Prime Minister Andrej Plenković today chaired a meeting of the Government with county prefects, representatives of the Association of Cities, and the Croatian Community of Municipalities in Sisak.
Welcoming those present, the Prime Minister emphasized that this is the sixteenth meeting of the Government with county prefects, representatives of the Association of Cities, and the Croatian Community of Municipalities, and the first meeting was held in Zagreb on December 19, 2016.
This format allows for systematic dialogue and better understanding of needs at the county, city, and municipal levels, as well as better acquainting local leaders with the most important government reforms, thus aligning priorities.
Before the meeting, 32 contracts were signed in the fields of tourism, regional development, and waste management, with a total value of 13 million euros. The Prime Minister congratulated everyone who contributed to this.
Topics of the meeting include the renewal and revitalization of earthquake-affected areas, the consequences of weather disasters, the fight against climate change, the improvement of the education system, and the role of various stakeholders in the development of primary health care.
The Prime Minister mentioned that after the elections for the Croatian Parliament and the European Parliament, local and presidential elections follow, after which Croatia will not have regular elections until 2028, allowing stability for the realization of plans and projects.
Four fundamental frameworks of cooperation
The Prime Minister highlighted four main frameworks of cooperation between the Government and counties, city associations, and municipalities.
The first is the creation of partnership and mutual respect, with constant dialogue regardless of the format.
The second framework is functional decentralization. The Government has already done much in this area, applying the principle of subsidiarity, which implies decision-making closest to the citizens.
The third framework, fiscal decentralization, has seen significant shifts. The revenues of local and regional self-government units are increasing, allowing local leaders to more easily address priorities and political programs.
The fourth framework is project cooperation, regardless of the source of funding, whether national or European funds, public company investments, or private investments.
All these projects make Croatia a better and higher quality place to live, emphasized Plenković.
The cornerstones of the policy of balanced regional development, contained in the program of the third Government, include the Ministry of Demography, the Ministry of Green Transition, the Ministry of Justice and Administration with digital transformation, and the Ministry of Science and Education, which increases investments in the education system.
Goal of tax reforms
The Government continues with rounds of tax reforms to relieve citizens and the economy in a fiscally sustainable way, maintaining public finances in balance.
The Prime Minister recalled the resolved crises: the corona crisis, the energy crisis that threatened social tensions and inflationary pressures, while public finances remained stable, meeting the criteria for entering the euro area.
He particularly mentioned the efficiency of using funds from the National Recovery and Resilience Plan, where Croatia is among the leading countries, with the goal of fully absorbing 10.5 billion euros by the end of 2026.
In the context of cohesion policy, Croatia has managed to secure an equal level of national co-financing, maintained an equal envelope for regional and agricultural policy of the European Union, and adapted regional aid maps to attract investments, especially in the Sisak-Moslavina County.
ITU mechanism
The Prime Minister emphasized the provision of 680 million euros through the ITU mechanism for the development of 22 Croatian cities, creating prerequisites for new development projects.
He mentioned the increase in income tax revenues in 2022/2033, which allowed most units not to increase the tax rate, ensuring higher salaries.
The Government continues the policy of raising salaries and pensions. According to the latest data, the average salary in Croatia is 1323 euros, and the average pension is 580 euros. The goal is to increase the average salary to at least 1,600 euros and the pension to 800 euros by 2028.
Trend of decreasing inflation
The Prime Minister commented on the decrease in inflation, which has been continuously falling for 19 months, aiming to achieve an acceptable rate below 2%.
Plenković also mentioned the new wave of state bond subscriptions, expressing satisfaction with citizens' trust in state securities.
He spoke about the tourist season, highlighting the increase in arrivals and overnight stays and the growth of income from foreign tourists, thanks to Croatia's entry into Schengen and investments in transport infrastructure.
Opening of the highway and the Učka tunnel
In September, two important events follow: the opening of the highway to Sisak, an important step in revitalizing the Sisak-Moslavina County, and the opening of the Učka tunnel, connecting Istria with the rest of Croatia.
Renewal in the Sisak-Moslavina County area
The importance of renewal, especially in the Sisak-Moslavina County, was emphasized at the meeting, where the renewal of 8,174 locations has been completed, 329 public buildings and 240 new family houses have been built.
The concept of block renewal has been applied, with an increase in the housing stock through the construction of 56 multi-apartment buildings.
In the end, the Prime Minister invited all participants to an open discussion on additional measures that the Government can take for this area.
Creation time: 11 July, 2024
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