ZAGREB, January 13, 2019 - Economy Minister Darko Horvat told reporters in Krapina on Sunday that the government was intensively talking to several partners about the Uljanik shipyard, that the public would receive information on January 18 and that whether or not a financial offer would follow would be known on January 25.

Asked about negotiations with potential investors in the Uljanik dock, the minister said that as of yet nobody had made an offer, adding however that "a data room" had been opened and that two partners were conducting due diligence.

"We expect another serious partner to join the negotiations in a week. Now we are resuming talks with everyone we see as a potential partner," Horvat said.

He declined to speak of the names of potential investors adding that the public would be informed of everything on 18 January.

Whether or not the talks will result in a concrete financial offer will be known later, Horvat said.

He also said that the government would help companies that are facing difficulties but not unconditionally. "Without a clear restructuring plant without clear prospects, I think it is crazy to waste tax payers money and the state budget on companies with no prospects, market or quality products.

More news on the Uljanik shipyard can be found in the Business section

ZAGREB, January 4, 2019 - Economy Minister Darko Horvat and Uljanik shipbuilding group chairman of the board Emil Bulić said on Friday two serious partners were interested in the group and that they were conducting due diligence, with Horvat hopeful that two more partners would express interest by January 25.

Horvat said after a three-hour meeting with the management of Uljanik d.d. that he was optimistic, although he realised an official receiver was appointed today to examine the situation in the 3. Maj dock and submit a report to a judge within 15 days, and that a similar situation awaited the Uljanik dock on January 26. Both docks are part of the Uljanik Group.

Horvat said Italy's Fincantieri and Croatia's DIV, acting together, and Australia's Scenic group, which is already building ships in Uljanik, were currently checking data on the state of affairs in the Uljanik and 3. Maj docks. He hopes that at least one or two concrete financial offers for a strategic partnership within the Uljanik Group will be made by January 25.

He said the group's management, the Economy Ministry and everyone involved were trying to find a solution to prevent 3. Maj from going into bankruptcy, adding that an attempt would be made to prevent Uljanik's bankruptcy too.

Asked by reporters if it was realistic to expect temporary financing until the restructuring programme began, Horvat said 150 million kuna, which would revive both docks, was not too much for Fincantieri-DIV and Scenic. "We'll see after they collect all the relevant information and express their interest through a serious financial offer."

Horvat said a bankruptcy procedure would not mean the closure of the shipyards. He added that he did not want to talk about bankruptcy yet because the two current partners and the two others he expected to access the data room by January 18 could pay 3. Maj's liabilities, which amount of 150 million kuna.

Asked if 3. Maj could be separated from the Uljanik Group, Horvat said both current partners were interested in the group. He said potential partners from Ukraine had informed the Economy Ministry they were interested in both docks, and that he expected partners from China to express interest too.

Asked if Scenic was interested as a potential strategic partner or just checking if it could build ships, Horvat said Scenic could become a part-owner and that its representatives would arrive in Croatia on Wednesday.

Responding to a question, he said that since DIV and Fincantieri were acting together, he was sure they were a financially capable strategic partner.

Asked if he had a plan in case there were no strategic partnership offers, he said that, in that event, "the prospects of both shipyards depends only on them."

Uljanik CEO Emil Bulić said after the meeting with Horvat that intensive talks with potential strategic partners were in progress. "In the past few weeks we have been dedicated to intensive talks with potential strategic partners. We have opened a data room, two very interested bidders have accessed the data room, and intensive activities are taking place on a daily basis so that we can make conclusions as soon as possible on binding offers, which are expected by January 25," Bulić said.

At the same time, negotiations are also under way with shipowners so that the construction of their vessels could resume as soon as possible and the stage of completion of the vessels could be increased.

Asked how he would avoid a bankruptcy and how much money he had at his disposal, Bulić said that obligations were huge, while the deadlines for data room use and bid submission were short. "Because our employees and creditors are financially exhausted, we expect shortly a reaction from both potential strategic partners and partners in restructuring, and we expect the state to be that, to jointly secure temporary financing until the adoption of the restructuring programme. After the completion of the procedure, we expect a binding offer and partnership in drafting the restructuring programme. It is realistic to expect the implementation of the programme to begin no sooner than two to three months from today. In the meantime, we are seeking a way to ensure temporary financing, which is key, until the launch of the restructuring programme," Bulić said.

He said that they had also contacted several other potential partners, but they had not confirmed their interest yet. Asked if he thought there was enough time, Bulić said: "There's very little time, but we are doing all we can. This is a period of uncertainty ... but the situation will be much clearer after January 25."

More news on the Uljanik shipyard can be found in our Business section.

Digital Croatia might seem a bit like a pipe dream for many, but could it be a closer possibility than we might think? Croatia has some plans to help out its entrepreneurs.

As Marija Brnic/Poslovni Dnevnik writes on the 3rd of January, 2019, at the initial time of this report, these were still the unofficial estimates of the Croatian Ministry of the Economy, which Minister Darko Horvat was set to turn into concrete measures and present at a government session.

Abolishing, or at best reducing some of the administrative procedures which continue to needlessly hinder domestic entrepreneurs should result in 626 million kuna's worth of relief for the Croatian economy.

This so-called government "rescue package" was first rather unexpectedly unveiled as part of a New Year congratulations post on Facebook, of all places. The measures proposed are designed primarily to "attack" a total of 314 different (and mentally draining) administrative processes which entrepreneurs, both would-be and established, need to go through, these often include an incredible amount of red tape, needing to pay for things nobody quite understands several times, waiting in lines for hours, or having to deliver a variety of paper reports to various institutions.

In essence, the desire behind the rescue package ties in with the deeply desired digital Croatia as well as with the wish to keep Croatia's brimming talent within the country's borders by reducing the truly unfathomable amount of bureaucracy that faces everyone in Croatia who simply desires to create something of their own, from start ups to companies and businesses.

Among Minister Darko Horvat's list of remedies regarding the process of the registration of a company in the court registry are savings of about 173 million kuna in this field alone. Entrepreneurs should also see the scope of their need to report to the tax administration reduced, too. When speaking about his action plan, the Minister of Economy says that it was all based on good inter-ordination coordination and a high degree of consensus between the lines.

"Certain processes have been defined within the nine ministries successively, and as amendments to the laws or regulations, they'll come into effect in 2019. I expect that the vast majority of these 314 implementation measures will be implemented during the first half of 2019,'' he said. The major relief for Croatia's entrepreneurs will largely be owing to the digital Croatia aim, more specifically the digitisation of various administrative processes.

The first concrete moves of a digital Croatia should enable business start-up through the simple filling in of a single electronic form, which is a far cry from the current situation. Minister Horvat explained that this "action" will also include the banking sector, in order to ensure that entrepreneurs can manage to open a bank account in just a day or two to make their payment transactions easier. Such a system implies the use of digital Croatia once again, involving e-signatures, e-trademarks and other electronic services.

Make sure to stay up to date with our dedicated business page for more on digital Croatia, Croatian entrepreners, Croatian companies, products and services, as well as the general business and investment climate. Follow our politics pages to keep up with any measures being proposed or introducted in order to relieve the country's typically burdened entrepreners and businesspeople by the Croatian Government.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

Doing business in Croatia is always tricky, it's a long road often filled with an insane amount of paperwork and this bizarre requirement for you to physically go to multiple locations in order to get things done. Let's not forget the dreaded and archaic stamps, and the typical utter lack of desire on the faces of those apparently employed to help you. Is all that about to change with the country's gradual formation into a digital Croatia?

As Marija Brnic/Poslovni Dnevnik writes on the 29th of November, 2018, as of April the 1st next year, all those who want to start their own business in Croatia would be able to complete the process for registration and start doing business within just 48 hours. No, it isn't just an April Fools' trick.

A new business start-up system called Start will enable those who want to start their own businesses in the country to do just that, in a move which has been a deeply desired pipe dream up until now. With digital Croatia now finally on the horizon, getting your business off the ground is about to get a lot easier.

The service, which has been prepared by the Finance Agency (FINA), was finally given the green light following a government decision since last week. By the end of March next year, this system will be available to all those operating from within Croatia who own companies, including d.o.o and j.d.o.o's, while those abroad will see the service enabled for them by the end of 2019.

While start is an incredibly welcome news, it isn't the only player on the field, since 2005, Hitro.hr has been active, and is also a service from Fina. However, the Ministry of Economy, which is overseeing this project, clarified that there are some big differences between Hitro.hr and Start.

"Hitro.hr allows only the establishment of an Association or a company (obrt), or entry into the court or company register, while Start also enables the start-up of a business, which includes registration with the court and the company register, as well as entry into the register of business entities at the Central Bureau of Statistics, the filing of the beginning of the business and the beginning of the insurance with the Croatian Health Insurance Institute and the Croatian Pension Insurance Institute,the  registration of the taxpayers' register with the Tax Administration, registration in the VAT system, the opening of a bank account, and the electronic payment of any fees incurred during the process of all this,'' they explained from the Ministry of the Economy.

The beginnings of a digital Croatia will see that in the future, company owners will not physically have to go to all of the mentioned institutions as they currently need to, and all of the applications involved in this paperwork ridden and tiresome process will be able to be exported in one place by filling out a single digital form.

The establishment of this system amounts to 5 million kuna, as foreseen in the Ministry of Economy's budget, and in a year's time, it intends to back the project up with yet another half a million kuna.

Start requires automated communication and the exchange of data and documents between the ministries of economy, justice, finance, the tax administration, DZS, HZMO, HZZO, and credit institutions. Hitro.hr will not be harmed or otherwise threatened by the more than welcome launch of the Start system, as was confirmed by the Ministry of Economy, this service fulfills the objectives for which it was founded - better informing future entrepreneurs and providing better communication between people and the state administration, as well as offering far more ease and saving precious time when establishing a company.

"Hitro.hr will continue to provide services to users who need that kind of help - information ''at the counter'' and help with name reservations, or just the mere establishment of a company," the Ministry pointed out.

Fina added that if a user wants to start a business from their own home, they will beed to use Start, and if they want to start a business by going to the Hitro.hr counter and taking all the other steps individually, they will still have that option as well. Therefore, for those who prefer the "classic" Croatian way of starting a business, characterised by their physical arrival at the dreaded counter, Fina intends to keep the Hitro.hr offices open.

However, due to the ever-increasing trend in the digitisation of public services and the inclusion of newer generations in their use, Fina has also estimated that the percentage of those who prefer to use Start will grow year-by-year. Since the establishment of Hitro.hr, a large number of entrepreneurs have used it during the first step, especially when establishing a j.d.o.o., where every other such form of company since the service's introduction back in 2012, was established through Hitro.hr.

Altogether, Hitro has helped to create more than 57,000 new companies, of which some 32,000 are d.o.o.'s and 25,000 are j.d.o.o.'s. Obrt owners, however, have rarely used this registration service, since their start-up process is different, and since 2015, e-Obrt services have been introduced, which has completely taken over the registration processes of such companies.

The introduction of the Start system will not automatically open new jobs according to Fina's information. Currently, the offices of Hitro.hr are located in 61 Fina offices throughout Croatia, and information and support services are provided to them by Fina's existing employees, while as far as Start is concerned, as an online service, part of Hitro.hr staff will be engaged in staffing it via Fina.

Among the recommendations the World Bank gave to Croatia, the pressing need to create a more digital Croatia in order to improve the entrepreneurial climate was among the most outstanding, and it is precisely the creation of a unique online procedure, as opposed to the archaic dragging of one feet to numerous different offices in which processes are slow, confusing and often delayed, that will help paint a better picture of doing business in Croatia the most.

Interesting data from the analysis of Doing Business shows that starting up a business in Croatia is the easiest in Split, and there in the popular Dalmatian city are the largest number of Hitro.hr users. Out of five large Croatian cities, the worst results have rather surprisingly been recorded in Zagreb. According to Doing Business's analysis, more than half of Split's newly established companies use Hitro.hr, and for starting a business there, it is necessary to complete six individual procedures and the process typically lasts six days on average.

In Zagreb things appear bizarrely different, in the capital, a would-be entrepreneur has to complete eight different procedures and it takes a ridiculous average of three weeks for all the paperwork to be dealt with.

The welcome electronic changes that April the 1st, 2019, is set to bring owing to Start will require these procedures to be reduced in all cities across Croatia to just one step, and thanks to digital Croatia's roots finally being planted, the duration of this previously insanely time consuming process will go on for an absolute maximum of two days.

Make sure to follow our dedicated lifestyle and business pages for more information on digital Croatia and much more.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

According to Ipsos research, at least one negative shopping experience was reported by 29 percent of the respondents so far. In line with EU rules, a new Croatian Central Consumer Portal may provide the answer for consumers to be able to access everything they need to know about their rights.

As Darko Bicak/Poslovni Dnevnik writes on the 25th of November, 2018, a new set of European Union rules will soon be incorporated into domestic consumer protection legislation with the adoption of proposals sent to the Croatian Parliament.

Despite the generally welcome move, practice hasn't reflected theory so far, and information has shown that consumers tend to find it very hard to deal with the proverbial "forest" of regulations that exist when it comes to consumer rights and protection, and want easier access to information about their rights, as well as clear instructions to find out exactly who to contact when they feel that their rights have been denied, violated, or otherwise infringed upon.

The Ministry of Economy is therefore preparing a unique, Croatian central consumer portal entitled "Everything for Consumers" (Sve za potrošače) which should kick off with work by the end of this year, or just a little later at the very beginning of 2019.

"Our goal is that consumers no longer have to waste their time to first get the information [they need] about which competent body they require, then [spending more time] on just how to get to the [required] information from that body, but instead to have everything they need to know at their disposal - from how the product needs to be labelled in order for them to get all the information they need, and how it's necessary to point out the retail price to the possibility of the termination of the contract and the return of the goods, to what to pay attention to before they make purchases online,'' they state from the Ministry of Economy.

For the launch of the Croatian central consumer portal, inspiration drawn directly from field experience was used, and this year, campaigns across the country were organised, in March, September, and even on this coming Saturday another one will held at Zagreb's Zrinjevac.

The research conducted into this by the Ipsos agency back in September for the aforementioned Ministry shows how just a very small number of those over the age of 16, a mere 16.7 percent, believe they are somewhat or completely acquainted with their consumer rights. As many of 33.5 percent of consumers are totally unaware of what their rights as consumers are, and at least one negative customer experience was experienced by as many as 29 percent of the respondents, and most of them, as much as 71 percent, had a problem with a purchased product, followed then by public service irregularities (20 percent).

The move on creating the Croatian central consumer portal, and generally on placing greater emphasis and concern on consumer rights has been welcomed by Croatia because it ensures the continued proper functioning of the market, and the customer's satisfaction is very much in the interest of business people working in this field because transparency and fair rules often work as a trustworthy condition for returns, with re-purchases often then being made.

Make sure to stay up to date with our dedicated business and politics pages for more information like this.

Click here for the original article by Darko Bicak for Poslovni Dnevnik

ZAGREB, November 5, 2018 - More than 1,000 workers of the Rijeka-based 3. Maj shipyard went on a protest march through the city centre on Monday morning, where they are expected to stage a rally and demand that their company be saved from bankruptcy.

The workers, who have called on local residents to join them in their protest, want 3. Maj to resume production, to be separated from the Uljanik Group and a new strategic partner to be found for it. They also want their representatives to be involved in talks with possible strategic partners.

The workers want Uljanik to pay back a 523 million kuna loan 3. Maj gave that Pula-based shipyard, they want 3. Maj director Maksimilijan Percan to resign and the dock's business account to be unblocked.

Striking committee member Juraj Šoljić said that 3. Maj does not have a sufficient number of orders or alternative solutions, noting that workers often receive contradictory information about the shipyard's future, which is why they want the Economy Ministry to state a clear position on the matter.

Economy Minister Darko Horvat said on Monday the state would not give away to partners the shipyards in Pula and Rijeka just because the two docks were currently facing financial difficulties, announcing a meeting with the new management of the Uljanik Group for Tuesday.

Responding to Hina's question if strategic partners were at all interested in the Uljanik shipyard, Horvat answered in the positive. "Fincantieri, Smartholding and Damen have expressed interest at the talks in the 3. Maj dock and some interest in Uljanik. There is interest, but we have to be aware of the fact that we cannot give away the shipyards to partners because of the difficulties in Pula and Rijeka. These docks have the know-how, tradition and brand, which has its value," Horvat said on the fringes of the 13th edition of a conference on managing electric systems.

Asked about what the new Uljanik management can do, the minister said he would hold the first working meeting with the new management as early as Tuesday.

Last Thursday, the group's supervisory board appointed Emil Bulić chairman and Bojan Blagonić and Milko Mihovilović the other two members of the Uljanik Group's management board. "We will see if the new people have new ideas. From our perspective, the position is relatively clear, we know what the state's obligations at this moment are," he said, commenting on possibilities for the enforcement of guarantees which the government has issued for Uljanik.

Speaking of the new overhaul plan, Horvat reiterated that the docks in Rijeka and Pula should be treated differently. "Their situations are entirely different, the situation in Rijeka can be saved, there are contracts for Rijeka, namely strategic partners who want the shipbuilding to continue and local government is not against the continuation of shipbuilding on the 3. Maj premises. As for Pula, there is still confusion there, there is almost no consensus whether we want the shipbuilding to continue there or if we want to turn one part of the dock into a real estate business," Horvat said.

Asked to comment on workers' protest in Rijeka, the minister said his position on this issue was the same as it was a month ago. "The state cannot make any more interventions. The sooner we agree, the sooner there will be a way out of this situation," Horvat said, adding that the state wanted to get actively involved in the overhaul of the shipbuilding in both Pula and Rijeka. "We will help, but legitimately and slowly, after the verification of the restructuring plan by the European Commission," Horvat said.

For more news about Croatia’s troubled shipbuilding industry, click here.

ZAGREB, September 13, 2018 - Croatian Economy Minister Darko Horvat met with Russian Ambassador Anvar Azimov in Zagreb on Thursday, and they agreed that ways of improving investment cooperation should be explored, the ministry said on its website.

ZAGREB, September 13, 2018 - Economy Minister Darko Horvat said on Wednesday three of the four ships cancelled by a Norwegian client would most likely be scrapped and that a model would be sought to complete the construction of the fourth so that it could be delivered.

ZAGREB, September 11, 2018 - Economy Minister Darko Horvat said on Tuesday that the government would be satisfied if foreign investments in Croatia this year were to total two billion euro.

ZAGREB, September 10, 2018 - Economy Minister Darko Horvat said on Monday that the way the Uljanik and 3. Maj shipyards had operated so far had come to an end and that the two docks would have to start operating in line with market rules.