HGK: Measures are balanced and mitigate the rise in energy prices

The Croatian Chamber of Economy welcomes the latest package of measures from the Government of the Republic of Croatia to assist the economy and citizens. HGK believes that the measures are balanced and, within the budgetary possibilities, significantly mitigate the pressure of rising energy prices as one of the main causes of inflation. The longevity of some measures for electricity and gas prices, whose formal adoption is expected at the Government meeting on Thursday, will enable a safer business environment and the possibility of longer-term cost planning for the economy, while preventing further declines in purchasing power and standards for citizens.

– The context in which new measures are being adopted is characterized by uncertainty, therefore predictability and planning of business obligations and activities brought by these measures are key. We are all pleased that we successfully passed this winter in Europe without the usual amounts of Russian gas, and we were also fortunate with the weather, while Chinese industrial demand for gas was lower due to restrictions related to pandemic activities. However, we cannot predict what kind of winter and geopolitical circumstances await us at the end of the year, so it is essential to use the upcoming period to further encourage energy self-sufficiency and renewable energy sources – said HGK President Luka Burilović.

Burilović believes that the Government, with new measures to support citizens and the economy, which have been applied in various forms for almost three years since the outbreak of the corona crisis, has fulfilled three key goals: mitigating price increases, protecting against inflation, and providing special support and incentives.

– We are particularly pleased with the continuation of the public transport support measure, which HGK has advocated. This measure will contribute to overcoming negative trends in the operations of road passenger carriers in the post-COVID period, which have manifested through increased input costs and a constant decline in the number of passengers and carrier revenues – said the HGK President.

He also believes that additional efforts are needed for Croatia to increase the share of renewable energy sources and open alternative supply routes for energy supplies.

– Last year showed that the energy transition is a very complex undertaking. The financial cost of the transition will be significant, and we do not know when all the necessary technologies and accompanying infrastructure will be ready, while in the meantime, pressures on the European industrial base will only increase, further emphasizing the need to accelerate the energy transition that Croatia has not yet fully utilized. Thanks to the existence of key energy infrastructure such as JANAF or the LNG terminal, Croatia has timely secured a safe energy supply, placing us in a significantly better position compared to countries in the region, but we still have a long way to go to ensure the highest possible degree of energy self-sufficiency, which should be one of the key challenges for this Government in the upcoming period – said HGK Vice President for Industry and Sustainable Development Tomislav Radoš.