Do We Need Investment Criteria or Are All Investors Equally Good?

Entering the Eurozone and Schengen really makes a difference, at least when it comes to investments. This year, a significant amount of capital has started flowing into Croatia. There is substantial investment even in Slavonia (American Jabil is investing in microchip production), but most of it is directed towards green, solar energy, logically in Dalmatia. However, not everything is crystal clear with these green energies, especially since the ‘profit and loss’ calculations of local units are not clear. What do local units gain by distributing land so generously?

Therefore, the question arises whether we should perhaps devise investment criteria, somewhat in the way that the USA and EU do, albeit more or less for geostrategic reasons. What are the criteria for desirable investments and which ones are exactly acceptable? In Osijek, one of the largest American investments is being realized, which is expected to create around 1500 new jobs.

New jobs should indeed be the fundamental criterion for the ‘approval’ of investments and investors, at least as conveyed by the mayor of Bjelovar, Dario Hrebak. And these should be permanent jobs, not just those filled during the construction of the project.

– We reject solar projects. We are too serious to give our most valuable land for projects that create zero jobs. More and more IT companies are opening in the technology incubator, employing around 500 people in that sector. These are the investments we want and encourage with the lowest income tax and the lowest utility fees. Industries and factories with dirty technologies are a thing of the past; we are oriented towards green, clean production halls with high value-added products – explains Hrebak, adding that they cooperate excellently with the opposition, with whom they decide on all important issues, including investments and potentially problematic investors.

What does the Association of Foreign Investors say on this topic, where they still believe that the barriers to foreign capital entry are still too many? Burak Baykan, the president of the Association, says that Croatia, as an EU member, needs to act in accordance with measures related to capital sources and money laundering in the EU.

– There, the criteria for investors and investments are clearly described, and Croatia will gradually attract all types of investments in accordance with EU criteria, while additionally, each state and local community determines which type of investments it wants to attract in accordance with its strategic plans, where the investor profile is extremely important. Croatia has sparked great interest after entering the Eurozone and Schengen, which has increased the interest of new investors in various areas. This is important because we need to diversify the economy, primarily in manufacturing investments, as well as in terms of strengthening Croatia regionally, which will not only contribute to economic growth but also to positive demographic shifts.

We need more strong, corporate, and structured investors. These are large companies and large investment funds. Such types of investors will contribute to growth and create more sustainable jobs. Only this level of investors will be able to bring more innovation, research, and development that will give Croatia more chances to utilize EU funds. When such large investors are actively attracted and the first projects are realized, we will see that more of our people will start returning to Croatia – assures Baykan.

What kind of investments do we really want and with what ‘side effects’ find out in the new digital and printed issue of Lider.