Ahead of a debate on the financial situation, price stability and monetary policy, the Opposition in the Croatian parliament on Wednesday criticised the Croatian National Bank (HNB) and its governor Boris Vujcic over a "disastrous" monetary policy.

Ruzica Vukovac (Righteous Croatia) said that responsibility for Croatia’s economic decline rested solely with the HNB and its disastrous monetary policy.

“The long-term kuna exchange rate stability, maintained artificially on the lower value of the euro in Croatia, required huge financial allocations from the economy’s revenue,” Vukovac said, adding that this was the reason why the government was unable to curb price growth.

Katarina Peovic (Workers’ Front) said long-time HNB analyst Mirjana Cerin had pointed to the extent of damage caused to the Croatian economy and population by the HNB’s “anti-people” policy of kuna overvaluation, adding that her party would advocate that Vujcic and all the other HNB governors be held criminally liable for that one day.

“Your policy has caused more than €138 billion in damage to the Croatian economy and people,” Peovic said in a message to Vujcic who was expected to present reports on the HNB’s work in the parliament.

Damir Bajs (Focus/Reformists) said the HNB had failed to fulfil its main mission, keeping prices stable. “We have a growing inflation and a declining standard of living,” he said, dismissing as unacceptable statements that the HNB had nothing to do with that.

Zvonimir Troskot (Bridge) wondered where foreign currency deposits in the amount of €25 billion had gone. “That is an entire state budget that has turned overnight into a nonfinancial monetary asset that has disappeared and no longer exists,” he said.

Marijan Pavlicek (Croatian Sovereignists) commented on Vujcic’s statements on the occasion of euro introduction, advising citizens to buy products in shops that offered them at lower prices. “Find me a retail chain where prices have not gone up by 20-25% over the past year, find me a shop where prices have gone up 0.2-0-4%, which is how much Vujčić said prices would go up due to the changeover to the euro,” Pavlicek said.

Sandra Bencic (We Can!) said that corporate margins were the key factor that had contributed to inflation in Europe and Croatia, wondering what mechanisms the HNB has to reduce the continuing price growth in sectors such as food and to stop further margin growth.

Boris Lalovac (SDP) stood up for the government and PM Andrej Plenkovic, noting that they were adopting anti-inflation measures on a daily basis and doing the central bank governor’s job. “When have you seen the governor step forward and do his job,” he asked.