Žganec: Croatia’s Allocations for Social Protection Are Far Below the EU Average

One in five residents of Croatia is at risk of poverty, and it is necessary for the relevant ministry to reconsider the existing model and overall allocations for social policy, it was stated on Tuesday at a conference on minimum income, marking February 20 – World Day of Social Justice.

The president of the Croatian Network Against Poverty (HMPS), the organizer of the event, Nino Žganec, warned that the poverty line is relatively low, amounting to 25,000 kuna annually for a single person, which does not allow for a decent living. The problem of poverty in Croatia is widespread, and we need smart social policies and measures to address this issue.

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We believe that the eradication of poverty is primarily a political issue and that Croatia has reached a certain level of development that allows for a smart redistribution of public funds in Croatia to enable everyone to live a decent life, emphasized Žganec.

Smart programs can prevent absolute poverty

According to him, it is a fact that very often in public discourse, an inaccurate statement is highlighted that Croatia allocates a lot for social protection, but reality shows the opposite, that allocations are far below the EU average. In public discourse, it is often incorrectly emphasized that this is unnecessary spending, instead of being understood as an investment in people and human capital, and that smart programs can prevent absolute poverty, and then help people who enter the world of poverty to exit it as soon as possible.

Unfortunately, data shows that those who enter the world of poverty find it almost impossible or very difficult to exit it, said Žganec.

Regional inequalities, the elderly and persons with disabilities, the unemployed, and children are characteristic of Croatia, who have almost no chance of escaping the world of poverty. We have a significant imbalance between Zagreb and counties such as Požega-Slavonia, Virovitica-Podravina, while on the other hand, we have Istria and Međimurje at the top.

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HMPS aims to influence policies that will fight against poverty by initiating legislative changes, different policies, and perceptions towards the world of the poor. With this gathering, we want to encourage a re-examination of the model and scheme of social benefits that are, by all parameters and indicators, very inappropriate in Croatia and do not allow for a decent living, emphasized Žganec.

He stated that there is a forced approach that the criterion of social development is economic prosperity. Of course, the level of GDP is an important indicator, but what good is high growth if poverty is also rising and if our social expenditures are “cemented” at the existing level far below the EU average, asked Žganec.

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The indicator of the development of a society should be the social security of citizens, or a highly developed social awareness in society, and we are guided by the examples of Scandinavian countries that show how economic development and social policy can be balanced, he conveyed.

He emphasized that when determining social benefits, care should be taken to ensure they are dignified but also incentivizing for the working-age population. Currently, the government is making a decision on the amount of the base for social benefits, which is not based on any solid indicator, said Žganec, adding that it should depend on the rise or fall of standards. With the existing social policy, we are standing still, and in some aspects, we are regressing, warned Žganec.

Pletikosa: We will consider the possibility of increasing social benefits

State Secretary of the Ministry of Demography, Family, Youth, and Social Policy, Marija Pletikosa, said that it is involved in the EMIN 2 (European Minimum Income Network) projects and wants to apply its positive outcomes and that through the adoption of a new social welfare law, all possibilities will be considered, and our goal is to enable citizens to have a better future and living conditions.

– We agree that the base for social benefits of 800 kuna is too little, but through numerous social benefits, we want to enable all citizens to have a better life in the future. A new social welfare law is being drafted, and we will consider the possibility of increasing social benefits, said Pletikosa.

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When asked about the amount of the highest social benefit, Pletikosa said that in the case of accumulation for certain groups due to age, dependency, for example, one-time assistance in exceptional cases such as natural disasters, it can reach up to 10,000 kuna.

National coordinator of EMIN, Zdenko Babić, warned that Croatia is among the top European countries in terms of the population’s exposure to the risk of poverty and lacking basic material goods, unable to pay bills, and living in cold and damp apartments, if they even have them.