Total investments in Croatia are expected to grow by 11.5 percent next year, or by nine billion kuna, said Deputy Prime Minister Branko Grčić at a government session while presenting the investment cycle for the period from 2013 to 2015.
The total amount would thus be 72 billion kuna, still far from the best year of 2008, when investments reached 93 billion kuna. The main prerequisites for economic recovery are export growth, funds from European Union sources, and investments, as well as the recovery of key European economies for us. The public sector will thus increase investments compared to this year by three billion kuna through Economic Cooperation Funds, shipbuilding, co-financing projects from European funds, procurement of new armored vehicles, etc.), along with another four billion kuna that will come from off-budget institutions and public companies. The government also expects a significant contribution from the private sector, primarily in the second half of the year, after entering the EU, when, according to experiences from previous expansions, investments should significantly increase. In fact, the Deputy Prime Minister believes that foreign direct investments will bring greater benefits than the EU funds themselves.
By collaborating with the private sector, the state aims to realize three billion kuna of initiated projects with a total value of seven billion kuna, including Zagreb Airport (1.7 billion kuna), Bina Istra (1.1 billion kuna), the Zagreb-Macelj Highway (525 million kuna), the Port Authority of Ploče (1.3 billion kuna), and renewable energy projects (2.1 billion kuna). Five projects have been initiated (273 million euros), 12 are awaiting spatial plans or permits (2.7 billion euros), while 15 projects are in the initial phases (533 million euros). In order to improve and increase the efficiency of investments, the government will introduce a unified system for monitoring and coordinating investments. Grčić noted a decline in credit activity, with a negative rate recorded for the first time in the last 12 years, as one of the key problems, so the sources of investment financing next year will be public sector capital, international and domestic strategic investors, EU fund resources, development banks, while commercial banks are at the bottom of the list for the aforementioned reasons.
Minister of Transport and Infrastructure Siniša Hajdaš Dončić announced the end of the Croatian Post monopoly, which has a market share of 72 percent, and its liberalization due to the alignment of regulations with the EU. Another alignment with the EU has also occurred with the existing law on investment funds, which is now divided into two separate laws, one on open and the other on alternative investment funds, which should result in a higher level of investor protection, defining the responsibilities of management companies and limiting capital outflows, among other things. Amendments to the Income Tax Act introduce a new and more comprehensive form regarding income, even for those that are not subject to taxation, and abolish the payment of tax on grants received as non-repayable funds from EU funds in the field of education and professional training.
The government has decided that Christmas bonuses for this and next year, as well as severance pay for next year, will not be paid to officials in public and state services, regardless of what some branch agreements state.
