Croatia’s employers’ association, HUP, has urged the government to scrap plans for a windfall tax, saying that an economic crisis and recession are already looming, judging by signals from other markets.
“The gravity of the situation is best illustrated by the fact that orders from Germany have largely been halted,” HUP director Irena Weber said in a statement, carried by Jutarnji List daily on Monday.
“In previous years, orders from our main export market were in full swing in this period, but now the situation is completely different,” she said.
The situation is the same with orders from Austria, Italy and other markets, she warned.
“It’s the consequence of the crisis that has befallen European economies, and that crisis is at Croatia’s doors as well. That is why we urge the government to discuss solutions that would help us cope with the new shock that is coming.”
HUP said that a new tax on extra profit – which media say could be a blanket tax on all companies whose profits rose more than 20% – would halt investments, employment, and the rise of salaries, which can only fuel the recession.
The European Commission said in its latest forecasts that Croatia’s economy is expected to grow around 6% this year, which should slow down to 1% in 2023, with inflation expected to peak at around 10% this year.
(Zoran Radosavljević | EURACTIV.com)
Source: euractiv.com
