Economic Council of the President of the Republic Proposes Measures for Residents Most Affected by Inflation

A session of the Economic Council of the President of the Republic was held today In the Office of the President of the Republic. The session included discussion on inflation and policies to mitigate inflationary impact. At the session of the Economic Council which was also attended by President Zoran Milanović, a proposal to compensate cost of living expenses for the needy due to inflation was presented. The proposal was presented by Ivica Rubil from the Institute of Economics Zagreb, and the proposal’s goal was to help socially vulnerable groups of residents mostly affected by inflation.

“According to expectations, inflation in 2022 should be around 10 percent, and we all know that inflation mostly affects the socially vulnerable in our society. The Economic Council of the President of the Republic has recognized this, discussed it and in good intention has proposed compensation to four groups of residents: recipients of the national allowance for senior citizens, recipients of the guaranteed minimum allowance, recipients of child benefits and pensioners with low pensions. Assistance would be targeted, it would pertain to higher food and energy costs, and encompass around 785,000 residents”, stated Velibor Mačkić, Special Adviser to the President of the Republic for the Economy, after the Economic Council session.

Special Adviser Mačkić also cited a model for the calculation of the proposed compensation for socially vulnerable residents: “According to date from a survey on household expenditures, of EU-SILC and Eurostat, for 20 percent of the poorest households in Croatia monthly expenses by household member for food and energy equals 630 kuna. If the increase in food and energy costs equals five percent, a four-member household should be assured compensation in the amount of 125 kuna monthly”. According to calculations of experts from the Economic Council, the cost of the proposed measures for the 785,000 most affected residents by inflation would amount to between 25 million and 30 million kuna. All recipients for whom the proposed measures are intended are already identified in the system, Mačkić added, which means that there is no additional burden on the public administration.

“We consider it our duty to propose measures, and it is up to the government to think about it. I hope that the government’s measures will not just be horizontal, but that they will be directed to the most needy residents”, Special Adviser Mačkić stated.

PHOTO: Office of the President of the Republic of Croatia / Ana Marija Katić