Reactions continue to the government’s latest anti-inflation measures

The left-leaning opposition, led by the SDP and Možemo, were in Šibenik today as part of a two-month national campaign highlighting the impact of sustained high inflation.

SDP President Siniša Hajdaš Dončić said foreign banks, large retail chains, and telecommunications companies are not to blame for rising inflation. “Responsibility lies with the government. It allowed these companies to generate and transfer record profits out of Croatia over the past three years, while failing to tax them adequately and allowing domestic production to decline,” Hajdaš Dončić said.

SDP MP Boris Lalovac, a former finance minister in the Zoran Milanović government, questioned government policy. “Croatia, a country with the capacity to feed much of Europe, is unable to meet its own food needs, including those of its population and the tourism sector,” he said.

Sandra Benčić of the far-left Možemo! party said the government is protecting its budget by effectively freezing public sector salaries and social benefits. This, she said, is directly affecting people who rely on them due to disability, poor health, or poverty, while also limiting the earning capacity of small business owners.

Meanwhile, economist Velibor Mačkić, special advisor to President Zoran Milanović, said the measures have little to do with curbing inflation.

“First and foremost, this is not an anti-inflation package but a measure designed to support the state budget. The only question is how much the government plans to increase the budget deficit. The government is under pressure and is trying to demonstrate that it is taking action. Croatia’s tourism industry relies heavily on small family-run accommodation providers as well as large hotel companies, and both are under considerable inflationary pressure. With most business taking place during the summer, any increase in costs will be passed on to consumers, both domestic and foreign,” he said.