Peruško: The state needs to purchase receivables from certain sectors of the economy, for which 300 million euros is required

Entrepreneurs expect the future government to continue measures for preserving jobs and liquidity, but also new measures to assist the economy struggling with the consequences of the corona crisis, it was emphasized on Wednesday at a round table organized by the Croatian Employers’ Association (HUP) and Večernji List.

"The new government will have to urgently adopt additional measures to address the corona crisis, as recovery from corona will take too long without its assistance," said HUP’s Director General Davor Majetić. He reiterated that HUP has long highlighted the most important segments in which it expects state assistance, namely the preservation of jobs and liquidity, as well as encouraging demand and consumption growth.

The Chairwoman of the Supervisory Board of Ivančica Nada Zver stated that they expect support from the future government for job preservation, as the crisis will pass and they will need a workforce. She believes that measures for preserving liquidity and further relieving the economy should also continue. She noted that the corona crisis has caused significant disruptions in the footwear industry.

"We are experiencing significant disruptions in business due to a drop in orders, resulting in a decline in revenue and a decrease in employed capacity, i.e., surplus workers and reduced working hours," she said. She added that liquidity is a major problem and expects support from the state.

"The burdens on wages are high, and we expect the abolition or reduction of contributions on wages. There will be a recovery, and we will need workers again. It is better to have knowledgeable workers than to hire new people," she said.

The CEO of Fortenova Group Fabris Peruško stated that we can realistically expect the actual effects of economic recovery and a return to 2019 levels in Croatia in 2022. He also said that after the parliamentary elections, the government should be formed as soon as possible. He believes that the focus should be on purchasing receivables from certain sectors of the economy, estimating that between 200 to 300 million euros would be needed for this.

The CEO of Valamar Riviera Željko Kukurin stated that the season is uncertain and will remain so. He said it is difficult to make estimates as it will depend on a number of factors, but that Croatia still has a very good epidemiological picture compared to countries in the Mediterranean.

"It is difficult to deal with specific numbers, but we probably cannot expect more than 40 percent of tourist traffic," he emphasized. When it comes to specific measures, he said that in the short term, it is important to implement measures for preserving jobs and ensuring liquidity until the next tourist season, while in the medium term, competitive conditions for business and investment need to be created.

The CEO of Erste Bank Christoph Schoefboeck stated that loans for tourism have generated great interest among entrepreneurs. In the first five months they approved 8.5 percent more loans than last year, mostly related to liquidity or working capital.

Aladrović: 7.6 billion kuna paid for job preservation

The Minister of Labor and Pension System, Josip Aladrović, announced that by the end of this week, and at the latest by the beginning of next week, a measure regarding the reduction of working hours will be introduced. He also stated that the government reacted quickly in the economic part of the crisis and that approximately 7.6 billion kuna has been paid so far for job preservation. Aladrović also mentioned that HDZ has planned to reduce the number of ministries and their merging in its program, and this will also apply to local government units. The number of local officials will also be reduced, he said, adding that from his perspective, cuts must be serious and that there is room in the public and state sectors for increased efficiency.

Josip Tica from the Restart Coalition stated that the government initially could not decide whether it wanted to deal with budget expenditures and revenues or to prevent the spiral of negative effects of the corona crisis.

"We spent the entire quarantine writing laws. We have been asking from the beginning for the state to subsidize 75 percent of the average wage. It would cost the state more to pay unemployment benefits than it has spent on measures," he said.

Our goal is, as he said, to ensure liquidity in the face of the crisis so that we can pay all bills and encourage the economy not to succumb to pessimism in society and to continue investments. He considers encouraging consumption and investments, as well as digital transformation, to be key.

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