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Prime Minister Andrej Plenkovic on Wednesday underscored that the compromise of secret investigations and the revelation of surveillance measures have additionally undermined confidence in the system and added that no one in Croatia can and will be above the law.

"I expect judicial institutions to conscientiously, efficiently and responsibly execute their authority in the fight against crime and political pressure, but with the full support of the government," Plenkovic said presenting a report on the government's activities to parliament.

The state, he said, cannot be a proper support for citizens if its institutions aren't efficient, responsible and accessible to everyone. "We have to invest additional effort to professionalise public services and state institutions," said the prime minister.

Even though we are working in an atmosphere in which pessimism and defeatism are spreading, with dedicated work and gradual transformation of society, the government wishes to return optimism to the people, he said.

Macroeconomic trends turned around

Plenkovic recalled that negative macroeconomic trends have been turned around and that Croatia has a surplus, GDP is growing, employment is at a record high and the average wage has increased by HRK 710 a month.

Burdens are being relieved in the commercial sector and for citizens by as much as HRK 6.3 billion.

As of 1 January next year, he recalled, VAT will be halved on fresh meat, fish, eggs, fruit, vegetables and children's nappies, and the tax relief on earnings is also continuing.

The prime minister commended the law on emergency administration in companies of systemic significance, stating that with it, negative consequences that could have led to the Agrokor conglomerate collapsing were avoided.

One of the more important industries in Croatia, shipbuilding, is faced with problems that have accumulated over the past, he said.

"It is true that Croatia granted shipyards HRK 31.7 billion in subsidies over the past 25 years, and government guarantees of more than HRK 716 million in January enabled the Uljanik and 3. Maj docks to function for virtually the entire year," he said.

He underscored that the government is interested in shipbuilding surviving but on the principles of a market economy and in accordance with Croatian and European regulations.

He also pointed out the importance of the pension reform. "The fact that 15% of the budget goes for pensions indicates that the system is not self-sustaining and, in addition, we have an unfavourable pensioner-employed ratio," he added.

The government aims that by the end of its term, the pension system is more viable and fairer and for pensions to continue growing.

Competitiveness, innovations, digitalisation and investments

The 4th industrial revolution is here and it is based on digitalisation. The world will be absolutely different in just a few years and Croatia has to prepare for that, he added.

In global conditions like that, four words prevail that mean a lot for Croatia too - competitiveness, innovation, digitalisation and investments - because they create economic growth.

"In 2017 we attracted EUR 1.84 billion in investments, the most since 2009, and in 2018 we will have a record 2 billion euro in foreign investments, which has never been reached before in one year," he said.

In an effort to improve the competitiveness of Croatian farmers and fishermen and a more balanced rural development, the government paid more than HRK 4.5 billion in subsidies last year and HRK 9.4 billion's worth has been contracted as part of the Rural Development Programme this year.

Tourism is an important industry and accounts for one-fifth of Croatia's GDP, and following the record year 2017, we will have an even better 2018. We already have 6% more arrivals and 4% more bed nights compared to the corresponding period last year and have recorded 100 million overnight stays one month earlier than last year, Plenkovic said.

 

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