April 24, 2020 – An English translation of the Glas Poduzetnika recommendations to Croatian Prime Minister Andrej Plenkovic.
Government Of The Republic Of Croatia
Trg Sv. Marka 2, 10000 Zagreb
Attn: Mr. Andrej Plenkovic, Prime Minister
Dear Prime Minister,
After the publication of the first set of measures proposed by the Government of Croatia, we started the initiative Glas Poduzetnika. The initiative brought together more than 100,000 entrepreneurs, self-employed, and employees in the private sector in less than 15 days of activity, and received a lot of media attention with its precise demands and appearances. Glas Poduzetnika established its position as a relevant factor in public discussions related to the determination of the new economic direction of Croatia thanks to enthusiasm, persistence, expertise, and commitment. The Government of Croatia has also confirmed its position by including some of the initiative’s suggestions in their April set of measures. Some Ministers commended the recommendations and the attitude of Glas Poduzetnika in their public appearances that the Government took into consideration. And this is how we continue to move forward. At the request of the members, the initiative was formalized by creating the Glas Poduzetnika Association on 3rd April 2020, and which, as the official representative of its more than 100,000 members, will continue to actively fight for the rights of members and a faster return to economic growth. The goal of the Association is to provide the best not only for our members, entrepreneurs, and their employees but also for the Croatian economy and society in full. That would be done through specific demands and measures, to provide the necessary space in the short, medium and long term, and so that in the future we can continue even better and with higher quality. In the first two weeks since its founding, the Association approved membership to more than 6,000 members, entrepreneurs, and self-employed, employing nearly 40,000 permanent employees and collaborators.
We want to use this opportunity to ask you for the organization of a meeting where we could discuss a few vital subjects with you and your closest associates:
1) Implementation of existing economic measures
2) Contents of the third “May” package of measures
3) Economic recovery action plan
4) Long-term strategic goals for the development of Croatia
Please see in continuation the topics we would like to discuss in detail.
Add 1) Implementation of existing economic measures
- • Remaining unclear categories of employers and employees in the private sector (seasonal self-employed, seasonal employees)
- • Minimum wage compensation for directors and owners in companies with more than ten employees
- • Will all local government units adjust the level of support for entrepreneurs in a crisis-write-off of rent and utility payments
- • Will a write-off of interests on loans and leasings on an individual basis be possible, as per our recommendations
- • Moratorium on foreclosures
- • Resolving some edge situations our members found themselves in, and we will name only some examples
o Hotels in Sibenik and Vodice with 200 employees could not be included in the package of measures because of the debt and tax authority and the City of Sibenik blockade at the end of March
o The small entrepreneur who is engaged in trade, having a VAT over-payment of 9,000 kn and a 340 kn debt for membership to the HGK could not be included in the package of measures
o Plastic bag producers in sizes 15 to 50 microns—due to the decision of the Croatian Ministry of Environment and Energy 800 job posts could be lost
Add 2) Contents of the third “May” package of measures
We believe that the third package should necessarily lead to the abolition of various parafiscal charges, fees, and membership fees to chambers and communities.
We would also like to discuss the plans for the third set of measures with you.
Add 3) Economic recovery action plan
The Government’s measures for help are not sustainable in the long-term and will create a massive pressure on the state budget. To reduce the burden and start the economy, it is necessary to ensure that economic activity continues as soon as possible. That is more important and less dangerous for the spread of the epidemic than the announced use of public transport. As the 30-day deadline is soon to expire and we believe that some measures will be relaxed, we would like to point to the most vulnerable group of small, micro-entrepreneurs and self-employed should undoubtedly be kept in mind, when reducing measures.
We believe that equality before the Constitution is guaranteed and that all entrepreneurs should be in the same position, of course, following the recommendations of the epidemiologists. It is not right for one group of entrepreneurs to explicitly forbid to work while it is possible for others, and often in the same or similar activity.
Civil Protection Crisis Committee’s measures of protection that should be prescribed with the new decision are measures that need to be respected, and that should be possible to implement for small entrepreneurs because they were affected the most by closing. If stores that sell cosmetics and food for pets are allowed to open their doors, there is no reason for the stores selling clothes or computers not to be able to work. If newsstands can open, there is no reason for florists not to open. It is only necessary to follow the rules of the epidemiologists.
That is why we want to talk about how the Croatian Government and Civil Protection Crisis Committee should prescribe measures that do not discriminate per activities, and that all entrepreneurs should comply with if they want to work. We are looking for clear and unambiguous recommendations about how many people can be in the space given its size, and how much distance there should be between customers. Services activities that have direct contact with the customer, including hospitality, can use protective masks, which would be mandatory for both employees and customers, gloves, and mandatory disinfection of premises, devices, and similar.
We would also like to present some of our proposals for economic recovery.
Add 4) Long-term strategic goals for the development of Croatia
We have defined and published the Association’s long-term goals, which include:
- • Impact on reducing administrative requirements for entrepreneurs
- • Impact on promoting business in the private sector and reducing the number of regulations, restrictions, and rules that currently overburden businesses
- • Development of a strategy for the rapid economic recovery of micro, small and medium-size entrepreneurs (including the plan for the development of women’s entrepreneurship) by resuming regular financial flows and submitting the strategy to the government and competent authorities
- • Cancellation of the mandatory membership fee to chambers and communities
- • Creating a positive perception of the entrepreneur/self-employed and entrepreneurship/self-employment in society
- • Development of entrepreneurial proactive and creative culture and thinking
- • Establishing the Association as the primary representative of entrepreneurs and self-employed in negotiations with the government and participation in all related legislative processes
- • Insisting on digitalization, automation, and any other technological processes that should be applied in public administration that are necessary for progress and global competitiveness
- • Transformation of the public sector from the current 30%+ of all employees in the state, to an EU average of 16%, including the reduction of the state apparatus and local governments
- • The reduction of income tax and contributions, a reduction in the work burden, and balancing the tax burden
- • Depoliticizing justice system and increasing its effectiveness through digitalization
- • The long-term lower tax burden of all parts of the economy
- • Effective territorial structure and reduction of the number of local government units
- • Establishment of the Glas Poduzetnika Association as an active social partner for Croatia’s Government, and entering the Economic and Social Council
- • Putting into service and reassigning the unused state property and real estate
- • Since the most important and strategic partner for this purpose is the Government of the Republic of Croatia, we would like to start a conversation about how and what joint initiatives can be started as soon as possible.
Following the above, we can offer to hold a joint e meeting within the next week / at your premises or via video call / where we believe we would agree on the steps we will take to achieve a common goal.
We thank you in advance for your response to the invitation and suggestion of meeting dates. We also look forward to the future that we build together to the satisfaction of our micro, small and medium-sized entrepreneurs, as well as self-employed.
Sincerely,
Hrvoje Bujas
President of Glas Poduzetnika Association
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