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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ZAGREB, 22 April, 2021 - Prime Minister Andrej Plenković on Thursday strongly condemned the atrocities committed against 17,000 ethnic Roma during the 1941-1945 Independent State of Croatia (NDH), while he paid a visit to the Roma Memorial Centre in Uštica, situated near Jasenovac.

This centre is in memory of nearly 17,000 Roma killed in the war and we condemn the crimes committed during the NDH regime, Plenković said after visiting the memorial complex.

Plenković and the government's delegation held a wreath-laying ceremony at the Uštica cemetery for Roma victims.

The Roma Memorial Center was built to permanently commemorate ethnic Roma members killed in the genocide committed by the Nazi and Ustasha regimes during World War II.

Plenković recalled that this memorial complex was unique in Europe, and that the construction of the centre had cost eight million kuna, and that the Croatian government had covered nearly 90% of those costs.

According to the Croatian premier, in this way, a contribution was made to efforts to enable dignified marking of the suffering of ethnic Roma in Croatia and to build a memorial centre where all others can come to pay tribute to war victims.

The parliamentary deputy of ethnic Roma, Veljko Kajtazi, said that constructing this memorial centre was the least one could do for killed Roma.

He also called on Roma from other parts of Europe and the world to visit this centre and thus pay tribute to war victims.

The Uštica memorial centre was officially opened last August, and its formal opening coincided with the occasion of Roma Holocaust Memorial Day, or the Samudaripen, observed on August 2.

This memorial complex is set up in Uštica, located about 110km southeast of Zagreb, which used to be the site of mass executions of Roma who were deported to the Jasenovac concentration camp during the Second World War. The Memorial Centre includes a cemetery with 21 mass graves.

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ZAGREB, 22 April, 2021 - Prime Minister Andrej Plenković said on Thursday that the WW2 Nazi-style Independent State of Croatia (NDH) was one of the most tragic periods in Croatian history and added that the government was clearly against the use of Ustasha symbols.

The prime minister made this statement on the occasion of the 76th anniversary anniversary of the breakout of inmates of from the Ustasha-run World War II concentration camp Jasenovac.

Plenković laid a wreath, and on this occasion he was accompanied by the three deputy prime ministers Tomo Medved, Davor Božinović and Boris Milošević and several ministers.

He underscored that they came to pay tribute to all victims of the NDH regime and the horrific crimes committed in the Jasenovac concentration camp and other camps against Jews, Serbs, Roma, Croat antifascists and democrats.

"That is certainly one of the most tragic periods in Croatian history and it is important that young new generations of today are aware of these facts, (...) that this is a part of our education system and that all generations never forget the terrible crimes that were committed here and across Europe in similar camps during World War II, and that there is general and unequivocal condemnation of those crimes," the prime minister said.

He added that he would continue to come to Jasenovac with piety and awareness that we must not allow such crimes ever happen again.

As for amending the Criminal Code to ban Ustasha insignia, Plenković said that they were already banned and that it was a question of aligning action with court practice.

"This topic has been with us for a long time. Everyone who knows something about our history, about the Jasenovac camp, who understand what those symbols mean for members of the Jewish people, members of Serbs, Roma, antifascists, understands that these are not symbols to be used," Plenković said.

Regarding the initiative of the president of the Coordination of Jewish Communities in Croatia, Ognjen Kraus, to ban the Ustasha salute "For the homeland ready", he said that they had talked about it and would continue to discuss it. Also, he said that the position of the government was clear and firm when it came to condemning crimes and such symbols.

He denied claims by the Jewish representative that not enough had been done on the issue.

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ZAGREB, 21 April, 2021 - Foreign and European Affairs Minister Gordan Grlić Radman said on Wednesday that women filled more than 50% of management positions in this Croatian ministry.

Addressing a video conference called "Women’s Contribution to Peace and Security: Lessons Learned and Challenges Ahead," the Croatian foreign minister, who was the host of this digital gathering, said his country appreciated the contribution made by women to the security and stability of the society.

Croatia is taking measures to boost the representation of women on the national political scene, the minister said.

The conference was organised by the Croatian foreign and defence ministries as part of Croatia's year-long presidency of the US-Adriatic Charter (A5).

Some of the participants in the event were former Croatian president Kolinda Grabar-Kitarovć, and officials of the USA, Bosnia and Herzegovina, North Macedonia, Albania and Montenegro.

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ZAGREB, 21 April, 2021 - The U.S. State Department has added about 100 countries this week to its "Level Four: Do Not Travel" advisory list, putting Croatia, the United Kingdom, Canada, France, Mexico, Germany and others on the list, citing a "very high level of COVID-19," Reuters reported.

On Monday, the State Department said it would boost the number of countries receiving its highest advisory rating to about 80% of countries worldwide.

Before Tuesday, the State Department listed 34 out of about 200 countries as "Do Not Travel." The State Department now lists about 131 countries at Level Four, says Reuters.

The State Department said Monday the move "reflects an adjustment in the State Department's Travel Advisory system to rely more on (Centers for Disease Control and Prevention's) existing epidemiological assessments."

Other countries in the "Do Not Travel" list include Finland, Egypt, Belgium, Turkey, Italy, Sweden, Switzerland and Spain. Some countries like China and Japan remain at "Level 3: Reconsider Travel."

Most Americans already had been prevented from traveling to much of Europe because of COVID-19 restrictions. Washington has barred nearly all non-U.S. citizens who have recently been in most of Europe, China, Brazil, Iran and South Africa, Reuters says.

On Tuesday, the United States extended by another 30 days restrictions barring non-essential travel at its Canadian and Mexican borders.

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ZAGREB, 21 April, 2021 - Commenting on a commemoration for the Jasenovac victims and his non-acceptance of President Zoran Milanović's invitation to pay tribute to them together on Thursday, PM Andrej Plenković has said the Public Health Institute has recommended that visiting delegations pay tribute successively.

Addressing a news conference on Wednesday, Plenković clarified his recent statements on the topic.

"I was referring to my position on the president's office contacting the government and parliament to lay wreaths together. I made it clear that there is no reason to put on an act and that the government and the parliament will lay their wreaths on their own. There is no need to fake friendship, cooperation or unity considering what has been said and what has happened," Plenković said.

There will be no joint wreaths because "that is something that we benevolently wanted and attempted to do several times," he said, recalling that President Milanović laid a wreath in Vukovar on Vukovar Remembrance Day on his own.

Plenković added that the Jasenovac Memorial Area had scheduled visits by five different delegations, of the government, parliament, the office of the president, the victim peoples and foreign embassies, who were all given different time slots.

"We have gone there for years, and will go in the years to come. Not to spend time in somebody's company there but to pay tribute to the victims of the Ustasha camp of Jasenovac," said Plenković.

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