Croatian government prepares to unveil new spring aid package

Prime Minister Andrej Plenković's government is planning to unveil next week a new set of measures to help citizens and businesses cope with the current inflation crisis. The current aid package runs out at the end of this month. 

Prime Minister Plenković has said that the measures would be “comprehensive, strong, and timely”. Finance Minister Marko Primorac said the package would center of electricity and natural gas.

"All of the other measures that subsidize utilities for low-income earners will remain in place. I am not in favor of extending these measures to everyone. There are people who earn enough not to require full or even partial price subsidies," said Primorac.

Unions and employers have high expectations for the new package. Labor representative Krešimir Sever said he certainly expected electricity and natural gas subsidies to be renewed for households as well as the additional aid vouchers for low-income earners. Sever wants to see more aid for other groups as well.

"There should be aid for pensioners, larger households, the unemployed," Sever said.

Aid for businesses was also very important, he said, but noted that some companies that benefited from previous rounds of aid ended up raising prices for consumers. He is proposing a solution.

"This time around, the aid should have some conditions attached and the businesses should reflect the break they received in lower prices for consumers,” he said.

Government representatives are expected to discuss the plan with employers and unions at a meeting of the Economic and Social Council on Monday.

The plan also includes keeping the VAT rate at 5 percent for natural gas, as well as for pellets, briquettes and wood chips used for heating.