ZAGREB, 19 March, 2021 - Jelena Pavičić Vukičević on Thursday accepted the nomination by the Bandić Milan 365 - Labour and Solidarity party to run for Zagreb mayor at the local election in May.

After a meeting of the party's presidency, Pavičić Vukičević said that she would lead the party to victory.

After Zagreb Mayor Milan Bandić's death, his deputy and long time associate Pavičić Vukičević stepped in as acting mayor until the election.

Jelena Pavičić Vukičević was Bandić's associate from the very start of his career and she herself has had many years of experience in the city's administration.

When Banidć was elected for his first term as mayor in 2000, she was the secretary of the Zagreb branch of the Social Democratic Party and a councillor in the city assembly. Three years later she was elected to parliament and in 2008 she was appointed as the head of the City office for education, culture and sports. From 2009 to 2013 she was appointed as Bandic's deputy mayor. In the 2017 local election, she was directly elected as deputy mayor of Zagreb.

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ZAGREB, 18 March, 2021 - In the fourth quarter of 2020, hourly labour costs rose in the EU and euro area at rates that were almost twice as high as in the previous quarter, while Croatia was again among the countries that recorded declines, a Eurostat report shows.

In the 27-member EU, hourly labour costs increased by 3.3% in the fourth quarter of 2020 compared with the same period in 2019. In the third quarter, they increased by 1.8%.

At the same time, hourly labour costs in the euro area were 3.0% higher than in the last quarter of 2019, following a 1.6% increase in the third quarter.

The higher labour costs reflected a rise in the costs of hourly wages and salaries, while the non-wage component moderated the growth in hourly labour costs, in particular due to the tax reliefs and subsidies granted by EU governments to support enterprises affected by the coronavirus crisis.

In the EU, the costs of hourly wages and salaries increased by +3.7% in Q4 2020, following a 2.4% rise in Q3. In the euro area, the costs of wages and salaries per hour worked grew by +3.5%, after a 2.2% increase in the third quarter.

In the EU, in the fourth quarter of 2020 compared with the same quarter of the previous year, the economic activities that recorded the highest increases in wage and salary costs were "Arts, entertainment and recreation" (+11.0%) and "Accommodation and food service activities" (+10.2%)

The non-wage component increased by 1.8% in the EU and by 1.5% in the euro area, following stagnation in the previous quarter.

The largest increases in hourly labour costs were recorded in Austria (+11.6%) and Bulgaria (+10.0%), while the lowest increases were observed in Hungary (+0.7%) and France (+0.3%).

Croatia, along with Ireland, Malta and Finland, had lower hourly labour costs in the fourth quarter of 2020 than in the same period in 2019. Ireland observed the largest decrease in hourly labour costs, of 4.8%.

in Croatia, hourly labour costs in Q4 2020 were 1.1% lower than in Q4 2019, while in Q3 they fell for the first time in four years, by 0.6%. In the fourth quarter, wage and salary costs fell by 0.2% and the non-wage component shrank by 6.3%, the largest decline since Q2 2016. In the third quarter, wage and salary costs rose by 0.3%, while the non-wage component fell by 5.8%.

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ZAGREB, 18 March, 2021 - The government on Thursday decided to extend its loan guarantee programme for enterprises in the field of culture and the creative industry until 30 June this year.

The programme foresees HRK 300 million in loans with guarantees of 100% of the principal and a maximum amount of €800,000 per applicant. The shortest period of the guarantee is one year and the most five years, which includes a one-year grace period.

Minister of Culture and Media Nina Obuljen Koržinek recalled that the government adopted the guarantee programme for enterprises in culture and the creative industry in July last year, which was the first time in history.

Considering that the pandemic situation has continued, the government has decided to extend the guarantee programme until 30 June, said the minister and added that preparations are underway to extend the programme until the end of 2021.

The loan guarantee programme is earmarked for SMEs in the field of culture and creative industry affected by the coronavirus pandemic.

The programme is aimed at securing additional liquidity for micro, small and medium-sized enterprises in culture and the creative industry at a decreased interest rate and/or fewer collateral required.

The programme is based on the European Commission Temporary Framework to support economy in the context of coronavirus outbreak. It was approved by the Commission on 17 June 2020 and adopted by the government on 2 July 2020.

Following amendments on 13 October 2020, the Commission enabled member states to extend the duration of state support until 30 June 2021, the government explained.

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ZAGREB, 18 March, 2021 - The government sent its proposal to amend the Volunteering Act to parliament on Thursday, defining the operation of volunteer centres and their funding.

The proposal also defines the concept of corporate volunteering, given that many companies in Croatia have developed a system of volunteering, and the concept of volunteering coordinator, who plays a significant role in efficient management of volunteering programmes in organisations.

The proposal does not allow volunteering for a duration of more than 38 hours a week over a period of more than three months without a break of at least three months, or long-term volunteering that would otherwise constitute a commercial contractual relationship.

The Minister of Labour, Pension System, Family and Social Policy, Josip Aladrović, said that the volunteering sector was developing fast and that the existing law made the implementation of new volunteering initiatives difficult in certain aspects. He said that the proposed amendments would remove the existing obstacles and ambiguities.

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ZAGREB, 18 March, 2021 - The parliamentary opposition on Thursday strongly criticised the opening of the domestic labour market to tourist guides from other EU countries, saying they often did not have the required qualifications nor could they do as good a job as domestic guides.

Marin Miletić (Bridge) said a bill of amendments to the law on tourism services would allow foreign guides to present Croatia without sufficient education. "Such a presentation will be superficial and disorganised, and the tourist experience incomplete."

Hrvoje Zekanović (Sovereignists) said what guides said was important but that the way they spoke about a locality, whether it was with love, a stand and empathy, was much more important.

Katica Glamuzina (Social Democrats) said the bill did not take into accounts the remarks made by tourist guides and professionals, while her party colleague Boška Ban Vlahek said it destroyed the profession of Croatia's 5,500 guides.

Mato Franković of the ruling HDZ said that although he felt that Croatia should align with European regulations, the bill was not fully worked out regarding tourist guides.

"It's not unimportant who will guide groups in protected localities and how, nor is it enough to pass an exam in a couple of months and guide, for example, the sightseeing of Dubrovnik," he said, announcing amendments for stricter educational requirements for foreign guides.

Marijana Balić (HDZ) said it was important to prevent a potential misinterpretation of Croatian history and that special attention should be paid to localities of special respect such as Vukovar.

Only guides who pass Croatian language exam at protected localities

Tourism Ministry state secretary Tonči Glavina said only licenced guides who pass a Croatian language exam would be able to work in Croatia's 550-plus protected localities.

"That course will be available only in Croatia and the exam will be only in Croatian in front of a commission including our tourist guides," he said, defending the bill.

He said that guides coming with a group, from Germany for example, would be able to guide the group only in a general public area, talking about Split or Šibenik in general, for example, while only licenced guides would be allowed to work in protected localities.

The only change the bill brings is that foreign guides will not have to pass a special exam for Croatia's 21 counties but for regions, or another model will be used, Glavina said.

About 70 foreign guides stay in Croatia annually and they do so for two to three weeks, he said.

The law on tourism services is being amended due to two violations of EU law regarding package travel and the regulation of the profession of tourist guide.

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ZAGREB, 17 March, 2021 - A recycling yard worth HRK 3 million and co-financed by EU funds has been constructed in Novi Marof, and during his visit on Wednesday, Economy Minister Tomislav Ćorić said that the northwestern part of Croatia has progressed more than other parts of the country in terms of waste management.

The recycling yard in Novi Marof was co-financed from the Cohesion Fund in the amount of more than HRK 2.5 million, while the entire project is worth over HRK 3 million.

Novi Marof Mayor Siniša Jenkač underscored that the recycling yard was a continuation of the policy of efficient and responsible waste management in that northern Croatian city.

"In addition, the remediation of our landfill Čret is currently in its final phase, and it cost a total of HRK 17.5 million, including 30 years of monitoring," he said, adding that they had also procured waste sorting containers.

The remediation of the Čret landfill was co-financed with HRK 13.3 million of EU funds.

According to Jenkač, when it comes to total financing with European money, about HRK 40 million has been invested in waste management in the area of Novi Marof.

(€1 = HRK 7.6)

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ZAGREB, 18 March, 2021 - Croatia had 149 unpopulated settlements in the last population census ten years ago and there will likely be more in the upcoming one, it was said on Thursday at a meeting of the parliamentary environment and nature protection committee.

The committee debated a 2013-19 report on Croatia's territory which confirms that settlements in border and mountain regions continue to die out, while concentrating in central Croatia, including Zagreb.

The data were presented by Sunčana Habrun of the Physical Planning Ministry, including on planned construction and business zones.

Planned construction zones cover about 400,000 hectares, 7% of the state territory, and business- about 112,000 hectares, 2% of the state territory.

"Is that a lot? Little?" wondered Juro Brkan of the ruling HDZ.

Habrun said it was too much and that Croatia had more than enough construction zones. Those zones are "extensively" planned given Croatia's situation and demographic figures, she added.

She said it was up to local government to see how to fight off demands for expanding construction zones.

Rovinj has decided that it wants no more hospitality and tourism zones because they endanger sustainable tourism development, she said.

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ZAGREB, 17 March, 2021 - The Zagreb County Court on Wednesday discontinued proceedings in a case against runaway businessman Miroslav Kutle in which he was charged with having siphoned HRK 120 million from his former company Diona.

The court's indictment division determined that the prosecution had failed to prove war profiteering on Kutle's part, and since the statute of limitations had expired on the main incriminating activity, white-collar crime, the court rejected the indictment.

The court believes that charges of war profiteering cannot be proven by merely maintaining that abuse in business operations with which Kutle was charged is war profiteering because it happened to occur at the time of the 1991-95 Homeland War.

Kutle was charged with having siphoned money from Diona from 1994 to 1998 through fictitious loan agreements and that he used the money thus obtained for loans to 23 companies he owned.

The Zagreb County Court earlier rejected several indictments against the runaway businessman for the same reason.

In 2010, he was sentenced to two years and eight months in prison for wrongdoing in the ownership transformation of the Gradski Podrum company and the Zagreb County Court last July discontinued proceedings in that case due to the expiry of the statute of limitations.

In July 2000 the Zagreb prosecutor's office issued an indictment against Kutle and other suspects charging them with siphoning money from the Tisak newspaper distributor in 1996 and 1997. After that, the indictment was changed five times. Initially 12 persons were indicted and eventually the number of indictees was reduced to seven. Kutle and his co-defendants were indicted with causing financial damage in the amount of HRK 47 million, but eventually the damage was estimated at HRK 30 million.

The prosecution last amended the indictment in late April 2016, when it tried to circumvent the imminent expiry of the state of limitations with allegations of war profiteering.

However, its manoeuvre, just as in other cases against Kutle, was unsuccessful because the statute of limitations on charges of abuse had expired while allegations of war profiteering were rejected last summer, with the court ruling that they had not been substantiated, after which Kutle and his co-defendants were acquitted.

The prosecution appealed, but their appeal was rejected and the acquittal in the Tisak case became final.

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ZAGREB, 17 March, 2021 - Minister of Justice and Public Administration Ivan Malenica said on Wednesday that he expects the State Attorney to urgently investigate claims made by football mogul Zdravko Mamić who has accused Supreme Court Chief Justice Đuro Sessa and Osijek County Court judges of corruption.

"I trust that the competent bodies will urgently check Mr Mamić's claims and the content of the (USB) stick which I am not familiar with at the moment, and that they will quickly determine whether the accusations, which I consider grave and serious, are founded," said Malenica, adding that Mamić said that he had given a USB stick with the material to the competent bodies.

Malenica told reporters that that case was now with the State Attorney, who had received the material and would now check it to determine if the claims were authentic after which certain procedures would be launched accordingly.

Asked whether it would be appropriate for the county court judges and chief justice whom Mamić mentioned to be temporarily suspended until the investigation was completed, considering the gravity of the accusations, Malenica said that that was up to the State Judicial Council.

"The accusations are grave, but if we were to react to all the accusations against individual judges and suspend them, I don't know where we would be," said Malenica.

Asked whether the reaction was sufficiently prompt considering the fact that Mamić sent the USB stick last October, Malenica said that he was not familiar with the content of the documents and what sort of reaction they required from the competent bodies that need to determine their authenticity based on defined procedures before any conclusion can be released. He said that the question was for the State Attorney's Office to say how fast it should have, could have or would have to react.

"I cannot say if there is anything contentious, however, I do expect the State Attorney to react as soon as possible if there are any grounds based on those claims to launch certain proceedings, and that will certainly reflect on the status of those judges," said Malenica.

He believes that Supreme Court Chief Justice Đuro Sessa and the other judges Mamić mentioned, need to react to Mamić's claims. "I expect Sessa, as does the entire public, to react to the allegations but I think this isn't the first time Mamić has mentioned Sessa," said Malenica.

Malenica added that he can't say whether this will affect Sessa's chances of being re-elected as Supreme Court Chief Justice but he believes that accusations against him are grave and serious.

After the Supreme Court upheld a first instance ruling sentencing Mamić to six and a half years in prison, during a press conference in Mostar yesterday, Mamić accused Sessa and Osijek County Court Judges Zvonko Vekić and Darko Krušlin of corruption while calling the chief justice of that court, Judge Zvonko Vrban, a criminal.

The Supreme Court on Tuesday said that Sessa had no intention of reacting to the "absurd and untrue claims," whereas the USKOK anti-corruption office said that "Zdravko Mamić had sent his statement on a (USB) stick to the State Attorney on 8 October last year and as soon as the stick was received, USKOK began investigating its content and the investigation is still ongoing."

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ZAGREB, 17 March, 2021 - Some parliamentary opposition parties on Wednesday criticised amendments to the Act on the Rights of Homeland War Veterans, saying that they unnecessarily expanded rights for that group, while the ruling majority dismissed their claims.

Damir Bakić of the Green-Left Bloc said the bill was harmful as it introduced in more than one way additional and not necessarily needed benefits, both financial and non-financial, for war veterans and members of their families.

"That will additionally move them away from society and real life, as if we were creating a new caste for which special rules apply," said Bakić.

Under the amendments, members of the families of fallen war veterans that already have their housing problems solved will each be able to regulate their housing needs under the bill, obstacles to one-off financial aid are being removed, the scope of persons who are given priority in employment is being expanded, Bakić said, citing some of the examples.

Silvano Hrelja of the Croatian Pensioner Party/Croatian Peasant Party group said he had nothing against war veterans being first-class citizens but that he was against pensioners being second-class citizens, so he proposed amendment of the Pension Insurance Act.

"The existing law on war veterans is good and what is now being proposed should be scrapped. Too much is too much," said Hrelja.

He stressed that defenders and disabled war veterans were worthy of everyone and every generation's respect, without special privileges and benefits.

Social Democrat Martina Vlašić-Iljkić said it was not necessary to additionally expand veterans' rights.

"How long will this continue? 25 years after the war the status of war veteran and disabled war veteran is being recognised," she asked, noting that care for war veterans was good, especially if compared to care for other groups such as pensioners, the socially deprived and civilians with disabilities.

Marijana Balić of the ruling HDZ party said the amendments were not about additional rights but exclusively about technical organisation regarding the exercise of rights from a law adopted in 2017, expediting procedures for granting the status of disabled war veteran, housing provision procedures, social rights and adjustment of pension insurance-related rights.

Miro Bulj (Bridge) and Željko Sačić (Sovereignists) said that they supported amendments designed to expedite procedures but noted that they could not help but think that they were being proposed for election purposes, and their view was supported by Stipo Mlinarić of the Homeland Movement.

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