The Government of the Republic of Croatia, at today's session, made a series of key decisions related to the construction sector, education, and the management of state resources. One of the most important decisions concerns the regulation of short-term apartment rentals, as well as the introduction of strict sanctions for unauthorized building extensions. These decisions have long-term implications for the housing sector in Croatia, especially in urban areas where housing prices have long been a matter of public interest.

Progress in the reconstruction of earthquake-affected areas
The Deputy Prime Minister and Minister of Physical Planning, Construction, and State Property, Branko Bačić, reported on the latest activities in the reconstruction of areas affected by the earthquake. In the past month, the construction of 13 replacement family houses was completed, three of which are in the Zagreb area and 10 in Banovina. This reconstruction is a key part of the Government's efforts to ensure the return of residents to their homes and to reduce the consequences of the devastating earthquake that left many families homeless.

Minister Bačić additionally emphasized that the government's decision secured financial resources in the amount of 524 million euros for the completion of 217 projects financed from the Solidarity Fund. The funds have been allocated to three key ministries - the Ministry of Science and Education (186 million euros), the Ministry of Health (203 million euros), and the Ministry of Culture and Media (205 million euros). These funds will enable the continuation of vital reconstruction projects, including schools, health facilities, and cultural objects, thereby improving the quality of life in the affected areas.

Increase in the housing stock of Sisak-Moslavina County
Minister Bačić also reported on a meeting of the Government with county leaders, held in Sisak, where county authorities and citizens were informed about the progress of the reconstruction and revitalization of Banovina. As part of these activities, 59 multi-apartment buildings are being constructed in the area of Sisak-Moslavina County, which will significantly increase the housing stock of the county. It is expected that the construction of these buildings will provide more than a thousand new apartments, which is an important step in addressing the housing issue in this county, which is one of the hardest hit by the earthquake.

On July 31, the demolition of the old multi-apartment building in Hrvatskog narodnog preporoda Street in Sisak began. A new, modern building will be constructed on the site, which will be completely energy renovated. The value of this investment is 20.3 million euros, and it is expected that the new building will significantly improve the housing standard in this part of the city. This investment is just one of many planned as part of the reconstruction of earthquake-affected areas.

Building management and maintenance under the new legal framework
The Government adopted a proposal for a new law on building management and maintenance, which brings a number of important innovations. Among the most significant changes is the co-financing of facade renovations and elevator installations, as well as the introduction of sanctions for unauthorized building extensions. According to this law, all co-owners of buildings with three or more floors will be able to install elevators with state support, which will significantly improve accessibility and the quality of life for residents, especially the elderly and people with disabilities.

The law also provides for penalties for unauthorized building extensions and limits the conversion of apartments for short-term rentals without the consent of 80 percent of the co-owners. This measure aims to preserve the residential function of buildings in urban areas, where an increasing part of the housing stock is being converted for tourist purposes. Limiting the conversion of apartments is particularly important for preserving the availability and affordability of housing in cities, where rental and sales prices are rapidly rising due to increased demand for short-term rentals.

Co-owners association as a legal entity
One of the key innovations of the new law is the introduction of the co-owners association as a legal entity. This measure will facilitate decision-making on building management and maintenance, reducing the required majority of co-owners for decisions on urgent repairs, investment maintenance, and the appointment of managers. Additionally, the state will co-finance facade renovations in city centers with 33 percent of the total value of the work, ensuring the preservation of historic buildings and improving the visual identity of urban cores.

Supervision of illegal construction
To improve supervision of illegal construction, the Government has sent amendments to the Construction Inspection Act to the parliamentary procedure. Minister Bačić explained that despite the engagement of the State Inspectorate, illegal construction remains a serious problem in Croatia, partly due to the lack of building inspectors. Therefore, it has been proposed that municipal wardens also be involved in preventing illegal construction, with the authority to stop illegal works, impose fines, and notify the State Inspectorate.

Financial support for farmers
The Government decided to write off loans for farmers whose repayment is not certain. State Secretary Marinko Beljo reported that the Ministry of Agriculture, Forestry, and Fisheries approved a total of 16,540 loans worth 842 million kuna for farmers between 1991 and 2006. The decision to write off the debt applies to 101 loans, with a total value of 5.62 million euros. This measure aims to reduce the financial burden on farmers and ease their operations in an increasingly challenging economic environment.

Preparations for the new school year
Before the start of the new school year, the Government decided to finance compulsory textbooks for secondary school students and additional educational materials for primary schools. This move ensures equal access to educational resources for all students, regardless of the financial situation of their families. Financing will be provided from the State Budget of the Republic of Croatia, reaffirming the Government's commitment to keeping education accessible to all.

Dubravka Šuica as a candidate for the European Commission
Dubravka Šuica, a longtime member of the European Parliament, has been nominated as the Republic of Croatia's candidate for a member of the European Commission in the new term from 2024 to 2029. Her previous work and experience in European institutions have been recognized as key factors for the continued successful representation of Croatia at the European level.

Environmental protection and economic development
The Government has given its approval to the Environmental Protection and Energy Efficiency Fund to co-finance the project Establishment of the Veje more Visitor Center in the Lastovo Islands Nature Park. This project aims to preserve natural resources and improve the tourist offer on this attractive archipelago. Additionally, a decision was made to carry out sand and gravel exploitation works in the Hrastovljan exploitation field, which will stimulate economic development and create new jobs.

Memorial match in memory of Dražen Petrović
The Government has accepted sponsorship of the Memorial Match in memory of Dražen Petrović, which will be held on September 5, 2024, at the Zagreb Arena. The Ministry of Tourism and Sports will co-finance this event with 310,000 euros, paying tribute to one of Croatia's greatest sports legends. Dražen Petrović, as one of the most famous Croatian basketball players, left an indelible mark on the world of sports, and this memorial event is an opportunity to once again remember his achievements and contribution to Croatian basketball.

Cybersecurity conference
The Government has also accepted sponsorship of the first conference of the National Coordination Center for Industry, Technology, and Research in the field of cybersecurity. The conference will be held in Zagreb from September 18 to 19, 2024, and the Government has expressed its support for the further development of cybersecurity in Croatia, emphasizing the importance of protecting IT infrastructure in an increasingly connected and digitalized world. By accepting this sponsorship, the Government has not taken on financial obligations but has demonstrated its commitment to strengthening cybersecurity at the national level.

Government opinions on legislative proposals
At the Government session, opinions were expressed on several important legislative proposals. Among them is the proposal to amend the Accounting Act, submitted by MP Nikola Grmoja. The Government recommended its rejection due to the additional administrative burden the proposal would impose on small and medium-sized enterprises. Additionally, a bill proposing a ban on ownership of agricultural land for foreign legal and natural persons, including those from EU member states, was assessed as incompatible with European legislation. The Government therefore recommended that the proposal not be accepted.

The bill banning glyphosate, also proposed by MP Miro Bulj, reminded the Government of the existing ban on the use of glyphosate on certain public surfaces. This ban includes green areas, parks, sports fields, school playgrounds, areas near health facilities, and areas within the Natura 2000 ecological network. The Government emphasized that the ban on glyphosate is part of a broader legislative framework on the sustainable use of pesticides and the protection of public health.