Prime Minister defends latest anti-inflation measures

Prime Minister Andrej Plenković has said the Government's new anti-inflation package is comprehensive, justified, and focused on protecting citizens with lower incomes. He also announced a further reduction in fuel prices next week.

"I can announce that the prices of both Eurosuper and Eurodiesel will be reduced next Monday, when the Government adopts its decision. Our task is to take care of everyone, both those who have a lot and those who have a little. In times of multiple external crises, we must also show social solidarity. I have nothing against people making profits, but there must be some measure in these circumstances. The fight against inflation is above all about protecting those with lower incomes, because they are hit hardest by rising prices," Plenković said.

The Prime Minister also outlined plans to abolish income tax for around 580,000 pensioners, saying pensions should increase once the legislation comes into force.

Speaking about the proposed tax on excessive profit margins, Plenković said estimates from the Finance Ministry suggest the measure could apply to around 1,700 medium and large companies, while micro and small businesses would be exempt. He added that even the announcement of the measure could help reduce prices and profit margins.

He also announced changes related to self-employment and higher minimum tax obligations for certain short-term tourist rentals, saying the goal is to create a fairer tax system.

Plenković rejected claims that public sector wage increases are the main driver of inflation, arguing instead that inflationary pressures stem primarily from energy shocks, the war in Ukraine, earthquakes, and strong investment activity.

Opposition parties in Parliament have strongly criticized the Government's latest anti-inflation package, describing the measures as ineffective and harmful to citizens, while the ruling Croatian Democratic Union says the opposition has offered no concrete alternatives.

Sabina Glasovac of the Social Democratic Party of Croatia said citizens "see the reality" of rising prices every day and accused the Government of shifting responsibility.

"When food prices explode, it's the traders' fault. When young people can't afford apartments, it's the citizens' fault. When inflation eats up salaries and pensions, external shocks are blamed. So what exactly is the Government responsible for?" Glasovac asked.

Jelena Miloš of the Možemo said the Government is presenting austerity measures as anti-inflation policy. She argued that keeping social benefits at current levels effectively amounts to cuts, as inflation continues to erode their value.

"It's not a freeze, it's a crash. This is belt tightening at the expense of citizens," Miloš said.

Marin Miletić criticized what he described as excessive taxation, accusing the Government of burdening small businesses while favouring large corporations, banks, and telecom companies.

He also compared Prime Minister Plenković's policies to the "blue pill" from the *Matrix* films, saying the Government was offering citizens an illusion instead of reality.