Wednesday, 15 June 2022

Minister: Existing Laws Enable Builders to Ask for Increase in Price for Their Work

ZAGREB, 15 June 2022 - The current regulations enable builders to demand compensation from the client for increased costs, but the first 10% of that increase on the contracted price is borne by the builders who can seek compensation for the rise on top of that, Construction Minister Ivan Paladina said on Wednesday.

In response to questions about the direction the government will pursue in the expected decision for next week which should address the price hikes affecting construction companies, Paladina said that recognising the difference in prices does not require any annexes to contracts because contractual relations legislation already enables the contracting parties to calculate the difference in price at the request of the contractor. The methodologies for that are familiar in the construction industry, he added.

The first 10% increase in comparison to the contracted price of the works is borne by the contractor, and they are eligible to claim the rest of the difference, the minister explained.

Clients can then hire a supervising engineer, project manager or forensic expert to determine the price difference and document evidence of that price difference so that there is a verifiable audit trail, Paladina said.

Contract prices and works have currently increased by about twenty percent en masse, Paladina said.

So far, there is no estimate of how much it will cost the state to compensate builders for the price hike in construction compared to that contracted.

For more, check out our business section.

Wednesday, 15 June 2022

Milanović: Everyone is Somewhat Responsible for Inflation, I Can't Blame Government

ZAGREB, 15 June 2022 - President Zoran Milanović said on Wednesday that everyone was somewhat responsible for the record inflation rate in Croatia, which reached 10.8% in May compared to the same month last year, but that he could not blame the government for that.

"Who is responsible? Everyone in a way. I think the Croatian government isn't. I can't blame it for that," Milanović said during a visit to Sisak.

"Money has never been cheaper, yet there are no goods. Supply chains are disrupted, which was almost expected. If that was the price to rein in and beat COVID, then that’s fine. However, we will always wonder how dangerous COVID really was. There was a certain danger, it wasn't harmless, but were all these measures justified?" the president wondered.

He said that in the last 30 years we have become accustomed to being without inflation and that in this case, inflation happened spontaneously, concluding that that is "not good." He said the cause lies in large amounts of money, higher incomes and fewer products on the market, noting that the instruments available to central bankers are limited.

“Interest up, interest down. It's like treating blood pressure - you try and try and in the end, something works," Milanovic said.

He also commented on the arrest of former Petrinja mayor Darinko Dumbović, saying he was not shocked but was unpleasantly surprised if there was evidence of allegations that he had rigged business deals for his son.

For more, check out our politics section.

Wednesday, 15 June 2022

Marić: Situation is Complex, Difficult to Predict Further Inflation Trends

ZAGREB, 15 June 2022 - Finance Minister Zdravko Marić said on Wednesday that it was not easy to predict inflation trends for the rest of the year, and that new measures to mitigate its effects would be adopted depending on "developments and possibilities."

"The situation is complex and it is really difficult to predict any trends," Marić said after a cabinet meeting, commenting on the latest data from the Croatian Bureau of Statistics (DZS) on the increased inflation rate in May of 10.8% on the year, which is the highest inflation rate since the DZS has been collecting data.

Marić noted that the European Central Bank reacted a few days ago by announcing an increase in reference interest rates by 0.25 percentage points in July, and although growth will almost certainly occur in September, it is unknown how much, and it depends on further developments with inflation.

He explained that such measures by central banks are one of the main tools to mitigate the effects of inflation. However, he called for caution saying that in the current circumstances it is very important to preserve the economy's normal functioning, in terms of supply chains, as well as maintaining the employment level and GDP.

Given the further rises in energy and food prices, reporters asked Marić if there would be any new measures to help citizens and the economy, to which he replied that certain decisions would be made depending on "developments and possibilities."

There are a lot of initiatives and the government is taking everything into account, but it has to look at the broader picture all the time, Marić added.

Asked whether, due to the situation with interest rates, that could result in a significant increase in loan repayments for citizens, which, according to media reports, banks have already informed some clients about, Marić said that he personally did not receive any such notice and that was a question for the banks and the Croatian National Bank.

From talks held with the European Central Bank and the domestic financial industry, Marić concluded that, regardless of the trends leading to increased interest rates, this dynamic is "not that significant."

He explained that all those who have fixed interest rates on existing loans are de facto protected. He also said that the situation with rising interest rates should not be linked to past loans pegged to the Swiss franc.

For more, check out our politics section.

Wednesday, 15 June 2022

Croatian Clubs Learn First Champions League and Conference League Opponents

June 15, 2022 - Croatian clubs have learned their opponents in the upcoming Champions League and Conference League season. A look at what Dinamo, Hajduk, Osijek, and Rijeka have in store. 

In the second qualifying round of the Champions League, Croatian football champion Dinamo will play against the winner of the first qualifying round between North Macedonian club Shkupi and Lincoln Red Imps from Gibraltar. The draw was held in Nyon on Wednesday. 

Dinamo will host the first match, which will take place on July 19 or 20. The return match will be played on July 26 or 27. Dinamo thus avoided the Swiss champion Zurich and Slovan from Bratislava.

Dinamo will be the leader through all preliminary rounds. If they are successful in the second qualifying round, they are automatically guaranteed to play in the Conference League group stage, while entering the Champions League play-offs guarantees them the Europa League group stage. 

Later in the day, Osijek and Rijeka found out their rivals in the second qualifying round of the Conference League, while Hajduk will join the competition in the third qualifying round.

Osijek will play against Kyzylzhar from Kazakhstan, while Rijeka will play against the Swedish Djurgarden in the 2nd qualifying round of the Conference League.

The first matches will be played on Thursday, July 21, and the return matches one week later, on July 28.

This means that Osijek will play the first game in Kazakhstan, and play the return match at City Garden a week later, while Rijeka will play the first game at Rujevica.

The Kazakh championship is underway, and Osijek's rival is currently in 11th place. The Swedish Championship is also underway and Djurgarden is currently in fourth place.

Hajduk Split will start the competition in the 3rd qualifying round and learn their opponent only in July. Hajduk gathered for their first preseason training today. 

Coach Valdas Dambrauskas answered questions from numerous media representatives who came to see Hajduk at the training session held at Poljud Stadium.

"We did a good job last season, but we have to prepare for the future. Yes, we play for trophies, we play to make people happy and to have reasons to celebrate, but from today we have to talk about the next games, training, and meetings. What we have done is a part of the past. It is important for the club, but it remains in the past. We need to focus on the new season and new challenges and prepare to be in the best position to win," said Dambrauskas 

For more, make sure to check out our dedicated sports section

Wednesday, 15 June 2022

Croatian FM Looking Forward to Opening EU-N. Macedonia Entry Talks Soon

ZAGREB, 15 June 2022 - Croatia hopes that the accession talks between the Eurpean Unon and North Macedonia will be opened soon, Croatia's Foreign and European Affairs Minister Gordan Grlić Radman said in Skopje on Wednesday.

Minister Grlić Radman began a two-day visit to North Macedonia on Wednesday.

At the start of his tour, he held talks with his North Macedonian counterpart Bujar Osmani.

He will also be received by Deputy Prime Minister in charge of European Affairs, Bojan Maričić, Prime Minister Dimitar Kovačevski, Parliament Speaker Talat Xhaferi and President Stevo Pendarovski.

After the talks, FM Osmani told a news conference that Croatia was well acquainted with the developments and Skopje appreciated Zagreb's support for North Macedonia's European journey.

During Croatia's chairmanship of the European Union in the first half of 2020, a decision was made on opening the membership negotiations with North Macedonia and Albania, however, Bulgaria imposed a veto over its dispute about the identity and language of North Macedonia, and the talks have not yet been launched, said the Croatian minister adding that Sofia is being put under pressure to remove that blockade.

"We sincerely hope that the accession negotiations will soon start," said Grlić Radman who will attend Prespa Forum in Ohrid on Thursday.

For more, check out our politics section.

Wednesday, 15 June 2022

Croatia Moves Up 13 Places in Latest World Competitiveness Ranking

ZAGREB, 15 June 2022 - Croatia has made progress in all factors of competitiveness and has moved up by 13 notches to 46th place on the IMD's World Competitiveness Ranking, according to the  World Competitiveness Yearbook published by the Institute for Management Development (IMD) on Wednesday.

Denmark reached the top spot for the first time in the ranking’s 34-year history, having come 3rd in 2021, while Croatia has made the biggest leap of 13 places from 59th to 46th position.

The World Competitiveness Centre ascribes Croatia's performance also to the improvement of business climate against a backdrop of the forthcoming accession to the euro area.

The ranking is based on the survey of the performance of each of 63 analysed countries in a total of 333 criteria. Two thirds of benchmarks are based on statistical data, and a third on opinions of entrepreneurs.

Concerning the Economic Performance benchmark, Croatia ranks 32rd, after it was on the 50 place in 2021.

Croatia has moved up from 57th to 46th palce in the Government Efficiency segment.

In terms of Business Efficiency, it has reached 49th place after it was ranked 64th in 2021, and in the Infrastructure segment, it has moved up 5 places to 45th.

The opinions of the respondents (Executive Opinion Survey) shows that Croatia's biggest advantage is skilled and qualified labour force and a high level of the education system.

The acting head of the Croatian Competitiveness Council, Ivan Mišetić, says in his statement that he is happy with the great improvement made by Croatia on the ranking.

Switzerland moved down to 2nd (from 1st) and Singapore rebounded to 3rd (from 5th), says the Lausanne-based organisation.

For more news about Croatia, click here.

Wednesday, 15 June 2022

Croatia's Inflation Picks Up 10.8% in May

ZAGREB, 15 June 2022 - Croatia's prices of goods and services for personal consumption, measured by the consumer price index, this May accelerated to 10.8% compared to May 2021, according to the data released by the national statistical office (DZS) on Wednesday.

In April, the inflation rate reached 9.4% year on year. This was a record high since July 2008 when its rate was 8.4%.

"Observing the main divisions of the ECOICOP classification, at the annual level, the highest increase on average in consumer prices was recorded in the following divisions: Transport, of 19.0%, Food and non-alcoholic beverages, of 15.2%, Restaurants and hotels, of 12.1%, Furnishings, household equipment and routine household maintenance, of 11.7%, Housing, water, electricity, gas and other fuels, of 9.2%, Clothing and footwear, of 8.9%, Recreation and culture, of 6.6%, and Miscellaneous goods and services, of 6.2%," says the DZS.

"The largest contribution to the growth rate of the annual index came from the following divisions: Food and non-alcoholic beverages (+3.94 percentage points), Transport (+2.80 percentage points), Housing, water, electricity, gas and other fuels (+1.55 percentage points) and Clothing and footwear (+0.52 percentage points)."

Month on month, May's inflation rises at  1.4% rate

At the monthly level, the highest increase on average in consumer prices was recorded in the divisions Transport, of 3.0% (contribution to the growth of +0.44 percentage points, due to higher prices of fuels and lubricants for personal transport equipment), Food and non-alcoholic beverages, of 2.1% (+0.54 percentage points), Furnishings, household equipment and routine household maintenance, of 1.5% (+0.09 percentage points), Recreation and culture, of 1.4% (+0.07 percentage points), Clothing and footwear and Restaurants and hotels, of 1.1% in each group (Clothing and footwear, +0.06 percentage points, and Restaurants and hotels, +0.05 percentage points), Miscellaneous goods and services, of 0.8% (+0.05 percentage points) and Housing, water, electricity, gas and other fuels, of 0.5% (+0.08 percentage points).

For more, check out our politics section.



Wednesday, 15 June 2022

Croatia Logs 547 New COVID Cases, Two Related Deaths

ZAGREB, 15 June 2022 - In the past 24 hours, 547 new cases of SARS-CoV-2 virus have been recorded in Croatia, and two people have died, the national COVID task force reported on Wednesday.

There are currently a total of 2,098 active cases in Croatia. Among them, 151 patients are in hospital, of whom seven are on ventilators.

Since the first case recorded in Croatia on 25 February 2020, a total of 1,140,625 cases of the novel coronavirus have been recorded to date and 16,022 patients have died as a consequence. A total of 1,122,505 have recovered including 110 in the past 24 hours.

For everything you need to know about coronavirus specific to Croatia, bookmark our dedicated section and select your preferred language if it isn't English.

Wednesday, 15 June 2022

Photographs of Mato Kaić Exhibited at the Zagreb Ethnographic Museum

June 15, 2022 - An exhibition of photographs by Mato Kaić, called "Light Paintings under the Bosnian Sky", opened at the Ethnographic Museum last night. 

"The exhibition of photographs of the first Livno amateur photographer from the beginning of the XX century Mate Kaić is a continuation of the successful collaboration of the Franciscan Museum and Gallery Gorica - Livno with the Ethnographic Museum started in 2015. This exhibition is the fruit of valuable acquisitions consisting of 327 glass plates color slides), cameras with accompanying photographic equipment, and several German photography manuals. The exhibition will feature photographs with ethnographic motifs, some of which were taken in Croatia, in Dubrovnik, Sinj, and Split, and are of great importance, because they represent a heritage that can only be seen today thanks to diligent lovers of photography and the region in which they lived.'', reads the description of the exhibition.

With his photography, Mato Kaić recorded and thus preserved historical events, his companions, vanished customs, landscapes, and architecture of cities. With his camera, he immortalized the views of Split, Rijeka dubrovačka, the Sinjska alka, beautiful landscapes of Kupreško, Livanjsko polje, and more.

The amateur photography of BiH from the beginning of the 20th century has been insufficiently researched, and Kaić's legacy partly sheds light and provides a better insight into the amateur photography of Bosnia and Herzegovina from the beginning of the 20th century and proves that amateur photographers have contributed to the development of art photography in the region.

The authors of the exhibition are Ružica Barišić and Željka Markov, senior librarian and manager, and museum advisor and curator at the Franciscan Museum and Gallery Gorica - Livno, reports Večernji List. The curator of the exhibition is Iris Biškupić Bašić, museum advisor of the Ethnographic Museum.

The exhibition was realized in cooperation with the Franciscan Museum and Gallery Gorica - Livno, and is held under the auspices of the Central State Office for Croats outside the Republic of Croatia. The project was made possible by the Ministry of Culture and Media of the Republic of Croatia, the City of Zagreb - City Office of Culture and the Livno Community - Zagreb.

For more, check out our lifestyle section.

Wednesday, 15 June 2022

Zagrebačka Pivovara Invests HRK 64 Million in Technologically Advanced Line

June 15, 2022 - Zagrebačka pivovara has invested a total of HRK 64 million in a technologically advanced line for filling and packaging cans.

The investment in a technologically advanced line will fully satisfy the constant growth of market demand for canned beer in the Zagreb production plant, further increase the company's sustainability, the competitiveness of domestic production, and offer consumers new formats and multipacks of cans. It is part of the large investment cycle of Zagrebačka pivovara in the expansion of production and storage capacities with which the leading Croatian beer producer is celebrating its jubilee year and the 130th birthday of the company.

''As a market leader, we are celebrating our celebratory year with numerous gatherings with loyal consumers and large investments that will enable an increase in production capacity. The introduction of state-of-the-art technology will make it easier for us to protect the quality of the finished product, and enable us to increase the competitiveness of Zagrebačka pivovara on the FMCG market and within our Molson Coors Group. With the newly installed can line, we will fully meet the required filling capacities to meet the increased needs of the market. Congratulations to the team on the realization of this great project, but also on the 130th anniversary, we are taking great steps forward.", said Miroslav Holjevac, President of the Management Board of Zagrebačka pivovara.

The total investment of HRK 64 million relates to new equipment for filling and packing cans and construction work that was needed to adjust the production plant in Zagreb's Ilica 224 for the installation of a new line. Namely, due to limited space, the new line for cans is distributed on as many as four floors, which makes it unique in this production plant. The introduction of state-of-the-art technology with the new can filling line significantly reduces both energy consumption and the company's carbon footprint on the environment. Sustainable development is one of the priorities of Zagrebačka pivovara's business.

“We invested in the new can filling line last year and in the first half of this year, and we found a project partner in a long-standing and reliable partner, the German company Krones, one of the largest suppliers of packaging equipment in the process industry. In just two months, the teams of Zagrebačka pivovara and Krones have put together a lineup for its functional commissioning. It was demanding, but we are very proud of the result.", said Dubravko Tome, director of production and logistics operations of Zagrebačka pivovara.

Numerous distinguished guests gathered at yesterday's celebration of the 130th birthday of Zagreb Brewery and the presentation of the investment, including the Mayor of Zagreb Tomislav Tomašević, Deputy Mayor Danijela Dolenec, Canadian Ambassador Alan Bowman, Czech Ambassador Milan Hovorka, US Head of Mission in Croatia Mark Fleming and many others.

Mayor Tomislav Tomašević congratulated all the workers and the entire Management of Zagrebačka pivovara on the 130th anniversary of its existence. He especially praised investing in new investments in these challenging times. "I believe that this investment will not only increase production, but also provide new jobs, and the City of Zagreb will always be a partner in such investments.", said Mayor Tomasevic.

The entire investment cycle of Zagrebačka pivovara is planned for the next two years, followed by a major investment in the modernization of the line for filling returnable glass bottles, which will further increase productivity and diversify different bottle formats.

For more, check out our business section.


Page 15 of 3600