Gov't authorises finance minister to sign letter of intent for ERM II

The Croatian government on Thursday authorised Finance Minister Zdravko Maric to sign a letter of intent to join the Exchange Rate Mechanism (ERM II), a step that has to be made on the path towards the introduction of the euro as the official currency in Croatia.

The letter, to be co-signed by Croatian National Bank (HNB) Governor Boris Vujcic, is expected to be sent by the end of the week.

It is sent to the president of the Eurogroup, the president of the European Central Bank (ECB), the finance ministers of the euro area member-countries, the finance minister of Denmark and the governor of the central Bank of Denmark, and the vice-president of the European Commission in charge of the euro.

The letter of intent expresses Croatia's intention to enter the exchange rate mechanism and to implement 19 measures in six areas in the next 12 months.

Those measures, to be implemented by nine government ministries, are keeping and maintaining macroprudential stability, cooperation with the ECB, reinforcing the capacity and improving the quality of work of the national statistical office (DZS), continuing the fight against money laundering and terrorism funding, and upgrading the business climate and improving public sector management, notably in companies whose majority owner is the state.

Entering the ERM II is a step forward in the introduction of the euro and Croatia is likely to stay in the mechanism for two years during which its ability to meet the Maastricht criteria will be tested.

An aspirant's admission to the ERM II is to be greenlighted by members of the euro area, a monetary union of 19 of the 28 EU member states, and the ECB.

Prime Minister Andrej Plenkovic said that the introduction of the euro could not happen overnight but was a systematic and thoroughly prepared process and that the envisaged measures were possible to implement.

Gov't proposes stricter fines for most serious traffic offences
 

The Croatian government on Thursday sent to the parliament the Road Safety Bill, which provides for much stricter fines in a bid to reduce the number of road accidents and fatalities.

"Based on numerous analyses and in close cooperation with the Faculty of Transport and Traffic Sciences, we have proposed amendments that significantly increase fines, define the minimum duration of driving disqualifications and regulate and increase negative points for the eight most serious traffic offences," Minister of the Interior Davor Bozinovic said while presenting the new bill.

Under the new bill, present fines of between HRK 5,000 (EUR 675) and 15,000 (EUR 2,000) would be increased to between HRK 10,000 (EUR 1,350) and 20,000 (EUR 2,700) for the eight most serious traffic violations - driving in the opposite direction on motorways, exceeding the speed limit in a built-up area by over 50 km/h, deliberately running a red light, refusing to take a test for alcohol or drugs, driving under the influence of drugs or alcohol with a blood alcohol level of 1.5 g/kg and higher, driving before acquiring a driving licence or while the driving licence is suspended or revoked.

Bozinovic said that a task force had already been set up to monitor the effect of the proposed measures and propose changes and additional improvements if necessary.

Govt adopts report on commodity stockpiles

The government adopted a report on the state and management of strategic stockpiles in 2018 which shows a deficit in the amount of HRK 24.2 million, to be covered from surplus revenues and receipts transferred from last year.

The revenue from the sale of strategic stockpile commodities in 2018 totalled HRK 70.3 million while the expenditure amounted to HRK 94.5 million.

The government also sent to the parliament amendments to the Law on Open-end Investment Funds with a Public Offering and the Law on Alternative Investment Funds to align the two laws with the EU Securitisation Regulation.

Gov't establishes commission for procurement of multi-purpose combat aircraft
 

The Croatian government on Thursday established an interdepartmental commission for the procurement of multi-purpose combat aircraft in line with the conclusion of the Council for Defence and the Parliament's Committee on Defence that Croatia needs to maintain the ability to protect its airspace with its own combat aircraft.

"This is a strategic project of great value and it must be transparent and legal. I'm therefore glad that both the Council and the Committee have unanimously supported the government's decision to launch the procurement process," Defence Minister Damir Krsticevic said.

He noted that the procurement process would take into account the necessary capabilities and financial means available.

The commission will be in charge of preparing and conducting the process of procurement of multi-purpose fighter jets and propose decisions to be made by the government and other institutions.

It will also be in charge of defining possible options for the training of pilots to fly the multi-purpose fighter jets as well as propose the relevant decisions.

The commission is co-chaired by the head of the office of the prime minister, Zvonimir Frka-Petesic, and the director of the Armed Forces Main Staff, Vice Admiral Robert Hranj.

"The issue of defence and procurement of multi-purpose combat aircraft is above political parties and requires the support of both the ruling coalition and the opposition. That's why we think it is important that the parliament joins this process. The commission will therefore also include the chair and the deputy chair of the parliamentary Committee on Defence," Krsticevic said.

Text: Hina

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