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PM: It is essential to keep budgetary expenditures as planned

Photo /Vijesti/2020/05 svibanj/7 svibnja/229-sjednica-2.jpg

The revised 2020 budget would reduce revenues by HRK 23.2 billion to HRK 122 billion while expenditures would remain at HRK 147.3 billion, Prime Minister Andrej Plenkovic said on Thursday at the start of a cabinet meeting, adding that keeping expenditures as planned was essential.

The budget is being revised due to "unusual circumstances" which no one wanted and the revision is necessary to ensure the financing of the state, Plenkovic said.

He announced activities on financial markets to make up for the revenue deficit. He thanked the ministers on the economies they had made, saying he understood that it had not been easy and that in the months ahead one should be "firm" in order to embark on a strong recovery more easily.

Plenkovic said it was good that Croatia faced the current crisis much better prepared than the 2008 global crisis.

He also commented on the European Commission's spring economic forecast for Croatia, which is more optimistic than the government's, saying it would help Croatia's reputation and that Croatia would be viewed more favourably in case of possibly higher interest rates.

PM: Gov't will protect Homeland War's dignity with utmost respect

Prime Minister Andrej Plenkovic on Thursday commented on last week's 25th anniversary of Operation Flash, saying the government would always protect the dignity of the Homeland War with the utmost respect.

"That was a watershed military and police operation in the Homeland War which was a prelude to the liberation of the then still-occupied part of Croatia," he said at a cabinet meeting, once again paying his respects to the 51 defenders killed in the operation.

Plenkovic also recalled the anniversary of the killing of 12 special police officers observed in Borovo Selo on May 2, saying it was another important event in Croatia's recent history.

"This government will always, with the utmost respect, remember those who gave their lives for Croatia's freedom, and we will protect the dignity of the Homeland War as the fundamental value of the modern Croatian state."

Media have key role in Croatian society

The prime minister also recalled the marking of World Press Freedom Day on May 3, saying the media were especially important in Croatian society.

"We should always point out their key role, ensure quality work conditions for journalists and media houses and work together on preventing fake news and disinformation."

Plenkovic noted that this was Europe week, when the 75th anniversary of victory over fascism and Europe Day are marked, saying the government was joining in the anniversaries which impacted the history of Europe and humankind.

Government: Croatia fulfils ERM II accession plan

Croatia has duly fulfilled the requirements under the action plan for accession to the European Exchange Rate Mechanism II (ERM II) and the banking union for the period from July 2019 to May 2020, Prime Minister Andrej Plenkovic said at a cabinet meeting on Thursday.

Reporting on the implementation of activities under the action plan, Plenkovic said that this confirmed the government's responsibility and good planning. He recalled that the action plan, adopted in 2018, was prepared in consultation with relevant EU institutions and that it contains 19 measures.

"We have adopted 12 laws and six sets of rules, prepared three tenders for the sale of stocks and shares, two action plans by the Ministry of Economy have been adopted, as well as a decree, a memorandum of understanding and an audit policy," he added.

According to the government's estimates, Croatia will stay in ERM II for about two and a half years.

"We want to get closer to the eurozone because we have seen in this crisis that eurozone member states are much stronger and equipped with important instruments for defence against the crisis," Plenkovic said, adding that Croatia wanted EU non-eurozone members to be at least in a similar position.

The government also adopted the report on the implementation of the national reform programme for the period from November 2019 to April 2020. Finance Minister Zdravko Maric said that of the 100 measures provided for under the programme, 65 had been implemented and that more than 70 would have been implemented had it not been for the outbreak of the coronavirus crisis.

Gov't to give HRK 20,000 per household as post-quake emergency aid

The Croatian government has secured emergency aid in the amount of HRK 20,000 per household for the necessary protection and repair of buildings damaged in the March 22 quake that hit Zagreb and its environs, and it will soon put to public consultation a bill on the reconstruction of buildings.

The aid to be granted as emergency relief to households amounts to HRK 141 million in total, it was said at a government meeting on Thursday.

Prime Minister Andrej Plenkovic asked the competent ministries to finalise a bill on the reconstruction of buildings damaged in the March 22 quake, saying that once the bill was consolidated, a final meeting would be held with representatives of the Zagreb city authorities, after which the bill would be put to brief public consultation and then forwarded to the parliament.

The government wants the bill to be good and comprehensive, Plenkovic said, noting that the damage caused by the quake was extensive.

Croatia will seek assistance from the EU as well, and PM Plenkovic said that Croatia would also seek "broader international arrangements, considering the scope of the damage."

The Construction and Physical Planning Ministry has been cooperating with the Regional Development and EU Funds Ministry on preparing the necessary documentation.

"The reconstruction process will last for years, notably the restoration of protected cultural monuments, Zagreb's symbols, but people who have been left without a roof over their head cannot wait that long. That is why it is important to make them feel safe again, provide accommodation for those who will not be able to return to their houses and flats so soon and secure the basic living conditions for them," said Construction and Physical Planning Minister Predrag Stromar.

The government today also made a decision to send financial aid for the global fight against the coronavirus in the amount of one million euros, pledged at an international conference in Brussels on May 4.

It also forwarded to the parliament a bill on the national allowance for elderly people, which proposes that as of January 1, 2021 the national pension for people over the age of 65 who have had uninterrupted residence in Croatia for 20 years, do not have a pension and are not employed, should amount to HRK 800 (slightly more than €100).

The government also adopted a national report on the rule of law in Croatia for the purpose of making an annual European Commission report on the rule of law in EU member states.

This is a new EC mechanism, it is being done for the first time, PM Plenkovic said, adding that several ministries had cooperated on making the report.

Text: Hina



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