Parliament returns as Plenković outlines 2026 budget

After a ten-day break, Croatian lawmakers returned to parliament on Wednesday, kicking off a new session that will run until mid-December. 

The session began with questions for Prime Minister Andrej Plenković and government ministers.

Plenković presented the government’s plans for the 2026 state budget, which must be adopted before the Christmas recess, describing it as resilient, sustainable, ambitious, social, and realistic.

According to the Prime Minister, Croatia’s economy is projected to grow by 2.7 percent next year, with inflation at 2.8 percent and the budget deficit remaining within the Maastricht criteria at 2.9 percent. Public debt is expected to decline further to 56 percent of GDP.

The budget will continue to prioritize salaries and pensions. Plenković explained that pensions will account for around 10.2 billion euros, public sector salaries for 8.8 billion, and social programs and maternity benefits for about 2.1 billion - a total of roughly 22 billion euros in fixed expenses.

The Prime Minister noted that the Ministry of Labor, Pension System, Family and Social Policy manages the largest portion of the budget, with most funds going directly to citizens, especially pensioners. The average pension currently stands at 691 euros and is expected to exceed 700 euros with the annual Christmas supplement. The government aims to raise the average pension to 800 euros by the end of its mandate.

On the topic of potential austerity measures, Plenković said the budget remains realistic and financially responsible, designed to meet its goals within available resources.