Thursday, 29 October 2020
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Croatian government to introduce number of reforms to help ailing economy

By  Aug 29, 2020

The Croatian Government's autumn package of measures to alleviate the crisis includes subsidies for a shorter working week, the renovation of schools and hospitals in Zagreb, but also the suspension of wage growth in the public sector, writes Jutarnji list.

Citing urgent steps to save the economy, the newspaper points out that the government will help activities in tourism, catering, transport with co-financing of 2,000 Kuna per worker for a shortened working week.

Favourable loans for entrepreneurs are also planned, and Hamag-Bicro and HBOR will continue to provide loans with interest rates of 0.25 percent to maintain company's liquidity.

Croatia also has at its disposal 6 billion Euros in grants that can be used for various projects. The funds will also be used for the reconstruction of schools, health and cultural facilities after the earthquake in Zagreb.

In addition, a new tax reform will take effect on January 1, reducing the income tax rate from 24 to 20 percent and from 36 to 30 percent, as well as the income tax from 12 to 10 percent for income-generating small and medium-sized enterprises up to HRK 7.5 million.

Negotiations with the unions on the (non) increase of salaries are also planned. According to Jutarnji list, the government wants a compromise to either freeze the salary increase until the GDP starts to rise or for the increases to be smaller.


The Voice of Dubrovnik


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