President Milanović Takes Part in “Dan velikih planova” Business Conference: Every euro from the EU should be utilized, that is the task above all others of this generation
The President of the Republic Zoran Milanović participated in the “Dan velikih planova” (Big Plans Day) business conference. The 13th edition of the conference, which has traditionally been organized by the “Lider” weekly, was held under the patronage of the President of the Republic. In his address to the conference participants, President Milanović spoke about the effects of the corona crisis on Croatia’s economy.
“Croatia is getting out of this crisis well. The Government should be given credit for doing everything in its power. It did not perform miracles, but it stepped up and its actions will have an impact on Croatia’s fiscal standing. There really was no other path. This crisis is not financial, it is not a crisis of demand, but it is becoming a crisis of supply,” said the President, reminding that inflation has arrived in the United States. “In recent months, inflation in the U.S. has been five percent – and until yesterday there was deflation – only because the price of used cars has risen by 50 percent and there are no cars because they cannot be produced to meet market demand. This factor alone has contributed to the five percent rise in inflation,” he said, cautioning that the supply crisis is a major challenge for everyone.
In reference to the situation in Croatia, President Milanović highlighted tourism, which, he said, can be seen as a competitive advantage, but also as a problem if Croatia relies only on good tourist results. “But how do we increase competitiveness, productivity and newly created value? Productivity isn’t everything, but in the long run it is almost everything. These are the words of Nobel laureate Paul Krugman, with whom I agree. And what does this mean in the Croatian context? How do we increase productivity in the tourism sector, in the transport sector? How do we ensure a larger share of private investments, of 75 percent,” President Milanović asked.
In the President’s opinion, the solution is to make the best use of the money available through European funds. “This money is available to us in enormous amounts, as to all new democracies, as part of the new reconstruction package. That is the task above all others of this generation. Every euro from the EU should be utilized. Those who are in charge of that should be held accountable for every euro we fail to make use of,” emphasized President Milanović.
The President reminded that in its eight years of EU membership, Croatia absorbed 43 billion kunas more than it paid in. The President holds that this is insufficient as it amounts to some five billion kunas annually. If allocations for agriculture are deducted (the so-called ‘helicopter money’), then the figure falls to just over two billion kunas per year. “It’s too little. We want more, I want more. And only then does our decision to submit to someone else’s will in the next few decades become justified,” President Milanović cautioned, referring to Croatia’s membership in the EU.
Expressing his hope that the situation will change for the better, “because we can indeed do better,” the President concluded his address at the conference with these words: “We are a small country, we need to be open and constantly compare ourselves with the best. I want us to be a successful country on the fringes of Europe’s core that knows what its interests are, that has its own clear goal and plan and that will be secure, that is the most important thing.”
Welcoming remarks to the participants of the 13th edition of the “Dan velikih planova” business conference were made by the Editor-in-chief of the “Lider” weekly Miodrag Šajatović and the Director General of the Croatian Employers’ Association Damir Zorić. Apart from President Milanović, the following persons delivered speeches: Governor of the Croatian National Bank Boris Vujčić on the topic “Corporate sector in the pandemic: who is immune to COVID-19?”; Director for Transition Impact and Global Economics at the Office of the Chief Economist of the European Bank for Reconstruction and Development (EBRD) Alexander Plekhanov on the topic “Global and regional trends”; Minister of the Economy and Sustainable Development of the Republic of Croatia and envoy of the Prime Minister Tomislav Ćorić on the topic “Economic Policy of the Government of the Republic of Croatia in 2022.”
Special Adviser to the President of the Republic for the Economy Velibor Mačkić was alongside President Milanović at the conference.
PHOTO: Office of the President of the Republic of Croatia / Ana Marija Katić