The centre-left opposition Social Democratic Party (SDP) unveiled its comprehensive package of measures to fight inflation on Tuesday, with party leader Pedja Grbin saying that politicians need to make sure everyone in Croatia can survive inflation.

“We need to take measures to ensure that entrepreneurs can function and that citizens can survive,” Grbin said, presenting the SDP’s “comprehensive package of measures to mitigate the impact of inflation.”

Inflation affects everyone, but it does not affect everyone equally, those with the lowest incomes are affected far more than others, Grbin said addressing a press conference at the party’s headquarters.

The SDP is therefore proposing to increase the non-taxable income threshold to 5,000 kuna, which, it says, would be much more efficient than reducing VAT. The SDP is also suggesting new ways of adjusting pensions so they do not lose value, inflationary allowances for pensioners and employees, as well as increasing social benefits such as home-care allowances and the like.

“These measures are a kind of shield for the most jeopardised in Croatian society,” Grbin said.

When it comes to SMEs, SDP MP Boris Lalovac called for an increase in the non-taxable threshold for eligibility for the VAT system from 300,000 to 350,000 kuna. He also proposed increasing the allowance for using a private vehicle for official purposes from 2 kuna to 3.5 kuna.

The SDP calls for absorbing funds to compensate enterprises that lost their clients because of the war in Ukraine.

It further advocates a “solar revolution,” to stimulate the installation of photovoltaic cells, to be financed with cheap credit lines.

The party called on the government to take action to ensure the European Commission changes its directive prescribing the minimum excise duty on fuel.

The government has instruments to mitigate inflation and financial leeway because the state budget is filling better than expected. A responsible state would return that money to the citizens and the economy, the SDP said.

Grbin also commented on announcements by certain retail chains of the possibility of a fuel shortage after the government announced it would limit margins and reduce excise duties.

“Last year, INA was at the top in terms of profit and the company that controls INA, the Hungarian MOL, subsidizes the price of fuel for Hungarian consumers. How dare they threaten shortages in Croatia, where they extract oil under extremely favourable terms?” Grbin said.