Prime Minister Andrej Plenkovic said on Wednesday that salary increases can be expected in the next three months, adding that salaries are already increasing now, in February for January, after the tax reform comes into force.

The new year brought a series of changes. All laws that came into force on 1 January have a fundamental goal – to increase the social and economic standard of citizens and support the economy, Prime Minister Plenković told Croatian Radio.

When it comes to the law on wages in the state and public service, which covers 240,000 people, Plenkovic said a unique reform was carried out no one dared to carry out before, “The law entered into force the day before yesterday and now we will proceed with the adoption of two decrees, one for public services and the other for state services. Those two decrees will enter into force by the end of February, appropriate decisions will be made during March based on the new regulations, and I believe that the new salaries will be paid in April for March,” he said.

“We can expect wage increases in the next three months, but let’s not forget, wages are already rising now – in February for January, after the tax reform,” said the Prime Minister and noted that Christmas bonuses rose from €232 to €300.

Plenkovic also noted that a €100 Easter allowance will be paid out.

In order to further increase wages and relieve the burden on entrepreneurs, nine tax laws have been amended, the minimum wage is increasing, and the abolition of surtax will also affect the increase in wages, he added.

“I think that only with time, as people receive salaries, citizens will become aware of which local areas went for lower labor taxation, and which did not use the space provided by the Parliament at the suggestion of the Government,” he asserted.

‘Croatia is in the phase of historical renewal and investment cycle’

The credit rating, he says, was the best ever last year.

“Investment credit rating is four points higher than when we started 2016. Plus positive outlook, according to all three agencies. Second, we reduce the share of public debt in GDP. We had a spike in the time of COVID and after that the curve goes back. I believe that it could be below 60 percent in 2024, 2025, which would be great,” Plenkovic said. He added that the purchasing power of citizens is greater than it was before, and noted that all economic segments should contribute to this balance.

Regarding EU funds, he said that someone was trying to get them. “Money used to rebuild Zagreb and Banovina did not fall from the sky. We fought,” he said and added that a huge infrastructure cycle is underway throughout Croatia, which is in the phase of historical reconstruction and investment cycle.

“By 2030, my goal as prime minister is that every center of the county has approximately equal chances,” he said and added that this is the essence of modern sovereignty – realising strategic national goals with a strengthened international position.

When it comes to corruption, which is being investigated by the European Public Prosecutor’s Office, he said that it is the wish of all EU countries, including the Croatian government, that it be better controlled. “None of us is in favor of someone later misusing the funds provided by the government. And we are the most interested in this, the strictest towards any irregularity in the use of budget funds and European funds”, he added.

He also referred to the indictment against Zadar prefect Bozidar Longin, saying that he thinks it is a bizarre case. He claims that it is a misunderstanding, USKOK has a different thesis. However, he added, it is not good in the behavior of any official to get into a position where someone who is watching from the side thinks that this is abusing the position or duty. I don’t see any damage to the budget, but let’s let it take its course, he added.

He also briefly commented on the fact that the Constitutional Court rejected Gong’s request abut to the closed St. Mark’s Square. “I didn’t hear that Gong asked how the Croatian policeman, who was injured, was doing, if there were any consequences, but I heard the thesis that St. Mark’s Square should be opened… Let them go anywhere beyond Bregana and see how national institutions are protected”, he said.