ZAGREB, 23 April, 2021 - Prime Minister Andrej Plenković on Friday received European Home Affairs Commissioner Ylva Johansson for talks on migration and Croatia's accession to the Schengen Area, the government said in a press release.

The officials discussed the New Pact on Migration and Asylum, which aims to halt arrivals of irregular migrants since the migrant crisis of 2015 and 2016, and to make the Union and member states better prepared for efficient migration management, the press release said.

Prime Minister Plenković underlined that for Croatia, as a country of the EU's external border, it is exceptionally important that the talks on the new pact define key issues such as responsibility and solidarity, procedures on the external borders, strengthening cooperation with third countries, efficient implementation of readmission of migrants who are not entitled to stay in the European Union and legal migration paths.

Significant investments in technical equipment to supervise the border and its border police enables Croatia to successfully protect the EU external border and the country is ready to protect the external Schengen Area border, he underscored. 

Plenković and Johansson discussed Croatia's accession to the Schengen Area. At the the Home Affairs Council meeting on 12 March Commissioner Johansson confirmed that Croatia had successfully completed the evaluation process and ensured the full application of Schengen rules and she supported the adoption of the relevant political decision in that regard.

The two officials also discussed migration trends in neighbouring countries and underscored that in order to reduce the permanent migrant pressure on the Croatian border it is key to better manage migrations along the entire East-Mediterranean route, the press release concluded.

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ZAGREB, 23 April, 2021 - The Croatian parliament on Friday adopted a report on an abridged version of the National Recovery and Resilience Plan (NPOO) to 2026 with 76 lawmakers in the 151-seat legislature supporting the document about projects worth more than HRK 49 billion.

The 2021-2026 National Recovery and Resilience Plan contains project proposals in six areas worth HRK 49.08 billion. Its drafting and submission to the European Commission is a precondition for obtaining funds from the European Recovery and Resilience Facility (RRF) for the period from 2021 to 2023. Under the RRF, Croatia has €6.3 billion in grants at its disposal, plus an additional €3.6 billion in potential loans.

The main components of the NPOO are enterprise sector; pubic administration; judiciary and state assets; education, science and research; labour market and social protection and health. Apart from the five components, there is also the initiative 'Building reconstruction' sector.

These components are divided into 22 topical sub-components that list specific reforms and investment needs.

"This is a generational opportunity," Prime Minister Andrej Plenković underscored presenting the plan to the parliament.

The plan should help us overcome the crisis as soon as possible and reforms are essential in order to absorb the available funds and they are a constituent part of the plan.

All EU member states are obliged to present their national plans by the end of April and submit them to the European Commission. After the plans are adopted 10% of the funds foreseen for each member state will be paid out in the second half of this year. Croatia can thus tap €600 million in the second half of 2021.

The investments listed in the plan have to be implemented by 31 August 2026.

Opposition parties once again complained that they did not see the entire plan but just a shortened version and that they do not believe that the plan will result in recovery or resilience.

Parliament today adopted four semi-annual reports on the absorption of European structural and investment funds for 2020 and 2019.

If all four reports are combined, we agreed projects worth more than €5 billion, (which is 45% of the funds agreed to until then) €3.02 billion has been disbursed (which is 60% of what had been paid until then) and more than €2 billion has been certified.

A report on the situation in the territory of Croatia from 2013 to 2019 was adopted as was a semi-annual report by the Croatian National Bank on the financial situation, and a report on the work of the State Commission to Supervise Public Procurement Procedures in 2019 was also adopted. 

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ZAGREB, 23 April, 2021 - Findings of an inspection in the work of the social worker involved in the supervision of a family whose child died of injuries in the town of Nova Gradiška show that the social worker concerned did no make professional mistakes and that she acted in line with professional protocols.

The expert evaluation of the work of the social worker shows that she did not make mistakes or omissions which could have been conducive to the lethal outcome.

The 2.5-year-old child recently died of the grave injuries caused by domestic violence. The child had been admitted to a Zagreb-based hospital in very serious condition, and despite the efforts of the hospital's staff during her treatment, she succumbed to the injuries.

Following her death, the relevant ministry ordered an expert evaluation of the work of the social welfare centre in Nova Gradiška..

On 19 April, the Croatian Psychological Chamber said that an inspection at that centre showed that the psychologists in charge of the case acted in line with professional standards and measures defined by that centre.

In the period when the violent death happened, the relevant social worker was in self-isolation due to coronavirus.

The child and her family were under the supervision of the social welfare centre in Nova Gradiška for several years.

The family has been under supervision since 2017 and the child, who was given to foster parents for some time, was returned from the foster family to her biological family in line with a decision by that centre.

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ZAGREB, 23 April, 2021 - Croatian Foreign Minister Gordan Grlić Radman on Friday condemned the removal of the Croatian flag from the ambassador's official residence in Belgrade, saying that such incidents fomented an atmosphere of hate, hostility and intolerance.

"Such incidents are certainly not conducive to understanding (...) We hope and wish for the relations between Croatia and Serbia to be good because it makes sense that we should have stable relations," he told the press.

Croatian Ambassador Hido Biščević told N1 television on Thursday it was no accident that the Croatian flag was taken down from his residence and that the incident reflected "part of the atmosphere" in Serbian society, which he said continued to feed on hate speech.

Unknown persons removed the flag from the building which has video surveillance but no guards most likely on Wednesday morning, he said.

The Serbian Foreign Ministry said this was an "injudicious and isolated act," hoping that it "won't cast a shadow on efforts to set Serbia-Croatia relations on new foundations so that in future they can develop in the spirit of mutual trust and cooperation."

Grlić Radman said that because of such incidents "we can't say the relations have good prospects, we can't talk about a good future, but we must believe in a good future."

He announced that he will go to Subotica on 28 April for the laying of the cornerstone of a new Croatia House. His talks with local officials will also address an initiative, opposed by Croatian linguists, to declare the Bunjevci dialect an official language in that town in northern Serbia.

The minister reiterated that the initiative was contrary to the Croatia-Serbia agreement on the protection of national minorities.

He said that on 27 April the prime minister of the Vojvodina province, Igor Mirović, would visit Petrinja, struck by a devastating earthquake last December.

Serbia's EU path "goes also across Croatia"

The minister went on to say that Serbia's EU path "goes also across Croatia." Before Serbia joins, it is necessary to resolve the issue of the war missing, universal jurisdiction, and reparations for POWs, he said.

Serb representatives have three guaranteed seats in the Croatian parliament and Croatia wants Croats in Serbia to be represented as well, he added.

Serbia "must actively and strongly deal" with reforms, the fight against corruption, and the rule of law, he said.

Serbia was granted EU candidate status in March 2012 and began accession negotiations in January 2014.

Ambassadorial appointments

Although Prime Minister Andrej Plenković and President Zoran Milanović have not yet agreed on the appointment of new ambassadors and consuls, Grlić Radman said he did not think the process was blocked and that there was "only one Croatian diplomacy."

He dismissed the possibility of a quota or a 50:50 model (between the president's and government's proposals). He said "agreement must be reached" and that one could talk about the list of candidates the government had sent the president, but that the government was not in favour of quotas.

He said the candidates were "professional diplomats who have proved themselves on the job."

Milanović, on the other hand, wants it to be known who is behind which ambassador for responsibility's sake, saying that this has been the practice before.

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ZAGREB, 23 April, 2021 - General Jeffrey Harrigian, commander of United States Air Forces in Europe and Africa and of Allied Air Command, visited Croatia on Thursday, the Defence Ministry said on Friday.

Harrigian met with the ministry state secretary, Zdravko Jakop, the director of the Croatian Armed Forces General Staff, Major General Ivica Olujić, and the commander of the Croatian Air Force, Brigadier General Michael Križanec.

They discussed the development of bilateral cooperation in defence and Agile Combat Employment, which is based on interoperability, as well as agreements regulating access to the Allied infrastructure and air space.

The Croatian Army, as an active NATO member, is participating in many international military exercises and activities which enhance the common capabilities and intensify cooperation between the member states, including the DEFENDER-Europe 21 and Astral Knight 21 exercises.

Jakop thanked the U.S. for donations and training assistance, saying that the bilateral relations were developed and that the U.S. "is the most important strategic partner in global security building."

Harrigian said he was looking forward to joint participation in Astral Knight, an exercise taking place in Croatia which, he said, offers an exceptional opportunity to train with some of the strongest allies.

Križanec underlined the importance of joint participation in international military exercises and activities this year, including  Adriatic Strike 21, Astral Knight 21 and Immediate Response 21.

Air forces, owing to rapid action and deployment in an exceptionally wide operations area, play a significant role in supporting deterrence as a key element of NATO's collective defence, he said.

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ZAGREB, 22 April, 2021 - As a consequence of the coronavirus pandemic and earthquakes real GDP in the first half of 2020 contracted by 7.8% year-on-year, due to a drop in personal consumption, investments and exports, while government spending rose mildly, Croatian National Bank Governor Boris Vujčić said on Thursday.

Vujčić said this in parliament while presenting the Croatian National Bank's (HNB) annual report on the financial situation and price and monetary policy stability in the first half of 2020.

He recalled that in the first half of 2020 a strong contraction of the global economy was recorded due to the spread of coronavirus and the introduction of restrictions. He added that the fall in real GDP in developed countries was the most pronounced during the peak of the spring pandemic wave.

Personal consumption contracted by 6.8% on the year, reflecting a decrease in available income due to negative trends on the labour market, a fall in the consumption of services whose provision of limited due to epidemiological restrictions as well as citizens' being less inclined to spend due to the need for physical distancing to avoid the risk of being infected and a decrease in consumer optimism. Those trends were also reflected in the lower indebtedness of the population, said Vujčić.

The annual inflation rate slowed down from 1.4% in December 2019 to -0.2% in June 2020 under the impact of the decreased prices of oil products, caused by the fall in global demand. The spread of the pandemic led to a decrease in inflationary pressure overall, notably in services related to tourism due to a significant drop in the number of passengers, and in durable consumer goods, due to a drop in investments. Basic inflation slowed down mildly from 1.2% in December 2019 to 1.1% in June 2020, which was mostly due to a drop in annual rates for individual food products and catering and accommodation services.

The contraction of economic activity due to the pandemic resulted in the import of goods falling at a significantly greater rate than exports, and the current and capital accounts in the first half of 2020 recorded a decrease in the deficit compared to the same period in 2019. On the other hand, the current and capital accounts were adversely affected by a significant drop in the net export of services, notably due to the situation in tourism.

HNB promptly adapted its monetary policies, using all the available measures with the aim of preserving the stability of the exchange rate and favourable conditions to finance citizens, the corporate sector and the state, said Vujčić. HNB sold a total of €2.7 billion to banks after which the kuna exchange rate was stabilised, he said.

Thanks to this and other measures kuna liquidity reached record levels and the state and private sector were able to continue taking loans with domestic banks under virtually the same terms as before the crisis, however, the weaker economic activity and demand for loans resulted in stricter terms to approve loans as a result of which consumer lending slowed down.

The budget deficit of HRK 13.2 billion in the first half of 2020 reflects the negative impact of the crisis caused by the pandemic on the economy and budget revenue. Temporary measures designed to relieve the consequences of the pandemic, such as the writing off of tax obligations and job-keeping support measures, also contributed to the fall in revenue. This is particularly obvious in the second quarter, when the deficit amounted to almost HRK 10 billion, HNB's report notes.

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ZAGREB, 22 April, 2021 - Justice Minister Ivan Malenica on Thursday asked the Supreme Court and the Chief State Prosecutor to say whether the existing law is sufficient for adopting decisions on precautionary measures for convicted persons, after Zoran Mamić requested to serve his sentence in Bosnia and Herzegovina.

"I'm writing you with the wish to continue the joint cooperation with the aim of building a better judicial system and an effective normative framework in the area of criminal law," Minister Ivan Malenica wrote in a letter a day after the prime minister claimed that it is necessary to clear up whether the existing legal framework is good enough for issuing precautionary measures or whether omissions are made.

"These days we have witnessed a situation where a convicted person, prior to being sent to serve his sentence, left the territory of the Republic of Croatia and is asking to serve his sentence in Bosnia and Herzegovina. This refers to Zoran Mamić, who was convicted to 4 years and 8 months in prison, in a case in which his brother Zdravko Mamić was sentenced to prison too. I remind you that one day prior to the delivery of a trial verdict, Zdravko Mamić too left Croatia and since then he is unreachable to Croatian authorities," Malenica wrote in the letter.

He underscored that this isn't the only case where convicted felons with dual citizenship have managed to avoid serving their sentences in Croatia.

Situations which undermine citizens' trust in the system 

"From the above it transpires that this is a systemic problem, that is situations which recur and which will probably occur in the future," said Malenica, adding that these situations justifiably undermine the trust of citizens in the judicial system and of the perception of the judiciary's efficiency and equity.

"They are also in contradiction to the objective of the criminal procedure which is carried out to determine, as stipulated by the law, whether a crime was committed and if it was, to punish the perpetrator or apply another appropriate measure. In situations like this, that purpose, from the aspect of applying punishment, is brought into question and it is not certain whether it will be met entirely or at all," said Malenica.

In his letter, Malenica asks what the executive authority can do to enable the judiciary to ensure that convicted felons cannot leave the country to avoid serving their sentence.

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ZAGREB, 22 April (Hina) - Diplomatic representatives of Croatia and Israel met with local cantonal authorities in Široki Brijeg in Bosnia and Herzegovina on Thursday to discuss joint economic projects for which Croatia has earmarked funds this year.

Non-resident Israeli Ambassador Noah Gal Gendler said after the meeting with government representatives and businessmen that he was exceptionally pleased with the talks.

"The objective is to exchange ideas and after that to include the private sector because they know how to very quickly recognise potential. As the state of Israel, as the state of Bosnia and Herzegovina, as cantons and naturally as the Republic of Croatia, we will support those efforts," said the ambassador. He expressed satisfaction that Israel will help the development of this area by sharing its knowledge and experience.

Diplomatic advisor in the Croatian Embassy in BiH Mladen Glavina underscored that this is about connecting business people and exchanging ideas between the three countries.

"Our aim is long term, to achieve in the next few years as many contacts as possible between business people on the three sides," said Glavina. This all started last year with contacts between the foreign ministries of Croatia and Israel and is continuing today, with concrete cooperation to follow, said Glavina, announcing that the Croatian government will assist in this trilateral cooperation and that certain funds have been allocated for it.

West Herzegovina Canton Prime Minister Zdenko Ćosić said that together with businessmen he would visit Israel in an effort to make way for their cooperation.

Representatives of Croatia and Israel visited three cantons in BiH that border with Croatia over the past three days in an effort to motivate economic cooperation between the three countries.

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ZAGREB, 22 April, 2021 - Parliament Speaker Gordan Jandroković on Thursday condemned the crimes committed by the 1941-1945 Ustasha regime and called for legally sanctioning the use of the Ustasha insignia and also for regulating the treatment of Communist symbols, including the five-pointed Red Star.

"We must make a clear distinction between the insignia of the Ustasha regime and the heritage of the (1991-1995) Homeland War and regulate the treatment of symbols of the Communist regime," said Jandroković after he laid a wreath in Jasenovac on the occasion of the 76th anniversary of the breakout of inmates from the Ustasha-run concentration camp. 

Jandroković called for consistency in regulating the treatment of the five-pointed Red Star which was displayed by people who committed horrendous atrocities in Bleiburg in the wake of the Second World War, on the Croatian island of Goli Otok during the Yugoslav Communist rule as well as in the Croatian towns of Vukovar and Škabrnja in 1991.

Jandroković said that he would like to see all those who participate in discussions about such insignia to be objective and to have understanding for the victims on all the sides.

"Croatia's history has been fraught with conflicts. Therefore, in all these years, no appropriate legislative solutions were found," he underscored, adding that Croatia's society is now mature enough to find, through democratic discussions, solutions that will protect each victim and deplore every criminal and totalitarian regime.

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ZAGREB, 22 April, 2021 - The general government generated a consolidated deficit of HRK 27.5 billion, or 7.4% of GDP in 2020, with the consolidated general government debt also increasing, according to a report on which the national statistical office released on Thursday.

The deficit thus ended a three-year streak of surplus.

For comparison's sake in 2019 the government generated a consolidated government surplus of HRK 1.2 billion or 0.3% of GDP while in 2018 it amounted to HRK 863 million or 0.2% of GDP and in 2017, the surplus was HRK 2.8 billion or 0.8% of GDP.

The general government budget deficit occurred in 2020 mostly due to the repercussions of the COVID-19 pandemic for the national economy, which required the government's support measures to offset the impact.

The consolidated government debt in 2020 reached HRK 329.7 billion or 88.7% of GDP after that debt had gradually decreased for several years, the State Bureau of Statistics (DZS) said in the report. 

At the end of 2019 the general government debt amounted to HRK 292.9 billion, which accounted for 72.8% of GDP. In 2018 it was HRK 286.3 billion or 74.3% of GDP and in 2017 it was HRK 285.1 billion or 77.6% of GDP.

The general government debt increased by HRK 36.8 billion in 2020 or 12.6% year on year with HRK 32.8 billion being net loans and the remainder attributed to depreciation of the kuna currency exchange rate against the euro, DZS says in the report.

RBA: Results better than expected

Commenting on the latest DZS report, Raiffeisenbank Bank Austria (RBA) analysts underscored that the budget gap of HRK 27.5 billion is better than had been expected.

They also attributed the noticeable deterioration in fiscal metrics to the consequences of the crisis caused by the COVID-19 pandemic which resulted in a double-digit contraction in budget revenue while at the same time generating an increase in general government spending.

The total consolidated government revenue in 2020 amounted to HRK 178.5 billion, which is a decrease of HRK 12.5 billion or 6.5% while at the same time expenditure amounted to HRK 205.9 billion, which is HRK 11.3 billion or 8.6% more y-o-y.

(€1 = HRK 7.567595)

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