Plenković: Regret about the gap between achievements and pessimistic perception

On the occasion of the ninth anniversary of the current Croatian Government, Prime Minister Andrej Plenković was a guest on the Croatian Radio Television’s “Interview of the Week.” In an interview with Jasmina Popović, he highlighted the main achievements of the Government and presented the most important goals for the coming period.

After nine years of work, Prime Minister Andrej Plenković said that assessments should be made by citizens, those who think that they live better or worse today than nine years ago.

“I think we have done a lot of work, but there is always room for more, that we have not solved all the problems or everything that is bothering our fellow citizens and burdening our economy. When I look at it realistically, I think we can be satisfied. We have gone through an incredible period in the last nine years. I can say that we never dreamed of all the challenges that would arise,” said Prime Minister Plenković.

He emphasized that it was important to him that in huge crises the Government showed the strength of the state, that social cohesion was preserved and serious progress was enabled.

“I am most satisfied with the data from 2016 to today, our average salary has increased by 92%, and cumulative inflation in that period is 35%. When you divide that, you get that our real growth in disposable income compared to then is greater than 42% on average, and we have gone through everything we never dreamed we would go through. Gas prices have increased 17 times, which has affected the price of electricity and petroleum products, Croatian citizens have not felt any of it. We intervened powerfully and quickly, and that is why I think we have achieved most of the strategic goals, and salaries and pensions are by far the most important,” said Plenković.

"We did not survive, we fought hard"

He reflected on the past nine years of his mandate, the poor economic circumstances, the departures of ministers, the fragile majority and other scandals that have shaken the Government.

“I came full of strength, energy, enthusiasm to take over the party in unenviable circumstances. Those were the first extraordinary elections in Croatia, the parliamentary majority practically collapsed. From the moment I became the president of the Croatian Democratic Union (HDZ9 until the parliamentary elections, I had 55 days. We won, we won a second time after that even more convincingly, we won a third time when everyone rose up to destroy us because they had a terrible time during the Social Democratic Party's government, and then we won and formed different coalitions, but maintained one and the same line,” the Prime Minister recalled the past nine years.

“We had the strength and energy for that job, we still have it today. I must admit that now I feel fit, enthusiastic and calm as if this was my first term, we are ready to move forward with a lot of energy,” he added.

“We did not survive, we fought hard,” emphasized Plenković, adding that the Government is fighting for the trust and improvement of the position of citizens and the economy.

“My mantra in 2016 was political stability. Holding the reins tightly, and that means very skillfully keeping partners along the political and program line that we have jointly defined. When you succeed in that, then there are no problems. Four meetings a week, nine years. Everyone is there and everyone knows everything. That is what stability, trust and work hold,” he said.

He believes that his Government has shown leadership in crises and leadership in strategic goals.

“When I look at economic results, 18 consecutive quarters of GDP growth, 300,000 new jobs since 2016, unemployment at 75,000, salaries are going up, I think we have done enough,” he said.

He emphasized that "we must address two key issues - inflationary pressures and affordable housing for young people", which he considers to be major problems of society.

He also referred to the numerous rotations of ministers, repeating that corruption has a name and surname, "there is no system, no hand, that persuades people to go beyond the law".

“I tell people who come here for the first time to read the articles of the law to see what abuse of official position and trading in influence mean. We have also organized a special course for members of the Government with distinguished professors from the Faculty of Law to explain to them which patterns of behavior are in accordance with the law and which ones could put them in an uncomfortable position,” he said.

"Today's inflation is a domestic Croatian product"

Inflation is the problem that most troubles citizens. The Prime Minister emphasized that he has a lot of understanding for fellow citizens, especially retirees, and reminded that his Government is continuously working on pension system reforms that will lead to an increase in pensions.

“With each reform, we have increased minimum pensions, we have given 11 one-off crisis assistance packages to pensioners worth 770 million euros. We are the first government to introduce an annual pension supplement, which will be 172 euros on average. Our goal is to keep people working as long as they can to gain as many years of service as possible. Today, average pensions, for those who have practically completed their entire service, are over 1,000 euros. It is hardest for those with small pensions, but who has the smallest pension? Those who have worked the least,” said Plenković.

He said that a whole series of external circumstances have fueled inflation. “Today's inflation,” the Prime Minister claims, “is our domestic Croatian product generated by Croatian economic entities and actors.”

“I support them, we provided them with assistance during Covid, there were no 400,000 layoffs, they received devastating relief, special cheap loans, lower energy prices. There is nothing we have not done to keep the economy going during Covid and the energy crisis. However, they did not respond fairly,” said Plenković.

Only the government cares about everyone's interests, everyone else cares about their own interests - the Prime Minister believes.

“We brought so much money to the Croatian market, unfortunately because of the earthquake, so much investment in projects through balanced regional development, plus we protected people in the crisis. When a huge amount of financial power came to our market, some people went to profit. Some economic actors, for the sake of their profit, raise inflation that affects those who have the least, and that frustrates me as Prime Minister,” said Plenković.

"Croats have not felt the energy crisis"

He stressed that the Government cannot abolish the market economy.

“The opposition's narrative is either that nothing is wrong or if something happens to be right, then it is not up to the Government. I don't even hear that banal, offensive narrative of the opposition "nothing is good, you are all corrupt" anymore because it is so bad. If that were the case, we would not have won three times,” he responded to the opposition's name-calling.

He said that energy sources are the topic today because "Croats have not felt the energy crisis".

“Who ensured that, our Government! People were comfortable, I did not notice that we turned on the heating less in the winter or the air conditioners in the summer. We cannot continue to be Big Brother today, when everything is returning to market principles, who subsidizes all energy sources, and that is why we are now gradually returning it. The narrative of panic about how we will survive is a false narrative. It is not easy for everyone, you have people who live very well, you have those who live well and complain, and those who are having a hard time, and I want to help them,” he pointed out, adding that the Government cannot solve everything.

He said that the role of the Croatian National Bank (CNB) is to monitor price stability, adding that "they also have some tools" and that the Government cannot do everything.

“How many products have we reduced VAT rates on? Our goal is to maintain social cohesion and help those who are struggling. We are trying to create conditions for everyone to have equal opportunities in society and to reduce inequality,” said Plenković.

"An 11 or 12 percent increase in the base is not realistic"

Speaking about state finances, Plenković stressed that there will be money for all obligations. He also said that after such a large increase in salaries, it is not realistic for unions to demand an 11 or 12 percent increase in the salary base.

“We must have a sense of reality. Until when? That period was a compensation for everything that was lacking in earlier periods because we were strengthening the economy, but that trend cannot be exponential forever. There is no government that will pay it off. Let's be reasonable,” he warned.

He said that there will be money, but that we should also be careful how it is spent.

Debts and other healthcare problems

“Four companies,” said Plenković, “exclusively supply medicines to Croatian hospitals.”

“We have paid them 153 or 155 million of due obligations, and the rebalance provides for an additional 150 million. The plan is for Ministers Hrstić and Primorac to sit down with them in the new budget year and agree on the dynamics of resolving the remaining obligations,” said Plenković.

Despite the outstanding obligations, said Plenković, the suppliers of medicines are not recording losses.

“Revenues are enormous, profits are solid. I don't see that these companies are in a drama. Also little sense of reality,” he said.

He emphasized that waiting lists have been reduced to 130 days, and that 2.6 billion have been invested in health care in the last nine years.

"My biggest regret is the difference between real achievements and pessimistic perception"

“I don't know when there were such investments in healthcare, look at the equipment in hospitals. There is no big difference between a hospital in Houston or in Rijeka. When people see that, the criticism subsides a little,” he said, adding that all hospitals will soon be new due to the earthquake in Zagreb.

“In these nine years, I have been around Croatia so much that no one can convince me that we have not done anything. The difference between real achievements and the pessimistic perception is so great that it bothers you a little, but you get used to it. That is my biggest regret,” he admitted.

“There is no longer that mathematics that will make young people leave because it is better abroad,” said Plenković.

“There is no chance that it will be massive anymore. The difference in the risk of transferring and living in another country compared to the income and atmosphere here is small and will be smaller. Freedom of movement is OK, some people will leave for a while, but they will return. When they return, no one talks about it. There are crises in Western European countries too,” he said.

He claimed that Milanović's thesis is that money from European funds will disappear.

“I ask you, media, commentators, economists, to stop telling this blatant lie and platitude that European money will dry up. In the next financial perspective, the budget for Croatia will be larger than today,” Plenković asserted.

Russian-Ukrainian conflict

He said that the government had pursued a consistent, clear and principled policy on the issue of Russian aggression against Ukraine.

“We did everything right. We are for peace, but it is likely that in the future someone else will be on the agenda and that is bad. I told Zelenskiy openly that if he wants to live in the history of Ukrainians, he must not sign that he gave up a single centimeter of territory. We welcome efforts for peace, but we are very cautious and careful so that this ceasefire opens up space for some peace agreement and what would be in it. We are for peace, but not just any kind of peace,” concluded Plenković.

Source: HRT