Croatia budget rebalance faces coalition tension and fiscal warnings

The Croatian government is navigating political and economic challenges following the presentation of the budget rebalance. Finance Minister Tomislav Ćorić has assured the stability of the ruling coalition despite amendments requested by the Homeland Movement (DP). The DP is seeking an additional 20 million euros for various projects, including a marina in Vukovar, agricultural storage, and support for religious and national identity preservation.

Opposition members, including Marijana Puljak of the Center party, have criticized the government's spending, alleging that approximately 500 million euros is wasted annually on politically appointed positions in boards and agencies. They argue that while capital expenditures are being cut, operational expenses are rising.

Simultaneously, the Fiscal Policy Commission has warned the government to strengthen expenditure control. The commission noted that the budget rebalance does not show a convincing structural shift toward sustainable public spending, especially as economic growth slows and inflation remains persistent. The commission emphasized the need for fiscal consolidation to ensure long-term stability and protect public finances.