The Croatian Employers’ Association (HUP) reacted on Friday to the Government’s announcements that it will calibrate and gradually reduce the new package of crisis measures, stating that when making these decisions, it is necessary to protect the most vulnerable, which includes micro and small enterprises, and they also expressed concern about the announcements of possible electricity reductions in the EU due to shortages.
As emphasized by HUP, led by Irena Weber, they are closely monitoring the announcements regarding the gradual abolition of anti-crisis measures that have significantly facilitated business during the challenging times of the energy crisis.
– We are aware of the need to return to market conditions, but we believe that when making final decisions, it is essential to consider and protect the most vulnerable – which includes micro and small enterprises – stated the employers’ association.
They note that domestic industry and other large companies have been paying market prices for energy for a long time, and changes will not bring them any news. The market price of gas has been below the upper limit of 180 euros per MWh for a long time, but due to geopolitical instability, it is important for companies to maintain that cap as a safeguard.
As they point out, small entrepreneurs are concerned about the potential abolition of gas subsidies, as this would represent a significant increase in energy costs for many of them, even up to 30 percent. Given that micro and small enterprises are the backbone of the Croatian economy, such a move could have negative consequences for their business and employment, they state.
Regarding electricity, although current market prices are somewhat more favorable compared to last year due to the extremely warm summer, the announcements of possible reductions are concerning.
– The industry has long faced the problem of higher electricity prices compared to households, which is a situation that is not common in most European countries and further burdens Croatian producers and reduces their competitiveness. Therefore, we suggest to the Government that when making decisions about the abolition of anti-crisis measures, it carefully analyzes their impact on different segments of the economy and society – emphasize HUP.
Let us remind you that in March this year, the Government adopted the sixth package of measures to protect households and the economy from rising prices, worth 503 million euros, aimed at keeping energy prices low and protecting against inflation. Thus, the prices of electricity, gas, and thermal energy were subsidized until September 30, as well as the prices of 30 basic products.
Prime Minister Andrej Plenković said on Thursday that consultations are underway regarding a new package of measures to combat the energy crisis, and that care will be taken regarding the European context, which is such that it is moving towards reducing these measures. As he emphasized, he will approach this in a way that takes into account the changed circumstances, given that the current measures have been in place for almost two and a half years.
Economy Minister Ante Šušnjar announced on Thursday that the Croatian Energy Regulatory Agency (Hera) will soon come out with a methodology for calculating electricity and gas prices, after which slight corrections to measures related to the protection of citizens and small entrepreneurs from the crisis are possible.
– We had slight corrections in the Dutch market, which is a reference for determining these prices; however, we also had measures in previous years that regulated prices and ensured social cohesion and security for our citizens. As per the European Commission’s directive, we are discussing relaxing or calibrating these measures, but certainly, the Government will take care, and our primary interest is the security and availability of energy for our citizens. In this sense, I can announce that there will eventually be some slight corrections related to the measures, but that prices should remain within existing frameworks or with a slight increase, which should not have negative effects on citizens and small entrepreneurship, while large entrepreneurs are currently paying market prices – stated Šušnjar.
