Croatia Preparing Set of Measures to Curb Inflation

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The prime minister also said they would help companies owned by local government units and entrepreneurs who are given unfavoruable gas supply contracts.

At the beginning of a government meeting, PM Plenković commented on the gas supply for the winter season, saying that the Okoli underground gas storage facility was filling up at an accelerated pace, that it was currently 68% full, and that it would be 90% full in early October, in accordance with the plan.

He announced that after the discussion they had this week, the government was planning to cut VAT on solar energy soon.

We think that in the long-term, we have to consider how to make a transition and ensure the electricity supply in the long run, and all those wanting to invest in solar panels will be able to do so without VAT, that is, VAT on solar panels will be zero percent, Plenković said.

According to him, the Ministry of Finance, the Ministry of Economy and Sustainable Development, the Ministry of Labour, Pension System, Family and Social Policy, as well as Deputy Prime Minister Oleg Butković, are working on a package of measures to curb inflation and energy prices.

We are very much aware of the difficulties which are faced by certain companies owned by local government units and businesses given the energy price rises. The situation with contracts is different … but the government has ideas for how to solve that problem in the long run and sustainably, and that will be presented within several weeks once we reach an agreement with stakeholders that have to make their contribution in that process, notably energy companies, he said.

As for the latest data on annual inflation reaching a record 12.3% in July, Plenković said that the government would hold three meetings next weeks about that — a conference call on Monday to discuss prices of petroleum products, a session on Wednesday to discuss a large package of more than 60 laws related to Croatia joining the euro area, and a regular session on Thursday.

Excellent tourist season

Reflecting on the tourist season so far, he said it had been excellent.

Since the beginning of the year, 13.1 million arrivals and 73.4 million overnight stays have been generated, which is 45% more arrivals and 32% more overnights compared with last year. In comparison with the record 2019, Croatia is currently at 90% of arrivals and 96% of overnights.

Announcements for autumn are especially good; the season lasts longer, revenues are growing, which is very good, he added.


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