Prime Minister Andrej Plenkovic said at a government meeting on Thursday that consultations are underway on a new package of measures to combat the effects of the energy crisis and announced the gradual phasing out the aid schemes.

When drafting the new measures, the government will take into account the European context, which favours the phasing out of these measures, Plenkovic said, emphasising that the changed circumstances will be taken into account, as the current measures have already been in force for two and a half years.

“The new measures will be calibrated, we will take care of the most vulnerable groups, but we will also take into account the fact that the European context is such that the measures and packages adopted so far are being phased out, because we have managed to do the most important thing, namely to preserve social cohesion in the time of the greatest energy crisis by combining measures that have helped households, pensioners, small, medium and micro enterprises and all institutions – from municipalities, cities and counties to kindergartens, schools, universities, retirement homes and hospitals,” said the Prime Minister.

Further activities to reduce inflationary pressure

He said that the new measures would be presented promptly following the ongoing interdepartmental consultations.

At the same time, activities to reduce inflationary pressure and discussions with the social partners will continue, said Plenkovic.

In March 2024, the government adopted the sixth package of measures worth 503 million euros to support households and the economy cope with price increases and to keep the prices of energy products low and protect against inflation.

The programme provided for the subsidisation of electricity, gas and heating energy prices as well as the prices of 30 basic foodstuffs until 30 September.

Pension adjustment from 1 July

Plenkovic also announced a pension adjustment of more than seven per cent from 1 July, together with legislative amendments that will change the pension calculation formula and introduce an annual supplement.

“With these legislative changes, we will adjust the pension calculation formula from 70-30 to 85-15 in the coming period and ensure an annual supplement to pensions,” he said.

The Prime Minister emphasised that the government is continuing its policy of ensuring a high standard of living and material rights for pensioners.

Plenkovic also announced a pension adjustment.

“The Board of the Croatian Pension Insurance Institute will decide on the pension adjustment from 1 July. According to the data we have now, the adjustment rate will be over seven per cent,” he explained.