ZAGREB, Sept 26, 2020  - President Zoran Milanovic said on Saturday in Pregrada that the solution to the JANAF case should be control, responsibility and cooperation in line with the Constitution and that he would meet with Prime Minister Andrej Plenkovic to discuss the case.

The Prime Minister and his associates have spoken about the new scandal merely at the level of slogans from communist political schools, he said.

"That is not enough. He and I can consider the issue together, we can convene the National Security Council. I have also thought about that, but I am not sure that would bear fruit given the legal composition of the council and the role of some of its members," he added.

Milanovic said that a topic he and PM Andrej Plenkovic could discuss was how investigative bodies were acting. He also said that the leaking of information related to the investigation in the JANAF case constituted not only a violation of the rules under which an investigation was not a public matter but also a violation of basic moral principles.

One must be able to trust the government, Plenkovic cannot run away from responsibility

"One has to be able to trust someone at the top of the chain of command, first of all in the Croatian government. That is the prime minister and he cannot run away from responsibility," Milanovic said.

Asked whether he considered it strange that a man who had been a director for about 15 years, but whose salary had not been that large, owned a private club, Milanovic said that he did not because it was a small space of 30 square meters, and Dragan Kovacevic was not the only owner.

I was there several times, accompanied by a small number of people, he added.

As for his visits to the club during the lockdown, Milanovic said he had met there with the head of the national COVID-19 response team for practical reasons.

"Because that was during the lockdown and because a friend from Dalmatia called me who had a lot of food he would have otherwise thrown away because he had no one to give it to, we met there because it was more practical," he said, adding that this was "such a silly topic."

Asked whether he should have been informed that he was socialising with a man who was under investigation, the President responded with a counterquestion -- who would have informed him about it.

"SOA (Security and Intelligence Agency) does not have that kind of information because it does not take part in stealing money from public companies and it cannot have such information. It is one thing to be cordial to someone and that is a question of my responsibility and my judgement, but if I am in a situation to evaluate someone, to appoint them, then I have a different kind of information, but SOA is not connected to that," he added.

Asked how the case should end, Milanovic said that the solution to it was in control, responsibility, and cooperation in line with the Constitution, as well as in the separation of powers because, he added, everything was prescribed in a clear way.

Office: President to meet with PM

President Milanovic's office said in a statement later in the day that Milanovic would discuss the JANAF case and the functioning of state institutions with PM Plenkovic.

Speaking to reporters during his visit to Pregrada, Milanovic said that the topic of ambassadors which Plenkovic wanted to discuss with him would be "a topic of secondary importance (at the meeting), while the real topic will be the way this country functions."

"... It is important to discuss how this state functions, to finally see what the prime minister knows," Milanovic said.

"For months his ministers had put themselves in a situation to compromise themselves, quite unnecessarily. Someone should have known about and prevented that. Not to mention damage to JANAF. That is a topic for discussion between the prime minister and myself because we represent the state authorities, he has greater powers than I do and that is why I will adapt to his schedule. Speaking of the principle of separation of powers, there is also the principle of cooperation between state institutions. One has to be able to trust someone... at the top of the chain of command, primarily in the government. That person is the prime minister and he cannot run away from responsibility," said Milanovic.

He noted that the prime minister had told him that they had to meet.

"I do not have the last say here, he does, but I will not stop talking. This is simply a test which has shown that Croatia has a problem," Milanovic said as cited by his office.

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ZAGREB, Aug 24, 2020 - The MUH pensioners association ad the Croatian Pensioners Union (SUH) on Monday called on the government to urgently restore the work of the National Council for Pensioners and the Elderly so that dialogue on problems faced by needy pensioners could continue.

"Dealing with the problem of a growing number of poor pensioners cannot be postponed because MUH and SUH consider it a priority issue. We propose that a more favorable formula be defined to adjust pensions in order to prevent a drastic drop of the average pension in relation to the average wage in Croatia, as the average pension now accounts for only 37.9% of the average wage," the two organizations said in an open letter to the government.

They warn that the at-risk-of-poverty threshold in Croatia is HRK 2,710. Since the average pension amounts to only HRK 2,525, that shows that most pensioners already live below the poverty line, the two organizations said.

More than 703,000 or 61% of all pensioners, not including those who have acquired their pensions in line with special rules and privileges, have pension allowances that are below the poverty line. "Every retired single, and those are mostly women, with a pension of below HRK 2,710, is officially a poor person," the two organizations say.

They recall that under a plan adopted by the parliament, pensions in the next four-year term would be increased by 10%, which would make the average pension rise to only HRK 2,777 in four years' time, and this would make the difference between the average pension and the average wage amount to HRK 4,823.

"The latest figures on pension indexation of a mere 1.41% make it clear that it will be difficult to achieve the promised adjustment. That means that pensions will continue to go down in relation to both the average and the minimum wage. By the end of the current government's term, the average pension would account for a miserly 36.5% of the average net pay," the two organizations warn, recalling that Croatia is at the very bottom of the EU rankings in terms of pensions.

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ZAGREB, July 13, 2020 - Prime Minister and Croatian Democratic Union leader (HDZ) Andrej Plenkovic said on Monday that the new government would be somewhat smaller than the previous one and its members will be known on Thursday.

"The government will be somewhat smaller than it was. It will be functional, some of the current members in government will remain, others will be in the Sabor. Some new people will join," Plenkovic said ahead of the meeting of the party's presidency and national council after official complete results of the July 5 parliamentary election that HDZ won were made public today.

He confirmed that the environment and energy sector may be merged with some other ministry. He underlined that talks are still underway in that regard however the issue of climate change will not be neglected and will become the number one issue in the context of economic recovery.

"There will be fewer ministries but that does not mean that public servants will lose their jobs. This is a different type of message of a fewer number of ministries and fewer members of the government," said Plenkovic.

He added that he had expected the Independent Democratic Serb Party (SDSS) to nominate Boris Milosevic as the deputy prime minister for social activities and human rights.

 "That proposal was agreed to with me and I expected it to be Milosevic. We know each other. He is a lawyer and I think that he can contribute to this new position, which we discussed last week," the prime minister added.

ZAGREB, June 25, 2020 - The Croatian government on Thursday announced the possibility of introducing shorter working hours as a new measure designed to help save jobs, to be introduced in the second half of the year for businesses with more than ten employees.

Labour and Pension System Minister Josip Aladrovic said that the government was working on defining, in cooperation with trade unions and employers, criteria for job keeping aid to be granted as part of a scheme envisaging shorter working hours.

The measure would be in force from June 1 to December 31.

Under the measure, employers who need to introduce shorter working hours due to a decline in business activities would be entitled to aid for the payment of a part of their workers' wages.

The measure is intended for all sectors and for all businesses with more than 10 employees.

It will be financed by an EU programme.

The measure is expected to cost slightly less than three billion kunas by the end of the year, said Aladrovic.

ZAGREB, June 18, 2020 - The Croatian government on Thursday amended the HAMAG-BICRO agency's schemes for loans for working capital for businesses affected by the coronavirus crisis and ESIF guarantees, with Prime Minister Andrej Plenkovic saying that this would enable the granting of further loans to entrepreneurs.

Plenkovic told a government session that businesses had made good use of loans intended to help businesses affected by the coronavirus crisis and that so far 5,128 requests worth HRK 343 million had been submitted by 900 businesses.

This is an important government measure that makes it possible to keep jobs, said Plenkovic, noting that the amendment of the schemes would help provide further loans for Croatian entrepreneurs.

Economy Minister Darko Horvat recalled that the government in March adopted changes to HAMAG-BICRO's schemes "ESIF micro and small loans" and "ESIF guarantees", while on April 2 a decision was made to adopt the scheme "COVID-19 working capital loans."

In order to help member-countries make the most of the flexibility envisaged by rules on state support for the business sector affected by the COVID-19 pandemic, the European Commission adopted a document called the Temporary Framework, said Horvat.

Based on that document, HAMAG-BICRO defined a support scheme which the EC approved on May 12 and which envisages loans in the total amount of HRK 350 million as well as support in the form of guarantees worth HRK 420 million, to be issued until 31 December 2020, said Horvat.

Specifically, EU member-states are enabled to grant state support to micro, small and medium-sized businesses for urgent liquidity needs caused by the COVID-19 pandemic, in the amount of up to €800,000 for COVID-19 working capital loans, said the minister.

Horvat also said that up to one million euros would be provided for ESIF guarantees, as would a combination of measures from the Temporary Framework with support of small value, for urgent liquidity needs.

ZAGREB, June 18, 2020 - The government on Thursday adopted a conclusion that expresses its readiness to join in the process of issuing state guarantees the Brodotrogir Cruise, Uljanik Brodogradnja 1856 and MKM Yachts shipyards.

"The signal we are sending today is our determination for Croatia's shipbuilding to continue functioning (...) and that we wish to continue supporting shipbuilding on healthy foundations," Prime Minister Andrej Plenkovic said.

Economy Minister Darko Horvat recalled that the ministry had received a request from Brodotrogir Cruise for a state guarantee to ensure advance payments for two passenger polar cruise ships for two American clients.

The total value of each ship is €39 million, and the clients will make an advance payment of 80% or €31.2 million for each ship, on the condition that the shipyard obtains a bank guarantee for the buyer.

"The shipyard has requested state guarantees in the amount of €24.96 million for each ship, which is 80% of the total advance payment and 64% of the sales price," Horvat explained.

The ministry also received a request from the Uljanik dock for a loan in the amount of €4.33 million to launch production. The loan would be secured with a state guarantee earmarked exclusively to launch production at the newly-founded company at the dock.

The Rijeka-based MKM Yachts dock too submitted a request for a state guarantee for a loan of just over €100 million for the construction of a ship for a client from Malta. The guarantee would cover 80% of the loan or €80.13 million.

These guarantees will be activated in phases so that the amount the government will guarantee cannot exceed 64% of exposure by the end of 2021, after which the state's exposure should decrease to a maximum of 48%, Horvat explained.

"With this conclusion, the government provides full support to the shipbuilding industry in Croatia with the aim of continuing production and retaining Croatia's reputation on the shipbuilding market. This conclusion obliges the Ministry of Economy, Entrepreneurship and Craftsto launch proceedings, in cooperation with the Finance Ministry, to issue the requested state guarantees," Horvat concluded.

 ZAGREB, June 12, 2020 - Prime Minister Andrej Plenkovic on Friday praised his government for all it had done to contain the spread of the coronavirus pandemic, stressing that it had stood by the workers and employers and shown "the strength of the state" during the crisis.

"In this corona crisis you could see how our government managed to quickly and effectively prevent this epidemic from spreading in Croatia while at the same time standing, like no government before it, by the workers, employers and all those who would probably have ended up on the dole had it not been for our measures, and the employers would hardly have overcome the crisis," the prime minister said at a gathering of members of the Vukovar branch of his Croatian Democratic Union (HDZ) party.

He said that the government had shown "the strength of the state" during the crisis. "We showed how to protect and secure public health and how to preserve jobs," he said, adding that all this was possible because over the past four years the government had been working on promoting healthy economic growth, which has been recognised outside Croatia as well.

"Our investment credit rating has been maintained. Yesterday's €2 billion bond issue, when investors were interested in nearly €9 billion at much more favour interest rates and when we managed to save HRK 360 million annually compared to the same such instrument from 2010, means that there is trust in this government," Plenkovic said.

ZAGREB, June 12, 2020 - Prime Minister Andrej Plenkovic formally opened the Office of the Foundation of the Sarajevo Archdiocese in the eastern Croatian town of Vukovar on Friday, saying that Croatia's relationship with Bosnia and Herzegovina was very important to his government.

"We have considerably increased funds for specific projects including education, healthcare, culture, and the economy. We have increased trade and intensified our relationship with Bosnia and Herzegovina by opening two consulates, offices of the Croatian Chamber of Commerce, a broadcasting organization, and have improved transport connectivity," Plenkovic told the press after the opening ceremony.

"All this helps strengthen the status of the Croats as an equal constituent people in Bosnia and Herzegovina," he stressed.

The Archbishop of Sarajevo and president of the foundation's board of directors, Cardinal Vinko Puljic, said: "We have opened the foundation here to make it easier for benefactors to invest funds that can be controlled." He added that the foundation would work transparently and that it would be clear at all times what the money was being invested in.

"The foundation will be an encouragement to our survival and our future in Bosnia and Herzegovina," the cardinal said.

The foundation was established in Vukovar in February as a not-for-profit humanitarian organization to carry out projects in Croatia and the Sarajevo Archdiocese.

ZAGREB, June 5, 2020 - Social Democratic Party (SDP) leader Davor Bernardic said on Friday that the court ruling allowing the use of the Ustasha salute "For the Homeland Ready" in a song was scandalous, adding that this was the result of fascism being downplayed the current government.

"The ruling by the High Misdemeanour Court that Marko Perkovic Thompson may use the salute For the Homeland Ready (in his song) is scandalous. Imagine a German court allowing the use of the salute Sieg Heil or Heil Hitler! in Germany," Bernardic said at a press conference while commenting on the court ruling.

He said that the ruling was the result of four years of failure to deal with this problem and of fascism being downplayed by this government which legalized the salute For the Homeland Ready through the commission dealing with the consequences of the rule of undemocratic regimes.

He stressed that Croatia was united in the 1991-1995 Homeland War and that no one had the right to cast a stain on it by using the fascist symbols of the Ustasha regime that was defeated in the Second World War.

Milanovic: Court ruling is odd

During his visit to Sisak on Thursday, President Zoran Milanovic was asked by reporters to comment on the court ruling. He said he had not seen it, but that it seemed odd to him.

"The matter should have been dealt with more clearly by the criminal code, but no one, of course,  should go to prison for that, and I will have no influence on it. It should be an indictable offense punishable by a suspended sentence or a caution. In this way, we only put judges in silly situations and it puts a great burden on them," Milanovic said, adding that the police would not know what to do either. 

He said that Article 5 of the Public Order Act was vague and should be changed.

ZAGREB, May 27, 2020 - Unions of employees in the education and government sectors on Wednesday accepted a government's proposal on an annex to the basic collective agreement, underscoring that this was a matter of responsibility and solidarity and that they also managed to negotiate the payment of holiday allowances in cash.

"Five public sector trade union federations, which encompass 55 members operating in the public sector, have accepted the government's offer to sign Annex 2 to the basic collective agreement," Branimir Mihalinec, leader of the NSZSSH union of secondary school teachers, told reporters.

He added that they had managed to remove another obstacle in the talks, and that was concerning the payment of holiday allowances through the Cro Card, which the government had given up on.

"The reasons are responsible. The only thing that employees in public services have given up on are raises of the base pay. The base pay will be raised in 2021 as we have agreed," Mihalinec said.

He underscored that accepting the government's offer could be regarded as a clear message that both sides had considered their actions well and that common sense had prevailed.

"Giving up on the raise is a sign of solidarity with all the employed and citizens," Mihalinec said.

Croatian Teachers Union (SHU) leader Sanja Sprem said that 761 branches had taken part in her union's survey and that 88% of the members said they accepted the government's offer, while 11% were against it.

"The biggest stumbling block was the Cro Card, but we detected the issues today, and at my insistence it was requested that the holiday allowance be paid out, which the government accepted," Sprem underscored.

Police union leader Dubravko Jagic said they would present the government's new offer, which was "far more acceptable than the previous one", to their members for them to decide, and that they would know the results on Friday.

"Holiday bonuses won't be affected, there won't be a Cro Card and the bonuses will be paid into our members' current accounts. Christmas bonuses won't be touched, for the time being, there is time for negotiations in autumn. We won't give up on Christmas bonuses," Jagic underscored.