Employers’ Association Demands New Measures to Save Croatian Economy

Lauren Simmonds

The Croatian Employers’ Association (HUP) has demanded a new set of measures be implemented by the government to rescue the Croatian economy. They claim, among other things, that mere payment delays are far from enough.

As Novac writes on the 29th of March, 2020, HUP’s chief executive Davor Majetic said: ”Continuing on from the GSV session held on Friday, the Croatian Employers’ Association reiterates the need for the Government of the Republic of Croatia to urgently adopt new measures to save the Croatian economy on the principle of “zero income, zero expenditure,”

HUP, as he claims, has repeatedly “clearly and unambiguously stated to those in power and to the public what they have been demanding on behalf of businesses and employers”, which is a write-off of all fees, contributions, para-fiscal levies, various redundant membership fees, and just not delays needing to pay those things.

”We’re seeking that urgently! We can talk about delays during the ”post-corona” period, not now when a large number of Croatian companies don’t know if they will even exist next month,” HUP stated, warning of the grave threat to the Croatian economy.

In addition, they said they expect a high level of accountability, fact-finding and argumentative debate from all stakeholders in social dialogue, and not merely the “cheap populism that is now appearing in the media by creating distorted personal impressions such as insinuating that HUP is seeking pay cuts for healthcare professionals and other falsities,”

HUP reiterated the measures that should take absolute priority and drew attention to the fact that they have created a whole series of measures and recommendations for all sectors of the economy and that they expect that politicisation will cease at this extremely difficult time for the Croatian economy.

”Immediate realisation and determination is what we need now. If we lose time, we lose the Croatian economy. If we lose the economy, we will lose the country,” said Majetic.

Here is a list of everything that HUP is asking of the Croatian Government and what they have proposed so far:

1. On March the 3rd, we proposed to the Government a measure to preserve jobs, which would pay support on a part-time basis as a proportion of the amount of wages for the number of hours that a worker doesn’t work

2. During business inactivity, employers cannot pay contributions and taxes with delay, the state must write off all of those fees

3. It is necessary to suspend the payment of all mandatory membership fees and charges for the duration of business inactivity and the suppression of coronavirus

4. It is necessary to write-off payments to LSGs

5. The total abolition of all other taxes and fees for concessions during the crisis needs to happen, not just delays

6. The reduction of the corporate income tax rate and the deferred payment of corporate income tax advances

7. The abolition of the payroll obligation/prescribed annual basis for directors

8. The obligation to pay VAT on paid realisation starting on March the 1st, 2020 for deliveries that followed after March the 1st, 2020 must be introduced

9. The suspension of foreclosures on tax payments during a state of emergency must be introduced

10. Credit reprogramming and refinancing must take place

11. The international flow of goods must be ensured

12. There must be a declaration of force majeure

13. A delay of deadlines for the submission of reports, forms and final accounts due to difficulties caused by the pandemic must be introduced

Make sure to follow our dedicated section for rolling information and updates in English on coronavirus in Croatia. Follow our business page for more on the Croatian economy.


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