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Entrepreneurs Should Not Worry About Changes in Local Authorities

It is not exactly panic, but it is not far from it – this is how the HDZ interprets the results of electoral polls suggesting that the party is not faring well in the upcoming local elections. They are not only aware that it will be very difficult to gain power in major cities, such as Zagreb, Rijeka, and Split, but the party is also on shaky ground even where its members have taken root, from Dalmatia to Slavonia. In these regions, according to polls, even the SDP could achieve better results, which is such an alarm for the ruling party that they have literally ordered some mayors, who were ready to hang up their political boots, to find the strength within themselves for another term because the polls suggested that without them, the party would lose. It is not only the HDZ that fears the local elections, but also local entrepreneurs who have spent years building relationships and business strategies based on the long-term mandates of local politicians. For them, such changes mean much more than a new mayor or the loss of a few city councilors – they are an introduction to uncertainty that implies a reassessment of the stability of existing and future business contracts, the possibility of losing privileged positions in tenders, and a serious challenge for long-term projects that relied on political support.

Damage Control

And there are more of them in Croatia than we would like to admit, and all of them, months before the elections, especially if they hint at losing their protectors, do everything to at least seemingly minimize the damage. It is no surprise that there is anxiety, as the Croatian economy is deeply intertwined with the public sector, and at the local level, this connection becomes even more pronounced. Cities and municipalities are not just administrative units but also the largest investors, key contractors, and regulatory arbiters in a range of sectors, from construction and infrastructure to municipal services. For entrepreneurs who play exclusively on this card, and we know there are quite a few, the stability of business operations depends less on market conditions and more on the continuity of relationships with local authorities, so it is logical that they are nervous about possible changes at the head of local self-government units. Changes will occur; there is no doubt about that. Due to the local elections, Minister Šime Erlić is leaving the Government and becoming the HDZ candidate for the mayor of Zadar, which is just a sign that the party does not want to lose that city and is willing to sacrifice a successful minister to run at the local level.

– This mainly speaks to the scale of the problems the HDZ is facing at the local level, which means that these local elections have the potential to bring about greater change locally, and then spill the consequences of the results onto the national level, a situation we have not had at such a systemic level for a long time – explains political analyst Marko Rakar.

What these changes could be, how much the local environment could change leaders, and what this means for entrepreneurs who collaborate with local communities without and with scruples, read in the printed or digital edition of the weekly Lider.

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