Parliament debates SDP-sponsored coronavirus relief package

Zagreb - Parliament on Tuesday debated a package of 10 bills proposed by the Social Democratic Party (SDP) aimed at helping the most vulnerable population to weather the hardships caused by the coronavirus pandemic.

The set included measures such as a 12-month loan repayment moratorium and aid for the unemployed and pensioners.

SDP leader Davor Bernardić explained that the SDP had proposed that advance payments on taxes be written-off and not deferred.

He also suggested that small trades and lessors should be exempted from one-off taxation, contributions on wages should be completely written-off for the duration of the crisis as they have been shut down as a result of the decision by the National Civil Protection Authority. He also underscored that it is necessary to assist citizens, workers in self-isolation and the unemployed. In that regard SDP proposes that the minimum wage be secured for the unemployed registered on the dole who do not have any opportunity to find work during the crisis.

Bernardić also proposed that VAT in tourism be reduced to 5% during the crisis and that VAT on food deliveries be 0%.

He further proposed that during the crisis, as a sign of solidarity, lawmakers should forgo a larger portion of their income for the next three months and receive the minimum wage.

Both the crisis and the recovery from it will last, Bernardić warned, proposing that a moratorium on loan repayments be secured for a period of 12 months, interest free and that default interest be suspended. He proposed the abolishment of television licences for the most vulnerable citizens.

Bernardić said that the fact that SDP's proposed package of measures was put up for debate after parliament had already adopted the government's April package of measures was an act of belittling the opposition and 20,000 citizens who have been left without work because of the government's belated reaction and that another 40,000 are at risk of losing their jobs.

MP Goran Aleksić (Snaga), who is the co-sponsor of the set of the measures unveiled by the SDP, called for a moratorium on loan repayments, warning that the moratorium as proposed by the government is not a moratorium at all because that can be achieved in normal circumstances instead what is needed is a moratorium for crisis times without interest and other charges.

 

State-Secretary: Measures already protect 500,000 workers

Labour and Pension System Ministry State-Secretary Majda Burić said that the Government did not accept SDP's proposal, since the government's measures would protect 500,000 workers.

She recalled that the allowance for people in hardship and who have lost their jobs has already been increased from HRK 3,250 to HRK 4,000 and that the state will pay contributions on wages up to the amount of HRK 1,500. The state has already paid out aid in the amount of HRK 600 million.

Government corona crisis measures equivalent to 9.6% of GDP 

HDZ lawmaker Grozdana Perić said that the Government's response to the crisis was fast and good. She underscored that the rescue package was equivalent to 9.6% percent of GDP. She recalled that Croatia could tap funds from the EU to deal with the consequences of the strong earthquake that hit Zagreb and its environs on 22 March.

Lawmakers concluded this week's sitting of Parliament and will convene again on April 15 back in Parliament House, which was damaged in the 22 March earthquake.

Author: Hina