Vidošević: Investors Do Not Want to Operate in Conditions of Instability

The transparency of the work of legislative institutions through public dialogue is one of the key conditions for the development of modern society, especially for creating a stable business climate conducive to investment, it was emphasized at today’s gathering “Partnership of the Legislative and Business Community in Lawmaking – Experiences from the USA”.

The American Ambassador to Croatia, Kenneth Merten, emphasizes that transparent regulation is crucial for a good business climate, as every investor considers the rate of return and risks, so changing the rules of the game without consulting the business community can significantly jeopardize investment.

Positive signals should be sent to potential investors and it should be carefully determined what effects specific measures will have, said Merten.

He also notes that the Ministry of Finance has announced significant changes to regulations, such as amendments to the gambling law. Announcements of significant regulatory changes worry investors, specifically two American companies that have invested capital in betting shops in Croatia, and Merten warns that such decisions could also affect other investors.

Investors do not want to operate in conditions of instability created by frequent changes in the legislative framework, which are common for developing countries, said the President of the Croatian Chamber of Economy (HGK) Nadan Vidošević, who also pointed out the frequent changes to the Croatian Constitution in this context.

Respect for the law is a civilizational achievement that we lack, as it is common in Croatia that when a law is not respected, new ones are adopted, said Vidošević.

Transparency plays a key role, emphasized Mark Tallarico, a senior advisor at the Office of Legislative Affairs of the U.S. Department of Commerce, explaining the lawmaking process in the U.S. Congress. There is a 60-day period for public discussion, and in some cases, it can be up to 180 days during which citizens can express comments and remarks on the legislative proposal. The final version of the proposal must take into account the received comments and include them, or it must be explained why they were not accepted. In this way, the public is enabled to participate in shaping the law. All legislative acts can be challenged in court, and submitters can try to prove that they will suffer harm if implemented, Tallarico explained.

Congress drafts the bill, and the public can gain insight into what is being done and how through public discussion, while lobbyists try to influence congress members to advocate for specific solutions, he said.

Jasna Borić from HGK says that the intensive alignment of Croatian legislation with EU legislation in recent years, and that through urgent procedures, has made it impossible to influence the search for better solutions. This has discouraged the business community from proposing them as the space for that is very limited, Borić emphasizes.

In her words, a general “checking” of solutions in the multitude of adopted laws should be made and aligned with new opportunities in the business environment through a “permanent fast track”.

The gathering was held at HGK and was organized by the American Chamber of Commerce in Croatia, HGK, and the American Embassy.