Factsheet for case HR-2020-12/317 – Updated – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, 19 March 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||06 April 2020 (updated 06 October 2020)|
The Croatian Parliament has adopted the Law on Amendments to the Act on the Execution of the State Budget of the Republic of Croatia for 2020 on the 19 March 2020. The aim is to remedy the corona virus pandemic effects by making possible the reallocation of funds in the state budget of the Republic of Croatia to budget items among budget users or between budget users and extra-budget users.
According to the Law on Amendments to the Law on Execution of the State Budget of the Republic of Croatia for 2020 the Republic of Croatia undertakes the obligation to assure needed financial resources to bodies of local and regional government (municipalities, cities and counties) as well as to the Croatian Health Insurance Institute and the Croatian Pension Insurance Institute, in the event that the repayment or deferral of payment and/or installment repayment of income tax and surtax on income tax and social contributions reduce the revenues of government bodies and the Institutes for Social Insurance.
The Republic of Croatia would provide to local and regional government an interest-free loan to overcome the situation arising from different dynamics of inflow of financial funds and maturity of liabilities. The amount of such loan is limited up to the amount of income tax, surtax on income tax and social contributions whose payment is deferred and/or is granted in installment repayment.
Not yet known at this stage.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Local / regional government
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Due to the nature of the measure, social partners were not involved.
As mentioned, due to the nature of the measure, social partners were not involved. However, social partners are always supportive for the measure that help cities and state funds to overcome the problems and consequences of COVID-19. This is particularly important having in mind that the measure is related to the Croatian Health Insurance Institute and the Croatian Pension Insurance Institute which provide important service to citizens.
Eurofound (2020), Interest-free loan from the Republic of Croatia to local and regional units of government, Croatian Health Insurance Institute and Croatian Institute for Pension Insurance, case HR-2020-12/317 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.