ZAGREB, December 22, 2018 - A former High Representative of the international community in Bosnia and Herzegovina, Christian Schwartz-Schilling, has suggested that the European People's Party (EPP) should expel the Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH) over what he described as its nationalist and destructive actions.

In a letter sent in late November to Manfred Weber, the chair of the EPP group in the European Parliament, Schwarz-Schilling says that it is time to consider expelling the HDZ BiH from the EPP because the party pursues a policy very similar to the policy of the Alliance of Independent Social Democrats (SNSD) of Milorad Dodik, which was ousted from the Socialist International (SI) over nationalist activities in 2012, based on a report by the Social Democratic Party of Bosnia and Herzegovina.

Previously, the Party of European Socialists (PES) refused to admit the SNSD.

European and democratic values should be defended within the EPP, otherwise destructive tendencies, based on ideas of ethno-national domination will prevail and eventually become a threat to the entire Europe, said the German politician whom the Croatian Foreign and European Affairs Ministry recently accused of being himself responsible for the Croat people in Bosnia and Herzegovina not being equal to the Serb and Bosniak peoples.

As in an open letter he recently sent with former High Representatives Carl Bildt and Paddy Ashdown to the EU's High Representative for Foreign Affairs and Security Policy, Federica Mogherini, Schwarz-Schilling claims that the HDZ BiH is "falsely depicting", with the support of Croatia, the situation in Bosnia and Herzegovina and the status of its Croat community.

More news on the status of Croats in Bosnia and Herzegovina, as well as on the latest in the relations between Croatia and Bosnia and Herzegovina and connected issues, can be found in our Diaspora section.

ZAGREB, Dec 19, 2018 - Former HDZ leader Tomislav Karamarko testified at the USKOK anti-corruption office about the fake text message scandal on Tuesday.

Karamarko told the RTL commercial broadcaster before his testimony that he was coming as a witness in the case which refers to former police IT specialist Franjo Varga, who has been in custody on the suspicion that he made fake text messages for a number of people and who, Karamarko said, was introduced to him by two of his friends in early 2017, when he was no longer the HDZ leader or the deputy prime minister.

"Those friends are not politicians," the former HDZ chief said, adding that the case should be cleared up as soon as possible.

He repeated that it was only after he stepped down as HDZ president and deputy prime minister that he met Varga, who mentioned Karamarko to investigators after his arrest. "He asked for a meeting with me, saying that he had information about electoral fraud in 2015. I naturally was interested in information about that, just as this institution should be," Karamarko told reporters outside USKOK.

Asked if he then hired Varga, Karamarko said that there "is an analysis of electoral fraud in Zagreb in 2015" and that he thought that Varga could make a similar analysis for the entire country, but that he never did.

"He always needed financial assistance, not big, small. The man obviously had financial problems so I responded," Karamarko said, adding that he had already told the media about that.

Asked if he would return to politics, Karamarko said, "only God knows and God will decide".

Former HDZ leader Karamarko said that he had never discussed Varga with HDZ deputy president Milijan Brkić, who has already testified in the case.

Blaž Curić, Brkić's close friend and chauffeur for Agriculture Minister Tomislav Tolušić, has been arrested on the suspicion that he contacted Varga to tell him that he was under investigation and would be arrested.

Varga is suspected of fabricating text correspondence between former chief state prosecutor Dinko Cvitan and a judge who sat on the Osijek County Court panel which tried former Dinamo football club executive Zdravko Mamić, his brother Zoran, former Dinamo director Damir Vrbanović and tax official Milan Pernar. The correspondence indicated that before the first instance verdict was delivered, Cvitan had pressured the judge into convicting one of the defendants without any evidence.

Varga is suspected of giving the fake texts to Mamić, who made them public at a press conference on June 4. Mamić's attorney then requested that the verdict be postponed, but the panel refused, finding all the defendants guilty on June 6 pending appeal.

Varga is also suspected of fabricating text correspondence alleging influence on Supreme Court judges, so that Mamić could use it in appellate proceedings.

In late November, the media published details of Varga's deposition in which he describes his relationship with Mamićas well as his cooperation with Karamarko, Brkić, President Kolinda Grabar-Kitarović's former national security advisor Vlado Galić, as well as former Agrokor owner Ivica Todorć.

The Osijek County Court is to decide on Wednesday whether to extend custody for Varga and Curić or release them.

More news on the “text messages affair” can be found in our Politics section.

ZAGREB, December 16, 2018 - The speaker of the Croatian parliament and secretary general of the ruling Croatian Democratic Union (HDZ) party, Gordan Jandroković, dismissed on Sunday speculation about a possible government reshuffle given that the parliamentary group of Zagreb Mayor Milan Bandić's party was increasing in number.

Speaking outside the Zagreb cathedral, reporters asked Jandroković to comment on media reports about a possible government reshuffle now that Bandić's party is short of only one MP to be able to form a parliamentary majority with the HDZ without its present junior partner, the Croatian People's Party (HNS). "This information is completely untrue, in fact it's nonsense," Jandroković said.

The speculation was prompted by the defection of Social Democratic Party (SDP) MP Ana Komparić Devčić to Bandić's Work and Solidarity Party this week. She is just one in a series of MPs who have recently crossed over to Bandić's party.

More news on the Zagreb mayor and other political events can be found in our Politics section.

ZAGREB, December 15, 2018 - Prime Minister Andrej Plenković on Friday strongly dismissed accusations that he was involved in "the political game", or political horse-trading, that facilitated the adoption of the Zagreb city budget for 2019 on Thursday.

"I dismiss the accusations... this is now happening on a daily basis, it could almost be a topic here at the European Council, which also discussed disinformation," Plenković said in Brussels where he was attending a two-day summit of EU leaders.

The summit discussed, among other topics, the fight against disinformation campaigns in order to ensure, among other things, fair elections for the European Parliament next spring.

The necessary majority to vote in the Zagreb city budget was secured by three members of opposition parties in the city assembly, who voted for Mayor Milan Bandić's budget proposal even though their parties had decided not to support it. The budget was passed by a two-vote margin.

The three City Assembly members, who tipped the balance in favour of Bandić, were expelled from their respective parties amid accusations that they supported the budget in exchange for personal benefits.

Pointing the finger at Mayor Bandić and Prime Minister Plenković, the opposition said that this was a political trade-off and mutual securing of the majority in the national parliament and the city assembly.

Plenković also commented on the resignation of President Kolinda Grabar-Kitarović's advisor on national security, Vlado Galić, and speculation that another of her advisors, Mate Radeljić, would leave in January as well.

"The President chose her advisors on her own, I presume that she also makes decisions to relieve them of duty or accept their resignations on her own," he said when asked if those officials had become a burden to Grabar-Kitarović considering that they were being mentioned in the context of the fake text message scandal, and whether the HDZ had made its support to Grabar-Kitarović's campaign for the next presidential term conditional on their departure.

More news about the latest events in Croatian politics can be found in our special section.

Amid rumours that the finance minister, Zdravko Marić, is set to step down from his position within the Croatian Government as soon as next month, PM Andrej Plenković has been having his refusal to outright deny the claims scrutinised, with some believing that this means Marić's departure was imminent and due to take place in early 2019. It seems however, that Marić isn't going anywhere.

As Poslovni Dnevnik writes on the 9th of December, 2018, HDZ President and PM Andrej Plenković said on Saturday that Finance Minister Zdravko Maric isn't going to leave the government.

"There will be no departure," Plenković told journalists after the he was questioned about whether or not he'd talked to Marić himself about his alleged departure from the cabinet before the end of his mandate, as was being circulated by some media outlets.

The Prime Minister, upon being questioned about the criticisms of controversial SDSS President Milorad Pupovac regarding recent arrests in Vukovar, said that he didn't listen to that press conference, adding that the current government is not interfering with the work of the police or with the work of DORH in any manner whatsoever.

He pointed out, in order to quell people's natural suspicions that "there are no invisible political hands" holding any influence over this process.

When asked about the elections for the European Parliament, PM Andrej Plenković stated that the party would be "almost sure" on their own and that at least five mandates can be expected. "We'll win convincingly in those elections," he said briefly.

Concerning the controversy around the procurement of Israeli F-16 aircraft, Plenković reiterated that everything that the Republic of Croatia did in this process was done systematically, thoroughly, and in fine detail, and that open issues, if there are any, exist solely between Israel and the United States of America, and are nothing to do with Croatia or the part Croatia played in the process.

He confirmed that he visited Zagreb's mayor Milan Bandić was taken to hospital yesterday morning, adding that Bandić claims to be feeling good and that he believes that he will recover and be back on his feet quickly.

Make sure to follow our dedicated politics page for more on PM Andrej Plenković, the Croatian Government, and updates from both domestic and European politics in Croatia.

ZAGREB, December 6, 2018 - Croatian Democratic Union (HDZ) whip Branko Bačić told reporters on Wednesday that he did not know where Conflict of Interest Commission chair Nataša Novaković had got the information that "there is a realistic possibility that the Commission will be replaced", adding that changes to the relevant legislation did not envisage the dissolution of the Commission.

"I don't know where the Commission chair got that information. This is the first time I hear about this, there have been no discussions on the matter whatsoever. It is a fact that the Public Administration Ministry is working on changes to the Act on the Prevention of Conflict of Interest, but I have not heard that they envisage dissolving the Commission," Bačić said in a comment on Novaković's statement in an interview with Nova TV on Tuesday.

Bačić disagreed with Novaković's claim that "the Commission has been exposed to pressure, which is not the case with other bodies."

"We all have the right to comment on decisions of state bodies. The opposition and the ruling majority often comment on the work of the human rights ombudswoman, the children's ombudswoman, as well as on decisions of judicial bodies and the prosecutorial authorities. There is no reason to criticise anyone for commenting on individual decisions. The more so as some decisions made by this Commission are subject to verification by the Administrative Court or the Constitutional Court. We comment on the work of state officials so why should not we be allowed to comment on the Commission's decisions? That seems pretty normal in a democracy," said Bačić.

Asked about the difference between the cases of former HDZ leader Tomislav Karamarko and incumbent Finance Minister Zdravko Marić, on which the Conflict of Interest Commission ruled, and why Karamarko had to leave his post over conflict of interest while Marić does not have to, Bačić said that he had found "data showing that 13 ministers in the SDP-led Zoran Milanović government were either involved in a classic conflict of interest or violated the principle of holding a public office or in some other way violated the Act on the Prevention of Conflict of Interest, and none of them resigned over that."

"The HDZ party group is confident that Minister Marić did not do anything to violate the Act on the Prevention of Conflict of Interest because he did not acquire any gain for himself that would prevent him from continuing to hold his office," Bačić said, refusing to comment on Karamarko's case and advising reporters to ask Karamarko for comment.

Bačić's coalition partner Milorad Batinić, the whip of the Croatian People's Party (HNS), said that as far as his party was concerned, Novaković and the Conflict of Interest Commission had no reason whatsoever to fear possible replacement over decisions that did not suit the ruling majority, adding that he did not know why the HNS would mind the Commission's decisions.

He noted that his party had certain objections to the bill on the prevention of conflict of interest that was being worked on and that the bill should be improved in order to not only make it possible to determine conflict of interest situations but also to prevent conflict of interest.

For more on the conflict of interest issues in Croatia, click here.

ZAGREB, November 27, 2018 - Commenting on depositions made by the suspect Franjo Varga in a scandal dubbed fake text messages, Prime Minister Andrej Plenković has said that the more information comes to light, the worse it gets, and that all that requires further steps. "I expect the police, the Office of the Chief State Prosecutor (DORH) and all relevant services to fully clarify everything," Plenković, who is the Croatian Democratic Union (HDZ) leader, told the press in parliament on Tuesday.

It seems to me worse and worse with every new piece of information coming to light, he said. All that requires further steps, he said but stopped short of specifying the steps.

Considering the fact that HDZ vice president and Parliament Deputy Speaker Milijan Brkić was mentioned in that scandal, Plenković answered the press that he did not know where Brkić was now, although he had expected to meet Brkić in parliament today.

Asked whether he should have asked Brkić to give him answers about the scandal, Plenkovic replied:"I am not the police".

"It is important to establish the facts, what is and what is not true. We are dealing with a story in which the main activity was fabrication. If it is true that a group of people was engaged in fabrication for some time, and it is evident to be true, then it is essential that competent bodies, the police and DORH as well as USKOK (Office for Suppression of Corruption and Organised Crime), fully clarify this story."

He went on to say that, being the head of government, he could not have all the information about investigations, and information about this scandal reached the public through some other channels.

Asked if this could be an attempt by some members of his party to topple him, Plenković said that this was about "a political game". "In a way, everything is possible," he said, adding that he had never felt any plot or threat.

These topics implicate some people who are on the other side of the law, there is no doubt, the prime minister said. When all the facts are established, we will see what to do next, he explained.

He said that he had discussed this scandal with Brkić when it broke out, yet since then they had not talked about that and would not. "Political responsibility is absolutely crucial and necessary. I am aware of that. Therefore I insist on the full clarification of the issue. Politically, we will also discuss this topic inside the party, when the time comes for that," he said.

In the meantime, the USKOK anti-corruption office on Tuesday said in a press release that "it is not the source of information," for an article in the Jutarnji List daily's Monday edition which published sections of a deposition by former IT specialist in the interior ministry, Franjo Varga, who was arrested in the fake text messages scandal and is currently in investigative custody.

"USKOK is not the source of information that was published on 26 November 2018 in a daily paper. Furthermore, even though, in accordance with the law, the investigation is not confidential but it is also not public, USKOK considers that publishing the contents of evidence taken during an investigation, damages the progress of the criminal procedures," USKOK said on its web site.

Varga is currently in investigative custody on suspicion of writing false correspondence between former chief state prosecutor Dinko Cvitan and a judge on the panel in the Zdravko Mamić trial before Osijek County Court, according to which Cvitan allegedly pressured the judge, prior to the delivery of a verdict, to convict one of the accused without evidence.

Apart from that, Varga compiled new fake correspondence alleging pressure on Supreme Court judges who were to decide on the defendants' appeals. He intended to give these fake texts to Mamić to use as evidence in the appeal procedure.

Blaž Curić, a chauffeur for Agriculture Minister Tomislav Tolušić, was later arrested on suspicion of warning Varga that he was going to be arrested for creating the false text messages.

In addition to describing his relationship with former football mogul Zdravko Mamic, in his deposition, Varga also spoke about his cooperation with former HDZ leader Tomislav Karamarko, deputy leader Milijan Brkić and the former owner of the Agrokor food conglomerate, Ivica Todorić.

For more on the fake text massages scandal, click here.

ZAGREB, November 16, 2018 - Prime Minister and HDZ president Andrej Plenković commented on Friday on media reports that he had used a government plane to travel to Finland for a meeting of the European People's Party (EPP), which cost 170,000 kuna (23,000 euro) of taxpayers' money.

"Let's get this straight. I always act in the capacity of prime minister. I attended the EPP congress in my capacity as prime minister and not as the rest of the HDZ (Croatian Democratic Union) delegation," Plenković said in response to questions from the press.

“Regardless of this, my Finnish colleague Juha Sipila had requested a couple of months previously that we also hold a bilateral meeting in Helsinki. So I had a bilateral meeting and the EPP congress there, and there's nothing unusual about it," he added.

Speaking about other issues, Plenković said that his cabinet had made great headway in reducing the tax burden and accelerating administrative procedures.

Asked by the press to comment on the results of a survey conducted in the last five years by six foreign economic chambers and organisations, indicating insufficient progress in easing the tax burden for companies doing business in Croatia, Plenković said that what he knew "are the results of the tax reform conducted by the present government".

The current cabinet took office two years ago. "If the findings refer to the last five years and thus include 40 times amended tax laws under the SDP-led government, it can be that this refers to that period," Plenković said.

He called for an examination of what had been done to reduce taxes and administrative barriers during the term of his cabinet. He particularly pointed out the new public procurement legislation.

The presentation of the survey by six bilateral chambers of commerce on Thursday cited an inefficient public administration, legal insecurity, excessive taxes, lack of skilled labour and government performance as key obstacles to doing business in Croatia.

The survey covered 473 companies and its combined results show that despite some significant changes for the better, companies and potential investors still face numerous obstacles, and that changes occurring in Croatia are too slow and insufficient compared to the rest of Europe.

For more news on Croatian politics, click here.

ZAGREB, November 14, 2018 - Prime Minister Andrej Plenković said on Tuesday evening that there was no opposition within the parliamentary group of his HDZ party to the Marrakesh migration agreement.

"Earlier today at the meeting of the parliamentary majority and here at the meeting of the HDZ parliamentary group, we have received unanimous support for this document. It is not an international treaty, it is not binding and it leaves every country, including Croatia, the sovereign right to conduct its own migration policy," Plenković told reporters.

The prime minister said it had not been decided yet who would represent Croatia in Marrakesh. "We haven't decided that yet. We will see how other countries respond," he added.

Plenković also spoke of his meeting earlier in the day with Vukovar Mayor Ivan Penava, saying that they had discussed preparations for Vukovar Remembrance Day, the participation of government officials and members of parliament in the Remembrance Procession, and projects for Vukovar.

"Nothing has changed in our relationship. Vukovar is very important to this government. We have increased allocations into the Vukovar fund by 50 percent and we support many projects," the prime minister said when asked to comment on his relationship with the mayor following a protest rally in this eastern town over inefficiency in prosecuting war crimes from the early 1990s.

Asked about the fake texts affair and Franjo Varga as the chief suspect and his connections with presidential adviser Vlado Galić, Plenković said that the case was being investigated. "What is important is that in our records there is no evidence of any formal cooperation between Mr Varga and the HDZ during the relevant period, and that is 2014 and 2015," Plenković said, adding that he had no knowledge if there had existed any informal cooperation with individuals.

For more on the HDZ activities, click here.

ZAGREB, November 13, 2018 - The GONG NGO, which monitors election processes, said on Tuesday that the flood of MPs who are changing parties and, by doing so, maintaining the parliamentary majority for Prime Minister Andrej Plenković, undermines the election result and trust in the election process and democracy.

The NGO called on citizens to consider whether they will again place their trust in those who "have changed their jersey" in the next election or punish them. "GONG is concerned about the low level of democratic political culture in Croatia as evidenced by the way the parliamentary majority is being maintained, which was not seen before the term of Prime Minister Andrej Plenković. Parliament is losing citizens' trust because the majority is not being formed based on the election platforms that citizens voted for but is being maintained thanks to political bartering and a flood of defectors who make actions by such an unprincipled coalition possible," GONG said in a press release.

It recalled that during the term of the current, ninth parliament, 22 MPs have opted for changing parties. "Prime Minister Plenković is being helped in maintaining the parliamentary majority by the people who, until yesterday, were his opponents, which undermines the election results and ruins trust in the election process and democracy," GONG said.

GONG underscores that a parliamentary seat belongs to a member of parliament and not their party or caucus. "However, the large number of lawmakers switching sides to join their political opponents... reflects the contempt some lawmakers feel toward the political will of citizens," GONG said. "Actions like that lead to suspicion of political corruption and reflect a low level of the democratic political culture and political responsibility of individual politicians," GONG concluded.

Croatian People's Party (HNS) leader Ivan Vrdoljak commented on Tuesday on former Social Democrat member of parliament Mario Habek joining the HNS parliamentary group, saying that he supported political transfers if they were motivated by the wish to have better conditions for one's political work and that such changes must not be motivated by personal benefits. "We have offered Habek our party logistics in Ivanec, Varaždin County... so that he can continue his work," Vrdoljak said.

Habek, a former Social Democrat, left the SDP a month ago, saying that he would continue working as an independent MP and would not join any other party.

Commenting on Habek's transfer to the HNS, Public Administration Minister Lovro Kuščević of the Croatian Democratic Union (HDZ) said that he was glad "that the number of MPs supporting this government's good work is growing." Reporters also asked Kuščević if transfers like Habek's were good for democracy and voter trust given that Habek had been a staunch opponent of the HDZ's policies, and was now its partner.

"I am not familiar with his personal motives, but the most important thing about the right to an opinion is the right to change your opinion. In this case, the change of opinion was a right one because the government really is doing a good job ... the party which Habek has left evidently has no future... and he has joined a party that offers concrete solutions," Kuščević said.

Croatian Democratic Union (HDZ) whip Branko Bačić said on Tuesday that the parliamentary majority had been stable for a year and a half and that individual opposition lawmakers' joining it meant that they appreciated the work of the government led by Prime Minister Andrej Plenković. "The fact that opposition MPs are joining parties that make up the parliamentary majority is evidence that they appreciate what the Andrej Plenković government has been doing," Bačić told reporters.

He noted that the defecting MPs were obviously dissatisfied with their parties' policies or their status in their own parties.

Asked if this made his job easier, given that he had to take care of the quorum and ensure sufficient support for the adoption of laws, Bačić said that the latest transfers did not change anything significantly because the parliamentary groups of the HDZ and other parties performed their duties on a regular basis. "I still count on 77 hands that have been certain since the first day, and I have no special comment on individual MPs crossing the floor," Bačić said.

Asked if he considered such transfers to be the cheating of voters, Bačić said that political transfers had always happened and would probably happen in the future as well. "If there are any indications of corruption, I'm in favour of investigating it. I'm absolutely against transfers that are a result of political trade-offs," he said, adding that such practice should be prosecuted.

The HDZ has nothing with such transfers, our parliamentary group functions very well, and we have nothing against transfers if they are due to individual MPs' dissatisfaction with the situation in their own parties, said Bačić.

For more on Croatian politics, click here.