Gov't launches changes to country's statistical subdivision

The government on Wednesday launched changes to the Nomenclature of Territorial Units for Statistics (NUTS 2), dividing Croatia into four statistical non-administrative units which will improve regional aid allocation and ensure better terms for the absorption of European Union cohesion funds.

Another goal is forming as homogeneous regions as possible in terms of development, and the new division will also redress the injustice done in 2012, when less developed parts of the country, notably Slavonia and Baranja, were obstructed in attracting EU funds, said Regional Development and EU Funds Minister Gabrijela Zalac.

The government's decision, under which the country is divided into Pannonian Croatia, North Croatia, Adriatic Croatia and the City of Zagreb, will go into force on 1 January 2023, at the same time as new European regulations, she said, adding that the proposal would be submitted to Eurostat by February 1 this year and that the EU's new financial perspective would be based on the new regulations.

Zalac said that under the current division, the continental region comprises 14 counties and the City of Zagreb and the Adriatic region seven coastal counties.

The counties of the former Pannonian Croatia - five in Slavonia and Bjelovar-Bilogora, Sisak-Moslavina and Karloavac counties - will again make up one statistical region, she said, recalling that these counties were at 40% of the EU development average.

Five counties in north Croatia - Krapina-Zagorje, Varazdin, Medjimurje, Zagreb and Koprivnica-Krizevci - make up the third statistical region, while Adriatic Croatia is made up of the seven coastal counties.

The City of Zagreb becomes a separate unit as it has a population of over 800,000 and is the only unit in Croatia whose development is more than 100% above the EU average, and also to prevent its development degree from spilling over to other counties and diminishing their businesses' ability to absorb higher percentages of regional aid.

Prime Minister Andrej Plenkovic said Bjelovar-Bilogora County would be part of Pannonian Croatia, although the county said they wanted to be part of North Croatia. He said such a decision was in the interest of all those wishing to invest and create jobs in the county.

He noted that Bjelovar-Bilogora was the eighth most undeveloped county and that it would get higher economic aid. He said the county could intensively cooperate on joint European projects with the northern counties.

Gov't sends amendments to INA Privatisation Act to parliament

The government on Wednesday sent to parliament a bill of amendments to the law on the privatisation of the INA oil company, aligning it with European Union legislation and protecting Croatia's energy interests as well as the state's interests in INA.

Environment Protection and Energy Minister Tomislav Coric said the INA Privatisation Act went into force in April 2002, stipulating that the state retained certain special rights in the company - the exclusive right to control changes in ownership, the right to veto certain management decisions, and the right to pre-emption of all or part of the company's property at market value in case of liquidation.

Since those provisions are not in line with the EU acquis communautaire, the European Commission launched an EU law violation procedure and decided to file a suit at the EU Court of Justice in July 2017.

That's why the Environment Protection and Energy Ministry proposed amendments to the INA Privatisation Act, stipulating the obligation of a stock buyer to submit a long term management and business plan, withdrawing the government's consent for stock acquisition and the right to buy shares and pay compensation in the event of a serious threat to safe, reliable and regular energy supply and to the protection of the energy supply infrastructure, said Coric.

The amendments also propose that, as long as the state has one or more shares in INA, the government can appoint two representatives who will attend management meetings without the right to vote. Also proposed are penalties and protection in case management adopts a decision seriously bringing into question the safety of energy supply and its infrastructure.

Prime Minister Andrej Plenkovic said proceedings at the EU Court of Justice had not begun yet and that, according to the government's consultations with the Commission, they would not be launched once parliament amended the INA Privatisation Act.

A public consultation on the bill of amendments was held on January 7-21.

Government suggests 6 pct base pay raise for judiciary

The government at its session on Wednesday set to parliament under fast-track procedure a bill of amendments under which the base pay for judges and other judicial officials would go up 6%, given that their base pay has been continuously reduced since 2009 and currently amounts to HRK 4,443.

"Judges' salaries are not at a satisfactory level, given the complexity of their job and the responsibility they have," Justice Minister Drazen Bosnjakovic said, explaining the proposal to amend the law regulating salaries of judges and other judicial officials.

PM said amendments aimed at strengthening impartiality and independence of judges

Prime Minister Andrej Plenkovic said this measure was aimed at strengthening impartiality and independence of judges and was raising confidence in Croatia's judiciary.

The government proposed to parliament to adopt the 2018 report on the work of the State Audit Office.

Gov't selects Marea Alta to buy Hotel Hrvatska in Baska Voda

The government on Wednesday decided to chose the Marea Alta company as the most favourable buyer for the Hotel Hrvatska in the southern coastal town of Baska Voda, which offered HRK 46.13 million for the hotel which after the sale will be remodeled and recategorised into a four-star hotel, according to State Assets Minister Goran Maric.

Maric recalled that on May 12, 2018, his ministry published a tender for the sale of Hotel Hrvatska with a starting price of HRK 42.3 million and that not a single offer had been submitted. The government then reduced the price to HRK 35.9 million and published a new tender on 26 September.

Three offers were submitted following the new tender and Marea Alta submitted the most favourable offer.

Hotel Hrvatska is currently a two-star hotel and was not in use last year. It is a beachfront facility formerly used as a military barracks. The 136-unit hotel is located in downtown Baska Voda.

"Following the sale, the hotel will be remodeled and recategorised as a four-star facility," Maric said.

Prime Minister Andrej Plenkovic and Tourism Minister said this would help raise the quality of tourism in Baska Voda.

The State Assets Ministry and the buyer will sign a contract under which the buyer will be obliged to pay the said price within 30 days, minus HRK 1.79 million that was paid into the state budget during the public tender procedure.

 

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