ZAGREB, November 1, 2019 - Economy Minister Darko Horvat said on Friday that the necessary funding for overdue monthly wages of workers of Đuro Đaković metal and mechanical engineering group would be found and that after that, decisions should be made on the future of that Slavonski-Brod based group.

Asked by the press in Veliko Trgovišće on Friday whether it was the Croatian Postal Bank (HPB) that should provide financial means for that purpose, Horvat answered in the affirmative.

Some 70 million kuna should be used for the overhaul of the group.

"We are together with the HPB seeking a model that should help restructure Đuro Đaković. Those 70 million kuna should provide a tailwind for the company in the next six months until the completion of the restructuring and until we find a new, true and good strategic partner," Horvat said.

The accounts of the Đuro Đaković were blocked on Wednesday and the management started negotiations with creditors on the removal of the blockade. The company's workers have been on strike since 24 October because they have not received wages for September.

On Wednesday afternoon, the group said that management board chairman Marko Bogdanović tendered his resignation. Bogdanović says in an explanation of his resignation that the group is currently in an unenviable situation due to two crucial issues: inability to financially follow the production of wagons for export and inadequacy of the group's own capital.

Also on Wednesday, the group issued a financial report about its loss of 38.7 million kuna in first nine months of 2019.

Total consolidated revenue in the first nine months of 2019 was 235.5 million kuna, down 35.4% or 129 million from the first nine months of 2018, while consolidated expenditure fell by 16.9% to 116.2 million kuna.

At the end of March 2019, the Đuro Đaković Group had 544.1 million kuna in business deals signed.

On Wednesday morning Minister Horvat said that the Đuro Đaković company needed restructuring and a strategic partner.

"We realise that, as in other ailing companies, the old philosophy of doing business is simply not possible. We helped Đuro Đaković a year ago by giving a loan which is slowly coming due for repayment. We are looking for a model to pay the one late salary, but without serious restructuring and a serious strategic partner, Đuro Đaković won't be able to continue at the pace it did when it was created and when it was a recognisable brand, not just in Europe but worldwide," Horvat told reporters.

Asked about the possibility of US company BAE Systems entering the group, he said he did not have such information. Jutarnji List daily said today BAE was considering opening a maintenance centre for Bradely armoured vehicles in Slavonski Brod.

Horvat said he asked management to submit an analysis of the situation in Đuro Đaković in the next ten days, after which the company's receivables and liabilities would be known.

More economic news can be found in the Business section.

ZAGREB, October 22, 2019 - European countries must strengthen cooperation in order to maintain Europe's technological sovereignty, the Croatian-German Economic Forum heard on Monday, with Croatian Economy Minister Darko Horvat saying that Croatia was ready for the first big investment in the auto industry.

The forum was organised by the Croatian Chamber of Commerce (HGK) and the German-Croatian Chamber of Industry and Commerce. It brought together representatives of 60 Croatian and German companies from the service, energy, transport, finance, tourism and telecommunication sectors.

Horvat said the Croatian economy was continually growing by 3% but that it was not enough. In order to ensure bigger growth, which Germany needs too, and be able to confront the trade war between big economies such as the US and China, we must be part of the same concept, and strategic documents and regulations in Berlin and Zagreb must be virtually identical, he added.

Only through joint initiatives and talks can we give the Croatian and German economies the chance to grow faster than their surroundings in the next few years, Horvat said.

He expressed gratitude for the opportunity given to Croatia to join soon the European Battery Alliance, which was initiated by Germany.

Horvat said that Croatia was ready, thanks to a good workforce and reforms, to accept the first big investment in the auto industry, adding that the government was willing to invest in the necessary infrastructure for this investment.

Those are the kind of investments and jobs that Croatia needs, he said.

Croatia will do everything to eliminate administrative barriers, to reduce non-tax levies, to make the cost of labour competitive and to finally start attracting investors that create the kind of jobs for which young people are emigrating from Croatia, Horvat said.

Croatia has drawn up new legislation for investors and is ready to adapt it if major investors accept the invitation to invest in Croatia by the end of this year or early the next, he added.

We are in a new digital era characterised by political, technological and economic transformations, and the market economy continues to grow, which entails growing competition, making it necessary to constantly work on keeping one's position, said German Economy and Energy Minister Peter Altmaier.

Europe must keep its technological sovereignty in the future, he added.

Speaking of areas of cooperation between Croatia and Germany, he highlighted industry 4.0, innovations, the use of hydrogen in transport, and the production of batteries for the auto industry. If all batteries came from Asia, one third of our added value would disappear, he said.

Given that Croatia will chair the EU in the first half of 2020 and Germany in the second, Altmaier said the two countries must closely cooperate in the economy to raise their cooperation to a higher level.

He said Croatia must assume the role of a mediator regarding the Balkans and the EU integration of North Macedonia and Albania because, he added, that was a common interest.

HGK president Luka Burilović said Germany was the world's fourth largest economy and Croatia's key trade partner, the third largest foreign direct investor in Croatia and a significant partner in the export of services.

"Therefore, it is not surprising that we are closely watching every move in the country known as Europe's driver as well as the measures it plans in order to neutralise any negative impact," he said.

According to Burilović, current economic trends in Europe and the world in the first half of 2019 have not impacted the German demand for Croatian products. Croatia recorded a 6.89% rise in exports, while imports went up 5.99%.

The German economy is crucial for Croatia also because of the many Croats living and working there, Burilović said, adding that it is estimated that they bring about 1 billion euro to Croatia via banks or direct transfer.

More news about relations between Croatia and Germany can be found in the Politics section.

ZAGREB, October 21, 2019 - Croatian Economy Minister Darko Horvat and his visiting German counterpart Peter Altmaier on Monday met in Zagreb for talks on boosting bilateral economic cooperation, notably in the fields of the car industry, industry 4.0 and innovations.

Addressing a press conference after the meeting, Minister Horvat described Germany as the most important bilateral economic partner and said that in 2018 Croatia-Germany trade was 5.4 billion euro.

Horvat said that Altmaier's visit to Croatia ensued a few days before his planned presentation of Germany's new industrial strategy whereby Germany wants to make headway in industry 4.0, and Croatia also intends to outline its national digital economy plan by the end of this year.

Horvat said that the purpose of today's meeting was also to adjust the development and methodology of the development of the German and Croatian industries.

The Croatian minister also underscored that Germany was at the helm of the European Battery Alliance (EBA), and that his German counterpart had told him that Croatia would soon become a full member of that alliance. The European Commission has put 5 billion euro at the disposal of that initiative.

Horvat told the news conference that the Croatian side had informed the German delegation of "Croatia's readiness to create prerequisites for German investors who want to direct a segment of the automobile industry towards eastern or central Europe".

Croatia has a skilled labour force, well-regulated business zones as well as an encouraging legislative framework ready for German investments in the car industry, according to Horvat.

Minister Altmaier said that the aim of the German delegation's visit to Zagreb was to raise the relations between the two countries to a higher level.

Since Croatia's admission to the European Union, growth and a faster rate in economic growth have been visible and Germany wants this trend to continue, he added.

Asked by the press about the possible impact of the projected deceleration of Germany's economy on Croatia, Altmaier answered that in the last 10 years Germany had experienced growth and this year's stagnation of 0.5% was due to the trade conflicts between China and the USA and due to Brexit. However, he said he was glad to see that all that had not affected Croatia's economy.

More news about relations between Croatia and Germany can be found in the Politics section.

ZAGREB, October 10, 2019 - Croatia will sign a statement of cooperation establishing a European Blockchain Partnership, the government decided at its cabinet meeting on Thursday.

The government endorsed the Declaration Creating a European Blockchain Partnership and authorised Minister of Economy, Entrepreneurship and Crafts Darko Horvat to sign the document.

Blockchain technology enables distributed public ledgers that hold immutable data in a secure and encrypted way and ensure that transactions can never be altered.

"Distributed ledger technology” (DLT) is finding a broad range of uses. Data storage, financial transactions, real estate, asset management and many more uses are being explored.

Horvat underscored that blockchain technology is completely transparent and immune to manipulation, corruption and absolutely trustworthy and tested.

He added that this technology is applicable to a broad range of industries - energy, health, security, finance, all data storage registers, etc.

The minister noted that most EU member states had signed the declaration which creates an international space for research and development of that technology as well as access to funds of 300 million euro which will be made available to member states.

He explained that 24 EU member states had signed the declaration on the use of blockchain technology and that many had already recognised its value.

Horvat presented the example of Slovenia which created 13,000 jobs directly or indirectly connected to developing blockchain technology and related projects.

One of the benefits of this technology could be to remove the possibility of mishandling the counting of votes and election results, Horvat added.

More IT news can be found in the Business section.

ZAGREB, September 16, 2019 - The president of the Croatian Chamber of Crafts and Trades (HOK), Dragutin Ranogajec, said on Monday that the proposed amendments to the Crafts and Trades Act would strengthen small business and the economy overall, and that the enterprise sector would have a greater impact on education programmes for trades.

According to the government-sponsored bill of amendments sent to parliament last week, which HOK hopes will be passed by the end of the year, the Ministry of Economy, Entrepreneurship and Crafts will approve the planned structure of enrolments into trade education programmes which will ensure the economy's direct impact, Ranogajec told a press conference.

He added that the government has proposed that this ministry prepare a vocational curriculum for trades which is currently prepared by the minister for education. That means that the economy will have more impact on shaping the education framework for trades, Ranogajec added.

"If the bill is adopted by the end of the year, we will be prepared at the start of the new school year to completely take on all of our legislative obligations," said Ranogajec.

He underscored that the existing law, adopted in 2013, partially severed ties between the economy, the labour market and vocational education.

He believes that it is necessary to increase the requirement to enrol in vocational schools so that students can gain excellency and, in that way, create the future for Croatia's economy.

We need to jointly promote knowledge at all levels, respect one another and remove the stigma of trades. It is necessary to note that scholarships for trades have increased 100 per cent thanks to HOK, he concluded.

More economy news can be found in the Business section.

ZAGREB, September 14, 2019 - Croatian Minister of Economy, Entrepreneurship and Crafts Darko Horvat met with Russia's Minister of Agriculture Dmitry Patrushev in Dubrovnik on Friday and the Russian minister underscored that interest exists to further expand cooperation between Russian and Croatian companies and invited Horvat to attend the Agro-Industrial fair that will be held October 9 - 12 in Moscow.

The ministry said in a press release that over the past three years economic-trade cooperation between Croatia and Russia was constantly increasing, which can be seen in commodity exchange statistics as well as in the growing number of arrivals and bed nights generated by Russian tourists. An inter-government commission for economic and science-technological cooperation, which Horvat and Patrushev chair, especially contributes to bilateral relations.

"The commission isn't just a formality but an excellent opportunity to exchange experiences, clearly define the objectives and direction of bilateral cooperation, and deepen the good relations between our countries. That is why I am pleased that our meetings are held according to plans and that we are prepared to work on having our friendly and economic relations grow," Minister Horvat underscored, adding that he was particularly pleased that in the first 7 months of this year the number of Russian tourists had increased by 10% compared to the same period last year.

Patrushev confirmed that interest exists to further expand cooperation between Russian and Croatian companies. He invited Minister Horvat to attend the Agro-Industrial Fair in Moscow in October.

The more often we meet, the more cooperation between our countries gets better and more successful. It is important to talk openly about all issues that can help us in further intensifying our economic cooperation, Patrushev said.

Both sides expressed their satisfaction with a project to supply gas to the oil refinery in Bosanski Brod after the project's key partners, Croatia's Crodux and Russia's Zarubezhneft, singed binding documents in May this year regarding the project's implementation.

Cooperation continues to focus on industry, energy, tourism, agriculture, science and technology, the ministry said in the press release.

Total investments by Russia's investors in Croatia to date amount to more than 410 million euro and in the first four months of 2019 Croatia's exports to Russia increased by 21.6% on the year.

The 9th meeting of the inter-government commission will be held in Moscow before the end of this year, Minister Horvat advised.

More news about relations between Croatia and Russia can be found in the Politics section.

ZAGREB, August 27, 2019 - Croatian Minister of Economy, Entrepreneurship and Crafts Darko Horvat will conduct a working visit to Finland and Norway from August 27 to 29 at the invitation of the Kongsberg company and he will tour Patria Aviation Oy, AIM Norway AS and Kongsberg Gruppen ASA, the Economy Ministry said on Tuesday.

On that occasion the minister will discuss the conditions for offset obligations to be fulfilled, future cooperation and of the presence of Patria and Kongsberg on the Croatian market, which would include some form of strategic partnership, transfer of know-how and technology, the ministry added.

In mid-June the Jutarnji List daily ran a report, later confirmed by Minister Horvat, that Patria was interested in establishing a centre for the maintenance, repair and overhaul of aircraft and helicopters at the Aviation Technical Centre (ZTC) in Velika Gorica, on the outskirts of the capital Zagreb.

A delegation from Patria visited the ZTC and a spokesman from the company told the daily that Patria wishes to establish a long-term partnership with state-run companies involved in maintenance, overhaul and repairs in Europe, and that the Adriatic region was very interesting in that regard.

Patria is a Finnish provider of defence, security and aviation life-cycle support services and technology solutions. It is involved in the maintenance of civil and defence aircraft and military helicopters. Patria is also interested in ZTC due to future large contracts for the maintenance of Croatia's helicopters.

ZTC is a state-owned company that maintains military and civil aircraft and helicopters. However, it has been faced with huge business problems for years, Jutarnji List wrote.

Confirming the daily's claims, Minister Horvat said that negotiations were being conducted with Patria, Kongsberg and a Belgian company regarding investments in the ZTC.

More news about Economy Ministry can be found in the Business section.

ZAGREB, July 3, 2019 - Economy Minister Darko Horvat on Wednesday handed over six new multi-functional vehicles that were produced in the Kutina-based Ziegler factory, to local fire stations while the delivery of another six firefighting trucks was organised in the Ozalj-based Flammifer factory which also produces firefighting vehicles.

During the Kutina ceremony, the new TLF 20/70 multi-functional vehicles were handed over for a period of four years with the possibility of extending that period.

Minister Horvat expressed his satisfaction the fact the vehicles are the result of research by Croatian experts and are made in Croatia. Thanks to this Croatian product, fire stations, municipalities and cities in Croatia will be better prepared to face numerous challenges because these multipurpose vehicles can be used in putting out fires and to transport water, he said.

The Ziegler company won the tender in a joint bid with the Ozalj-based Flammifer company which also presented the six firefighting vehicles to the ministry's commodity reserves.

Over the past ten years the ministry has procured 59 similar vehicles and these 12 new vehicles will certainly contribute to battling fires and floods.

The Kutina-based Ziegler factory, after successfully completing a trial run, was formally inaugurated in October 2018, and the plant, which employs over 100 workers, manufactures state-of-the-art firefighting equipment.

The company has plants in Zagreb and Kutina (80 kilometres east of Zagreb) and has been active in Croatia since 2000. It is a member of the German group Ziegler, a worldwide leading provider for fire-fighting and emergency management solutions. The group has factories in Germany, Italy, and the Netherlands.

More news about firefighting in Croatia can be found in the Lifestyle section.

ZAGREB, July 2, 2019 - Economy Minister Darko Horvat said on Tuesday that GDP was growing primarily owing to the state's strong contribution to the implementation of major investment projects and that the second quarter would be better than the first, when GDP grew 3.9%.

Speaking at a conference on exports, organised by the Lider business weekly, Horvat said that independent economic analysts last autumn said that private investments had been kick-started but that big state infrastructure projects were lacking.

"That is what is happening now - investments worth 20 billion kuna. A 11 billion kuna investment cycle has been launched based on projects funded with grants, without loans or guarantees. That is one of the reasons for the GDP growth of 3.9%," said Horvat, expressing confidence that GDP growth in Q2 would be even higher.

He said that EU funds were changing Croatia because they helped launch major infrastructure investments but also because there had been an increase in the share of technology, software and licence imports and the transfer of know-how in the structure of imports.

Horvat also expressed confidence that exporters positively viewed the government's efforts to introduce the euro.

Addressing the event, the head of the northern Croatian Međimurje County, Matija Posavec, said that his county was the most successful in Croatia according to many parameters.

He said that the county's exports were twice the volume of imports, that the county was absorbing EU funds at a high rate and that it worked constantly to improve the business climate.

Owing to local workers' first-class productivity, foreign companies are moving their plants to Međimurje, he said.

He added that 40 business zones were active in the county, that investments were made in the education system and that construction permits were issued in 1-3 days.

The unemployment rate is at 4.4%, the county head said, calling on the state to further reduce the tax burden on the business sector and help raise wages.

More news about Croatia’s economic growth can be found in the Business section.

ZAGREB, June 21, 2019 - Croatian Minister of Economy, Entrepreneurship and Crafts Darko Horvat and Slovenian Minister of Economic Development and Technology Darko Počivalšek said on Friday that Croatian-Slovenian economic cooperation has a good trend and both economies have similar problems, one being a labour shortage.

The two ministers met in Mokrice as part of a business conference organised by the SLO CRO Business Club in honour of the two countries' statehood days.

Počivalšek underscored that economic cooperation between Croatia and Slovenia had positive trends and that trade had reached 5.5 billion euro last year, an increase of 11% on the previous year.

He said that during the talk with Horvat he had raised important economic issues including cooperation during Croatia's presidency of the Council of Europe in the first half of next year and Slovenia's presidency in the second half of 2021.

"That is a period when we will have conditions to advance our economies and resolve matters that burden relations between our countries," Počivalšek said.

Horvat said that he had opened dialogue with Počivalšek on topics that are essential for Croatia, such as growth in industrial production, quality investment and exports.

Horvat noted that Slovenia exports almost 84% of all its products, hoping that in exchanging experience Croatia will be able to adopt some elements of Slovenia's export policy.

It was agreed that state-secretaries begin preparing joint economic commissions, which had existed until 2012. Four of five areas will be defined where potential exists for joint ventures on the single European market and on third markets, Horvat announced.

The ministers agreed that Croatia and Slovenia have identical problems with regard to shortages of skilled labour.

The president of the SLO CRO Business Club Saša Muminović underscored that the conference has attracted more than 100 entrepreneurs from the two countries and that this is a great opportunity to conclude business deals, strengthen old acquaintances and make new contacts.

He believes economic cooperation between Croatia and Slovenia is excellent, but that it is high time unresolved political issues were resolved.

"The perception of poor political relations has its repercussions for the economy. Whether we like it or not, the underlying fact that unresolved issues exist always crops up. It is necessary to cut the knot and find a compromise," Muminović said.

More news about relations between Croatia and Slovenia can be found in the Politics section.