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‘Croatia Has Hit Rock Bottom Because It Has Not Pursued an Industrial Policy’

The eighth meeting of the Lider Exporters’ Club, hosted by the company Elka, welcomed Ivan Vrdoljak, the Minister of Economy, who had the opportunity to participate in the discussion and hear firsthand the problems of the 15 largest exporting companies in Croatia.

According to the current analysis by the Deputy Editor-in-Chief of Lider, Manuela Tašler, Croatian exports fell by six percent, or 181 million euros, in the first four months compared to the same period last year, which is equivalent to the total value of exports of the entire food industry or the total Croatian exports to Austria. The largest decline was recorded in the machinery and transport equipment manufacturing industries and the export of food and live animals (down 20 percent), while the largest growth was in mineral fuels and lubricants and chemical products, specifically the pharmaceutical industry.

Minister Vrdoljak spoke very openly to the company representatives, acknowledging the slowness of bureaucracy, which sometimes affects the realization of his projects in the Ministry. This is one of the reasons why the industrial strategy is ‘delayed’ until the end of the year, rather than in July as announced. Vrdoljak emphasized that the deadline was extended because he did not want it to be done by people from the Ministry, but by experienced consultants, and because he was hindered by slow administration, citing the example of FINA, from which the Ministry of Economy purchased statistical information for three weeks.

He invited companies to contact him directly for assistance, pointing out that we are too small a country not to be able to resolve cases individually.

– Exporting companies have survived in the toughest times, and they are Croatia’s future. Today we heard that exporters are aware that the Government cannot play the games in international markets on their behalf, but it can help them through its network of contacts in economic diplomacy. In the global market, Europe is losing the game in the fields of innovation, technology, and competitiveness, and Croatia is a reflection of European problems. Therefore, it is up to the Government to define key sectors through the Industrial Strategy, which will be completed by the end of the year, in which funds from the state budget will be invested – announced Vrdoljak, adding that Croatia has hit rock bottom because it has not pursued an industrial policy.

He also commented on the disappointing export results, defining the Croatian, as well as the global market, as very unstable and believes that the current statistics showing large fluctuations will show more stable results by the end of the year.

– This Government does not shy away from the truth, and all stakeholders need to go through restructuring. I want to believe that among exporters there are those who can help this country move forward, and they must know that they have a partner in this Government. About 60 percent of Croatia’s exports are achieved in the EU market, which is a good indicator for future prospects. When Croatia decides which sectors it wants to develop, we will then have open mechanisms in Europe for developing our own, as well as European competitiveness – concluded Vrdoljak, announcing that in the upcoming period, Croatia’s foreign policy will be based on the economy and energy.