''We need to give young people the ability to learn and improve, to be informed about the measures implemented by the EU through EU funds and self-employment,'' stated the mayor of Virovitica.

As PD i VL native tim/Poslovni Dnevnik writes on the 4th of February, 2019, Virovitica is the fourteenth Croatian city in which the Ministry of Regional Development and EU Funds organised an informative-educational event entitled Regional Days of EU Funds, with the aim of informing the general public about the possibilities of financing from EU funds and strengthening regional development, as well as the possibilities for overall social and economic growth of Croatia which derive from EU fund availability. The event was held at the Virovitica Cultural Centre, which, ironically with the help of the EU funds, is about to be reconstructed soon.

Since Virovitica is mainly made up of agricultural land, its projects are mostly reported by small and medium-sized entrepreneurs and farmers, and according to the latest statistical data, Virovitica-Podravina County is among the best in Slavonia and Baranja in terms of EU cash withdrawal for rural development funds and for micro and small enterprises - up to 3,400 kuna per capita. "EU funds concern everyone, we're working on public projects in the public sector to set standards, and it's important to utilise them and improve business," said Ivica Kirin, Virovitica's mayor.

National development strategy

Virovitica-Podravina County Prefect Igor Andrović presented some statistical data according to which the VIDRA Development Agency in 2018 carried out 194 projects for small and medium-sized entrepreneurs and farmers, totaling a massive 450 million kuna.

"We've started on projects which concern Slavonia, Baranja and Srijem, such as the renovation of the hospital, the construction of a network of entrepreneurial incubators, the construction of a technological innovation centre, the hall for the Viroexpo fair and the energetic renewal of the cultural centre.

This year, we expect the realisation of about 150 projects we submitted last year,'' Andrović said, pointing out that with the new division in the four statistical regions, small and medium entrepreneurs in their area as well as in Sisak-Moslavina and Karlovac County will receive up to 75 percent of support from the EU funds, as opposed to the previous 45 percent.

State Secretary at the Ministry of Regional Development and EU Funds, Velimir Žunac, reminded attendees that by the year 2020, the seven-year financial period during which Croatia learned, made mistakes and matured will end, and more opportunities in the next financial period of 2021-2027 will come.

"EU funds are our reality - this county and this city are a good example of how European Union money can be used, as statistics show. In January 2017, Croatia was [withdrawing] under 9 percent of the contracted funds and by the end of last year, that number was more than 62 percent, or 6.6 billion euros of contractuality, we've made a significant step forward. In Croatia, 80 percent of public investment comes from the EU and it's important to maximise its use," Žunac pointed out.

He announced that the Croatian Government is ready and that the budget is stable for the new cycle and financial period from 2021 to 2027, recalling that the National Development Strategy of the Republic of Croatia is under development up until 2030, with twelve thematic and working groups working intensively.

An interesting panel discussion was then held, entitled "The development of Virovitica through European Union funds", involving representatives of various institutions as well as local entrepreneurs with experience of using money provided by EU funds. At the very beginning, Mayor Ivica Kirin emphasised that in the near future they want to identify the strategies and priorities that Croatia needs to develop which will create faster and better economic growth.

"We need more staff, especially those who will write projects. At the same time, we must give young people the ability to learn and improve, to be informed of the measures that the state is implementing through EU funds and self-employment," Kirin said.

The results were presented by Tihana Harmund, Director of the VTA Development Agency, who works for all institutions in Virovitica, companies, institutions, as well as for entrepreneurs and farmers, to whom she offers advice and assistance in writing up and implementing EU projects.

"We have prepared the documentation for all projects, including Pejačević Castle worth 82 million kuna, the improvement of Virovitica's water and communal infrastructure of 150 million kuna, as well as the renovation of schools, kindergartens and other institutions. For smaller projects, we provided the necessary funds to farmers, entrepreneurs and civil society organisations,'' stated Harmund.

Cooperation between the city and the county

''Services and institutions were networked for the preparation of projects, and the cooperation between the City of Virovitica and Virovitica-Podravina County is excellent,'' said Neda Martić from the VIDRA Development Agency.

"An entrepreneur can now get a valid building permit in two days, and in addition to being a regional coordinator, our agency is working on strategy and writing up infrastructure projects. We currently have 245 projects related to the economy,'' Martić added.

Make sure to stay up to date by following our dedicated politics page for much more.

Click here for the original article by PD i VL native tim on Poslovni Dnevnik

The trend of the Republic of Croatia's foreign debt falling on an annual basis has been going on since the end of 2015, according to RBA analysts in light of their review of the recently published data of the Croatian National Bank (CNB/HNB).

As Poslovni Dnevnik writes on the 5th of February, 2019, at the end of October last year, Croatia's gross foreign debt amounted to 38.4 billion euro, which is less by as much as 4.1 percent when compared to one year before, meaning that the country's foreign debt fell to its lowest level since back in September 2008, according to a new analysis carried out by Raiffeisenbank Austria (RBA).

RBA pointed out, in addition to the fact that the falling of Croatia's foreign debt has been a trend since 2015, that the fall of this debt in October in particular is the result of a decline in the debt(s) of other financial institutions, which fell by 13.1 percent, as it also did in other similar sectors.

Thus, the gross foreign debt of other Croatian (domestic) sectors dropped to 13.5 billion euro at the end of October, or by 5.3 percent year-on-year, continuing the trend of depreciation dating from January 2016, as was stated on Tuesday.

The gross foreign debt of the state amounted to 13.7 billion euro at the end of October, which was 0.4 percent less than it was one year earlier. The growth of Croatia's gross foreign debt at an annual level was recorded only in direct investments, by 4.4 percent, to 6.3 billion euro.

"We expect the data for the last two months of 2018 to point to the continuation of similar developments, and at the end of 2018, the relative indicator of external borrowing should be below 75 percent of GDP," RBA analysts point out.

They expect that this year's debt to gross domestic product (GDP) will decline, thanks to the growth of the domestic economy and further diversification of all of Croatia's key sectors. "Further reductions in debt in the corporate sector are expected as a result of the discrepancies in the cost of financing on domestic and foreign financial markets," analysts from RBA have stated.

However, a tightening monetary policy and worsening funding conditions in regional and global financial markets could warn of a potentially negative impact.

"[This is particularly concerning] in the case of Croatia's modest progress in the implementation of structural reforms, which leads to an increase in risk perception and, consequently, the risk premium of the country itself," concluded RBA's financial analysts.

Make sure to follow our dedicated business and politics pages for more infromation on Croatia's financial situation, doing business in Croatia, and the overall business and investment climate.

We're still not sure how things stand entirely when it comes to Brexit, or whether it will happen at all. Despite the now agonising insanity of this senseless process, let's have a look at the current situation (which will probably have altered a few times before I finish this article. I wish I was being sarcastic).

After a trend of crushing defeats had become the humiliating norm for the enfeebled PM, Theresa May finally had her day (sort of) in the latest vote on various amendments to her withdrawal agreement. MPs voted against no deal - which should effectively take the catastrophic threat of the United Kingdom crashing out of the European Union without a deal in place at the end of next month off the table entirely - had it not been a non-binding amendment.

British MPs also voted against an Article 50 extension, which would have allowed for the two year window allowed for negotiations when a member state declares its intention to leave the bloc to be extended for a period which would have been agreed upon had it passed.

So, what happened in layman's terms? What happened is that the Commons continued the insanity by voting against a no deal, making it clear that the United Kingdom leaving the EU without a deal in place was not in anyone's interest, nor should it be the British Government's policy, but they also voted against extending the time needed for any further negotiations. A bit odd, you say? A bit chaotic? Yes, it is.

Instead, MPs gave Theresa May a mandate to go back to Brussels to attempt to renegotiate the troublesome Irish backstop, which acts as an insurance policy to prevent a hard border between the Republic of Ireland and Northern Ireland. The EU has already stated that the backstop is part of the deal and cannot be opened up again. Britain is, once again, experiencing an impasse. With the now internationally weakened United Kingdom stuck between a rock and a hard place, what does this mean for British nationals living and working in Croatia?

A look at the current scenarios:

Theresa May's withdrawal agreement is ratified by the UK and the EU:

We've already covered what will happen if Theresa May's initial withdrawal agreement ends up being passed, which, as the clock runs down to the rapidly approaching and ominous date of March the 29th, when Britain is due to leave the European Union after over forty years of membership, could still end up being ratified.

If the British PM manages to arrange new terms with the EU regarding the hated Irish backstop, however unlikely, then the withdrawal agreement has decent chances of being ratified later this month. If that happens, the fate of British citizens in Croatia will be firmly secured. Life will go on as normal until the end of December, 2020, when the implementation period ends. If you are resident in Croatia, registered with the authorities and have a biometric residence permit (privremeni/stalni boravak), you'll continue life as you do now. You'll be able to apply for permanent residence as normal after racking up five years of legal residence in Croatia and as such gain almost all of the rights Croatian nationals enjoy, after a further three years, you can also apply for citizenship if you want to. If you already have permanent residence, you're already sorted.

Under May's deal, those with permanent residence will be allowed to leave their member state of residence for five consecutive years without losing their status, which essentially means you have it for life. Read this article for more detailed information on that.

Article 50 extension:

The clock is ticking, and the dreaded Brexit day is fast approaching. A delay is becoming increasingly likely, despite having been voted against recently, it doesn't mean this won't become necessary to avoid a tragic no deal exit. If this occurs, nothing will alter for you until a new Brexit date is confirmed.

EEA/EFTA style agreement:

Several countries, including Norway and Iceland, are in the European Economic Area but are not members of the EU, in fact. These two countries still abide by the four freedoms of the single market in order to obtain unrestricted access to it, one of which is the free movement of people, which means that should Britain opt for some sort of ''Norway-style agreement'' as a too-little-too-late Plan B, the free movement of citizens will remain as it is today. This means nothing will alter for you, and you don't need to do anything.

No deal Brexit:

Should the world's fifth largest economy end up crashing out of the world's largest trading bloc without a deal in place, the consequences will be dire for the country's economy. Dark days would be ahead of a Britain all alone in the world, with the threat of the worst economic situation since the recession potentially becoming a reality, all normal thinking individuals want to avoid this horrendous possibility. Such a scenario would have an extremely negative impact on the UK and the EU, and this situation will likely never become government policy. Britain is a European country and needs close ties, and a free trade deal, with the EU.

As I have written before, many EU countries have already come out to reassure British citizens living in their countries that their rights will be protected if a no deal does end up happening, with some such as Malta being extremely generous and offering Brits permanent residency (a renewable document valid for ten years) should this occur.

The European Commission has asked EU member states, including Croatia, to take a ''generous approach to British citizens who are already living on their territories''.

While such comments are a disgraceful abandonment in the eyes of many, especially after the UK respectfully unilaterally guaranteed the rights of EU citizens already living in the UK, all three million of them, the EU cannot make a similar unilateral guarantee in the event of a no deal Brexit as it is not a national body. Despite that, the good intention of the EC/EU is clear - the expectation of member states to protect British citizens who have made life choices based on the treaty rights that derived from their citizenship of the Union.

Unlike some other EU countries, Croatia is yet to speak publicly on the matter, but MUP has made clear that Croatia's intentions are entirely in line with the wishes of the European Commission when it comes to fully protecting British nationals who are living in Croatia with regulated status (biometric residence permit) on the 29th of March, 2019, should the UK crash out of the EU with no deal in place. I have been in contact with MUP and I translated their response, which we also published in another article detailing the work TCN will do with the British Embassy to keep information flowing: 

''The Republic of Croatia considers that it is of great importance to protect both the citizens of the European Union in the United Kingdom, and the citizens of the United Kingdom in the European Union. The European Commission's intention is to ensure a high degree of tolerance for UK nationals already residing in an EU member state. Such reflections and efforts are in line with the objective of the Republic of Croatia that the citizens of the United Kingdom and members of their families who have a regulated status in the Republic of Croatia are not regarded as illegal persons on the date of their [the UK's] departure from the European Union, that their residence and unimpeded access to the labour market in the Republic of Croatia is allowed. In this regard, the Republic of Croatia will take the necessary measures to regulate the stay of UK citizens who, at the time of the United Kingdom's departure from the European Union, have regulated residence in the Republic of Croatia, in accordance with the European Commission's guidelines.''

Please read this article for further information, including a statement from MUP provided to Balkan Insight which also, along those same lines, suggested that the assurances and guarantees Croatia's 600+ resident Brits need will be forthcoming once the details on issuing new documents are finalised. 

Given the fact that London has already unilaterally given rights to all EU citizens in the UK and will enshrine the rights of Croats in the UK into British law, rest assured that Croatia will respond in the spirit of reciprocity when the finer details are ironed out.

No Brexit at all

This is still a possibility, and should Article 50 be revoked and Brexit cancelled, nothing will alter and we'd remain with the good old status quo. This is unlikely, but remains possible.

What should you do if you live in Croatia to protect yourself against any outcome?

First of all, do not panic. Second of all, read the list below.

1) Make sure you are registered with the police and are in possession of a valid residence permit.

2) If you move, make sure to inform the police of your move at the local police station in your new city or town.

3) Make sure you have any documents you need, these will vary in different situations. For example, if you have purchased a house or taken out a rental contract, make sure to keep any papers that attest to that fact.

4) Convert your British driving license to a Croatian one here.

4) Make sure to stay up to date by following the British Government's Living in Croatia page for updates as and when they come. Sign up to receive an email about any updates.

5) Read this article and follow the links specified for information updates, the Brexit hotline, the Facebook page of the British Embassy, and an email contact.

Just to add, the EU recently confirmed that British nationals will NOT need a visa to travel to the EU for short trips (90 days in any 180 day period) even in the case of a no deal Brexit. If you're in possession of a valid residence permit from an EU country, you will not be subject to the rules placed on British citizens living in the UK travelling to the EU for holidays. 

The Schengen area is currently made up of 26 countries and Croatia applied to join back in 2015, two years after its accession to the EU. Croatia is not yet in Schengen, but hopes to enter soon. The Schengen area, named after the Schengen Agreement, will facilitate visa-free access for British citizens on short stays of less than 90 days. Again, if you are a registered resident of any of the Schengen countries, this rule will not apply to you regardless of your nationality.

Make sure to stay up to date by following our dedicated politics page, and by following the British Embassy in Zagreb with the #UKNationalsinCroatia tag.

After a decade of silence and complete inactivity, the Croatian Government is moving once again towards the temptation of a highway construction project towards Dubrovnik, a move initially started by former PM Ivo Sanader.

As Kresimir Zabec/Novac writes on the 2nd of February, 2019, after a rather unnecessarily lengthy and of course unclear title, the conclusion of the ''study documentation for the road connection of southern Dalmatia to the motorway network system of the Republic of Croatia from the Metković junction to the future Pelješac bridge and from the Doli junction to the City of Dubrovnik'' (yes you can take a breath now), which was adopted during Friday's Government session held in Dubrovnik, has actually led back to the beginning of re-activating the old plan to build a highway to Dubrovnik.

The last time constructing a highway to Dubrovnik was mentioned was way back in 2009, ten whole years ago, when a construction contract worth 3.675 billion kuna was signed in Osojnik in the presence of the controversial former Prime Minister Ivo Sanader, an amount which didn't include the VAT for the planned Doli - Dubrovnik section. Although the contracts were indeed signed, the money for this project was never secured, therefore the works never started and all in all, time went by and people simply forgot about it for the most part.

Although there are permits, projects and designs from that time that still exist and could be acceptable today, Croatian roads (Hrvatske ceste) will spend 4.06 million kuna this year to take a better look at the southern Dalmatian transport system in the area of ​​Dubrovnik-Neretva County and its link with the existing highway network, and determine the feasibility of any highway construction from the existing Metković junction to the future Pelješac bridge, and then from Doli to the City of Dubrovnik. They'll also rule whether or not it is simply better to use the highway through neighbouring Bosnia and Herzegovina.

EU co-financing

Croatia's Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, has already jumped the gun when it comes to the talks held on Friday, stating that the Ploče - Dubrovnik motorway will be built, but the question is when. He is counting on the EU being prepared to co-finance the project in the next operational period. However, some insist that a study is needed because the road image itself has changed over the past ten years, not only in southern Croatia, but also in Bosnia and Herzegovina. The motorway was built behind Ploče and the where the future Pelješac bridge will be, in neighbouring Bosnia and Herzegovina, the construction of part of the Vc corridor from Počitelj to the border with Montenegro through Popovo polje has also begun.

Compared to ten years ago, the highway would now be changed somewhat. Back then, the route went from Ploče to the border with Bosnia and Herzegovina at Neum and then continued on the other side down south to Dubrovnik.

It was estimated that eighty kilometres of highway from Ploče to Dubrovnik could cost around 732 million euros.

Today, it is assumed that the direction would go from the current Karamatići junction to the Pelješac junction, from where traffic will go down to Pelješac bridge. That equals approximately twenty kilometres of brand new highway sections. The traffic would continue along the new Pelješac road to the Doli junction, and from there 29.6 kilometers of highway would be built leading down to Dubrovnik.

According to the old 2009 project, a total of thirty objects needed to be built, of which there were ten viaducts, nine tunnels, and eight underpasses. Back then, the price of one kilometre of construction was 16.5 million euros without VAT, equalling a total of almost half a billion euros without VAT. The price of the construction of the highway from Karamatići to Pelješac is as yet unknown, but this section is also a very demanding part of the project as the route passes through the Neretva valley, so a high level of environmental protection will be required. Owing to all of the above, estimates are that the entire highway from Ploče down to Dubrovnik could stand at a massive 800 million euros.

Make sure to stay up to date by following our dedicated lifestyle and politics pages. If it's just Dubrovnik and the extreme south of Dalmatia you're interest in, give Total Dubrovnik a follow.

Click here for the original article by Kresimir Zabec for Novac.jutarnji.hr

Ivica Todorić, the former Agrokor boss, thinks that the largest Croatian company, which once lay in his very hands, was destroyed by politics, and not a bad economic policy.

As VLM/Poslovni Dnevnik writes on the 1st of February, 2019, Ivica Todorić, now living back in Croatia following his return from the British capital, in which he spent one year passing through London courts and attempting to fight his cause, decided to receive a television crew from Slovenia in his home and comment on the purchase of Mercator by the then enfeebled Agrokor, as well as his view on what exactly went wrong.

At first, he made sure to point out that nobody loves Mercator as he does, and he honestly believed that Mercator's takeover was going to equal success for the Slovenian company, considering it a move which gave it the foundation it needed for its future development.

Asked if Agrokor would have survived if he hadn't purchased Mercator, he replied that everyone is constantly talking about some sort of debt, but Agrokor never had big any debts.

''I mean, they were large [debts] but they weren't in amounts that were not able to be handled," noted the ex Agrokor boss.

As stated, Ivica Todorić thinks that the largest Croatian company has been destroyed politics, not a bad economic policy.

Questions about life after his flight to London and his eventual return to Croatia were met with open answers. ''It isn't easy for me, I'm dependent on the help of friends,'' he added that they helped them collect the bail money needed to leave Remetinec prison. He speaks of having living costs that aren't particularly easy to cope with, a situation one could never have expected Ivica Todorić, who once graced the glossy pages of Forbes, to ever find himself in.

Although he is currently living in a huge property of 55,000 square metres, he made sure to justify it by emphasising the fact that that particular estate is divided up into what belongs to four families.

''This is my only piece of property. My part is worth about six million euros. I'm not trying to say that this isn't much, but I was once the richest man in an area consisting of 200 million people,''

When asked about the background of court proceedings, he replied that Prime Minister Andrej Plenković and the Croatian Government were behind it. He also announced his planned entry into politics.

''We'll set up a new party. I believe we'll do well and that we'll win a parliamentary majority,'' he stated.

In just five days, Ivica Todorić collected a million euros for his release from Remetinec prison.

Make sure to stay up to date by following our dedicated politics and lifestyle pages.

Click here for the original article by VLM on Poslovni Dnevnik

Concrete steps are being made to better acquaint Croatia's students with the importance of knowledge about EU projects, knowledge which will be advantageous on the labour market.

As Lucija Spiljak/Poslovni Dnevnik writes on the 27th of January, 2019, representatives of the Ministry of Regional Development and EU Funds and the Faculty of Economics of the University of Zagreb signed a cooperation agreement worth three million kuna, which will enable students to acquire skills and knowledge in the field of EU funds for professional practice.

This is a project that has been being discussed in the aforementioned ministry for a long time, and now partnerships through signing this contract have been formalised by the dean of this higher education institution, Jurica Pavičić, and Minister of Regional Development and EU Funds, Gabrijela Žalac. Another partner of the project is the Department of Economics of the University of Zadar, whose representatives will subsequently sign the same contract.

"It's a great pleasure for our students to have the opportunity to improve themselves in something that is important for them, their careers, and to their future employers. Students have recognised the importance of knowledge about EU funds and have shown great interest in this area, aware that this will be an important component when they go out to look for a job. We're glad that we've partnered with the Ministry and that the University of Zadar is ready to join in with this project,'' said the Dean.

The cooperation agreement also concerns the strengthening of the Regional Development Academy, which has been in existence for many years within the ministry and cooperates with the University of Zagreb and faculties at the project level, in the interest of enhancing cooperation on the issue of student education, which is the backbone of regional development and the management of EU structural and investment funds.

"We want to strengthen our capacities at all levels so that through the professional knowledge and mentoring of our people in the Ministry of Economics, students from Zagreb and Zadar are able to train for the labour market. Our students have a decisive role in the dynamics of fundraising and the socio-economic progress of the coming period. The aim is to build a strategic partnership with healthcare institutions in the Republic of Croatia. We've been a full member of the EU for five and a half years and I think it's now time to allow students to acquire knowledge and skills in the area of ​​EU funds management and their use,'' said the minister, adding that European structural and investment funds make up 80 percent of public investments in the Republic of Croatia.

"Since we're the youngest member state of the EU, we're still at the beginning. This seven-year financial period, when we'll use European funds for the very first time, will certainly be a great experience for what follows in 2021,'' said Žalac, mentioning that MRRFEU and the Central Finance and Contracting Agency for EU Programs and Projects conducted research with results which show that there are 2700 experts missing in Croatia for the field of implementing EU projects.

"Therefore, we'd like to enable our students of economic orientation to provide professional practice with the help of EU funds, to provide new useful facilities for building a business career, with additional values ​​that strengthen their competence on the labour market," added Minister Žalac before thanking everyone who participated in the implementation process of this project.

Make sure to follow our dedicated politics page for more information on EU projects and much more.

Click here for the original article by Lucija Spiljak for Poslovni Dnevnik

Croatian islanders might enjoy what many of us would assume to be a life of paradise on one of the many stunning islands dotted along the coastline, our naive view tends to hide a lot of the issues faced on a daily basis by island inhabitants. While numerous initiatives have sprouted over the last few years to try to equalise the standards on Croatia's islands to that of the mainland, things are, of course, slow. Despite that, the Croatian Government has put forward an island development plan for this year.

As Morski writes on the 27th of January, 2019, the Ministry of Regional Development and European Union Funds is continuing to invest heavily into Croatia's many islands through the island development program by encouraging local and regional self-government units to invest in the development of their own, respective island infrastructure and economy, the competent department of the aforementioned ministry stated.

The overall objective of 2019's island development program is the creating of preconditions for sustainable economic and social development by enhancing the general quality of life of the inhabitants of the islands through encouraging the development of certain things specific to islands and island life.

The program's users will be numerous units of local and regional self-government which, in their administrative boundaries, include Croatia's inhabited islands and their associated periodically inhabited and uninhabited islands and islets, as well as the Pelješac peninsula.

The coverage of the program refers to the inhabited islands of the Republic of Croatia which are located within the six units of regional self-government, ie, the six coastal counties which have islands under their jurisdiction (Primorje-Gorski Kotar County, Lika-Senj County, Zadar County, Šibenik-Knin County, Split-Dalmatia County and Dubrovnik-Neretva County).

To briefly recall, in 2018, the Croatian Government invested a massive 19,000,000.00 kuna in the same program on a total of forty different projects. More projects for the islands and their development are set to come throughout the course of this year.

Make sure to stay up to date with our dedicated politics page for more on the Croatian Government, and on both domestic and European politics.

As Morski writes on the 26th of January, 2019, Minister Oleg Butković spent some time in Shanghai and Ningbo where he met with the representatives of the giant shipping company COSCO Shipping.

The Minister of Maritime Affairs, Transport and Infrastructure also visited the port of Ningbo, the only port in the entire world which has shipped more than one billion tons of cargo, a statement from the Ministry of Maritime Affairs said.

In Shanghai, the Croatian delegation led by Minister Oleg Butković met with representatives of COSCO Shipping, a well respected shipping company that owns the world's largest fleet, as well as the third-largest fleet of specialised container ships.

On the same day, a meeting was held in Ningbo with representatives of the port of Ningbo Zhoushan, the port that, for the very first time, shipped over one billion tons of cargo in 2018, making it the only port in the entire world to do so. During the visit of the Croatian delegation of which Butković was a leading part, the data from the huge Chinese port showed how it has dealt with a massive 2,103,683 containers since the beginning of the year.

The visit to the port of Zhoushan was completed by visiting two of the most significant container terminals and meeting with leading port operators, which was an opportunity to exchange experiences with the Port of Rijeka's administration and talk about the projects they are preparing, whereby a clearly mutual desire for further cooperation was expressed.

The visit to Shanghai and Ningbo Zhoushan marked the end of the official visit of Minister Oleg Butković, who has been spending time in the People's Republic of China since January the 20th, and where he held a series of meetings with the aim of exchanging experiences between the two countries in the area of ​​transport infrastructure, and further enhancement of mutual cooperation.

Make sure to stay up to date with Croatia's political scene by following our dedicated politics page. If you're interested in Croatia's deepening relationship with China, give our business page a follow.

As Poslovni Dnevnik writes on the 26th of January, 2019, the low rate of taxation and the simplistic way of ''doing the books'' has apparently led to a large increase in people setting up obrts and freelancing in Croatia. Minister Zdravko Marić announced that the Croatian Finance Ministry will "consider this segment in particular and see how it will be treated in the future".

Judging by the discussions that took place at the 2nd Tax Conference, the next round of tax changes could be concentrated primarily on obrt owners and other freelancers, with the possibility of further lowering the tax burden on wages.

Minister of Finance Zdravko Marić announced that the Croatian Finance Ministry intends to alter a few things for Croatia's numerous freelancers, but didn't really specify in what direction those changes will go and when these changes will happen. It is to be expected, however, that the Croatian Finance Ministry will prepare the changes during the course of this year, according to a report from prviplan.hr.

At the Taxation Conference, organised by the Faculty of Economics in Zagreb and Deloitte, and was attended by representatives of the scientific and business community, representatives of the Croatian Finance Ministry and the Tax Administration, Minister Marić reported on the effects of the previous changes in the Croatian tax system.

Minister Marić reported that about 150,000 taxpayers in Croatia are paying tax on their earnings.

He said there are about 35,000 j.d.o.o's, 106,000 registered self-employed businesses, including 37,000 obrt owners. When it comes to private renters who pay a flat tax, there are about 95,000.

Commenting on the rapid growth in the number of obrts paying taxes on a flat-rate basis, Minister Marić said that the Croatian Finance Ministry has made a big step forward and simplified the management of the books, but that "this segment needs to be considered and it should be seen how things will look in the future."

Marić's announcement came after the introduction made by dr.sc. Hrvoje Šimović from the Faculty of Economics in Zagreb, who said that the growth of those paying flat tax now looks good, especially because of encouraging levels of those who are self-employed.

"But in the future, obrts will prove to be the biggest problem in regard to the tax aspect. The potential for abuse will increase due to taxpayers' efforts to make sure their net income remains as much as possible,'' said Šimović.

Minister Marić emphasised that the Croatian tax system needs to be fully understood and that the essence of tax reform is to make the system simpler, more predictable and consistent, offering a better sense of understanding and security for everyone.

"We're doing the same for all taxpayers. It's not true that we're only good for those who pay a lot of tax, and that we're purposely trying to make it more difficult for those who pay less. It's precisely in the segment of small and medium-sized entrepreneurs that the biggest reform has been made in the first round of [tax] reforms. The profit tax rate has dropped from 20 to 18 percent, or 12 percent for companies with up to three million kuna of revenue. A lot has been facilitated,'' Marić noted.

He stressed that he remains a big advocate for tax cuts.

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Vlaho Orepić has seen his fair share of political alterations in Croatia, from becoming minister of the interior during Tihomir Orešković's government, to being shockingly dismissed by Andrej Plenković, to stepping down as an MP for MOST, one of the partners of the former ruling coalition, eventually breaking away entirely and forming a new party of his own - Nova Politika.

Known for not only his position as the minister of the interior, but for his achievements in the sporting world and his political activities in his beloved town of Ploče, Konavle-born Orepić sat down with us to discuss the past, the present, and the future, including his new party.

Why did you decide to set up a brand new political party? What values ​​does it, and you, represent?

Through the experiences I gained through my civic activism, and then through my direct participation in the work of the Government and the Parliament of Croatia I realised that politics in Croatia is not what should be expected of it. It doesn't do the work of the people. On the contrary, all the policies of the past have disrupted the [lives of the] Croatian people, and has impoverished the Croatian economy.

So, we need something new, that is Nova Politika, which will be what people expect it to be, and that means working for the people. This need, this message, and these values ​​are contained in the idea and the very name Nova Politika.

How will your party differ from the countless others who are already operating in Croatia?

We simply need order in the country, as well as in political and social relations because we as a country aren't in a crisis, but we are in disorder. The basic two goals of Nova Politika are the protection of democratic principles and procedures in political relations and the institutional arrangement, as well as the optimisation of the state. Nova Politika as a party is, unlike others, a project. A project of getting together with the aim of institutional convergence from the current disorder putting the country in order.

There are many challenges which require ambitious structural reforms, so new, life-motivated policies are needed.

First and foremost, what we're going to invest a huge amount of energy into is the struggle for the legitimacy of elections. The outcomes of the entire series of electoral processes in Croatia are crucially influenced by the voices of those who have filed a false residence in the Republic of Croatia, and as such gain a whole range of substantive rights, as well as voting rights. In its electoral register, Croatia has at least 150,000 such fictional voters. Parliament has a minimum of 4-6 parliamentarians who base their mandate on those fictional voters. That's been going on for far too long and it needs to stop.

Why did not you take advantage of this opportunity and as the minister of the interior, solve this problem?

I didn't manage to. They dismissed me. I believe that you're familiar with the fact that I uncompromisingly tried to solve this problem. In just two and a half months, the police, to whom the law prescribed that obligation, prompted the deletion of 45,000 fictional residences. Very rapidly this figure has grown to 75,000. This issue, because of political incitement and abuse, is an exceptional problem in our society.

What is especially disturbing is that this is intractable abuse and a kind of blackmail of people in need. People who, because of realistic, existential problems, engage in illegal behavior such as the fictitious reporting of residence in the Republic of Croatia. The Republic of Croatia should systematically and legally care about its emigrants and not just keep tolerating this crime.

You've endured huge political resistance to this engagement of yours and even personal discreditation. Judging from your findings, which parties have encouraged fictitious voters to participate in the elections in the Republic of Croatia?

Fictitious voters' transport from Serbia and Bosnia and Herzegovina was organised by the HDZ, SDSS and even MOST, which was concealing it from me as its minister. Even the activists engaged in the recent referendum initiatives have also collected signatures in the territory of Bosnia and Herzegovina. During the pre-election campaign for local elections in Vrgorac, HDZ had a poster with a cross marked over my face which they stuck in neighbouring places and cities in western Herzegovina. With which they called "their" fictional voters to come to the elections.

But that doesn't matter anymore. It's important to realise the magnitude of this problem and to get credible electoral registers as soon as possible in order to guarantee the legality of elections in the Republic of Croatia. We need to get that in order. To move forward, we need to be able to count the results of the elections to match the real will of the citizens. That's Nova Politika.

Will someone who is already active in political or public life enter your party? Maybe one of the members of MOST? 

I hope we'll all be able get together around the goal as Nova Politika is focused on its political goal, and all those who see Croatia as a decent and well-regulated state are welcome. Let's say that proper order in the area of [registering] ​​residence should be the target of everyone who wishes our homeland well.  This is what I expect especially from those who ran their election campaigns based on fictional voters and who claim they're sovereign.

Will you participate in the forthcoming European Parliament elections, and will you have your candidate for the president of the Republic of Croatia?

The focus is on parliamentary elections. But Nova Politika partaking either alone or in cooperation with someone else in all the upcoming elections hasn't been ruled out.

What's your opinion on the work of current President Kolinda Grabar-Kitarović. Will you back her for a second term?

She failed to portray herself as the president of all citizens. We definitely need a new president.

At the moment, the most current issue is the collapse of an Israeli jet plane purchase. Do you think Croatia needs war planes? If so, how much money would you be willing to invest in their purchase?

We don't need to call the need for war planes into question. But what we need to take into account is our financial situation. At this point, we have no money for that. We have a whole series of challenges that are related to our bare existence. We must take into account the life priorities that hav arisen from the situation in which we're in and live within our means. Aircraft, at this time, aren't something we can afford and aren't a priority.

MOST has been looking like a conservative party recently, more and more. Do you share such a vision? If not, why were you in that party at all?

I don't share the current worldview of MOST, which is significantly different from the one they were trying to show, and which dominated while I was in MOST. The leaders of MOST have repositioned MOST within the frameworks of their own personal worldviews. It isn't mature, and it is a type of conflict politics, this is a political environment which I can't identify with.

Why did you leave MOST?

MOST as a party abandoned the very idea of ​​MOST, so I left MOST.

In two HDZ-MOST coalition governments, you were the interior minister. Would you enter into a coalition with HDZ again? Will you remain in the Parliament as an opposition representative until the end of your mandate or does a possibility for you to support the current government exist?

I'm going to remain an opposition MP.

Which parties would you potentially enter into a coalition with?

With this very question you've addressed a big problem in the functioning of politics in the Republic of Croatia. Nobody asks you what your suggestions are. What are your political goals, etc. People are already accepting or rejecting you on the basis of your ideological orientation. This approach to politics is wrong and that's why we need Nova Politika. A policy that highlights clear goals and their implementation brings together the necessary majority. We need to evolve current politics into realistic politics. Politics that can and should be measurable. Politics which will be conditioned by the mutual interaction of the principles of trust and responsibility.

Davor Božinović succeeded you as the minister of the interior. How do you evaluate his work?

He's completely unambiguous in his approach in these circumstances we're in and his root changes make him look superficial. Manipulation with fictitious residences and some staffing solutions paralysed the operational work of the police and indicated a lack of workability. He acts unambiguously because he has no ambition and therefore no actual results.

What do you think about the Croatian police's treatment in relation to migrants on the border with Bosnia and Herzegovina? Does the behavior of the police differ now than from when you were minister?

The migrant policy of Croatia, of which a lot is dealt with by the police I consider to be good. The work on the frontier is on the line of the one that was designed and established during my mandate. There is no leg room when it comes to illegal border crossings but there's also a very human approach when it comes to caring for people in need. Some isolated failures in treatment can't diminish the significance of the police work done.

When talking about migration policy, every day Croatia that it is a responsible member of the EU, because don't forget that the Croatian police, in protecting the borders of the Republic of Croatia, are also working to protect the EU's external borders.

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