Over 11 billion kn was invested into job saving measures, now it's time to focus on creation of new jobs

As of July the government will no longer apply horizontal job-keeping measures and in the future its support will depend on the needs of individual sectors, Prime Minister Andrej Plenković said at a government session on Thursday.

He announced that the government would follow developments in agreement with employers' representatives from individual sectors and respond on time if necessary.

"The government will continue to assist entrepreneurs also with active employment policy measures in which it plans to invest more than one billion kuna in 2021," he said.

He noted that the government would continue supporting the scheme for shorter working hours, intended for employers whose scope of business has been affected by the coronavirus crisis.

As part of that scheme, to last until the end of the year, the state will cover up to 90% of the wage with contributions, the maximum amount being HRK 3,600 plus contributions.

Plenković noted that the government was wrapping up its measures of horizontal support at a time when all indicators proved the success of its scheme for support to employers, small business owners and workers during the pandemic.

He said that from March 2020 to 30 June 2021, HRK 17 billion, including contributions, had been provided to help employers keep jobs and that the government's measures had so far covered close to 700,000 workers and more than 120,000 small businesses and employers.

The number or pension insurees is by 56,000 higher than at the end of June 2020 and by 4,000 compared to 2019, while the number of job-seekers has dropped by 8,500 from March 2020, he said.

He noted that the relevant indicators signalled that time had come to "move on from the phase of job-keeping to a phase of job creation."

Commenting on the latest issue of a seven-year HRK 9 billion bond on the domestic market at an interest rate of 0.50% and a yield to maturity of 0.533%, Plenković said the interest was much higher, HRK 19 billion.

Very favourable conditions were achieved, especially given the fact that a large portion of the issue will be used to refinance the current bond issue that matures on 8 July in the amount of six billion kuna, he said, noting that more than HRK 135 million in interest would thus be saved.

We're in the process of cracking down on corruption

The arrests in anti-corruption operations in Zagreb confirmed that Croatia was in the process of cracking down on corruption. 

"This is yet another proof that USKOK (the anti-corruption office), DORH (the State Prosecutor's Office) and police are leading an active anti-corruption campaign during the term of this government," Plenković said at the start of today's cabinet meeting following news that several people had been arrested in Zagreb on suspicion of corruption.

Regardless of the fact that "certain political charlatans" question the timing of the arrests and continue their mantra of the corrupt government and ruling party, the fact is that the police, DORH and USKOK are independent and that no one is exerting any pressure on them, he added.

"Party membership cards, social status or any friendships or other contacts make no one protected," the prime minister said, stressing that this was the key message of the anti-corruption campaign.

He said that it was the government's duty to ensure a good legislative framework and resources for the operation of these authorities so that such cases would end up in court.

Speaking of the COVID-19 situation, Plenković said that the whole of Croatia was in the green zone according to the European Centre for Disease Prevention and Control, and that this was good for public health, for tourism and for the country's image.

He noted that there were also several local hotspots where the measures obviously were not complied with. "Any such blunder will be severely penalised by other countries which are monitoring the situation in Croatia. The fewer the hotspots, the better the situation will be for us."

Plenković said that slightly over 44 percent of the adult population had been vaccinated and that the target of 55 percent was not achieved even though the government had secured sufficient amounts of vaccines.

Given that the vaccination campaign has slowed down over the last three weeks, the prime minister again appealed to the public to get vaccinated. "There are new, more infectious variants, the Delta variant. They are spreading faster and the situation remains serious," he said.

Plenković said that Croatia would donate 310,000 vaccine doses - 210,000 to Bosnia and Herzegovina and 20,000 each to Montenegro, Kosovo, North Macedonia, Albania and Kyrgyzstan. "It is better for the vaccines to be used than to be kept in storage," he noted.

Speaking of a recent hail storm that struck Požega-Slavonia County, Plenković said that the government today would adopt a HRK 58 million aid package to help this county repair the damage.

Text: Hina

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