Croatia's Prime Minister, Andrej Plenkovic, presented a 30 billion kuna (€4 billion) rescue package in parliament on Wednesday, designed to offset some of the devastating impact of the coronavirus pandemic on the nation's struggling economy. The package involves a set of measures including tax relief and emergency lending programmes.

“This is a situation which calls for responsibility and solidarity, one which calls for the nation’s unity… We can only win the war against the coronavirus if we are united,” Plenkovic said.

He added that companies should “understand the moment the country is in” and called on them to make retaining of jobs and employees a key priority.

The unprecedented restrictions on travel and public life which have been imposed across the continent due to the pandemic are expected to deal a severe blow to Croatia’s tourist and hospitality industries, which account for some 20 percent of its GDP.

Other vulnerable areas which have already felt downturns are the transport sector and export businesses.

“Only if we are all show solidarity as a society can we overcome this crisis. It is important that we share the burden (of the crisis) equally, and with solidarity,” Plenkovic said, thanking MPs for agreeing to a fast track debate and vote on the rescue package.

The new legislation includes a three-month grace period for tax payments valued at 12 billion kuna (€1.6 billion), another 5 billion kuna (€660 million) in wage subsidies for struggling businesses, grace periods for payment of loans to commercial banks and the state-owned development bank HBOR, and others. The whole package is valued at 30 billion kuna (€4 billion).

Speaking about Croatia’s response to the coronavirus epidemic, Plenkovic said that the 81 infections identified as of Wednesday is a “moderate number” and added that in order to keep the situation in check more sweeping restrictions would be needed.

The government had earlier announced that, like in most other European countries, all restaurants and bars would be ordered to close some time this week. The move is likely to also include theatres, cinemas, gyms, shopping malls, and most other public places.

“Upon the recommendation of epidemiologists and the national civil protection authority, we have prepared measures to restrict gatherings and social contacts as much as possible,” Plenkovic told parliament.

(€1 = 7.58 kuna)

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