Although the share of Croatian companies in the total revenues of all companies from the Deloitte audit firm’s study remains modest at three percent, there were 16 of them on the list last year, the highest number to date. More companies on the list than the previous year include Estonia, the Czech Republic, Slovakia, Hungary, Bulgaria, and Serbia, and for the first time, there is also a company from Bosnia and Herzegovina – Elektroprivreda.
IN THE NEW ISSUE OF THE BUSINESS WEEKLY LEADER, TAKE A STEP FURTHER AND FIND OUT MUCH MORE ABOUT CURRENT ECONOMIC PROBLEMS
The global rise in raw material prices is also affecting producers in Croatia. Some are saving themselves through planned procurement and long-term contracts, some expect a drop in grain prices, but many no longer have reserves and are forced to raise prices even amid recession. This particularly applies to certain food products. Instead of a battle for market share, the scene is a struggle for survival. Whether raising prices is genius or madness is revealed to us by Antonija Knežević.
According to information from circles close to Markov trg and Katančićeva, Finance Minister Ivan Šuker is seriously considering removing one of the ‘losers’ – HZZO – from the deficit. Since it is an off-budget fund that could accumulate up to three billion kuna in deficit by the end of the year, the minister could attempt to reduce the share of the budget deficit in GDP in this way. More in the story by Gordana Gelenčer.
Although the share of Croatian companies in the total revenues of all companies from the Deloitte audit firm’s study remains modest at three percent, there were 16 of them on the list last year, the highest number to date. Alongside companies that managed to secure a place in that society with revenues in 2008, ‘new’ Croatian companies include Vindija, Adris, Tisak, Kraš, and Hypo banka. The largest companies in Central Europe, 500 of them, recorded 60 percent lower revenues and 24 percent lower profits last year, thus showing how strongly the recession has shaken those 19 countries, or the European transition market. However, despite not-so-great macroeconomic data, Croatian companies on the list of the 500 largest increased their revenues from 15.1 to 15.9 billion euros with a four percent decrease in profits. More in the weekly topic by Bojana Božanić.
Enver Moralić, one of the largest Croatian entrepreneurs, reveals in an exclusive interview with Lider that he is entering the gas business in Poland, Ukraine, and Croatia with Gazprom. Although he is one of the richest people in Croatia, Moralić is modest and quite reserved, and he is rarely seen in public. He prefers to enjoy his estate in Dugo Selo and with his 20 horses, hunting or touring his properties. He does not like to flaunt or highlight his wealth, so those who do not know him would hardly conclude that he is a man ‘worth’ around 400 million euros.
When news leaks in some media that Abramovich is buying land or real estate, Russians, whom Croatia viewed with derision until two years ago, become a very serious topic. They are no longer seen as suspicious types with dark glasses who pilgrimage through Croatia with suitcases full of money in search of desperate locals willing to sell real estate in the most attractive locations. Today, they no longer have to do that because there are also billboards in Russian Cyrillic, which officially and openly invite them to buy real estate and invest, come for summer vacations, and have their visas lifted… More in the story by Željka Laslavić and Jasmine Trstenjak ‘Istrians call deep-pocketed investors’.
Vanja Figenwald writes about regulations in the EU in the World section. The new financial oversight system leaves member states ample room for maneuvering. An agreement has been reached. The Union will have three regulatory agencies – for banks, insurers, and securities. However, two clauses, one regarding the possibility of rejecting decisions that affect the budget and the right of member states to decide what constitutes a crisis situation, show reluctance to genuinely empower bodies at the level of the entire European Union.
Our advisor, Mr. sc. Marija Zuber writes about environmental taxes. The obligation to pay a fee for forests is determined as a percentage of total revenue, and the rate has been reduced from 0.07 to 0.0525 percent since July 1, 2010. The government adopted this measure to reduce the burden on the economy, but the question of who must pay this contribution has not been resolved.
According to some studies, the ‘360-degree’ employee evaluation method is used by one-third of companies in the USA, but it is becoming increasingly popular in other parts of the world as well. It is believed that anonymous assessments from colleagues and supervisors are quite reliable; however, this method also has very negative aspects. Have you ever found yourself in the midst of anonymous evaluations from colleagues and supervisors? Read the story in Business Knowledge.
Dan Akerson, the new head of the new, leaner but healthier GM, is the main character of this week’s feature. After hitting rock bottom last year, GM managed to come back to life with substantial government assistance, albeit with intense restructuring. It is recording better results, and this fall, the ‘new’ GM is preparing for an IPO. The upcoming IPO may be a crucial moment in the further development of the ‘refreshed’ company, which has a new leader as of September 1. The result of the IPO will suggest how much investor, business community, and subsequently consumer confidence has returned. (G.J.)
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