Jutarnji List spoke to Prime Minister Andrej Plenković on Wednesday afternoon, immediately after Furio Radin, one of the minority MPs, publicly denied his support for the government. The scheduled slot was delayed as Plenković met with Radin. Of course, the key topic of that and all other days was the issue of parliamentary majority and the composition of the new government
Written by Goran Ogurlić, Editor-in-Chief of Jutarnji List
How will you, and with whom will you compose the new majority? At this moment you are in power due to a colourful coalition with a dozen various options. How will you compose a new majority in June?
It is useful to remind ourselves that the Socialist Democratic Party (SDP) timed the no-confidence vote for Finance Minister Zdravko Marić ahead of local elections to destabilise the government. Our now former partner, MOST, fell for the manoeuvre and chose to be in the opposition due to election reasons. The Croatian Democratic Union (HDZ) and MOST, as partners already, went through a similar situation with the opposition initiative in view of Minister Barišić, when after a series of talks we agreed how to resolve the problem. MOST ministers then, did not vote against Barišić, and MOST MPs did not participate in the parliament discussion on Barišić and did not vote. Minister Barišić was thus retained, meaning the initiative failed. Minister Marić is one of the best members of the government. Croatia has a continuous growth of GDP, public debt has been reduced, as well as the budget deficit. We see a growth of industrial production, growth of consumption, significant growth of employment, fall of unemployment, growth of export, as well as growth of salaries after tax alleviation. Our credit rating went from negative to stable. So, every economic indicator is positive. The fact that Minister Marić worked in a private company in a part of his career does not disqualify him from performing the public duty of Finance Minister, a job he does extremely well. I take offense that our political partner took the position that Marić must leave before he had a chance to present his position, at the session of the MOST Club, before the parliament discussion took place and before the government used arguments to deny the flawed demand by the opposition. This is the reason the cooperation between HDZ and MOST ended. The burden is on MOST, who chose SDP out of speculative reasons ahead of local elections. Right after the government session, at the HDZ Presidency session, I was given support for three conclusions. Firstly, everyone supported the end of the cooperation with MOST. Secondly, I was given a mandate to negotiate with parliamentary parties on the new parliamentary majority. Thirdly, if such negotiations do not end in a stable parliamentary majority and a functional government, we will go to elections. Therefore, we are in the phase of conversation. They are, of course, taking place in the climate of local elections.
Are you not concerned that everyone is currently publicly stating they will not go with HDZ? With that logic, you currently don’t have a majority.
You see, the opposition initiative to vote no-confidence in Minister Marić failed. The demand to recall former Parliament Speaker Božo Petrov was signed by 79 MPs. A new Speaker was elected, Gordan Jandroković, with the support of 76 MPs, an absolute majority, although by regulations he did not need that many votes. A relative majority would have been enough. The deal is for the Parliament to break session and reconvene in June, after the second round of local elections, and to present new ministers. By then, we have time for calm dialogue, for everyone to prepare their local campaign as best as they can. Then we will be in the position to assess whether or not most participants of this Parliament prefer political stability of new elections. HDZ is ready for both options.
Do you regret not making the same determined decision last week – like the one on ejecting MOST ministers from government, to end the circus in Parliament and to go for parliamentary elections on 4 June, during the second round of local elections?
My political, logical and a kind of mantra is the political stability of Croatia. I returned last year from the European Parliament, together with my colleague Stier, in order to help the country and party in projecting stability and normal functioning. If I had the smallest element of being connected to corruption, I would never be in politics. My intentions are completely pure, well-intended and directed towards the prosperity of Croatia. This is how I run HDZ. This is how I run the government. I do not intend to profit on any attractive move in order to win something in the elections. My logic is to hold the direction of resolving problems and creating preconditions for economic growth and development, for legal security and for social solidarity. These are the foundations of my policies. Everything we do, we do upon that. The crisis in Agrokor is the result of many process throughout many years. Our government is the one who has to resolve it.
Can the government even resolve that problem?
How did we go about resolving that problem? We had three scenarios: find a way that would enable additional financing of the company and delay the crisis in the short term. The second was to enable bankruptcy proceedings or reach for some sort of nationalisation, but then we would have taken on Agrokor’s debt. We chose the only logical option to find a legal solution which enables special management, with the approval of the company, which activated the Law. All relevant bodies supported the process. The company, creditors, suppliers, but also employees. We prevented a tsunami which would have a chain reaction on the Croatian economic and financial system. We aimed to preserve jobs, keep the company functioning and give it time to use renowned advisors and restructure with quality. We managed this and will persevere in this process. At the same time, we are the first who want to see if there were any criminal activities, in books and financial reports. I insist that whoever is responsible must be held accountable. Upon the demand from the Chief State Attorney, the government reallocated 5 million kuna from the state budget to his office to hire financial experts, court experts, as well as colleagues from other county state offices to work on the Agrokor case. It is evident the competent county office does not have the capacity to handle such a demanding operation. The government is aiding a body competent for criminal pursuit in order to have all the tools and manpower to solve the case. This is fine nuance about how the rule of law works in an EU and NATO member nation, with over 27 years of democracy.
Are you prepared to gather a large coalition over the dimensions of the Agrokor case, for example with SDP, or a National Unity government?
I would prefer for all political participants in the Agrokor crisis to act responsibly. Before the law was voted on in the government, we called our opposition colleagues, explained the basic contours, what it’s all about, and attempted to have them support the law. We made the effort to reach a consensus. This is being forgotten now. They knew what direction we’re heading in and had a chance to support it. The public must know the law was voted in by MPs and ministers from MOST, as we worked with them on all of the smallest details. The Agrokor case needs to have a transformative effect on the methodology of business in Croatia. This is a chance to build a new, just model of the entire Croatian economy.
So where did the MOST and HDZ coalition break?
On this principal topic.
Did you make your decision on MOST over one or a series of disputes?
My cooperation with MOST ministers, in terms of approach and communication intensity, dialogue and approach to certain topics are absolutely identical as with HDZ government members or independent ministers. If someone had taped our sessions and conversations, not knowing who is who, they would not be able to discern who is from which party. That’s one thing. Secondly, I always try to soften the edges and find a consensus. This was the case with MOST guarantees when we negotiated before the government programme was presented. And with the fulfilment of guarantees later and all the deals we had reached. As for HDZ, everything we promised to MOST was fulfilled. This is a previous political issue where there is a basic moment of trust: you are either together in a project or you’re not. I had given advance notice to Božo Petrov that our to-date cooperation, as it was, was to be over if MOST went against Minister Marić. That was clear and without dilemmas.
He did seem quite surprised on the day when it happened.
You see, I am always told I am too diplomatic, too tactful, too European… But this is a choice of communication and normal problem resolution. These are issues to which any leader, any Prime Minister, even any captain of a football team would not react differently to.
What is the minimal majority in Parliament you would continue governing with?
There were governments that functioned with 77, 78, 79 MPs. Anything between 77 and 80 can work well. Sometimes even a smaller majority is more functional.
You are being criticised that you make decisions on your own, not conferring with the HDZ Presidency. What is your answer to this?
Everything we do as the HDZ leadership we do transparently. Presidency and National Council sessions take place once a month. We discussed all strategic decisions, like the choice of coalition partner, on September 12 in the HDZ offices in Gundulićeva. At the Presidency and National Council, anyone can say what they want and who they want to work with. We chose MOST together. I was one of those who wanted to go with MOST – contrary to some information in the media that I always preferred another party. This is because I was unburdened with the previous relationship of HDZ and MOST, I wanted to give them a chance. With the decision, such as ejecting ministers, there is not much room to convene an extraordinary session of the Presidency while at the same time the government session is so transparent that it is live on TV and on the Internet.
Did HDZ hold that against you?
No, at the Presidency session held two hours after the government one, everyone, literally everyone, supported that decision.
Including Hasanbegović?
Him too. Everyone at the meeting had a chance to speak.
How did Davor Ivo Stier react?
The same. He supported the decisions.
Is he still firmly at your side?
Of course he is.
Opposition leader Davor Bernardić sent you a letter and offered coffee and a conversation. You did not answer. Will you seek the opinion of the opposition in the future?
I am a man of dialogue. I congratulated Davor Bernardić on being elected as SDP President. Do you recall when parliamentary elections ended – did anyone from the losing SDP congratulate HDZ? Look at the number of motions to vote no-confidence and interpellations, constitutional lawsuits and reports of alleged conflicts of interest from SDP. While we are resolving the most important and largest problems within the Croatian state. And they want, at the same time, to have a declarative, constructive dialogue. I said clearly: make a decision whether or not you want a serious and open dialogue in these moments, when the nation has many serious issues on the government agenda. Or do you want to continually hold initiatives to destabilise the government? This last one on Minister Marić was even called unwise in times such as these by the former SDP Finance Minister Slavko Linić. Who started it all, by the way?
Did you have contacts with SDP MPs?
No.
Is a coalition of HDZ and SDP possible?
We are not discussing a coalition with SDP. As for talks with parliamentary parties, note that in October as one point we drew the line and said we have 91 signatures. We could have had more. We are talking to colleagues form other Parliamentary parties and we will find a way to reach an agreement on the basic programme goals after June.
Will you present new ministers right after local elections?
This is normal procedure. No drama. New ministers will be presented in June.
Does Tomislav Karamarko stand behind Hasanbegović’s flank attack or the people he promoted to the party leadership?
I believe Hasanbegović made his own choice and decision. He is certainly a serious man and I believe he was acquainted with HDZ Statute. In the moment you join the list of another party, you eject yourself from HDZ. Who is behind his moves? I have no confident knowledge to make certain conclusions. Time will tell.
Do you expect his support for the government in Parliament?
One of the modes of cooperation with him as an HDZ member has ended at his own will. Future relations will be arranged. I am not closing the doors to cooperation, nor do I have any reasons to do so. I did not do this previously either. If you recall, I offered for him to be President of the important Parliament Committee on Science, Education and Culture, which he did not accept.
Is the turmoil in HDZ motivated by many unfulfilled ambitions or is it a case of resistance to your policies of developing HDZ as a party of the moderate right?
Both are possible. What I believe I do well for HDZ and the state, is to position it exactly where the first Croatian President and HDZ founder Dr. Franjo Tuđman wanted to. And that’s right of the centre. I have no dilemmas there as I know what President Tuđman wanted and I also know what is good for Croatia in the European context. My continuous message is to provide credibility to parties of the political mainstream. The mainstream parties – which in the internet-communication and high technology media age, where unfortunately many reach speedy and superficial conclusions – have a broad enough and quality member base, platform and programme and needed filters to clearly articulate their policies. Mainstream parties are the only obstacle to those who grew o the protest ant-system base and whose goal is disintegration as everyone before is a priori guilty of something. The model of political context ad current episodes in Croatia politics can be defined through a broader prism as a kind of mainstream party conflict with protest movements. Are there small disappointments in the party in the sense of personal ambitions? This is possible and human. But in its essence this is not crucial. What is important is the direction the party and state are going in. I can see the trends and know what is good and useful for a country with only 27 years of democracy. As well as for our institutions and our values.
Who are your European role models in that sense?
The CDU is in any case a serious party with whom we hold dialogue and communicate. We speak also to sister parties who are with us in the European People’s Party. I learned in my three and a half years in the EPP club that we do not have to agree on all details, but we know very well what our values are and what is good for our nations. This is known to the Moderat member in Sweden, the CDU member in Germany, republican member in France, and to us in HDZ in Croatia. I have seen the agendas of other political groups, especially populists and anti-system parties. Things are very clear: either you have a destructive or a constructive agenda. I choose the constructive one. In the economy, social politics, sector politics and in personal accountability.
Do you expect a linking of the conservative political axis – portions of MOST, Hasanbegović, Markić, Esih etc – and what would be its potential?
It remains to be seen on which political platform such a new option would be formed. I know the HDZ electorate and the expectations of people as I was often in Croatian counties and towns. Talking to HDZ voters, I am convinced the politics we propagate is met approval and support. A great majority of people recognise our investment and commitment to personal patriotism, responsibility, entrepreneurial freedoms, the strengthening of family and social solidarity. These are principles of the basic philosophy of people’s and demochristian parties, which we enforce.
Is what your Deputy Milijan Brkić said on minorities diametrically opposite to the policies you stand for?
Representatives of national minorities are our reliable partners and part of the parliamentary majority from day one with the decision of the HDZ National Council. This was seen these past days in the Parliament. We talked to them in detail, explained the situation and they supported us without reserve. As for the statement by HDZ Deputy President, my colleague Brkić, facts need to be clarified. Firstly, the statement MP Pupovac gave was incorrectly conveyed by most Croatian media (outlets). The statement does not imply that he would define the composition of the future Croatian government. Milijan Brkić responded to a misinterpreted and incomplete reconstruction of the statement by Milorad Pupovac and I am not certain that he had seen the original text at the time, or at least heard exactly what Pupovac said. And then he gave a clumsy answer to a part of the question, in a manner which is inappropriate to minorities – which is certainly not the policy of HDZ. The policies of the government and HDZ is the inclusion of national minorities, and the future composition of the government will be the fruit of the agreement of the new parliamentary majority and the choice of people I will propose as Prime Minister to the Parliament. Hence, HDZ and my colleague Brkić want to have an inclusive policy in which minorities are respected and a society in which we all feel well.
Have you spoken to Furio Radin, who took away his support for the government over that statement?
We spoke very thoroughly. He understands very well what my positions are and what our joint principles are and I believe that issue is solved. As for me, an inclusive policy with minorities in the parliamentary majority with full respect for minorities in Croatia is our goal.
What do you predict for MOST, will it snag the hard-line voting base from HDZ? Will MOST be profiled as a political party of the far right? Will it remain a decisive factor in the forming of the future government?
My idea was to partner with MOST and profile it as a political party. Unlike the colleagues from MOST, who have spoken bitterly in the last days, I have not said anything negative about the former ministers, nor will I. It is up to them to attempt, based on ideas and platforms, whatever they may be, to find their voting body and their political space. How they will do this now that they are not part of the government, is a question for them. And here we will see what they are made of.
How many scenarios are there for the resolution to the political crisis (minority government, stable majority, early elections in summer or autumn)?
There are clear constitutional deadlines in which elections need to be called. My assignment based on the conclusions of the HDZ Presidency is to talk about a reconfigured parliamentary majority, present new ministers and continue working on enacting our programme. This is our number one goal. Task number two is to, in case of any reason in which we are not in a position to arrange a stable parliamentary majority, to go for new elections, for which HDZ is ready. There is no third option.
How does the EPP view the government crisis in Croatia?
Immediately after the government session on Friday, I left for Brussels. I met primarily with European Council President Donald Tusk and the next morning I was at the meeting with the EPP leadership and explained the situation completely. They have understanding, naturally they want stability and continuation of the work of an EU member government and a government of the EPP. I then arranged with colleague Cerar and Commission President Juncker the solution to one of the largest problems, long waiting lines at borders created as part of the application of revised Schengen laws. We arranged for the border police, after waiting times go on longer than 15 minutes, to switch from systematic to targeted controls. I say this because even in this crisis, I found a way to resolve the issue upon which the tourism season depends. My duty is to take care of the large important issues for Croatian society. I am focused on that despite this lively political period.
How much does this government crisis hold you back in solving the issues of arbitration with Slovenia, MOL’s offer to sell INA?
We deal with all issues. As for arbitration, the position of Croatia is very clear. In the summer of 2015 we had a consensus that we will not participate in arbitration as it was irreparably contaminated by the illegal activity of the Slovenian side. Whatever the Arbitration Court decides based on the convention of international contract rights, Croatia does not feel obligated by that decision and our policy has not changed.
Are you working on the plan to buy back INA from MOL?
If I had not, as Prime Minister, clearly understood the intent of MOL to sell its share in INA, then we would not go into this operation and its preparation. What we are talking about now are the ways and modalities which would be most appropriate to make it a reality. This deal cannot be made overnight and needs expert economic and financial analysis. When the process advances, we will take specific steps, but experts are working on this continuously.
It is currently uncertain whether or not Agrokor will get a loan. Is there an option for the Croatian Bank for Reconstruction and Development to provide a loan to Agrokor?
I believe it is far more likely for commercial banks to provide liquidity, either Croatian or foreign. Talks led by the special commissioner, aided by the contacts of the government, will, as far as I know, produce results. The normal operation of the concern and preparations for the tourism season continue. The special administration secured salaries for all employees for May. A renowned auditing house is revising the business books of Agrokor, and renowned international financial and legal advisors are working with the special administration on the plan of the long term restructuring of the company.
Will there be a wider reconstruction of government? This was the topic of speculation before the government crisis.
These were media speculations and I never said that. Nor did any minister.
How did you see the talks of President Kolinda Grabar-Kitarović with parliamentary parties and do you feel the instability of the government will strengthen the position of the President?
On the day of the talks I was in Austria at a visit arranged two and a half months before. I was invited by Chancellor Kern to Vienna, we had excellent talks both with him and President Van der Bellen. There was no reason to change that programme as at that time, we already had 76 signatures for the election of the new Parliament Speaker. The President made that decision to talk to parliamentary parties, after which she concluded that the majority does not want new elections. This is what matters. The President of the Republic has a constitutional duty to maintain regular and harmonised functioning and stability of state authority and it is her right to hold such talks.
What would be a success for you in local elections?
Again, HDZ will prove that it is the strongest political force in the nation at these local elections. We will continue to have the largest number of prefects, mayors and district chiefs, as well as representatives in district, town and county representative bodies. HDZ currently governs 11 counties and I expect that number to increase in these elections. We also predict very good results in the largest urban centres and expect at least one of four largest cities to get an HDZ mayor.
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