The fight against coronavirus has been "the fastest and biggest collective research enterprise in history," Prime Minister Andrej Plenkovic said in parliament on Monday, presenting a report on European Council meetings held in the past six months.

The meetings focused on the pandemic, the digital and green transition, the workings of the single market, the EU security policy, migration, relations with the UK, Russia and Belarus, and the eastern Mediterranean with emphasis on Turkey, as well as discussing the southern neighbourhood, the Middle East and Africa.

“At every meeting the European Council had a special item on the agenda dedicated to the fight against the pandemic and the support to scientists to find an efficacious and safe vaccine,” Plenkovic said.

“Croatia has ensured 3.8 million vaccine doses to date and we have vaccinated 46.2% of the adult population.”

Unfortunately, he added, “we are below the ambition to have vaccinated 50% of adults by 1 July, but there is resistance and we must encourage as many of our fellow citizens as possible to be vaccinated.”

Doses donated to Bosnia, Montenegro, N.Macedonia, Albania, Kosovo, Bhutan, Kyrgyzstan

Croatia has donated 390,000 vaccines, most to Bosnia and Herzegovina (240,000), followed by 30,000 to Montenegro, Albania, North Macedonia and Kosovo each, as well as 20,000 to Kyrgyzstan and 10,000 to Bhutan at their request.

“At the moment we have 1.3 million doses ready for administration. Without a high vaccination rate, it will be tough to beat the virus together, globally speaking, and that’s why every vaccinated person is an infection prevented today, a life saved tomorrow and one less possibility of mutation,” Plenkovic said.

Cost of the pandemic 20% of state budget

The cost of the pandemic amounts to €4.5 billion, or 20% of the state budget, he said, adding that last year’s two earthquakes cost an additional €16.9 billion.

Speaking of a social summit in Porto, he said that during the pandemic the state helped with job retention on an unprecedented level, also thanks to EU funds.

“We can be pleased that, in times of Covid-19, we prevented a rift in society. We prevented an explosion of unemployment, a wave of bankruptcies, we prevented livelihood problems for families, workers, and helped employers bridge that crisis.”

He reiterated that the state had set aside HRK 11.7 billion for job retention and that, together with tax and contribution write-offs, that amount reached HRK 17 billion.

“Now we are turning, in a dialogue with the social partners, to a new phase – job creation, primarily by utilising the EU’s Next Generation instrument.”

Another important topic in the past six months was the workings of the euro area, Plenkovic said.

“We are implementing a score of policies as part of the action plan and the commitments undertaken. Our deadline for meeting all criteria will be March next year. I expect that, with a two-year period in the European Exchange Rate Mechanism, we will be ready for membership in the euro area in 2023, on the tenth anniversary of Croatia’s EU membership.”

Economy strongly integrated into European financial and trade trends

Plenkovic said the Croatian economy was strongly integrated into European financial and trade trends.

“We are a small, open, highly euroised economy. The expected costs are small. Over 60% of savings in Croatia is in euros, 60% of loans is either in euros or pegged to the euro, 66% of foreign spending is made by tourists from the euro area.”

He said the euro area accounted for 56% of Croatian export and that, according to Eurobarometer, confidence in the euro had jumped from 61 to 76%. “We have been meeting the convergence criteria since 2016.”

Plenkovic said it was necessary to keep in mind some things with an international dimension that would happen in Croatia in the next three years.

“First, in about two weeks we will physically connect Croatia. All the elements of Peljesac Bridge will be connected. There is no better mirror to modern sovereignty than connecting our territory.”

Second, he said, “we expect that during the autumn we will no longer need visas for the U.S., giving our citizens additional freedom of movement.”

“Third, we will enter the Schengen Area in 2022 and fourth, we will be in the euro area in 2023 and finally, as of 2024, we will have new multipurpose fighter jets,” Plenkovic said.

“We want our border to become the Union’s external border. We have invested €200 million in the technical equipment for border surveillance and border police capacity,” he said, adding that 6,500 excellently equipped and trained people guarded the Croatian border.