ZAGREB, July 27, 2020 - Prime Minister Andrej Plenkovic on Monday responded to President Zoran Milanovic's accusations that the national COVID-19 response team was a counter-constitutional body, calling it repetition and recycling of topics.

"We already resolved this story in parliament. A repetition, recycling of topics," he told the press ahead of a meeting of his HDZ party's Presidency when asked to comment on Milanovic's statement.

Plenkovic said he did not know what the Constitutional Court would say in assessing if the laws whereby the team has been given powers to restrict fundamental rights and freedoms are in line with the constitution and if some of the team's decisions are in line with the constitution and the law.

Plenkovic said he had his opinion on that. Asked why this topic was being raised again, he urged the press to ask "him (Milanovic) and them."

"We are doing everything both constitutionally and legally, good both for health and the economy. That's the key difference between those who work to protect citizens' health, to ensure salaries, elections, a stable government, European funding and economic recovery, and those who complain," the prime minister said.

ZAGREB, July 24, 2020 - The new, 15th cabinet held its first meeting on Friday, with Prime Minister Andrej Plenkovic saying the main item on the agenda was a bill on the reconstruction of buildings damaged in the Zagreb area in the March earthquake.

"As we promised, the bill is on the agenda of the first government session after the election," he said.

Plenkovic said he expected Health Minister Vili Beros, Interior Minister Davor Bozinovic, Foreign Minister Gordan Grlic Radman and Tourism Minister Nikolina Brnjac "to cooperate closely in the days ahead so that we can conduct consultations to combine what we do with our ambition to achieve the best possible tourist season and communication with many other states which follow the epidemiological situation in all other states, including in Croatia."

ZAGREB, July 23, 2020 - Prime Minister Andrej Plenkovic said on Thursday it was not his fault that MPs received the new government's programme late, and that the new parliament included plenty of sensitive MPs who had yet to toughen up.

"I'm satisfied with what we presented as our programme," he told press during a break in a parliamentary debate on his new cabinet's programme.

"As for this argument that the programme wasn't sent 25 days earlier, it's always been so. After parliament yesterday adopted a law on fewer ministries, the material was sent to parliament. Whether it was delivered at 8 or 9 a.m., it's not on me as the prime minister-designate. They knew the programme. It doesn't contain any particular surprises in relation to the (election) campaign," Plenkovic said after MPs claimed they received the programme too late to be able to examine it.

He said that during the debate none of the new MPs made him lose his temper, but noted that plenty of the new ones were quite sensitive and that they appealed to the deputy speaker for protection.

Plenkovic was referring to MPs who accused him of interrupting Tomislav Tomasevic of the green-left coalition during his address and warned deputy speaker Zeljko Reiner that Plenkovic was in breach of standing orders.

"They'll toughen up," said Plenkovic.

He went on to say that the support of 76 MPs for his cabinet was enough and that he would not persuade or lobby to ensure a broader support.

He said government members would be stripped of immunity when it came to corruption-related offences and that this was an important political statement and a contribution to the fight against corruption.

ZAGREB, July 23, 2020 - Prime Minister-designate Andrej Plenkovic said on Thursday that he was aware that expectations of reform were now much higher than before and that his new government would meet them.

"There will be huge challenges to public health, the economy and finance. Today we have more political experience and that will certainly make our work easier. The government is homogenous, the parliamentary majority is compact, and I count on 76 hands," Plenkovic told reporters outside parliament before presenting his new cabinet to lawmakers.

Asked if he believed his new team would endure the four-year term, Plenkovic said: "I don't know, it's hard for me to say. You start out with this ambition, but in the present time of crisis, challenges and unpredictable circumstances it is difficult to say. I would like it to be that way. We endured this past term, maybe not in the original composition, but we did a good and useful job for Croatia and the citizens gave us their trust for the next term."

Asked to comment on claims by some analysts that the EU funding would be used for some particular interests, Plenkovic said: "22 billion is 22 billion. We have a great responsibility to use this money well and I think it is good to have such a lever after a GDP fall of 10 percent as a result of the crisis (caused by the coronavirus pandemic). It would be much more difficult without it."

ZAGREB, July 21, 2020 - Prime Minister Andrej Plenkovic said on Tuesday the outgoing government dealt successfully with many crises and fulfilled its goals, and that the new government would reduce divisions in society and do more for poorer citizens.

"We have been faced with many crises. I think we have overcome and managed them well. And I'm pleased that we won the confidence of a huge majority of voters in the (parliamentary) election, that practically a couple of hours after the results we ensured a parliamentary majority with our former partners, ethnic minority representatives, the HNS and Reformists," he told the press after the last meeting of the outgoing cabinet.

He said they tried, as well as they could, to contribute to citizens' well-being and Croatia's development, to realise their platform and stick to four goals - political stability, legal certainty, economic growth and social solidarity.

Skeletons from transition closet

Asked about the biggest omission or failure over the past four years, Plenkovic said they had too little time to work on what they wanted in peace.

"Many skeletons from Croatia's transition closet, society and economy were coming to the table. We were at a speed called crisis management. It was practically non-stop. I don't know which other crisis could have happened that didn't happen in this term," he said.

"My ambition was to reduce tensions back in 2016. Then I said we were embarking on a transformation of the HDZ so that we could proceed with the transformation of relations in society."

He said they transformed the ruling HDZ party gradually and retained all the fundamental values, firmly setting the anchor on the center-right, and that both members and citizens supported that.

"The HDZ, when it ran in the election with its partners, was attractive to a large number of Croatian voters. That's my fundamental goal in politics. I think what people want most is security, serious and responsible people who will stick to to their values, while respecting others."

We will reduce divisions in society

The new government will reduce divisions in society and do more for the fellow citizens, notably those living on the brink of poverty, pensioners and those with the lowest wages, Plenkovic said.

"We will make an effort to gradually raise all that and for the situation to be better for them on the micro-level. If macro-successes with big numbers stay abstract too long and aren't visible on the micro-level, we won't be able to connect the really big steps forward and the everyday reality of our fellow citizens."

Plenkovic went on to say that he did not consider the ministers who had to step down a mistake of his because what was later on possibly problematic was not evident, nor could he have known about it, when they were forming the outgoing government.

Asked if he had asked the new ministers whether there was something he should know and if he feared that some scandals might surface, he said they were all serious and responsible as well as rational enough to talk transparently. "From what I heard talking with them, everything should be OK."

Speaking of structural reforms, he said they must use the enthusiasm from the success at the European Council and the drive of all the new government members to get to work in every sector - healthcare, justice, administration, the labour market, the economy, tax and administrative relief and reducing non-tax levies.

"We must constantly see to it that everything we do is seen, heard, explained, and understood, and that it gets certain support. That's the key."

As for a national development strategy, he said it was done, that they did not want to adopt it during the election, that it was adjusted due to the coronavirus and that it would take into account the new circumstances.

ZAGREB, July 21, 2020 - The agreement reached by EU leaders on the pandemic recovery plan and seven-year budget is a good compromise and Croatia can be very pleased because with over €22 billion it will have an excellent lever for the implementation of reforms and economic recovery, Prime Minister Andrej Plenkovic said in Brussels on Tuesday.

"I think that we all, as heads of state or government, can be satisfied that a compromise has been reached. It is a good compromise because everyone benefited and the process of economic recovery in the member states will benefit the most," Plenkovic said after a marathon summit that lasted five days.

Croatia will have access to slightly over €12.6 billion in the new Multiannual Financial Framework (MFF) and €9.4 billion in the new instrument, Next Generation EU (NGEU). Of the €9.4 billion, 5.9 billion will be made available in grants and 2.35 billion in loans.

"This is an unprecedented achievement. We have received twice as much as in the first seven years of membership," Plenkovic said. The national envelope for Croatia in the 2014-2020 MFF is €10.7 billion.

"I think that in this way we will have an excellent and firm lever for the implementation of reforms and projects, for investment, and most importantly for a speedy economic recovery," the Croatian PM said.

An additional €400m for Croatia

Plenkovic said that through successful lobbying he had managed to obtain an additional €400 million arguing that Croatia was the only member state that had used only one MFF plus €100 million for rural development.

The earlier proposal had provided for €300 million and the amount has now been increased to 400 million.

"This 400 million in additional cohesion funds will be used for our regions that need an additional investment cycle, and another 100 million for rural development. I can say that we have done a pretty good job here," the prime minister said.

Plenkovic said that he backed up his argument by saying that Croatia was the only member state that had so far used only one seven-year budget, unlike other central and eastern European countries that joined the EU much earlier. This comparison shows that these countries attracted huge investments thanks to the redistribution power of the EU budget that stimulated their economic development.

"With these arguments, we won over our colleagues to get these funds. I am glad that we received support from European Council President Charles Michel, who became popular in our election campaign, and now it has turned out that it is not bad to be on good terms with him. We also had the support of Commission President Ursula von der Leyen, who has been sympathetic to Croatia for years. As a German defence minister, she had very good relations with our minister Krsticevic, and Croatia is one of the countries that helped her become Commission President," Plenkovic said.

EU leaders reached the agreement at 5.30 am on Tuesday after four days of exhausting negotiations on the new Multiannual Financial Framework and the new instrument, Next Generation EU, as a response to the economic consequences of the coronavirus pandemic.

The package agreed is worth a total of €1.824 trillion, including the €1.074tn 2021-2017 MFF and the €750bn NGEU plan. Of the €750 billion, 390 billion will be allocated in grants and 360 billion in loans.

Croatia and the other member states now have until mid-October to prepare their national recovery plans on the basis of which they will be able to use money from the NGEU.

"Our recovery plan will rely on the government program, which I will present in the Croatian parliament on Thursday, on the national reform programme, the convergence programme and our activities in the process of accession to the euro zone. We will prepare numerous projects and reform activities," Plenkovic said.

In conclusion, Plenkovic said that this showed how important EU membership was for Croatia and that the full effect of membership would be seen only after two MFFs had been used.

ZAGREB, July 20, 2020 - Prime Minister Andrej Plenkovic described on Monday as very unusual President Zoran Milanovic's decision not to attend the inauguration of the new parliament on Wednesday.

Milanovic's office said on Sunday he would not attend the session.

Speaking to the press, Plenkovic said, "I know what is certain, parliament will be inaugurated. It's very unusual from what I've seen in the media. We haven't talked about it. It was news to me."

He recalled that everyone who had been invited attended Milanovic's inauguration. "We received an invitation and attended because we respect the Croatian institutions, state symbols. That was our logic. I can't see why he doesn't want to do it, you should ask him."

Plenkovic would not say if this was a case of disrespect and derogation of the office of the president. "Very unusual. It's no reason for us to bicker via the media," he added.

ZAGREB, July 20, 2020 - EU member states are getting closer to a deal on the next seven-year budget and the coronavirus recovery plan, after three days of tough negotiations and numerous compromises, Croatian Prime Minister Andrej Plenkovic told reporters outside the government offices in Zagreb on Monday.

"After tough negotiations and numerous compromises, in my estimate, we are nevertheless slowly moving towards an agreement," Plenkovic said.

EU leaders have been unable to agree on the number of grants in the proposed plan for the economic recovery of the EU hit by the coronavirus pandemic.

According to diplomatic sources, five "frugal" countries led by the Netherlands are insisting on €350 million in grants and as much in loans. The other member states are against the amount of grants being reduced below €400 billion.

"Their initial logic was that everything should go through loans. The logic of the other 22 member states and the European Commission is that the Union exists to demonstrate solidarity as well," Plenkovic said.

The 27 member states continue negotiations in Brussels on Monday afternoon for the fourth day in a row.

ZAGREB, July 18, 2020 - Most of the EU member states want a deal on the next seven-year budget and a coronavirus recovery plan to be reached on Saturday or Sunday, Croatian Prime Minister Andrej Plenkovic told reporters during the EU summit in Brussels on Friday evening.

The leaders of the 27 member states gathered for their first physical meeting after five months to reach an agreement on the Multiannual Financial Framework and the plan for a recovery from the consequences of the global coronavirus pandemic.

The meeting started at 10 am on Friday and showed great differences among the member states, as well as the readiness of the majority to compromise.

"As far as I can feel the atmosphere, the majority of colleagues would want a deal to be reached tomorrow or on Sunday," Plenkovic said during a break in the summit. "Most of the members, including big ones such as Germany and France, are ready to support a compromise," he added.

Among the major obstacles to reaching a deal on the whole package are efforts by the Netherlands to ensure that approval of national projects and payouts from the recovery fund is decided by all member states unanimously.

Plenkovic said that most of the member states were against this and that the proposal did not make sense. "That would mean that a small country can tell Germany or France 'we don't like this in your programme and we wouldn't want it to pass,'" Plenkovic said, adding that in his opinion this job should be done by the European Commission.

The PM said that any delay of an agreement would only put this whole business on a tight schedule. "For Croatia, it would be ideal if an agreement was reached now so that we can have a clear situation at the start of the work of the new government and that know what we can count on."

Croatia is trying to secure more than €20 billion in the EU budget and the recovery plan, twice as much as in the first seven years of its membership.

Plenkovic said that his new government, which will be formed next week, wanted to use EU funding for the necessary reforms.

"These seven years ahead of us are crucial for our speedy economic development, transformation, balanced regional development and rural development in all parts of Croatia affected by the problem of depopulation, the problem of job creation," Plenkovic said.

Summit to resume on Saturday

The first day of the summit ended inconclusively as the Netherlands continued to insist that payouts from the recovery fund be decided unanimously.

European Council President Charles Michel proposed that decisions on the approval of national plans be taken by a qualified majority, while decisions on payouts would be made by the Commission taking into account the opinions of the member states.

Even some countries from the group of nations known as the Frugal Four considered the Dutch position unacceptable.

The Netherlands and the other "frugal" countries also demand that the proposed amount for grants be reduced from €500 billion to at least 300 billion.

After Dutch Prime Minister Mark Rutte rejected the somewhat modified proposal, Michel adjourned the summit until 11am on Saturday.