September the 9th, 2022 - Former Croatian Finance Minister Zdravko Maric has been questioned by USKOK (Croatian State Prosecutor's Office for the Suppression of Organised Crime and Corruption), but seemingly only as a witness.

As Poslovni Dnevnik writes, ex Finance Minister Zdravko Maric was the chairman of the supervisory board of HBOR (Croatian Bank for Reconstruction and Development), and a month and a half before a certain loan was granted, he had a meeting with the investor Milenko Basic from the company C.E.M.P.

Basic had otherwise asked for a loan of 130 million euros to finance an investment, and in the end he was granted a loan of 80 million euros.

USKOK has as such accused former HDZ Minister of Regional Development Gabrijela Zalac and former HDZ State Secretary Josip Rimac of abusing their positions and long-term lobbying and pressuring members of the supervisory board and the bank's management to approve the loan.

It is important to note that former Finance Minister Zdravko Maric, who has managed to dodge his fair share of hot water over the years, has actually not been included in that investigation, so it can now be assumed that he gave his testimony as a witness who was involved in the approval of the aforementioned loan which is of interest to USKOK, 24sata writes.

For more, make sure to check out our dedicated politics section.

July the 8th, 2022 - Finance Minister Zdravko Maric, who was with the government in that position for six years, seemingly suddenly stepped down of his own accord recently, and former Agrokor boss Ivica Todoric, with whom the now former finance minister was embroiled back in 2017, has made a comment.

If you'd like to learn more about Zdravko Maric's history and the reasons behind him stepping down from his longtime position within Andrej Plenkovic's government (HDZ), you can do so here.

The article also details Zdravko Maric's close involvement with the Agrokor saga which threatened to bring the Croatian economy to its knees back in 2017 when certain goings on among its leading names and former boss Ivica Todoric came to light. Maric came to work within the government from Agrokor, and naturally, Ivica Todoric had a lot to say about the otherwise rather unassuming former minister back then, and now.

As Poslovni Dnevnik writes, ex Agrokor founder and boss Ivica Todoric says that he has analysed everything to do with the current political situation and that he is very much inclined to believe that the reason for Zdravko Maric stepping down from his position within the government is the loss of the Republic of Croatia's dispute against Hungary's MOL, an issue which has otherwise been plaguing the government for a significant amount of time now.

"The dispute was initiated by MOL. Croatia will now have to pay an amount between 250-300 million euros, plus interest. A thorough analysis of this case would reveal many facts that would lead one to accuse Andrej Plenkovic of simply handing Croatia's INA over to MOL, and this should of course be avoided at all costs.

In the same sense, it would open up the story of the arbitration related to Agrokor once again, which would only further complicate Plenkovic's position even more. In order to avoid dramatic evidence against himself coming to light (he's trying to sweep everything under the rug), Andrej Plenkovic planned and prepared the strongest possible media bomb to save his own skin. So Maric is now leaving to try to save Plenkovic," Ivica Todoric wrote on Facebook.

For more, make sure to check out our dedicated politics section.

ZAGREB, 6 July 2022 - Prime Minister Andrej Plenković on Wednesday thanked Zdravko Marić for the contribution he made as Minister of Finance, saying that he "has done a great job" and said that the new minister, Marko Primorac, is also excellent and will gain a good reputation with his work, just like Marić.

Addressing a press conference held in Government House after a meeting of the ruling majority, the prime minister said that he has a very good relationship with Marić and that they had a long discussion about his leaving the government.

Every government member supposed to want to work 300 percent

"I am guided by only one principle, anyone who wants to be a member of the government has to want to work 300 percent. He (Marić) worked brilliantly for 6.5 years and obviously the time has come when he decided to do something else for his own reasons. I respect that," said Plenković and underscored that he appreciates Marić's contribution.

Everything that is important for our economic and fiscal policy in the future, will be done with Marko Primorac, Davor Filipović, Marin Piletić and other government members, he added, referring to two new ministers and Primorac whose candidacy is to be confirmed by the parliament,

Plenković would not reveal where Marić is going and added that Marić had told the HDZ leadership, the cabinet and the ruling coalition that he still does not have a clear picture of what and where he will work in the future.

"When he is ready to say something more about that he will do so," the prime minister added.

Plenković underscored that "no one can work in the government for a hundred years" and everyone has an expiry date.

"We have new ministers. We are replacing young ones with even younger, equally good and smart ones. You will get used to them, as will the public, and we will continue to function," he told reporters.

Given the very good reputation that Marić enjoys in the professional and general public, reporters asked how long it would take for the future minister to "adjust," with Plenković saying that the state has to function, and Primorac will gain an equal reputation with his work.

"You will see that Primorac is great, smart, eloquent. He understands the matter and will adapt quickly. He knows people in the ministry. Just like Zdravko gained his reputation for his work Marko Primorac will too," said Plenković.

Asked if he was personally affected by Marić's resignation or whether he experienced it as disloyalty, Plenković said "No. We have been through so much." He underscored how they achieved common goals, entry into the euro area, upgrade of Croatia's credit rating, exiting the macroeconomic imbalance mechanism and so on.

Primorac to also be non-partisan minister

Primorac, like Marić, will be a non-party member of the government and Plenković underlined that he had received the unanimous support of HDZ party bodies.

Asked whether there wasn't anyone in the HDZ who could fill that position, he said there was but that he wanted "someone who will be the right person at the right time."

There are others and this man is ready to be engaged as much as possible. We are just waiting for him to recover from COVID, he added, saying that Primorac will be as good as Marić because that is the "condition for him to be a minister."

For more, check out our politics section.

ZAGREB, 6 July 2022 - The ruling HDZ party's coalition partners said on Wednesday that the resigned Finance Minister Zdravko Marić was one of the most successful ministers who had led Croatia into the euro area and who had results, with just an occasional mistake. 

Speaking to reporters ahead of a meeting of parties making up the parliamentary majority, Reformists leader Radimir Čačić said that Marić had done his job excellently and had results to show.

Čačić: Number of excellent results, guarantees a failure

"His results are entry to the euro area, the country's improved credit rating and debt stabilisation, which is very important. However, he also made big mistakes, such as the billions of kuna spent on guarantees for shipyards. He obviously could not say no to that," he said.

Speaking of Marić's successor Marko Primorac, Čačić said that he lacked experience in the private sector, which could pose a problem.

"The new minister understands public finance but he has no experience in the real sector. It is one thing to read about football, and another to play it," he said.

Hrebak: Politicians are not robots

HSLS leader Dario Hrebak said that there was nothing mysterious about Marić's departure.

"If he feels that he has done his best, that there are no more challenges, that his ambitions have been fulfilled, then his move is responsible. Marić has kept the financial system stable, weathered all crises so far and in a few months we will be joining the euro are," Hrebak said, commending the minister for tax reforms, which, he said, made him the country's best finance minister.

"But politicians are not robots, they have emotions and plans. He has been doing a very responsible job for more than six years for a salary that is 4-5 times lower than what he could have earned," he said, noting that Marić's successor would have enough time to acquaint himself with the system and prepare for the challenges expected in autumn.

Čuraj: Personal, family reasons 

The HNS party leader and state secretary at the Finance Ministry, Stjepan Čuraj, said that he believed the reasons why Marić had resigned were personal and had to do with his family.

He noted that the finance minister's job was not very rewarding and that the salary did not match the amount of responsibility.

Six years is a long period, he has made results and has something to leave behind, Čuraj said, adding that the new minister was an expert and that he had operational experience as a member of supervisory bodies.

For more, check out our politics section.

ZAGREB, 6 July 2022 - Government spokesman Marko Milić said on Wednesday that Finance Minister Zdravko Marić would speak about the reasons for his resignation in greater detail on Thursday, before or after a government session, and that his departure had not shaken the government or the ruling coalition, which were stable.

In an interview with the N1 broadcaster, Milić said that Marić had informed Prime Minister Andrej Plenković of his plan to leave the government a few weeks ago and that he attended today's meeting of the inner cabinet and would address members of the parliamentary majority and HDZ party leadership later today.

"He had an emotional address before the government and said that his decision was difficult for him," Milić said, noting that with regard to the reasons and circumstances of his departure, Marić would be available for comment on Thursday, before or after the regular government session.

Milić said that the government would "continue to work as it has so far", adding that the choice of Marić's successor - Marko Primorac of the Zagreb Faculty of Economics, "is a message of stability and continuity".

He said that Primorac's appointment would be completed by the start of the parliament's summer recess, July 15.

Meanwhile, Minister Marić will travel to Brussels to attend a session of the Economic and Financial Affairs Council (ECOFIN), which will complete the process of Croatia's accession to the euro area. ECOFIN's decision is expected on 12 July.

Asked if Marić had told the PM the reason for his decision to leave the government, Milić did not give an explicit answer, calling for calming down and "not generating panic or chaos."

The government spokesman does not believe Marić's decision to leave is reason for an early election, adding that the Opposition "should pray God we do not go to elections" considering the state it is in.

He said that the government was grateful to Marić but that it had to move on because the challenges were big, with a difficult yet not cataclysmic autumn ahead.

Speaking of Croatia's having lost an arbitration case brought by MOL, which alleged that the Croatian government did not honour its obligations from a gas business agreement, Milić said the report about the loss of the case was not carried in its integral form and that a large part of MOL's demands had been rejected, that the potential financial damage of $1.1 billion had been reduced to €184 million, and that with interest it amounted to just above $200 million.

Milić said the government accepted the arbitration decision but would continue to use the legal instruments at its disposal and that the payment of damages to MOL would not pose a major problem for the state budget.

As for a possible new set of measures to help citizens and the business sector with rising prices, Milić said the government would "be with citizens and the business sector as long as necessary" but that it was not the only market actor and that others, too, had to shoulder some of the burden.

In that context, he announced the continuation of talks with small fuel distributors, describing their announcement that they would have to close down as an instrument of pressure.

The government's decree on fuel wholesale prices is not a blow to small distributors but will affect their profit, he said.

For more, check out our politics section.

ZAGREB, 6 July 2022 - Visiting Croatia on July 4-5, Gallina A. Vincelette, World Bank Regional Director for the European Union, held high-level meetings with key stakeholders to discuss the country's development priorities, the World Bank's support, latest macro-fiscal developments, and evolving global challenges.

Vincelette, who was accompanied by Jehan Arulpragasam, World Bank Country Manager for Croatia, and members of his team, met with Deputy Prime Minister and Minister of Finance, Zdravko Marić, Minister of Labor, Pension System, Family and Social Policy, Marin Piletić, Minister of Justice and Public Administration, Ivan Malenica, and key representatives from the Ministry of Economy and Sustainable Development, the World Bank said in a statement.

"The Government of the Republic of Croatia must be commended for its economic and fiscal performance in managing the recent challenging global developments. The authorities are also continuing to deepen integration with the EU by fulfilling all economic criteria for joining the euro area in January 2023," said Vincelette, expressing satisfaction with the government's progress in implementing the agenda outlined in its National Recovery and Resilience Plan.

"Effective implementation of reforms would enable Croatia to create better foundations for long-term growth and lead to a more resilient, greener, and inclusive society. The World Bank is committed to continuing to support Croatia in achieving these goals."

During her visit, Vincelette also participated in the opening of the new Land Registry Office of the Zagreb Municipal Civil Court, financed by the Integrated Land Administration System Implementation Project, which is supported by the World Bank. The renovation was part of a program of support provided for the modernisation of the Croatian land administration and management system, with the aim of improving its efficiency, transparency and cost effectiveness.

"The most visible result of our joint work has been the enhancement of land registry services. Croatian citizens now benefit from reduced time for processing land transactions, and can conduct numerous services online. Fifty five percent of requests for land services are currently made online. The modernized system will also support the sharing of land-related information among government agencies to address key development challenges, including private sector development, climate change adaptation, and disaster risk mitigation," she said.

The World Bank official also expressed satisfaction that the World Bank was able to help Croatia in connecting historic buildings, such as the new Zagreb Land Registry Office, with modern and smart architecture and design through reconstruction.

"This paves the way for a modern and reformed judicial system and land registry, truly benefiting Croatian citizens and the whole economy," she said.

The World Bank has been a partner to Croatia for 29 years. During this period, the Bank has supported more than 50 projects, totaling almost $5 billion, produced numerous studies, and provided technical assistance to help strengthen institutions and support the design of policies and strategies. The Bank's current program focuses on mitigating the economic and social impacts of COVID-19, post-earthquake reconstruction, education, social policy and pensions, transport, justice, innovation, business environment, land administration, circular economy, solid waste management, science and technology, and economic development of the Pannonian region, the World Bank recalled in its statement.

For more, check out our business section.

ZAGREB, 6 July 2022  - The news of Finance Minister Zdravko Marić's unexpected resignation on Tuesday was followed by the first reactions of opposition politicians who in their comments told Prime Minister Andrej Plenković that the time was ripe for new parliamentary elections.

Social Democratic Party (SDP) political secretary Mirela Ahmetović said in a Twitter post that "the last time Marić resigned, his boss fled the country and the company folded," a reference to former Agrokor company owner Ivica Todorić.

When the most popular minister leaves, that means the government has fallen and Plenković just does not want to admit it. Enough of this agony, let's go to elections, Ahmetović said.

Bridge party vice-president Nikola Grmoja said in a Facebook post that "the first officer of Plenković's Titanic, holed by corruption, scandals and inflation, is fleeing."

If health reasons are not the reason, and I hope they are not, there are only two options - either he has found himself under investigation - he was involved in many scandals which, admittedly, left him unscathed - or he is leaving the government aware of the kind of economic Armaggedon that is about to hit us, Grmoja said, calling for new elections.

The head of the parliamentary committee on European affairs, Domagoj Hajduković of the Social Democrats, also commented on Marić's decision.

"I wonder if 'personal reasons' have to do with the implementation of euro introduction about which I have been warning for some time. True, we got a positive decision, but someone must also implement it, and we are very irresponsible in that regard," Hajduković said.

Other comments by opposition politicians were announced for Wednesday.

Also, Prime Minister Andrej Plenković will inform the inner cabinet and parliamentary majority of Marić's decision and introduce Marko Primorac as the candidate for his successor. Primorac's nomination will be discussed by the parliament as early as next week.

For more, check out our politics section.

July the 6th, 2022 - Finance Minister Zdravko Maric has stepped down from his longtime role at his own request, it has emerged. Marko Primorac will step in as the country's new Minister of Finance.

As Index writes, Finance Minister Zdravko Maric is leaving his position within Plenkovic's government at his own request. He has already informed Prime Minister Andrej Plenkovic about everything, and further information should be published later on today after the meeting of the cabinet of the government.

"It's true that Zdravko Maric is stepping down from his position of Deputy Prime Minister and Minister of Finance on his own initiative. The Prime Minister will inform the members of the cabinet tomorrow about Maric's departure. We're grateful to him for the contribution he has made in the government over the past six years. The government will continue to work as it did before to solve all the challenges we're facing in the crisis, protecting people, and the economy. The Prime Minister will present Marko Primorac to the parliamentary majority as a candidate for the new Minister of Finance, and to the members of the Croatian Parliament during the next week," the government told Index.

Maric's biography

Finance Minister Zdravko Maric joined the government from his former position within the former Agrokor, he survived several situations and affairs and is the author and implementer of several rounds of tax reform.

Maric was born on February the 3rd, 1977 in Slavonski Brod and graduated from the Faculty of Economics in Zagreb in 2000, majoring in finance. In 2004 he received his master's degree at the same faculty with the topic of his master's thesis entitled "An analysis of capital inflows to transition countries through the impact on investments".

In 2007, he completed the Executive Education Programme "Public Financial Management", at Harvard University, the J.F. Kennedy School of Government. He received his doctorate in 2008 at the Faculty of Economics in Zagreb on the topic "The impact of foreign direct investment on the productivity of Croatian companies".

He worked as an assistant at the Institute of Economics in Zagreb, as an external associate - lecturer at the Zagreb School of Economics and Management, and as an external associate - lecturer at the International Graduate Business School in Zagreb.

From Agrokor to the Croatian Government

In 2006, he started working in the Ministry of Finance as Assistant Minister for Macroeconomic Analysis and Planning, and in 2008 he became State Secretary in the Ministry of Finance.

From 2012 to 2016, he worked at Agrokor as an executive director for strategy and capital markets. From that position, he came to the position of non-partisan finance minister in the government of Prime Minister Andrej Plenkovic.

After the fall of Agrokor and its longtime owner Ivica Todoric, the opposition demanded his departure in 2017 and initiated a no-confidence motion. The three ministers from MOST, who were part of the government at the time, were in favour of his departure, which is why they themselves were dismissed. The vote of no confidence did not pass in Parliament either.

A summer holiday at the Bellevue Hotel with question marks hovering above it...

Finance Minister Zdravko Maric is allegedly stepping down from his position after a recent story broke about his stay "over an extended weekend" at the Bellevue Hotel in Mali Losinj.

Back in June 2019, Maric stayed with his family in the luxurious Bellevue Hotel in Mali Losinj. For accommodation for two adults and two children, the Ostro portal revealed, he paid 291.20 euros (2153 kuna) per night, which is three times lower than the usual price for that period of the year. In other words, Minister Maric received a huge discount that not all hotel guests can count on.

"I didn't influence that decision, nor did I ask for any discounts. Privately, and long before I was a minister, it never once happened to me,'' Maric said of the event.

He was aboard the 800,000 euro yacht owned by entrepreneur Blaz Pavicic

Back in August 2021, Maric came under the scrutiny of the Commission for deciding on conflicts of interest after it was revealed that he had spent four to five days on the 800,000-euro yacht owned by entrepreneur Blaz Pavicic. At first, Maric refused to give the name of the owner of the yacht, and then, after revealing the name, he said that this entrepreneur had nothing to do with his department in terms of tax debt or HBOR loans, and that the concessions owned by Pavicic's companies were within the department of the Ministry of Transport.

It was said that Finance Minister Zdravko Maric deliberately forgot that his Ministry, more precisely the Customs Administration, is extremely important for the business of Pavicic's companies.

Maric is also accused that, together with the government, he knowingly misled the Commission for deciding on conflicts of interest three years earlier, when in connection with the Lex Agrokor case, i.e. the Borg affair, he said that he met with Ivica Todoric only twice, and on February the 26th and March the 3rd, 2017, while he failed to mention other meetings.

Maric would have remained innocent had it not been for Martina Dalic's testimony...

Finance Minister Zdravko then told the Commission that at those two meetings with Todoric, he didn't present or convey any positions, opinions or proposals. He also said that no decisions or conclusions were made at those meetings, and also that his role was a passive one.

This was his key evidence that he wasn't in a conflict of interest in connection with the Todoric case, that is, Lex Agrokor. The commission acquitted him in that case.

Maric's claim would have remained the same if the statement to the USKOK of former vice-president Martina Dalic hadn't come to light, who admitted to the investigators that Maric was present at at least five meetings back during February 2017, which concerned not only the creation of Lex Agrokor but also meetings with the leadership of Agrokor. The crucial meeting is from February the 19th, when Prime Minister Andrej Plenkovic ordered Dalic and Maric to go to a meeting with Todoric.

At that meeting, Todoric asked for the help of HBOR, and Maric was given a presentation of the current financial situation within the then enfeebled Agrokor. After this information came to light, and it was contrary to what Maric said the first time before the Commission, the Minister of Finance then defended himself, saying that he had not lied.

"I read and see a lot of constructions that I told some lies and untruths. This is all easily verifiable," said Maric, inviting journalists to check what he was asked before the Commission and what he answered.

But the Commission, which acquitted him in the first trial, decided back in August 2018 to renew the proceedings against both Maric and Dalic. At the end of 2018, they made a decision that Finance Minister Zdravko Maric and former Deputy Prime Minister Martina Dalic had "violated the principle of public office in the case of Agrokor". Both Maric and Dalic appealed against that decision.

Marko Primorac is the new Finance Minister candidate

The Croatian Government has confirmed the information that Marko Primorac is the new candidate for the position of Finance Minister.

"The Prime Minister will present Marko Primorc as a candidate for the new Minister of Finance to the parliamentary majority, and to the members of the Croatian Parliament during the next week," Index was told.

"Marko Primorac (1984) is a professor at the Faculty of Economics in Zagreb, whose area of ​​expertise is financial management in the public sector, tax policy and fiscal decentralisation," added the Government. Marko Primorac was also an economic adviser to Kolinda Grabar-Kitarovic back when she was president.

For more, make sure to keep up with our politics section.

July the 5th, 2022 - The American Chamber of Commerce in Croatia (AmCham) organised a business breakfast called "Tax Policies during Challenging Times".

AmCham has been working for years and is actively involved in recommendations for the reform of the tax system. Through five rounds of tax changes, AmCham actively participated with proposals, a significant part of which was accepted.

At the event, the Deputy Prime Minister and Minister of Finance Zdravko Maric referred to the role of tax policies in contemporary economic events, the effects of the previous 5 rounds of tax reform and the Government's plans for further tax relief.

"After we implemented significant tax changes, the goal of which was to simplify the tax system and relieve both companies and citizens, we're now in the final phase of the process of introducing the euro in Croatia, so Croatia will, after a number of years, have numerous implemented measures and fulfilled obligations. On January the 1st, 2023, the country will become the twentieth member state in which the euro will be the official currency.

Conducting a responsible fiscal policy allowed us to start this entire process in the first place, and its finalisation, along with the further control of expenditures, the implementation of the National Recovery and Resilience Plan, which also includes numerous reforms of the public sector, efforts aimed at creating a positive business environment and, ultimately, an internationally competitive economy will make Croatia even more desirable for work, life and new business ventures," said Minister Maric.

Despite significant progress related to the tax relief of labour, in the Business Climate Survey presented by AmCham at the beginning of 2022, labour taxation is still among the three limiting factors of doing business in Croatia. Therefore, AmCham believes that there is still room for further tax relief for labour in order to make it more competitive compared to other countries in Central and Eastern Europe and aimed at retaining the workforce in Croatia.

This year, the American Chamber of Commerce in Croatia also published "Recommendations for the reform of the tax system in 2022", which was also presented at the event. The opinion proposes a series of recommendations for further tax relief aimed at even stronger investment attraction and the greater competitiveness of Croatian employers in attracting and retaining the domestic workforce.

AmCham proposes three key measures:

- An increase of non-taxable personal deduction to 4,900 kuna (650 euros);

- The reduction of the tax rate from 20% down to 10% for income tax and the tax rate from 30% down to 25%;

- The application of the maximum monthly and maximum annual base when calculating health insurance contributions

The aforementioned measures would ensure that with the same cost to employers, employees receive higher net incomes, which increases their economic power and consumption capacity, which increases the standard of living, and which indirectly has a positive impact on economic growth in Croatia.

In addition to three key measures, AmCham advocates the implementation of option plans in limited liability companies ('d.o.o.').

AmCham's proposal is an amendment to the Law on Income Tax, in which it would be prescribed that, in addition to the allocation or purchase of own shares, the allocation and acquisition of shares in a limited liability company would be considered income from capital. If the legal framework were to be adjusted in this sense, it would help the development of small and medium-sized companies, as well as start-ups in Croatia.

AmCham also proposes a non-taxable allowance for working from home of 360 kuna (50 euros) per month, as well as an increase in monetary benefits and awards, such as an increase in the non-taxable amount of compensation for the use of a private car for official purposes, per diems for business trips both within the country and abroad, occasional awards, a flat-rate allowance for a meal in money, a gift in kind, a gift for a child, benefits in case of death, etc.

AmCham's "Recommendations for the reform of the tax system in 2022" were presented by Hrvoje Jelic, partner, PwC Croatia (Tax authorities as partners of the business community), Paul Suchar, partner and Petra Megla, director, KPMG Croatia (How to retain and reward employees) and Kresimir Lipovscak, partner, Crowe Croatia (Added value for employees).

The presentation of AmCham's Recommendations was followed by a panel discussion attended by Bozidar Kutlesa, director of the Tax Administration; Josip Funda, Chief Economist, World Bank; Stanko Krslovic, member of the Management Board, Philip Morris Zagreb and Bojan Poljicak, director, Adcubum.

"In the short term, it's difficult to expect any additional tax relief, especially if we take into account the growing uncertainty surrounding economic developments towards the end of the year. In the medium term, however, we should go in the direction of more uniform taxation of income from different sources, the reduction of the tax burden on labour, especially higher incomes, and the stronger tax stimulation of investment in research and in the development and innovation of companies," concluded Josip Funda, Chief Economist, World Bank.

For more, check out our politics and business sections.

ZAGREB, 6 June 2022 - Finance Minister Zdravko Marić said on Monday that everything will be done so that the introduction of the euro as legal tender does not trigger a price hike.

"We will do absolutely everything, regardless of inflationary pressure and our efforts to relieve it, to prevent euro introduction from becoming an additional trigger (of price hikes) for individual market stakeholders," Marić said, adding that this was why the dual display of prices would start on 5 September.

Addressing the conference "Croatia in a New Economic Environment", organized by the 24sata daily, Marić recalled that the law on the introduction of the euro foresees 12 institutions that are responsible for the implementation of the law, including the Croatian Financial Services Supervisory Agency (HANFA), State Inspectorate, Croatian National Bank and the Finance Ministry.

These institutions will monitor the situation closely, and civil society organizations will join in the process as well so that any unfair conduct is reduced to a minimum, said Marić.

Marić recalled the recent European Commission Convergence Report, which said that Croatia was the only candidate country that had fulfilled all the accession criteria and was prepared to introduce the euro on 1 January 2023.

If Croatia joins the euro area on that date it will have spent the least time in the European Exchange Rate Mechanism (ERM II) of all member states, added Marić.

He said the final decision on Croatia's accession to the euro area will be adopted by the Council of Finance Ministers in Brussels on 12 July.

"If everything goes as we expect... and Croatia's entry to the euro area is formally announced for 1 January next year, the rate of conversion will be defined," he said but could not say whether the exchange rate would be the same as when Croatia entered the ERM II.

He underscored, however, that in the majority of cases it stayed the same, and if there were to be any change that will not be significant.

In July 2020, when Croatia joined the ERMII, the exchange rate was €1 = 7.53450.

Marić added that joining the Schengen area of passport-free movement was also very important for Croatia.

Croatia meets all the criteria to join the Schengen area, however, its admission depends on a number of other factors, including the political will of the member states, he said.

"Croatia has proven that it knows how to protect EU borders," he said, expressing the belief that the country would achieve the goal of Schengen area membership as well.

For more, check out our politics section.