renewables in energy consumption (for Croatia the target is 36.6%) and achieving the European target of at least 14% of renewables in the transport sector until 2026. Investments in water management are planned as well to make drinking water available to around 93% of the population.

The plan also envisages better coverage with broadband infrastructure, access to fast internet for citizens and the business sector, and reduction of the number of outstanding cases at municipal courts by at least 5% by mid-2026.

The NPOO also envisages an increase in the share of children aged between 4 and school age who are covered by early preschool education, from 81% to 96%, which is the EU target.

Also envisaged are investments to create conditions to create as many jobs as possible for the sake of increasing the employment rate from 66.7% to 70% by the end of 2024.

"Labour market reforms and policies will help provide conditions to create at least 100,000 new jobs, with emphasis on people under 30 and the self-employed," said the PM.

Investment of HRK 2.5 billion in the health system is aimed, among other things, at raising the survival rate for cancer patients from 46 to 51% and saving around 5,000 lives. Also planned is the continuation of the functional integration of hospitals.

Post-earthquake reconstruction accounts for 12% of funds expected to be obtained under the NPOO, while the projected energy consumption for heating is expected to be reduced by at least 50% for buildings renovated as part of the NPOO.

Plenković said that in the next ten years and mostly in the first five, Croatia would have at its disposal close to €30 billion from EU funds. The amount is a unique opportunity to contribute to modernisation and growth of the business sector and Croatia's social and even development, he said.

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

Tuesday, 27 April 2021

Foreign Minister Gordan Grlić Radman Says Ambassador Hidajet Biščević Enjoys Government's Support

ZAGREB, 27 April, 2021 - Foreign Minister Gordan Grlić Radman said on Tuesday that Croatian Ambassador Hidajet Biščević enjoyed the support from the Croatian government, in his comment to the ethnic Croat leader's accusations against the diplomat.

Addressing a news conference in Petrinja, Minister Grlić Radman said that the experienced Croatian diplomat Biščević enjoyed the support of the government in Zagreb.

He says that exclusively Croatian institutions are in charge of assessing the performance of Croatian diplomats.

The minister said that the status of the Croatian community in Serbia is one of Biščević's priorities.

"Media speculations and such statements in media about Croatia's diplomats are not the best way of communication. Croatia's diplomacy does not deserve that and furthermore this could also be an indirect attempt from outside to impact the political relations in Croatia," said the minister who will travel to Subotica on Wednesday.

He also said that it was also inappropriate to disseminate reports against Biščević after the recent incident in which the Croatian flag was removed from the residence of the Croatian ambassador in Belgrade.

Following media reports about the criticism targeted against Biščević, President Zoran Milanović said that he would recall the ambassador for consultations to establish the truth.

Minister Grlić Radman also rejected Milanović's claims that it was him who appointed Grlić Radman to an ambassadorial post.

Grlić Radman said that he had been employed for diplomatic tasks for the first time in 1991 by the first Croatian president Franjo Tuđman and since then he has been an official in the foreign ministry.

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

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