Minister Aladrović Announces Reduction of State Subsidies

Minister of Labor, Pension System, Family and Social Policy Josip Aladrović announced on Tuesday a reduction of state subsidies to sectors that have achieved good business results and a continuation of support for those who still need it the most.

– The situation in the labor market and the economy is no longer such that we need to have very intense state support. We have continuously supported our entrepreneurs and employees with more than 12 billion kuna net. The pool of those who need this assistance from our perspective is continuously decreasing – said Aladrović to reporters in response to a question about which activities will continue to receive subsidies given the changed epidemiological situation.

Emphasizing that economic measures are exclusively correlated with epidemiological measures, he also stated that certainly a part of those who have received intensive government support for 17 months can now continue on their own while retaining jobs and business substance, as well as everything that was exposed in the previous period due to their reduced business activity. – Now that activity is practically at levels from 2019 according to all data, and in a certain segment of our sector, that assistance is no longer needed – he said.

Noting that he will continue to support all those who need it the most, he announced that he would hold another round of consultations with social partners and would inform the public by the end of this week about which sectors this assistance will apply to. Aladrović identified the most exposed sectors as those related to large gatherings – organizers of sports and cultural events, the event industry, travel agencies, and part of transportation.

– Other sectors that are operating at full capacity have been enabled due to a good tourist season and good economic indicators, with business activity at pre-pandemic levels. We see that state support as it has been until now is no longer necessary for them, and therefore we will reduce the number of sectors that will be eligible for support – he stated. He also added that if additional restrictions occur, which he personally does not believe will happen, there will be support as there has been until now.

Aladrović stated that all economic indicators (GDP growth, increase in the number of employed, etc.) give the government the right to create economic policy in this way.

– As a society and state, we are transitioning from the phase of preserving jobs to the phase of creating jobs. By the end of this year, we have secured more than 500 million kuna for job creation, and in the next year nearly 1.5 billion kuna – he emphasized.

Minister of Labor, Pension System, Family and Social Policy Josip Aladrović handed over 28 contracts worth more than 22.5 million kuna to representatives of cities and counties on Tuesday, which will ensure school meals for children at risk of poverty.

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