Zagreb - The State Secretary at the Ministry of Economy, Ivo Milatić, on Thursday dismissed opposition claims that the government had done nothing to curb inflation, which, according to the opposition, has placed Croatia among the EU countries with the highest inflation rates for three years.
"To say that Croatia has the highest inflation and that nothing has been done is, at the very least, inaccurate," Milatić said in Parliament in response to opposition criticism of government policy and the proposed law on exceptional price control measures.
He pointed out that inflation had been declining since the end of 2022, when it stood at 13.5%, dropping to 1.6% by September last year. When it began rising again in October 2024, the government started considering how to respond, which led to the creation of this law, Milatić emphasised.
He stated that there was no need to elaborate on the reasons behind the law, as "we are all witnessing the consequences that citizens are experiencing due to inflationary pressures, which have significantly weakened the purchasing power of certain segments of society and consumers."
Moreover, the continuous rise in the prices of basic food products has jeopardised the livelihood of the most vulnerable groups, particularly the elderly, retirees and the socially disadvantaged, he said.
Milatić reminded Parliament that the current law on exceptional price control measures was enacted in 1997 and needed to be modernised.
"The measures prescribed in the new law contribute to reducing the negative effects that could cause irreparable damage and jeopardise the country's macroeconomic stability," said State Secretary Milatić.
Ahmetović (SDP): Inflation benefits government, banks, telecoms and retailers
Even before the debate on the bill, the opposition used procedural motions to accuse the prime minister and the government of "doing nothing" to curb inflation, arguing that the proposed law was merely "cosmetic" and that the introduction of the euro had "financially devastated" Croatia.
They insisted on the need for "structural measures" to combat inflation, implement reforms, support domestic - especially agricultural - production, and introduce legislation to financially sanction those who have profited from inflation.
SDP MP Mirela Ahmetović was particularly critical of the government, reiterating that Prime Minister Andrej Plenković had "done nothing" about inflation because "it benefits him, the HDZ-led government and those they support - banks, telecom companies and retail chains."
Ahmetović dismissed the proposed law as "meaningless, a mere fig leaf", adding that her party demands systemic measures to curb inflation so that "the already wealthy do not become even richer while ordinary citizens become poorer."
The We Can! party echoed these demands for structural reforms, with Jelena Miloš saying that Croatia had ranked among the EU's highest in inflation for three years.
"It is clear that inflation is no longer imported; it is domestic, and the government is responsible for it," Miloš said. She called for strengthening the authority of the Competition Agency, introducing a windfall tax law and sanctioning those who have profited from inflation.
Pavliček: Euro has financially ruined Croatia
Right-wing opposition parties reiterated their criticism of the introduction of the euro.
"We abolished the kuna and introduced the euro at the worst possible moment - that is nothing short of treason," said Miro Bulj (Bridge).
Marijan Pavliček (HS) added that the euro had "financially devastated" Croatia and that inflation was a direct consequence of joining the eurozone. "This law is purely cosmetic; it won't curb inflation. Prices keep rising, you have left everything to the whims of retailers, and you have failed to handle the situation," he told the government.
Šimić (HDZ): Seven EU countries have not adopted euro, yet all have high inflation
HDZ MP Petar Šimić dismissed these claims, arguing that the adoption of the euro had nothing to do with inflation. "Seven EU member states have not yet introduced the euro, yet all of them have high inflation," he said.
Marija Selak Raspudić (Independent) argued that the bill lacks "a crucial element - the oversight of the government itself, which is responsible for implementing policies that would make such laws unnecessary."
"It is obvious that you have failed somewhere. If you hadn't, we wouldn’t have the highest inflation rate in the EU," she concluded.