The past few weeks have showcased just how important Hyundai's investment in Rimac Automobili actually is, and not just in an economic sense. Can the Croatian Government manage to match his advanced level of thinking?

As Poslovni Dnevnik/Vecernji list writes on the 12th of November, 2019, Germany's Angela Merkel has set out to set up a million electric car refuelling stations across Germany by 2030, by 2022 there should be 50,000 of them, which will cost three and a half billion euros in total. This is already a serious increase given that there are now 21,000 such locations across Germany.

In addition, new subsidies from the German Government for electric cars were introduced, all after the German chancellor attended the presentation of Volkswagen's ID.3, a fully electric car with aspirations to replace even the likes of the Golf one day. The idea clearly left an impression on the most powerful woman in Europe, and she made sure the measures to get things moving were in place.

Mate Rimac, known for being far more forward thinking than the Croatian Government, was absolutely right in investing heavily in electric vehicles, and especially on a regular basis, pointing out that his company was primarily concerned with technology, and only then does concern for cars follow.

''The car industry is changing like never before. Now it has much more potential and it's a great opportunity for Croatia. We don't exist today because we know how to make lights or doors well, that's been being done for a hundred years now, but because we started something that was new even to them at the time,'' Rimac told Prime Minister Andrej Plenković during his visit to his company in Sveta Nedelja this summer. The visit was, quite shockingly, the very first Plenković had ever made to the factory.

"I remember very well the enthusiasm in Croatia last year caused by the success at the World Cup. The automotive industry needs to get just that kind of attention. We firmly believe in Mate Rimac, his ideas and his technology. We can provide our knowledge and experience in this regard, but it just isn't going to be enough without the Croatian Government's support. Much more is needed, especially when it comes to education, such as forming projects that will allow the educated to stay here,'' said Lutz Meschke, Porsche's high-ranking manager.

The meeting with Plenković came after big news which regarded the investment of an enormous 80 million euros, or 600 million kuna, from Hyundai into Rimac Automobili.

"Rimac Automobili is an innovative company with outstanding performance in high-performance electric vehicles," said Euisun Chung, executive vice president of the Hyundai Motor Group.

''Their startup roots and extensive experience in working with car makers combined with technological strength make Rimac Automobili an ideal partner for us. We're looking forward to working with Rimac on our path to clean mobility,'' Chung said.

The information provided alongside the investment stated that Hyundai Motors wants to accelerate its transition to clean mobility and position itself as a global leader in driving this change in the industry. One of the key measures to achieve this is electrification, and precisely along those lines - they plan to market 44 electrified car models by 2025.

Having partnered with a number of major global car companies, this was the final confirmation of the good direction Rimac Automobili is heading in. This process involves not only a Croatian company, however, but Croatia as a country, and many steps need to be taken.

''At the June meeting, we presented very specific measures that Croatia needs to take to make it attractive for such investments. The meeting was attended by the leading people of Porsche (a member of the VW Group) and Hyundai. I'm pleased that how much such an investment would mean for Croatia has been recognised, and I hope that the government will use the analyis and suggestions we've made and the contacts we've established to attract such investments. If there is any way we can help in this process, we're of course available. We have attracted more than 150 million euros in foreign investment and we're working with all the major players in this area,'' Rimac told Vecernji list.

Make sure to follow our dedicated Made in Croatia and business pages for much more.

ZAGREB, November 12, 2019 - Remittances by Croatian citizens living abroad are close in amount to net tourism revenues and represent a very stable source of financing, but Croatia must generate an innovative economy to motivate them to generate those earnings in Croatia, economist Mladen Vedriš said on Tuesday.

He was speaking at the "Returnees and economic development" conference.

Over 2 billion euro in informal remittances, gifts, aid and pensions go into Croatia's balance of payments, according to the central bank, and the trend is rising, but the question is how much the people who have formed families abroad will feel the need to continue to send remittances, Vedriš said.

In tourism, only beds are a domestic resource and 70% of what we sell is imported, he said, adding that investments to motivate workers to return to Croatia could and must be found.

According to the findings of Zagreb Faculty of Humanities and Social Sciences surveys, 65% of those who left Croatia cited a poor financial situation as the main reason. Others are dissatisfaction with the situation in the country, widespread corruption, intolerance, poor work of state institutions and poor living conditions.

Return is possible only if decent living is made possible because only one in five emigrants refuse the possibility to come back, Vedriš said.

He cited German surveys showing that the education of one person through university graduation costs the state 260,000 euro on average, which is just one aspect of the brain drain. One engineer generates during his working life about a million dollars in new value which stays in Germany, and half of those who have left Croatia have university degrees.

Vedriš also cited Greek surveys showing that those who left the country took 12 billion euro in value with them and estimated the same applies to Croats working abroad.

The director of Germany's Konrad Adenauer Foundation for Croatia and Slovenia, Holger Haibach, said the conference was the result of an agreement with Croatia's Ivo Pilar Institute to jointly consider relations between governments, education, migration and similar issues given that 400,000 Croats live in Germany.

Haibach said the conference was a continuation of yesterday's panel "Remigration and circular migration as a cohesion strategy" as well as part of a series of events called "Talking Europe II 2019-2020", which are aimed at encouraging public debates on the EU's current challenges and future prospects ahead of Croatia's presidency of the Council of the EU in the first half of 2020.

More diaspora news can be found in the dedicated section.

ZAGREB, November 12, 2019 - Croatia's Foreign and European Affairs Minister Gordan Grlić Radman said at the 2nd Paris Peace Forum on Tuesday that he was in favour of strengthening multilateralism and he underlined its importance in dealing with geopolitical challenges.

"In today's world of great challenges, unity on peace and stability is of extreme importance. Responding to geopolitical challenges requires joint efforts and advocacy for stronger multilateralism," the Croatian minister said, as stated by the Foreign and European Affairs Ministry.

Grlić Radman said that he was glad to hear French President Emmanuel Macron underline the necessity of multilateralism.

In an interview with The Economist earlier this month, Macron said that NATO was experiencing brain death, a statement that drew criticism from numerous NATO members.

"I'm glad that in his address French President Macron also spoke about the importance of multilateralism, mentioning in that context the Alliance for Multilateralism, launched by the French and German foreign ministers, which we supported strongly at the UN General Assembly," Grlić Radman said.

The Paris Peace Forum, established on the occasion of the 100th anniversary of the end of World War I, is an annual gathering of statesmen, politicians, international organisations, civil society organisations and the business community, focusing on various global challenges.

This year's forum has brought together around 100 delegations, including some 30 heads of state and government, as well as leaders of big international organisations, the ministry said.

More news about Croatian foreign policy can be found in the Politics section.

ZAGREB, November 12, 2019 - In the EU accession treaty Croatia undertook the obligation to adopt the euro as its official currency and the strategic goal is to meet the criteria by the end of the next government's term, Prime Minister Andrej Plenković said on Tuesday.

The economic benefits of the euro are many, the currency risk in the economy will be eliminated, the cost of borrowing will drop for all domestic sectors, and citizens and businesses will have lower financing costs than they would if Croatia stayed outside the euro area, he said at the Croatian Financial Institutions Day conference, organised by the Chamber of Commerce (HGK).

Conversion costs will be eliminated and the joint currency will contribute to international trade and competitiveness, Plenković added.

The euro is the second largest and strongest global currency used by more than 340 million people in the euro area, he said, adding that of all the EU member states outside the area, Croatia had the smallest population yet was the most euroised.

Croatia has the highest deposit euroisation of all EU member states outside the eurozone, Croats express value, calculate and save in euros, as a result of which household savings in euros have never been below 66% of all savings, revolving around 76% over the past nine and a half years, Plenković said.

Forty-six percent of household loans are in the domestic currency with a currency clause and businesses are also significantly tied to the euro, 58% of commodity exports are exports to the euro area and 56% of all nights are generated by tourists from the euro area, and 50% of bank loans are in a foreign currency or in the domestic currency with a currency clause, he added.

The plan is for Croatia to enter the European Exchange Rate Mechanism II upon confirmation of compliance with all conditions in the second half of 2020, Plenković said. Croatia will spend between two and a half and three years in ERM II and entry into the euro area is expected in January 2023 at the earliest or in January 2024.

HGK president Luka Burilović said the positive effects of the european currency include a lower price of capital, easier awarding of a better credit rating, the elimination of the currency clause risk, and higher competitiveness of exporters.

"We can hope that Croatia will have a stronger position in attracting foreign direct investment," he said. The euro is not a magic wand or a universal cure for economic problems but should be utilised as a generator for the realisation of strategic goals, he added.

More news about the introduction of euro can be found in the Business section.

November 12, 2019 - Aminess Grand Azur Hotel in Orebic has received the prestigious Travelife Gold certification, one of the most esteemed awards for sustainable tourism businesses, which confirms that the hotel adheres to the strictest ethical and environmental standards in its operations.

HRTurizam writes that Travelife is an international certification system that promotes sustainability within the tourism industry, which is an essential segment of tourism, helping to preserve the unique natural and cultural features of the destination.

Protecting the environment, animals and biodiversity, local culture and heritage, relationships with the community and employees, and support for the local economy are just a few of the standards that have been successfully met by the Aminess Grand Azur Hotel according to the Travelife Gold certification.

"We are proud that the Aminess Grand Azur Hotel meets the highest standards of sustainable development. The Travelife Gold certification is the result of our continued and dedicated work in this area, which we plan to continue to pursue in the future. This certificate is also a confirmation of our past accomplishments and efforts to make our guests as comfortable as possible,” said Marina Brcic, Aminess Grand Azura director.

In each of the 185 guest rooms and suites, guests of the Aminess Grand Azur Hotel can expect a panoramic view of the sea, Peljesac, and the nearby Korcula. The hotel offers two refurbished outdoor pools with freshwater and a sun terrace, and restaurants serve Mediterranean cuisine prepared with homemade olive oil, along with a selection of local red wines.

In addition to the Aminess Grand Azur Hotel in Orebic, the Aminess Lume Hotel in Korcula is also the proud owner of the Travelife Gold certificate this year, while the Aminess Maestral Hotel in Novigrad has held the certificate since 2013.

Travelife has approximately 1500 members in more than 50 countries around the world and is recognized and promoted by the Global Sustainable Tourism Council's umbrella institution for tourism sustainability, GSTC.

To read more about travel in Croatia, follow TCN’s dedicated page. 

As Morski writes on the 12th of November, 2019, lighthouse keepers from Susac sent the portal a video taken this morning showing what they've been witnessing from their positions as the stormy jugo wind gives the land and the sea a thorough battering.

''Good morning, greetings from the Susac lighthouse,'' say the lighthouse keepers from Susac briefly, adding that in the afternoon, they're expecting orkansko jugo (an even stronger southeastern wind that ravages the Adriatic).

Indeed, if the stormy jugo looks like this on Susac, we can only imagine what it will look like when the waves climb over five, and sometimes even over metres in height, with incredibly strong gusts of south up to seventy knots, as forecasters have announced for this afternoon. Fortunately, lighthouses are very safe at about 100 metres above sea level, but sailors and other boaters are advised not to go out to sea at all.

It's worth recalling that owing to the stormy jugo that is currently giving parts of the coast a beating, a red meteo alarm has been activated for almost the whole of the Croatian Adriatic, which means that the weather is dangerous.

Owing to the adverse weather conditions which are for the most part expected to worsen before long, there have been maritime traffic alterations and interruptions. At the time of this article having been written, the interruptions at sea for ferry lines and other vessels are as follows:

Ferry lines: Sućuraj-Drvenik, Split-Vela Luka-Ubli, Šibenik-Zlarin-Kaprije-Žirje

Shipping lines: Zadar-Preko, Milna-Rogac-Split, Komiža-Biševo, Mali Losinj-Unije-Susak

Catamaran lines: Korčula-Hvar-Split, Ubli - Vela Luka - Hvar - Split, Vis-Split, Split-Bol-Jelsa, Zadar-Premuda-Silba-Olib, Dubrovnik-Mljet-Lastovo

Watch the video of the jugo throwing all of its strength at Susac here:

Make sure to follow our dedicated lifestyle page for much more. If you're interested in jugo, why not read this and give Total Croatia Sailing a follow.

As Poslovni Dnevnik/Lucija Spiljak writes on the 12th of November, 2019, ''underground mushrooms aren't going to put food on the table or raise children,'' is a sentence that spouses Radmila and Goran Karlić heard often when they decided to leave their jobs and devote themselves to truffle farming in Paladini near Buzet on the Istrian peninsula, a northern area of Croatia.

Way back in 1994, they initially founded Karlić truffles - The company through which they are now engaged in the purchase and the sale of truffles with their children, and the processing and sales of their products in shops, restaurants and even on foreign markets, as Ivana Karlić, the youngest member of the family, says.

''They said that we were crazy!''

This year, the Karlić family marketed gin with white truffles, the very first in the entire world. Ivan Karlić, Ivana's brother, came up with the idea, who is described as a creator and a big fan of truffles, so he dedicated that to combining them with every dish. The idea originated from a big love of gin and truffles, and was created in collaboration with the Aura distillery, who also work with other traditional types of beverages.

"People like gin, it's becoming more popular so the conclusion was - why not? We worked on it for several months, we made 222 limited bottles, the price of one is about 100 euros. Three months ago, they were put on the market, there are maybe 20 bottles left. People have recognised the value of product and we get a lot of praise and orders from all over the world,'' explains the young truffle enthusiast.

Since that gin turned out to be a great idea, they have already started collecting the finest truffle specimens, which must be perfectly round for gin, in order to produce a limited edition gin next year. The first in the world also offered a unique truffle hunt in which guests can participate, and Radmila Karlić came up with that idea which adds a whole other, more personal element to the entire thing.

''I'm delighted that we have such an innovative offer for our guests, and they're delighted. We have guests from New York who have returned five times for the tour, and their 15-year-old child dreams of working with truffles one day,'' says Ivana.

If guests decide to take part in the adventure, they can also stay at Villa Olive, surrounded by olive trees, for which the Karlić family won the Tourist Flower Award this year in the category of best accommodation for an active holiday.

Through play, Ivana and Ivan slowly learned the business and became much better acquainted with the black and white underground mushrooms.

"The price of truffles wasn't high back then, so we needed to find as many as possible to earn something. Asparagus and other mushrooms were harvested, but our efforts were directed by the truffles,'' Ivana tells us.

Twelve years ago, they planted the first truffle plantation in Croatia with 2,700 oak trees and some hazelnuts, and every day they watered the trees - the cost of which was high because they were made in a laboratory - irrigated and pruned. It was a big and risky experiment.

"After six years of waiting, my brother went for a walk with the dogs and found the first truffle, smaller than a tennis ball. When he brought it home, we were overjoyed because at the time everyone was telling us we were crazy. It was the first truffle found on a plantation in Croatia,'' Ivana explained.

They even get orders all the way from Singapore.

Black truffles grow all year round in the hills, there are more of them and their price is lower. Winter white truffles grow in the lowlands from September to late December or early January, and its price is very high because it is a delicacy that grows in two areas in the world - in Croatia and Italy.

The Karlić family annually remove a large amount from the plantation in Buzet, right next to the forest, which is the original site, they then sell and market them in restaurants across Croatia.

Exports have been particularly successful, selling truffles through distributors across Europe, in countries like Germany, Austria and the United Kingdom, but the orders come from much further away from our continent too, including from Singapore.

Truffella, the world's first truffle chocolate spread in the world which has been being marketed since back in 2016, stands out in with its colourful product offering.

''Mixing mushrooms and chocolate is a demanding and risky business, but it's still our best-selling product. As for this season, it's not been brilliant, but it's not been bad either, there will always be truffles. The Istrian forests are suitable for agriculture, the locals take care of them, they're not polluted and no concreting is allowed; we stick together as a community. That's why we're glad when someone plants a plantation and succeeds,'' concludes Ivana Karlić.

Make sure to follow our dedicated business and Made in Croatia pages for much more.

Croatia Airlines is still far from out of the woods when it comes to doing business. Publishing losses and continuing to go downhill, what are the potential rescue options for Croatia's national carrier?

As Poslovni Dnevnik/Josip Bohutinski/VL writes on the 12th of November, 2019, PBZ and DBV consultants engaged in finding a strategic partner and recapitalisation model for Croatia Airlines (CA) should propose a solution by the end of the year. Vecernji list has since discovered that three models are on the table currently.

One of the models, as has since been learned, is to create a holding company for Croatian airports and thus Croatia Airlines. The second solution is for pension funds to take over Croatia Airlines and the airports, and thirdly, for those same pension funds to take over ACI along with the ailing Croatian airline.

All the state-owned airports - Dubrovnik, Split, Zadar, Rijeka, Pula and Osijek - would be included in the holding, except for Zagreb Airport, which is under a concession. These six airports are also included in the model with pension fund options. The state has a 55 percent share in them, while the rest is held by counties and LGUs.

Croatia Airlines is continuing to publish concerning losses, down from 82.9 million kuna last year while all Croatian airports except for Osijek operated at a profit. The total profit of these five airports for 2018 amounts 213.1 million kuna, and the losses published by Osijek Airport amounted to 266.900 kuna.

Poslovni's interlocutors say that companies that would otherwise “feed” each other would merge with the idea of creating a holding because Croatia Airlines makes up a good deal of traffic for those airports.

However, the merger of the airports and Croatia Airlines, as they say, would also be a political issue because in some cities they oppose the idea entirely. Airport profits are also a draw for pension funds.

Pension funds could also be offered another lure - ACI, for the same reason. The Republic of Croatia owns just over 78 percent of its share capital, and generated 30.9 million kuna in profits last year. Although the focus of the consultants' engagement was on other airlines that would take over Croatia Airlines, they said that there was no particular interest in doing so.

Pension funds are interested in investing in airports and ACIs and aren't even attempting to hide that fact. They say their idea of ​​taking over Croatia Airlines and recapitalising the company if it's ''bundled'' into a package with ACI and several airports seems attractive.

The best model for them would be to take over the entire package, but they note that the Croatian national carrier is a ''bottomless pit'', whose survival is impossible without a deep restructuring of the company.

Make sure to follow our dedicated business page for more.