Milanović: EU will buy gas from the USA ‘at three times the price’

President of the Republic of Croatia Zoran Milanović stated on Tuesday that energy is not a commodity, but a resource that guarantees security, independence, and strength, and that the European Union is currently in a situation where it will buy gas from the USA ‘at three times the price’.

‒ Energy is, at this moment, but also otherwise, a key issue ‒ Milanović stated at the opening of the economic forum ‘Business Meets Politics – Energy Today and Tomorrow’, organized by the Slovenian-Croatian Business Club and the Slovenian Embassy in Croatia, held during the visit of Slovenian President Borut Pahor to Croatia.

Milanović said that Russia and the USA, each in their own way, are not accidentally ‘two great and indestructible states’.

‒ They are indestructible because they have certain technologies and unlimited amounts of energy for their needs. China is no longer in that category ‒ Milanović asserted.

The European Union has long been ‘playing in the illusion’ that it would establish some energy market, but given the serious state of war, it has come to the point that it will buy gas from the allies of the USA, at three times the price.

He also stated that this is why French President Macron went to the USA to talk with American President Biden.

‒ In fact, begging from the position of a weaker partner for understanding and mercy ‒ Milanović assessed.

He said that electricity consumption per capita is an indicator of the structure of the economy, which speaks of the presence or absence of industry. He asserted that there is “no industry” in Croatia, while in some less developed countries, such as Serbia, that consumption per capita is significantly higher.

Milanović is also convinced that the euro will be good for Croatia, given that it is an extremely service-oriented economy.

However, more industrially oriented economies, such as the Italian one, which built competitiveness by devaluing the lira, have been ‘pushed’ by the euro. The consequences are a decline in production and competitiveness, so, for example, the automotive industry there is now reduced to ‘the remnants of remnants’.

Milanović also stated that Hungary is not entering the eurozone ‘for emotional, not rational reasons’, and the consequence of this could be that the forint will lose 30 percent of its value against the euro in a year, which means that Hungarian tourists will have less money to spend in Croatia.

When it comes to the economy, Croatia is practically dependent on the situation in Europe, especially Germany.

‒ As it goes for them, it will go for us ‒ Milanović assessed, adding that due to excessively expensive energy, production there is already facing problems.

However, we are not the ones who can solve that problem, said Milanović, reminding of the construction of the LNG terminal on Krk, which is a ‘good thing’.

‒ But, as one asphalt poet in Zagreb said, the roles have long been divided and everyone goes their own way ‒ Milanović quoted the lines from the song ‘Difficult Times’ by Branimir Štulić from Azra at the end.

Entering Schengen and the eurozone will further enhance cooperation

Given the state of war in Europe, Slovenian President Borut Pahor agreed with the conclusion that we live in a very insecure and unpredictable time.

Pahor, who is finishing his second term as Slovenian president and this is his last state visit, emphasized that Slovenia lives in the neighborhood of four countries, including Croatia, with which it has organized and friendly relations with a high level of trust.

Given that we live in a globalized world, influenced by the war in Ukraine, Pahor stated that Croatia and Slovenia should primarily take care of good relations among neighbors, i.e., countries in the region.

It cannot be predicted in advance when a crisis will occur, the latest example being the war in Eastern Europe, Pahor asserted, stating that economies, in order to be prepared for such crises, must be competitive, open, and flexible, with as little state interference as possible.

Pahor also assessed that Croatia’s imminent entry into Schengen and the eurozone will have positive effects on the Slovenian economy and will further strengthen cooperation between the two countries.

This was also emphasized by the president of the Slovenian-Croatian Business Club Saša Muminović, who pointed out that trade between the two countries reached a record 5.6 billion euros in 2021, and the prospects for this year are even better.

In this context, Croatia is Slovenia’s fifth foreign trade partner, and Slovenia is Croatia’s third, Muminović said, adding that Croatia and Slovenia are each other’s most important investment destinations, as every third euro of investment from one country goes to the other.

He also stated that Slovenian-Croatian cooperation in the green transition represents the right path for the economies of both countries.