19:13 / 10.01.2022.

Author: Domagoj Ferenčić

GSV convenes to discuss 2022 budget and inflation

GSV meeting in Zagreb

GSV meeting in Zagreb

Foto: Patrik Macek / PIXSELL

The Economic and Social Council (GSV) gathers government, employer and union representatives to discuss government’s economic policy and employer and union concerns.

The Economic and Social Council convened today to discuss the budget for this year and projections for 2023 and 2024. A possible revision of this year's budget has already been mentioned due to the growing inflation. Labour and Pension System, Family and Social Policy Minister Josip Aladrović: "I am convinced that in the coming period we will have wage growth that will compensate, if not in whole then at least in the medium term, price inflation. I think income growth will be higher than price growth, and we have to continually work on that."

"The state is here to ensure the common good for all of us. When these kinds of times come, and as far as energy prices and inflation are concerned, I fear that the time is already upon us, then I have nothing against government intervention." added the Director General of the Croatian Employers' Association, Damir Zorić.

Meanwhile, speaking in Slavonski Brod today, Economy and Sustainable Development Minister Tomislav Ćorić, commented on the announced increase in the price of gas and electricity as of April 1st, saying that government is doing everything to mitigate price hikes: "What will come in April of this year is an upward price correction. It has already happened to a high degree at the EU level, and it can't be avoided. What is possible is to ensure that this correction in Croatia is as small as possible."

Following today’s meeting of the GSV, employer and union representatives also expressed concerns with regard to the focus and adoption of this years' budget. Zorić said that the budget does not focus enough on exports: "As far as employers are concerned, our first priority is to stimulate exports, because we can see just how important it is with regard to the existing growth of the GDP. And it seems to us that given the macroeconomic projections for the next two years, this isn't emphasized enough with regards to the planned budgets in the coming years."

Union leaders, on the other hand, voiced their concerns that the 2022 budget was adopted without consulting social partners. The president of the Independent Trade Unions of Croatia, Krešimir Sever: "Unions expressed their displeasure that this is being discussed after the budget was adopted in parliament. We feel that if there had been any intention of seriously discussing this issue with social partners, this should have happened before government forwarded its final budget proposal to parliament."

Source: HRT

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