The most severe sanctions were not implemented during the government session to try to slow the increase in prices after the euro's introduction, but retailers and restaurateurs were given another chance to adjust prices on their own. They were given a break, but the Ministry of Economy also deals with issues related to energy policy, sustainable development, and shipbuilding, so we are discussing these matters with Minister Davor Filipovi.
You were adamant when you warned against unjustified price increases following the introduction of the euro; do you believe that retailers and service industries have heeded the government's warnings? If so, what data do you have? - It is really unfair to use the introduction of the euro to raise prices as a result of such a string of crises, at a time when the government intervenes strongly, increasing private sector wages by 800 percent. Keeps energy prices in check for consumers and the economy while the pandemic affects a million people.
And we are completing all of this specifically with the intention of maintaining the standard of living, economic activity, jobs, and the efficient operation of hospitals and schools. Remember that although the state also lowered the VAT rate on a number of goods, retailers did not lower their prices.
However, information from state institutions suggests that a significant number of business entities have returned the prices they were on December 31. This is despite the fact that the State Inspectorate and the Tax Administration's inspections are still ongoing, so I do not have a complete picture. In the end, I hope and want to believe that common sense will win out because retailers are aware that raising the price of food and soft drinks is currently the biggest fuel to the fire of inflation.
The perception is that it was only after a week after the New Year that it was noticed which price increases were jumping, and that the reaction was delayed. At least in that direction is the majority of criticism from the opposition and the public. - It is a narrative that appeared post festum, and after the game everyone is smarter. First of all, we weren't informed that we were introducing the euro until the middle of last year.
Second, funding was provided to consumer associations for programs that they deemed necessary to inform consumers about the introduction of the euro. They were involved, though we can now argue over whether it is helpful or not.
The third and most crucial point is that we do not treat businesspeople and merchants like thieves who need to be deterred or punished beforehand. Despite the fact that this process was started in good faith, it is clear that some people tried to sabotage it.
And now that the State Inspectorate is going through it, it will be clear how, for instance, something's price increased by 30% within 48 hours. The verdicts on the sentences have not yet been made.
However, the option to terminate subsidies for the costs of energy products and comparable products for businesses that disregard government advice is still on the table. If that occurs, there will be grounds for claiming that the government is treating entrepreneurs too harshly.
You use the word "brutally" in this context, which is interesting because we might have been accused of doing something similar if we had taken some kind of preventative action. Practically speaking, you cannot fine a driver for speeding before the infraction takes place.
I will reiterate that it is neither my nor the Prime Minister's whim to limit prices in stores, but the situation is such that we must deal with it because we cannot accept the kind of price gouging that is currently occurring. However, would they also say that it is a brutal fraud when the state reduces VAT, and merchants do not lower prices but instead keep the difference in their pockets? Or is it brutal that the state provides energy at a stable and acceptable price, and then the traders raise the prices?. The state always has mechanisms in place, such as the freezing of prices of goods in addition to the mechanisms you mentioned regarding the elimination of subsidies and blacklists.
While these mechanisms exist and can be used, I want to emphasize once more that I think common sense will win out in the end and that there won't be any greater need for them. And finally, we will systematically track price changes and make this information available to the public so that our citizens can determine who is acting in what way and who is raising prices and by how much.
The largest retail chains that have endorsed the Code of Ethics received a letter from us this week asking them to send information on the price trends for 80 products for the entire year of 2022 as well as information on new prices every two weeks for this year. By making these data available to the public, our citizens will be able to compare who, in their opinion, predicted price increases correctly and who did not.
In actuality, input inputs have increased for all activities over the past year or so for obvious reasons. How do your ministry and the government intend to continue the fight against inflation? - While there is inflation, it is not uniform across all EU member states, there are signs that it may be gradually decreasing.
While making predictions is unthankful, energy prices are stable and not expected to rise until March 31. We will respond as required given the circumstances, and since the CNB is in charge of maintaining price stability, inquiries about inflation should also be directed to that organization's address.
Preserve purchasing power Is Croatia at risk of entering a recession this year? The government is taking steps to prevent price increases in order to preserve our citizens' purchasing power. After all, a sizable package of measures has already been implemented in order to uphold the status quo and the expansion of the economy. We therefore take all reasonable precautions to prevent falling into a downward spiral.
In this direction, we want to convey to traders that while prices are returning, we want to maintain standards of living and refrain from encouraging the slowdown of our economy or stoking the fire of inflation. - The estimates of the Ministry of Finance are approximately at the level of 200 million euros, but what I would like to point out is the part that refers to those who for years received incentives for the production of energy from renewable sources, and when the price rose on the market, they got out of it and made enormous profits. We estimate that this group will account for a total of 2,000 companies, and that the new extra profit tax will generate revenues of around 1.2 billion euros.
In other words, we want to triple the number of solar panels in a short amount of time and subsidize solar panels to citizens by 50%. It's a decision that benefits everyone involved, including the state and its citizens, as it increases supply security and lessens reliance on foreign energy sources.
Your position in those negotiations, given that they really did not go smoothly, can you tell us how that process went and what is your assessment of the final agreement that is now in force? Here, now that we see that Hungary, for example, canceled its subsidies, and the negative effects of such a policy of theirs can be seen, can you tell us how that process went and what is your assessment of the final agreement that is now in force?. The European Commission's initial proposal was to cap the price of gas at 275 euros per megawatt hour, which we found intolerable. We held extraordinary meetings in Brussels almost every single week.
In the end, a consensus was reached to set the price cap at 180 euros per megawatt hour. In an effort to reach a compromise and demonstrate how Europe will work together to overcome its current crisis and firmly support its people and economy, Germany, which was opposed to capping the price of gas at 200 euros per megawatt-hour, also agreed to support this proposal.
We have a stable framework and predictability thanks to the 180 euro cap on gas prices per megawatt hour; if gas prices start to rise erratically once more, we will know when to turn on the safety mechanism. And it should be noted that this has nothing to do with the workings of the market; there was enough gas, and the price increase was driven by speculators who took advantage of the crisis to make huge profits at the expense of consumers and business owners. The price of gas did not increase because of an imbalance between supply and demand; there was enough gas.
This is what we mean when we say that we are not in a typical circumstance, but rather that these are extraordinary circumstances, so we must respond accordingly. To be honest, realization is what the EU needs to focus on next in the fight against the energy crisis.
When compared to many other nations, Croatia is in a good position because we have a variety of supply sources, LNG whose capacity will be doubled, and we also produce some gas from our own sources. Along with the solar energy I mentioned, we also have the potential for renewable energy sources; just recently, a significant competition for the study of geothermal potential was launched.
Each country has unique circumstances, but it is certain that we will rely more on domestic resources, that LNG terminals are being constructed, and that we will end our reliance on Russian gas. Autumn package of Measures Although the state regularly collects VAT, fuel distributors have been among the most dissatisfied for a long time. To that, I can respond that for a long time, fuel distributors made very good profits; however, now this is no longer normal, but rather an extraordinary circumstance.
Everyone in society right now needs to put their own desires in check and recognize their role in society's larger scheme of things as well as their obligations to the nation, the state, and the people. The time has come to give some money back to the populace if you have been making more than good money and profits for more than ten years.
A billion kuna, or about 130 million euros, will be left over for business owners this year thanks to the elimination of parafiscal levies, which is part of the government's ongoing effort to improve business conditions. Therefore, there needs to be a balance; you can't solely rely on the government's benefits or, on the other hand, act egotistically and only think about your own financial gain.
This is not the appropriate time for that. If you anticipate issues with HEP operations following the implementation of the measures, how will these issues be resolved? - The prices that our citizens and business owners pay for electricity are significantly lower than market prices.
To be specific, we significantly increased the burden on HEP's operations in the autumn package of measures in an effort to support our people and the economy. For instance, the cost of electricity in our nation is roughly 60% lower for consumers and some business owners than the cost of electricity in Slovenia, and the government will, if necessary, support HEP to ensure that it continues to operate effectively.
You also cover the industry of Croatian shipbuilding; the current state of affairs is in »3. maju" appears to be stable at the moment, but it appears that there is a personnel issue; nobody wants to deal with managing such a business.
How are the negotiations with Czech interested parties progressing? - Regarding »3. Uljanik has not yet been permanently resolved, which can be anticipated in accordance with the Pula skver, new state guarantees, or another model. of May," the Government of the Republic of Croatia decided on July 7, 2022, to issue state guarantees for debt obligations in order to keep track of the ship's construction until it was finished in November.
527 and to make sure that guarantees are issued for the duration of the guarantee. Community »3.
Delivering the restructuring program is the responsibility of maj" Brodogradilite dd. A working proposal for the company's restructuring program was submitted by the management of the company to the ministries of economy and sustainable development and of finance on August 8, 2022.
The statements from the maj" Shipyard dd and the two ministries were delivered to the administration. The restructuring program proposal has gone through several iterations since then, with the most recent one being submitted on December 28, 2022.
Because of this, in order to »3. It is necessary to go through the process of restructuring and strengthening at all levels before maj" could function in the future.
You are aware that Uljanik was presented with a proposal to buy company shares from a curious Czech investor. The Assembly of Creditors of the Insolvent Company Uljanik Brodogradilite dd, which is scheduled to meet on January 16, 2023, decides on the procedure for selling Company Shares.
As a result, I would refrain from making assumptions and assumptions about outcomes. Let's wait a couple of days.
years. As a result, I would refrain from making assumptions and assumptions about outcomes.
Wait a few days, please. years.
As a result, I would refrain from making assumptions and assumptions about outcomes. Wait a few days, please.
- The estimates of the Ministry of Finance are approximately at the level of 200 million euros, but what I would like to point out is the part that refers to those who for years received incentives for the production of energy from renewable sources, and when the price rose on the market, they got out of it and made enormous profits.
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