PM Plenkovic: It would be unconstitutional to do nothing

The bill on emergency receivership in systemically important companies is not a bill for Ivica Todoric, it is not "Lex Agrokor", it is a bill by which Croatia and the government are protecting the interests of the Croatian financial system, the economy, workers and employees of Agrokor, family farms, suppliers and all stakeholders that are currently involved in the processes connected with that biggest Croatian company, Prime Minister Andrej Plenkovic said Wednesday.

"This bill has its political, economic, financial, strategic, foreign-policy, gender equality and agricultural context. All of this is on the agenda of the government and all political parties with or without this bill," Plenkovic told lawmakers in the national parliament.

Speaking of the reasons why this bill has been proposed, Plenkovic said that once the social and market economy in democratic countries is faced with certain problems and stakeholders are unable to find a solution, the government and state institutions step in, take responsibility and try to resolve the problems at hand.

"At the same time we want to protect tax payers and all people in Croatia because (the bill) refers to systemically important companies. The bill has two fundamental criteria -- the company must have more than 5,000 employees and liabilities exceeding HRK 7.5 billion. There are not very many such companies in Croatia, but there are enough because they employ 11.5% of all workers and make up 34.6% of GDP," Plenkovic said.

Agrokor has 60,000 employees, 5,000 suppliers and 70 companies operating within the concern which are now faced with certain difficulties, Plenkovic said. "Agrokor is a privately-owned company and the Constitution and legal relations protect private ownership and freedom of enterprise, and the bill was written in accordance with the Constitution," the PM said.

"Scenario A" is taking place as we speak, Plenkovic said. "The owner and the Management Board are trying to find a solution through dialogue with interested stakeholders and the solution must include fresh liquidity. Fresh capital must be used for business operations, salaries, paying taxes and liabilities towards suppliers and towards all those relying on the business activities of our biggest company," Plenkovic explained.

The law was not written off the top of someone's head, although it was drafted under fast-track procedure, however, based on similar situations in other EU member states which reached out to special legal regimes and actively attempted to resolve the problem in the best interest of the state and for the common good.

Plenkovic said that the bill also saw to this issue having an international dimension, as Agrokor was an important in Slovenia, Bosnia and Herzegovina and Serbia.

When it comes to creditors, a private company does not ask the government where to take a loan and under what terms. Neither I, nor the government and parliament are responsible for that. These are the facts that are on the table today and we must look at them together so that the restructuring process can be sustainable and people can keep their jobs, Plenkovic said.

Plenkovic said the objective is to resolve the problem responsibly which is why the government was pushing the bill as "Scenario B" which is a safety net for Croatia's economy. He therefore called on the lawmakers to show unity and reach a consensus.

"Think very carefully if this is another topic which will cause divisions and on which our differences will come to light... This is a consensus on emergency joint actions and the assessment of the government intent to resolve the problem through joint effort..." Plenkovic said.

The prime minister called for political responsibility. "Let us try to find solutions which will be to the benefit on Croatia's economy. Let the political parties and institutions show maturity. Everyone expects that -- voters, business people, farmers, suppliers, banks as well as experts brought in to help," the PM said.

"It is up to us to act. It would be unconstitutional to do nothing and I ask you to make your contribution to the quality of this law through debates and suggestions," Plenkovic said.

Text: Hina

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