Croatia Presidential Debate: Hopefuls on Corruption, Taxes, Foreign Policy

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HRT

On Thursday evening January 2, 2020; HRT (Croatia Radio Television) moderated the second of three debates between presidential candidates Croatian President Kolinda Grabar-Kitarović and former Prime Minister Zoran Milanović.

During the two-hour debate, the candidates answered 40 questions – which were divided into several groups including the economy and demographics, foreign policy and presidential powers, national security and the fight against corruption. Of course, there was a set of questions pertaining to worldviews and personal questions, as reported by Index on January 2, 2020. Here are a few highlights from last night’s debate:

Candidates’ Opening Statements:

Milanović: I am aware that I need to reach out to people who don’t intend to vote for me in the second round. I will defend the constitution and fight for the rights of all citizens. I will fight corruption, the monster which has consumed Croatia. The present government and president do not understand the difference between the public and private. Nor do they understand what it means to fight corruption. Those who break the law will not get any preferential treatment from me.

Kolinda: As a woman, I broke through the glass ceilings in the world. I was the first woman foreign minister, have important world connections and was one of the first presidents to meet Trump. I will move away from ideological issues.

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Entrepreneurs are complaining about high taxes. Are they too high?

Kolinda: The tax burden is too great. I do not want to please everyone, otherwise I would say what everyone wants to hear, and I am already too controversial. Zoran Milanović’s government raised the VAT from 23 to 25 percent, which was a big blow. I am in favor of reducing taxes because that is the only way to secure higher salaries, create new jobs, investments and encourage people to stay. I will advocate for higher take-home wages and higher wages for employees.

Milanović: You are saying this to please everyone. Life is not like that, and it’s easy for someone who has never earned anything on their own. It is expensive to finance state obligations; including education and care for the elderly. Increasing the VAT rate during the recession was not a blow. Prices did not rise, so that thesis that does not hold water.

Kolinda: I’ve been working for a living since my third year of college. You addressed the deficit by increasing the VAT. I won’t allow you to downplay this failure because it was the VAT that impoverished our citizens. You had a budget deficit with a higher VAT. You can’t rely only on taxes to finance the state budget.

Milanović: How else would the budget be financed? From exports? This shows complete ignorance of fiscal policy.

How do we bring young people back to Croatia?

Milanović: The exodus began in 2016. Poland, Romania, Lithuania had the same problems after joining the EU. Did it destroy those states? As far as I know it did not. We are having moral panics in the Republic of Croatia. We are here, we will fight, we will survive, and they will return. I cannot blame either Milanović or Kolinda for the exodus.

Kolinda: The exodus began during the Milanović government due to pre-bankruptcy settlements and enforcement law. I’m not having a moral panic.

Milanović: Thousands of jobs were saved by pre-bankruptcy settlements, it’s ridiculous to say that this is the reason for the exodus. Please don’t embarrass yourself.

Kolinda: The fact is that pre-bankruptcy settlements benefitted your friends.

Who is Croatia’s biggest ally?

Kolinda: It’s the US and we are currently working on concrete proposals.

Milanović: Ms. Kitarović accomplished nothing when she was Croatian ambassador to the United States. You must be totally lost if you are claiming that the United States is our greatest ally. If the US is our closest ally; we are certainly not theirs. The current administration is what it is, and I don’t want to fault them, but the EU is our biggest ally and the largest agent of peace in the world.

Kolinda: Of course, we are working with all EU countries. Let’s allow Milanović to highlight some of his achievements with Germany. Croatia is thinking about Croatia today, but is acting globally.

Milanović: I’m not out camping, I’ve worked, traveled, and hung out with the Scandinavian elite. Kolinda was an ambassador to the US and fled to NATO.

Kolinda: I’ve never turned my back on Croatia. Seventy percent of our foreign trade is with the EU. It is very important for us to work with Serbia and Bosnia and I want them to join the EU. But Milanović quarreled with all our neighbors. Where I build, you destroy.

Milanović: I’m glad to hear these phrases. Relations with neighbors have been the most corrupted by Kolinda. Now we only have a good relationship with Orban (Hungary). As for migrants (backed up at the border with Serbia in 2015); if we hadn’t arranged for them to be transferred to Germany, those people would still be here with us now.

Kolinda: You caused that incident, you closed them off in Serbia. 

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Do Jihadists in Bosnia pose a threat to Croatia?

Milanović: I believe SOA (Security and Intelligence Agency) is doing its job. Jihadists in Bosnia are a reality. Standard law enforcement measures will not help the situation there. Kolinda has damaged relations with a country with a Muslim majority due to her reckless stories.

Kolinda: I have don’t have any problems with Muslims. I didn’t ruin the SOA; I don’t interfere with their work. 

Milanović: Kolinda hangs out with people who steal. I’m not saying she’s stealing, but she’s a serious problem for the system of national security.

How would you detect and prevent corruption?

Milanović: Saucha (former assistant to Milanović) has been indicted, and he now supports Kolinda and the HDZ. Kolinda arrived (to the debate) today from a celebration held by (Milan) Bandić – these messages are dangerous and toxic.

Kolinda: I did not come from a celebration. I was at an event held by a party which supports me comprised of individuals who support me.

Bandić has been indicted in several court cases. Why would offer to bring him cookies?

Kolinda: Bandić is innocent until proven guilty and I will fight for that. Let’s not put people on a pillar of shame. Let’s not forget Lovrić-Merzel (SDP), and you defended Bandić when he was your friend. Would you pardon Perković and Mustač (Yugoslav Secret Police)?

Milanović: I would not pardon anyone. You are talking to me about corruption. I have a letter here that you sent to the Washington Times praising Sanader before he fled justice. 

Kolinda: I had no idea about Ivo Sanader’s corruption. After all, he had dismissed me from the government.

Should the Croatian army withdraw from Afghanistan?

Milanović: Yes, immediately. It’s been 16 years and it’s obvious that the Americans are not even clear on what to do there.

Kolinda: There has been one (Croatian) death since 2003. We will act as a responsible ally with NATO. My guess is that this process will begin sooner rather than later, and we will discuss it with our allies. Then, we will shift most of our forces to Eastern Europe.

Milanović: We are open to discussion, but we’ll make the decision. The soldier who died had his picture taken with me and asked me not to post the photo because he was still a specialist. A few days later, Kolinda posted a photo with that soldier. I would never manipulate people like that. 

Kolinda: That’s false. The soldier waited for an hour at Ovčara to have his picture taken with me. He never asked me not to post that photo.

What do you think about the adoption of children by same-sex partners?

Kolinda: The adoption and foster care application process is very difficult in general, and we need to make it easier. Children need both a mother and father; I do not know if we are ready for the adoption of children by same-sex couples.

Milanović: That is a process which is unstoppable. We need to talk about it, accept it and understand that these trends are unstoppable. And there is a human element to this topic.

How much have your personal assets grown during your five-year term?

Kolinda: I don’t know exactly. I’ve put everything in my asset statement. This year, I received a severance from NATO of around one hundred thousand euros. My husband and I live off our wages.

Milanović: That’s nice when you get such a large severance pay. At the beginning of your term you had a loan of more than one million HRK. And that was paid off with what money?

Kolinda: I obtained a loan in 1995 with a 4.5 percent interest rate. I had to take out another loan in at a full (interest rate), but that loan was paid off in two years by selling some smaller apartments. How did you get the 180,000 EUR loan at a preferential interest rate?

Milanović: You are making things up again and everything you say is wrong again. This is public information. I was not the prime minister at the time. And, it was a loan for 300,000 EUR with a 6 percent interest rate. I paid back the first portion by selling our first apartment. Not only is this defamation, it is nonsense. At the time of Operation Storm, you got a loan with a 4 percent interest rate when everyone else’s loans were at 14 percent.

Kolinda: Yes, I got that loan as a Foreign Office employee. It was the minimal amount of credit, because I could not afford to borrow more. I paid it off. I’ve worked for all the money I have.

Milanović: That was credit available HDZ guys. You worked for that? It’s unfair, dishonest and immoral…

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What did Kolinda mean when she talked about the coup?

Milanović: In 2015, Kitarović formed her government, after only 40 days of consultations with (Tomislav) Karamarko which went on behind my back. She was doing her best to undermine the center-left government.

Kolinda: In the first two years of my term, two rounds of parliamentary elections were held. I absolutely stand behind my claim that I maintained the stability of the state and did everything according to the constitution. There was a possibility of having a transitional government if one did not form within a reasonable time period. 

The constitution provides for a 60-day window, so I consulted with constitutional lawyers and the Constitutional Court. I was told that this lengthy procedure would have to be completed because the Parliament would find themselves in constitutional crisis if their mandate expired. I never appointed any government and please don’t slander me. Find the evidence!

Milanović: Of course, you didn’t leave any tracks, but people are talking. Sue them if they slander you. Personally, I will respect the constitution. And, (Vladimir) Šeks is a constitutional expert?

Kolinda: Šeks had nothing to do with it, and there weren’t any secret negotiations. You wanted a coup, so you barricaded yourself. Furthermore, you sent me a text message which read: “today you can be a stateswoman and appoint a government or you can give Karamarko control and be his puppet.”

Milanović: That’s defamation, I would never send that kind of message.

Closing Statements:

Milanović: In a few days you will elect a Croatian president. I am here to serve you, not to divide you, to fight against what antagonizes our people, for which they are losing the will to live and stay (in Croatia). Demographics are most successful if a country has fair leadership. For years, we have been led by people who are not fair leaders, but who have networked by formal and informal means. We have a president who hangs out with unworthy people, and a government which has fallen apart because of corruption. This is sending a terrible message. Nothing revolutionary will happen (if I become president), but we believe in making small shifts.

Grabar-Kitarović: When I took office five years ago, Croatia was on its knees because of the disastrous policies of Zoran Milanović, the worst Croatian Prime Minister in history. We have achieved growth which is not yet adequate. I want the GDP to be above five percent, and that positive factors impact your lives and financial obligations. We must stop young people from leaving and complete the process of education reform. We need to encourage entrepreneurship, create jobs, increase wages and pensions, and raise the standard of living. I am interested in our country, not party politics. I unite, rather than divide. My Croatia is a Croatia for everyone.

The presidential candidates will meet for one more debate before the election. Tonight (Friday January 3, 2020) at 20:20h, they will face off on Nova TV.

https://www.youtube.com/watch?v=GZEQYJlhonE

Follow our Politics page for news on the upcoming presidential election in Croatia, which will take place on Sunday January 5, 2020. We will be providing by-the-minute exit poll results and final election results after the polls close at 19h Central European Time (CET).

 

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