February the 23rd, 2023 - The Croatian labour market is no stranger to lacking when it comes to getting the staff, and it is now proposing certain solutions to the fact that it is currently missing workers for around 28 different professions.

As Poslovni Dnevnik writes, owing to the chronic lack of workers with the necessary skills on the Croatian labour market, the European Commission (EC) declared 2023 the year of skills. An entire spectrum of occupations is lacking in the area of Dalmatia, with a struggle to find employees in almost every field from construction to tourism. One of the solutions is retraining, writes HRT.

Irena Radic from Komiza is one of the sixty participants of the pottery and ceramics workshop. After thirty years of working in a store, she decided to take a different direction.

"It's about retraining the production of souvenirs for our Komiza, today everything is focused on digital skills, but I think these skills should be developed as well," she believes.

"People come to us - some because it's just something they want to do for pleasure, but some people come because they want to take on new jobs. There are no rules when it comes to which genders approach us, and men and women come here," said Sandra Sumic, the head of a pottery and ceramics workshop in Split.

Only 37 percent of adults regularly attend training, and the representative office of the European Commission in Croatia, in cooperation with the Europa Direct Centre in Split, pointed out the problem through the holding of various different workshops and lectures.

"The whole of Europe is facing a labour shortage, both with highly qualified and lower professional qualifications. Three quarters of employers in the EU are coping with difficulties in finding labour both in Croatia and elsewhere in Europe," said the deputy head of the European Commission's representation in Croatia, Andrea Covic Vidovic.

"The Croatian labour market is lacking in tourism and healthcare workers, and that's why in the last two years, we have opened courses for nurses and we also have a competence centre," said Blazenko Boban, the Prefect of Split-Dalmatia County.

Back in 2021, there was a shortage of workers on the Croatian labour market for as many as 28 professions!

"This issue spans the whole spectrum of occupations, from construction, personnel such as carpenters, masons... and on the other hand tourism workers, cooks, bartenders... That's why we're constantly organising retraining and training sessions," said Marin Kanajet from the Croatian Employment Service's (CES) regional office in the City of Split.

"We have an institution that deals with lifelong training. We'll also strengthen this and we have to educate our people, not only the young, but also the elderly, because artificial intelligence (AI) is taking over jobs and that's why they need to be retrained for something else," said the mayor of Split, Ivica Puljak.

Undoubtedly, training and retraining are a big step in business across the European Union as a bloc, and these are issues which stretch far beyond the Croatian labor market.

For more, make sure to check out our news section.

February the 15th, 2023 - Despite the economic crisis that we're still stuck in owing to not only the negative effects left behind by the coronavirus pandemic but also the ongoing war in Ukraine, the Croatian labour market is coping well. There's even been a considerable drop in the unemployment rate.

As Poslovni Dnevnik/Suzana Varosanec writes, it's to be expected that the start of seasonal employment will break the trend of the increase in the number of unemployed people on a monthly basis, as it always does each and every year. In January, 122,369 unemployed people were registered with the Croatian Employment Service (CES), meaning that on a monthly basis, the number of registered unemployed persons continued to grow for the fourth month in a row. Compared to December, it increased by 4553 or 3.9%.

However, at the annual level, as RBA analysts point out in their analysis, the downward trend that began back in April 2021 has continued, and compared to the same period in 2022, a decrease of 8,624 persons or 6.6% was recorded.

"Compared to January 2021, the number of unemployed people registered at the CES is lower by 42,976 people or 26%, while compared to January 2020, it's lower by 17,555 people or 12.5%. This is a reflection of the recovery of economic activity after the coronavirus pandemic, but also of generally positive trends across the Croatian labour market, which has been reflected in the improvement compared to the period before the outbreak of the pandemic," the analysis states.

Under the influence of these processes, the Croatian labour market is active and the demand for workers definitely hasn't decreased, and according to RBA analysts, the lack of labour in certain industries is also reflected in the increase in the number of workers coming into Croatia from third countries.

According to the Institute's data, the number of received applications for residence and work permits for foreign (non-EEA) workers in 2022 stood at almost 130,000, and 109,241 were granted by MUP. During January, 12,653 applications were received for 163 occupations, and the most requested were from the construction industry. Most of the requests received came from the City of Zagreb, followed by Istria and Split-Dalmatia counties.

However, reliable statistics on the total number of workers from third countries don't yet exist, so we can only talk about estimates, the analysis emphasises. Economist Damir Novotny has drawn attention to the fact that it isn't a question of the general robustness of the Croatian labour market, but of the sectoral one, because the Croatian labour market is quite shallow and there's a big difference from sector to sector, as well as territorially, so one type of trends applies to Adriatic Croatia, and the other for the continental part of the country, and especially for the City of Zagreb.

"The whole of eastern Slavonia has a weak offer of jobs spanning all sectors, while Istria has a trend of immigration because it has a very strong offer of jobs in the tourism sector, but also in the accompanying activities that supply it with food and various services, which is why Istria is the most developed Croatian region after Zagreb,'' explained Novotny.

Of the total number of unemployed registered back in January, 12,996 (77.1%) came from previous employment, and the most common reason for their job termination was the expiration of a fixed-term employment contract (52.4%). Back at the end of January, there were almost 28,000 vacancies, which is 77.5% more than there were back at the end of 2022 and 5.3% on an annual basis.

According to RBA analysts, the Croatian labour market is continuing to show very strong resistance to unfavourable economic and geopolitical trends so far in 2023 - this is a characteristic of the entire EU, which is contributed to by the already present labour shortage. In the coming months, they expect the continuation of positive trends, but at a lower intensity due to the slowdown in economic activities.

Novotny notes that tourism, despite the global slowdown in economic activity, will continue the strong growth that began last year as new capacities are opened and investments are being made, and this is similar to the construction sector, which is facing an investment cycle funded by the EU. Processes on the Croatian labour market in the upcoming period will also continue to differ greatly from sector to sector.

For more, make sure to check out our dedicated news section.

February the 10th, 2023 - Croatia is among only three European Union (EU) member states to have actually improved its budget balance when compared to the pre-pandemic year of 2019.

As Jadranka Dozan/Poslovni Dnevnik writes, the energy crisis and ongoing high inflation has forced the national governments of the majority of EU member states to implement various generous packages of fiscal incentives, from various subsidies and one-off benefits to reductions in VAT rates. As rising inflation followed the coronavirus pandemic, some enacted as temporary measures until coronavirus no longer pised an economic threat were prolonged, and some new ones were also introduced, primarily related to energy and food.

For many of these measures, which were conceived as temporary as mentioned above, the deadlines finally expire in the next few months, and among them are the shock absorbers that the Croatian Government introduced for gas and electricity prices in the spring and autumn package of measures last year. As things stand, it's realistic to expect new prolongations throughout the EU as a bloc, in the same form or with some modifications. The global overviews regularly published by the VATcalc portal, specialised in VAT, are also on that same track.

Belgium, for example, has already converted last year's temporary VAT reduction from 21% to 6% into a permanent one for electricity, natural gas and other supplies in heating systems, and excise tax reforms have also been announced. Under the influence of double-digit inflation, Greece extended their reduced VAT rates on certain goods from 24% down to 13%, which is already the fourth extension of the temporary rate reduction introduced during the coronavirus pandemic. Currently, the duration of this measure is planned until the middle of this year.

At the same time, already this fall, the German Government, along with the introduction of temporarily reduced VAT rates on gas (from 19% down to 7%) until the end of March 2024, also extended the application of the lower VAT rate for catering and hospitality establishments for the second time. From the end of 2022, it was extended until the end of this year.

Although statistics suggest a slowdown over the last two or three months, inflation is simply still very high. Last year, 16 out of a total of 27 EU member states ended the year with double-digit rates (in Hungary, Lithuania and Latvia, they were above 20%), and almost as a rule - wage growth trotted quite far behind the rising prices. Very soon, the Croatian Government will also announce a new framework or a possible extension of the measures regarding electricity and gas prices.

At the end of next month, the deadline for applying the lowest VAT rate of 5% to natural gas deliveries, for which as part of last year's April package of measures for Croatia, the rate was permanently reduced from 25% to down 13%, and exceptionally temporarily - down to a mere 5%.

As part of Croatia's autumn package, a scheme was designed to limit or mitigate the rise in electricity prices for households, the public and non-profit sector, and enterprises, also with the now looming date of March the 31st, 2023 as the expected deadline. It remains to be seen what the solutions will look like from April on, i.e. whether the 5% rate for gas and the existing price limit model for electricity will only be left as it is until a new deadline is drawn up.

However, given the drop in standards (despite nominal growth, the average salary in Croatia has fallen by 5% in real terms over the past year), as well as the fact that an election year is coming, it is easy to assume that issues related to peoples' living standards will gain additional importance. This also facilitates a better state of public finances compared to recent expectations. According to the latest consensus forecast by FocusEconomics, until recently, analysts expected a deficit of around 2% of GDP in 2022. However, it seems that the beneficial effect of inflation (especially with a good summer tourist season) on filling the budget was significantly stronger.

More specifically, in a weekly overview of selected economic and financial topics, the chief economist of the Croatian Association of Employers (HUP), Hrvoje Stojic, stated that Croatia "had returned to the budget surplus zone, namely 1.1% of GDP in the consolidated general government budget". This ranks Croatia among only three EU member states that have improved their budget balance compared to the pre-crisis year of 2019.

Admittedly, the surplus in the budget is primarily highlighted by HUP within the wider context of the question of the expediency of introducing an additional income tax and the generally high tax burden compared to the rest of the EU.

For more, make sure to check out our dedicated news section.

January the 26th, 2023 - Alright, this title is slightly misleading because we've needed Croatian pension and wage growth for a very long time now, but after becoming a full Eurozone member state, it's high time that we saw the numbers in our bank accounts go up, even just a little bit.

As Poslovni Dnevnik writes, recently, there have been signs of inflation finally stabilising after a certain drop in electricity and gas prices was duly noted, but despite that, in general prices are still high, and Croatian living standards are falling, which is why Croatian pension and wage increases are now more necessary than ever.

These are just some of the conclusions reached as part of the recently held "Eurostands - Perspectives and challenges" in the City of Zagreb. The head of the Independent Croatian Trade Unions, Kresimir Sever, reiterated that subjective inflation is still being very much felt by most of the country's households and is significantly higher than official statistics. He said because of that, Croatian pension and wage growth is necessary. On the other hand, the chief economist of the Croatian Association of Employers (HUP), Hrvoje Stojic, said that HUP members have seen their employee salaries rase above the national inflation level.

Stojic also noted that the wider Eurozone's economy will experience a certain strong slowdown throughout 2023, during which there will be a "cooling" of aggregate demand, but he added that inflation could be up to two percentage points lower compared to the estimates provided back at the end of 2022.

He believes that due to the unusually mild winter we've all been experiencing, the whole of Europe could avoid dipping into the expected recession in 2023, but also that there is an option to simply "postpone" it to the second half of this year, or even until next year. Professor Marijana Ivanov of the Faculty of Economics warned that inflation reduces the real value of everything we own, and that we need to keep paying attention to the trends.

However, it is positive that there are still no risks of unemployment growth in the Croatian economy, but the general standard of living in slipping.

''Croatian living standards are decreasing, but somehow we're managing despite all of the current challenges," she concluded.

For more, make sure to check out our dedicated news section.

January the 14th, 2023 - Croatian wage growth has been most visible in the companies which typically pay out the lowest salaries to their employees over the last year.

As Poslovni Dnevnik writes, as many as 60% of respondents of the Mojaplaca (MyWages) service have a lower salary than the average Croatian net salary, but last year, a higher growth of lower-ranked salaries compared to higher-ranked ones was also observed.

According to data from the MojPosao (MyJob) portal, the net salary including salary supplements throughout 2022 increased by 5% compared to the previous year, standing at 7,522 kuna (998 eutos), while the median salary of 7,000 kuna (929 euros) also saw higher growth, more specifically of 8%.

"Compared to the previous year, salaries grew the most within those companies which pay out the lowest salaries, that is, in the smallest; an average of 6%, while in large companies compared to 2021, Croatian wage growth stood at 4%", they stated in the analysis, which highlights significant differences in the salaries taken home by workers depending on a number of different factors.

There has been slight increase in the number of workers to whom their employer also provides certain benefits, most often reimbursements for travel expenses and public transportation costs, a mobile phone for personal use and a hot meal, which has the highest growth. Employers have been covering the costs of private pension insurance less often, however.

"Education and experience bring with them a higher salary, just like everywhere. Employees with a postgraduate degree or a business school (MBA) have an average 63% higher take home salary than the average,'' they stated, adding that studying is worth it because people with higher education diplomas have around a 17% higher salary than the average.

The highest average salaries were recorded in the City of Zagreb (11% above the national average), and the highest paid occupations are those in the field of technology and development (+78%), information technology (+38%) and telecommunications (+17%).

For more on Croatian wage growth and the domestic economy, make sure to keep up with our dedicated news section.

November the 28th, 2022 - The Croatian economy is slowing down, with a recession more than likely to come knocking at Croatia's door in 2023, at least according to some experts.

As Poslovni Dnevnik/Ana Blaskovic writes, forecasts that the Croatian economy will have its "handbrake" pulled as the end of the year approaches have begun to come true. After experiencing impressive growth of 7.8 percent in the first and 8.7 percent in the second quarter of this year, the annual domestic GDP growth rate in the third quarter stood at 5.2 percent. Although there have been strong quarterly dynamics, certainly among the better ones in Europe, the problem is sliding downwards. Seasonally adjusted data shows that compared to the previous quarter of 2022, growth slowed by 0.4%, suggesting that the Croatian economy entering a difficult and uncertain 2023.

The all important three months of summer show the positive contribution of all components, at least when it comes to the domestic component. As expected, personal consumption with +5.6 percent and investments with an increase of 8 percent lead the way, while the state's contribution was a slightly positive 1.3 percent. The negative contribution to growth came only from net exports, as imports with a 30.5 percent increase exceeded exports with a 30.5 percent increase, but this is nothing unusual when tourism demand is booming.

While the quarterly growth figures outline an excellent tourist season, some will note that real GDP expectations were even higher if the precision of inflation coverage is taken into account. In other words, if the real price rise is to be assumed to be higher than what government statistics manage to capture (given the changes in behaviour and consumption patterns that go hand in hand with a prolonged period of high inflation), the GDP growth rate could have been better.

This year, summertime optimism and tourist euros that place an alluring but perhaps not quite accurate shine on the Croatian economy's results, can't camouflage the echoes of the fall in industrial production, retail sales and construction at the quarterly level. This year, the Croatian economy will draw the line under that previously rather reassuring GDP growth of 5 to 6 percent.

At the same time, there is more and more irrefutable evidence that out-of-control inflation is dangerously eroding peoples' purchasing power, narrowing the room for maneuver for companies to amortise cost shocks and shut down orders, meaning that a real recession is increasingly likely to be knocking on Croatia's door in 2023 as well, even without the further escalation of the war in Ukraine and the spiralling energy crisis.

For more, make sure to check out our dedicated news section.

November the 26th, 2022 - Following a three year break, most of which was dominated by the coronavirus pandemic, the Croatian-Chinese economic forum made a return to Zagreb recently.

As Marija Brnic/Poslovni Dnevnik writes, after being stricter than most of us here in Europe could ever even begin to imagine, China has announced new, slightly milder anti-epidemic measures, which due to the strict policy of "zero cases" have so far meant the absolute closure of the country to foreigners. Tourists still cannot enter China, but in order to mitigate the negative effects on the economy, China is opening up for representatives of multinational companies and of course - for foreign investors. At the same time, state banks will stand more strongly with local companies and China is once again starting a proactive campaign on numerous foreign markets.

As such, the Croatian-Chinese economic forum was successfully held recently here in the City of Zagreb, where about fifteen different Chinese companies conducted business B2B discussions with various Croatian companies. The last time such talks were held exactly three years ago, also here in Zagreb. Chinese companies' interest in doing business in Croatia has only grown after Croatia joined the EU back in summer 2013, and twenty Croatian companies have expressed interest in engaging in direct talks with Chinese businessmen. Mostly, on both sides, we're talking about companies from the agriculture and food industry, as well as those from the IT, energy, and tourism and real estate sector.

Some of the Chinese companies have chosen the Republic of Croatia as a location for their projects here in Europe, specifically Hainan Nanhai Blue Capacity Economic Development, a large economic system operating in various sectors from agriculture, electrical industry to high-tech manufacturing and shipbuilding. In Europe, namely, the company plans to start agricultural production in three countries - in the Czech Republic, Poland and here in Croatia, and the more specific goal is the production of animal feed, meat and meat products.

The company Xi'an TianLong Science and Technology offers cooperation in the research, the development and production of instruments and in vitro diagnostic reagents in the field of genetic testing and molecular diagnostics, and the company BGI Genomics, which operates in an impressive 100 countries, wants to directly establish cooperation in Croatia with medical and scientific institutions for the placement of their technology and research related to genomic sequencing. COFCO International, as a global platform of the Chinese food industry, wants to achieve cooperation in agriculture, forestry and fishing in Croatia.

Anshan Xingong Construction is a Chinese company engaged in the production of building materials, and it is currently examining the possibility of cooperation, and the possibility of overseas transport of heavy cargo with Croatia is being sought by representatives of the Chinese-Polish Joint Stock Shipping Company. Cooperation in the energy industry is being offered by CHINT Noark Electric, which markets its advanced solutions in 140 countries around the world. Ningbo Sanxing Smart Electric also wants to enter the Croatian market with its highly advanced solutions for electricity distribution and use systems, from smart metres, transformers and substations to chargers for electric vehicles.

The Croatia-Chinese economic forum also included representatives of the very well known Huawei Croatia, who want to strengthen their cooperation in the ICT infrastructure industry, and the company Shaanxi Zhongtuo Mine Equipment, which specialises in the development and sale of equipment in the construction of bridges, highways and tunnels, is looking for partners and representatives for the Croatian market.

The largest manufacturer of ball bearings, Xibei Bearing, also wants to explore the Croatian market. Imports from China have been growing strongly this year (amounting to a massive 889 million euros in the first eight months of 2022 alone) and greatly exceed Croatian exports (which weigh in at 62 million euros), which are dominated by raw materials and less processed products such as wood (making up almost 40% of exports) and marble and limestone, as well as construction carpentry. As for Chinese investments in Croatia, they amounted to 179.5 million euros back at the end of 2021.

For more, check out our news section.

November the 23rd, 2022 - The price of meat has shot up across Croatia, and this Croatian item is edging closer and closer to becoming somewhat of a luxury product. Here are the main reasons why.

As Poslovni Dnevnik writes, the ongoing global crisis and bad domestic policy decisions led to a weakening of domestic production and less availability of meat products to Croatian customers. The result of this set of deeply unfavourable circumstances led to a significant increase in the price of meat, which could soon become a luxury Croatian item, reports DW.

The meat industry here in the Republic of Croatia is facing ever-increasing problems, and with it so are meat consumers, who are needing to fork out ever-higher prices to purchase meat. The cost of fattening cattle up in Croatia has doubled this year, meaning the cost of production in Croatia is at the very top of the European Union (EU). The situation is worse only in the Baltic countries of Latvia and Lithuania.

At the same time, Croatian imports of pork have more than doubled since the time before Croatia joined the EU back in July 2013. With regard to the entire production chain, the sector was also affected by the closure of the Petrokemija fertiliser factory in Kutina, according to Deutsche Welle.

The cause of this situation is not only the global crisis...

"Not only is it imported, but it's also encouraged by part of the support system in agriculture, already years ago. This endangers the development, but also the very survival of domestic animal husbandry, especially when it comes to pig and cattle breeding,'' says agricultural analyst and former producer in animal husbandry and dairying, Miroslav Kovac. He warned of the poor state of domestic cultivation, along with the establishment of the internal market and the disposal of important agricultural land.

"There's no state, no system, no people, nobody that is ready to withstand the pressure of lost values ​​like what has happened here in Croatia. The domestic population of pigs and cattle has been destroyed, in the long term, obviously, by bad political decisions, without a clear goal in space and with people, most often guided by "fireman's" logic. Dependence is increasing, and the price is increasing along with it. The biggest misfortune of all is the decimation of breeders and the obliteration of their logic of development," Kovac added.

"When will we stop sawing the branch we're sitting on?"

According to Kovac's beliefs, the public's attention shifted from the need for quick solutions here in the Republic of Croatia to the problems faced by importers. In the long run, this isn't at all good for the individual, nor for the Croatian economy as a whole: "How long will it take for us to understand the logic of the functioning of organised countries in this particular segment and stop sawing the branch we're sitting on?'' he asked.

"If we continue doing what we were doing before, the prices will rise across the entire supply chain, and even faster here, and the difference in price aside from business profits will melt away. Here, however, the current practice of emergency and partial interventions costing millions at the expense of the state and EU budgets will not help us, as it has never been the case before. I emphasise the logic of the development and preservation of the domestic economy, and now it's also in the wider context of the EU, and by no means is any of this only of individual interest,'' warned Kovac.

"Croatian agricultural policies are to blame"

Kovac has previously criticised Croatian agricultural policy due to the apparent stagnation of the sector. At the same time, neighbouring EU members Slovenia and Hungary are taking a number of quality steps forward, which have raised their production to quite an enviable level. Of course, there's also a jump in prices to take into consideration, but domestic production is in much better condition, with fewer imports and costs borne by local customers.

"Having run out of raw materials from domestic sources, problems with prices will spill over to consumers, who are the ultimate payers, including the value added tax that is charged on top of everything and isn't negligible for a long time,'' explained the analyst.

The news from the Croatian agricultural sector is somewhat dramatic: this autumn, according to Eurostat, the price of chicken in Croatia rose by 35.5 percent compared to the same period last year, while the EU average stood at 26.7 percent. It must be expressed that this refers to the placement of meat in sorted categories, while the Croatian Government capped the price of a whole chicken to just 24.99 kuna, along with products in some other meat categories.

Is Croatia condemned to imports?

Overall, the price of meat has risen significantly, seeing it become closer than ever to a luxury Croatian items. As a result, demand decreases, which in turn leads to further price increases. We can't even influence some factors, for example, the import of artificial fertilisers that came from Russia. Urea from Russia was sold in Croatia at a price three times higher than it was last year, when the Croatian market still had domestic products of this type of its own. Condemned to imported goods, Croatian farmers reduced their consumption of fertilisers, and consequently their yields. Because of this, some have already given up meat production and switched to arable farming or left the sector of agriculture altogether.

What do the manufacturers think about everything?

How the situation looks from that angle was explained by one of the largest producers in all of the Republic of Croatia - the Pivac Group. Today, too, they primarily point out that, due to market disturbances, their input production costs are constantly increasing. 

"Our production has risen in price by more than 30 percent this year alone, and due to inflation and the energy crisis, the increase in input prices will be a challenge in the future as well," the president of the group, Ivica Pivac, revealed. He emphasised that, when it comes to basic raw materials, their strategic focus on their own livestock production proved correct. However, the increase in animal feed prices by more than 80 percent influenced a significant increase in costs in this segment of production as well.

Uncertain market opportunities

"Although all of our input costs have increased, we constantly strive to minimise the impact of market disruptions on our end customers. However, unfortunately it wasn't possible to avoid price corrections. Otherwise, we'd be calling the sustainability of our production and supply into question," said Pivac.

Compared to last year's prices in Pivac stores, the current price of certain cuts of pork has increased by 18 percent, and when it comes to their most popular product, prosciutto, its price has increased by 20 percent. "Uncertain market conditions make it difficult to project price movements, however, we're going to continue to do everything we can so that the increase in input costs affects our customers as little as possible,'' assured Ivica Pivac, emphasising that for his company "when planning business, the focus remains on investments in self-sufficiency, production capacities and human resources,'' but it is still not known whether this will be enough to amortise the crisis stress for consumers and stop meat becoming a luxury Croatian item which is simply not affordable to some.

For more on inflation and increases in the cost of living in Croatia, keep up with our news section.

November the 14th, 2022 - Every fifth Croatian resident is living on the very edge of poverty as inflation continues to spiral and prices stay firmly on their upward trajectory. 

As Poslovni Dnevnik writes, The World Day of the Poor was marked just yesterday, having initially been established by Pope Francis six years ago with the message - "We do not love with words, but with deeds". 

Here in this country, every fifth Croatian resident is at risk of falling below the poverty line, and the situation is further aggravated by growing inflation, which is why more and more people need help. On this occasion, Caritas organised a lunch and assistance for those most in need. The economic crisis and rising inflation has pushed many to the brink of poverty, and it's more than likely going to get worse before it gets better, writes HRT.

"We are also noticing an increase in the number of younger families in which one member of the household works, but they do not have enough funds to cover all their financial needs and obligations throughout the month," emphasised Jelena Loncar, the director of Caritas of the Zagreb Archdiocese.

Caritas employees and volunteers are ready to help those who need it with full hands and open hearts. Those who take care of the poor every day prepared a hot meal in Rijeka as well. The "Ruže sv. Franje" homeless shelter shockingly has almost has no free beds, and knocks on the door of the social self-service centre are becoming more and more frequent.

"We have very good support from our fellow citizens, they respond to all our actions. We manage to fill our shelves and that's actually all the joy of sharing and giving," emphasised Nela Pujic, a volunteer of the social supermarket and at the aforementioned homeless shelter.

As stated, every fifth Croatian resident is now at real risk of falling below the poverty line, and there is an extremely fine line between that and homelessness.

For more, make sure to keep up with our dedicated news section.

November the 12th, 2022 - Croatian Schengen entry which is set to take place on the same date as Eurozone accession (on the 1st of January, 2023) was given the green light by the European Parliament very recently. It is set to give the domestic economy a much needed boost.

As Poslovni Dnevnik/Ana Blaskovic writes with the convincing support of the European Parliament, Croatian Schengen entry is now another significant step closer, and the final green light for the complete abolition of border crossings between Croatia and the rest of the European Union should be given by the Council of the EU at the beginning of December.

If it achieves this goal along with Eurozone accession, Croatia will further deepen its integration into the bloc and facilitate business and trade with European Union markets at the beginning of next year. It also all represents a very strong political message from the powers that be in Brussels.

At the plenary session of the European Parliament in Brussels on Thursday, Croatian Schengen entry was formally supported by a large majority. Of the 612 parliamentarians who voted for the draft decision of the EU Council, 534 voted for, 53 against, with 25 abstentions.

"Schengen has been waiting for Croatia. The Croatian people have been waiting for Schengen and now that moment has finally arrived," said the Parliament's reporter for Croatia's entry into Schengen, Paolo Rangel.

"Combined with the entry into the monetary union, this is going to represent a positive shock for the economy. The monetary union is not just a replacement of a country's currency, as is unfortunately often emphasised in the Government's own campaign, but an entry into a new institutional framework that gives investors a clear signal that we're now part of a unique space, significantly more complex than it was in previous crises. The differences between Croatia, Austria and Slovenia will be based on other factors in the future, such as logistical ones, and Croatian Schengen entry removes logistical obstacles," explained economist Damir Novotny, adding that, for example, a potential investor can now weigh up their investments, counting on the fact that there will be no more waiting at the border and related costs.

The report of the European Parliament, which previously passed the committees so that the final vote can actually be a formality, stated that all of the criteria have now been met and that there are no obstacles to Croatia becoming a full member of the Schengen area which is totally devoid of internal (passport) controls.

It is important to note that the role of the European Parliament regarding the issue of Schengen expansion is advisory in nature and not binding, but it is an indispensable step of the procedure that requires EU member states to request the opinion of the Parliament.

After meeting the technical conditions and the recommendation of the EP, the final decision is political and will be made by the 22 EU member states that make up the Schengen area, which is expected to happen at the session on December the 9th, 2022.

The fact that the ticket to the club of member states of the European Union without borders comes despite criticism of the behaviour of the Croatian police at the borders towards migrants and illegal "push backs", and illustrates the strength of political support for Europe in the face of the war in Ukraine.

Videos brought to light by the journalist organisation Lighthouse have showcased beatings and mistreatment of migrants on the border between Croatia and Bosnia and Herzegovina by Croatian police. This and similar reports apparently caused consternation, but the Schengen accession process was not seriously shaken by any of it.

For more, make sure to check out our dedicated lifestyle section.