ZAGREB, June 5, 2020 - The Franak Association reported Croatia to the European Commission, for the breach of the treaty with the European Union, the association said on Friday, claiming that the Supreme Court's multiple arbitrary actions during the so-called model proceedings amounted to the breach.

Calling for the action to be taken against Croatia at the EU Court, the Association made accusations against the Supreme Court noting that there were no grounds for initiating the model proceedings and that a series of misinterpretations and wrong conclusions were presented during the proceedings about consumer protection on the basis of the EU legislature.

"The report contains a short presentation of the history of court rulings in the Swiss francs loan conversion case, and a description of the Swiss francs conversion into euros based on the amendments to the law on customer credit. On the basis of all those facts, an explanation was given for what the Supreme Court of the Republic of Croatia had done incorrectly in the model proceedings ruling which declared the conversion agreements valid," stated the head of the Franak Association's office, Sandra Ziga, at a news conference in Zagreb today.