President Milanović Extends Congratulations on International Workers’ Day: Inflation is a threat to all the people who live off their wages

29. April 2022.
16:00

At the traditional event for International Workers’ Day in Tvornica, organized by the Union of Autonomous Trade Unions of Croatia, the President of the Republic Zoran Milanović congratulated the Croatian workers on International Workers’ Day being observed on 1 May.

Addressing Union members President Milanović stated that for the Union, which primarily represents workers in the private sector, it is difficult today to recognize their opponent because large manufacturing companies no longer exist. “Once there used to be big establishments in Radnička Street – there is none of that today”, he said, warning that the main problem and danger today in Croatia is inflation. “Inflation is a danger that cannot be eradicated by union work. Inflation hits those who life off their wages, that is a huge number of people”, President Milanović noted.

He then referred to the inflation of the 1970s and 1980s, both in Croatia and in Western countries. “Western countries experienced that problem, but to a lower degree. It is coming back now – and why so – nobody knows the exact answer. Perhaps due to the crisis caused by the pandemic and the policy of printing a lot of money. If this is so, it means that the phenomenon is short-term and will soon disappear. That is the so-called transitory inflation”, the President stated, emphasizing that inflation is a serious issue.

He noted that he is not inclined to criticizing the government on the wage issue. “Every government indeed wishes to satisfy its voters, give wages amounting to 1,500 euros in the public sector, just to get rid of the problem. Unfortunately, life is a bit more complex: Croatian taxes are about average in Europe, corporate tax is small, forget about dividend tax. Not much can be changed, payroll deductions must be withheld from total earnings, otherwise the whole system will collapse and people will lose their security”, President Milanović stated to Union members and said that they do not necessarily have enemies in the government.

The “Praznik rada u Tvornici” (Workers’ Day in Tvornica) is a traditional event and gathering of Union members with their Union representatives and with representatives of the legislative and executive branches of the government on a national and local scale in order to remember history and the meaning of International Workers’ Day and the fight of the workers. Furthermore, it is an opportunity for Union representatives to transmit messages and expectations from government bodies aimed at improving the position of workers and society as a whole.

Alongside President Milanović were the Gead of the Cabinet of the President Bartol Šimunić and the Special Adviser to the President of the Republic for the Economy Velibor Mačkić.

PHOTO: Office of the President of the Republic of Croatia / Tomislav Bušljeta