Prime Minister Andrej Plenković announced that the government has so far paid out 6.3 billion kuna in financial support designed to keep the economy afloat during the pandemic.
At Thursday's cabinet session he vowed to continue the measures until the end of the year in order to preserve jobs and maintain liquidity.
"In order to enable entrepreneurs to do business without fear, we will continue with the measures related to part-time work; meaning up to 2,000 kuna per worker. We will extend the measures for micro-entrepreneurs until December 31; this also equates to 2,000 kuna per worker if the drop in business is greater than 50 percent," said Plenković.
The prime minister added that the measures encompassed all sectors of the economy and included a write-off of all related contributions. "But the most important thing," he added, was "that the measure of 4,000 kuna per worker for the most vulnerable sectors of the economy will continue until December 31."
Labour Minister Josip Aladrović explained that the job-saving measures would be financed entirely from EU funds until the end of the year.
"Eight-hundred million kuna has been earmarked for the measures we adopted today for the next four months without shortening the work week. Our projections show that this will cost about 200 million kuna per month, and cover some 60-70 thousand workers. We will see how things develop over the next 4 months, but the main source of financing will primarily be European funds," said Aladrović.
A key sector of the economy badly hit by the coronavirus pandemic is tourism, which Minister Nikolina Brnjac said accounts for 20 percent of GDP. She said the government's measures would cover about 120 thousand people.
Minister of Economy and Sustainable Development Tomislav Ćorić believes that the measures implemented over the past few months have definitely produced results.
He said that currently there are about 150,000 people unemployed in Croatia. Despite the fact that the majority of European and global economies recorded a fall in activities and were hit by a huge increase in unemployment, that did not occur in Croatia.