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After the 230th session of the Government, Finance Minister Marko Primorac said that he was concerned about the rise in prices, and that the continuation of such trends could seriously threaten the tourist season and the economy in general.
"When you hear how much these prices are rising, it is something that is unacceptable in any case, and I have to admit that in a way it scares me. I am afraid of the long-term effects of such a rise in prices," said Primorac after the Government session, also answering the question about the ball ice cream, which often costs three euros.
If prices continue to rise at this rate, said Primorac, it is something that can seriously threaten the tourist season and the economy in general.
He explained that, although official statistics indicate a continuous weakening of inflationary pressures, he is worried about the rise in the prices of certain products.
When it comes to the tourist season, and in the context of the economic situation in which key markets are located, including Germany, which fell into a technical recession, Primorac said that he personally "has one fear in terms of achieving good results, considering announcements," stating that the prices are indeed too high.
Entrepreneurs benefit the most from increased prices
"Is there any justification for that, I personally doubt it, I don't want to get into certain sectors," said Primorac, recalling the Government's subsidization of energy prices, as well as lower VAT rates on certain products and services.
He also said that the data on the profits and margins of the companies indicate that it was the entrepreneurs who benefited the most from the increased prices.
Emphasizing that he is not calling anyone names, Primorac called on all business entities to be careful. "Short-term unjustified price increases and short-term benefits and earnings could have very undesirable effects in the long term," said the finance minister.
In the context of high prices on the Adriatic, which the media reports on daily, Primorac was also asked about filling the state budget, to which he replied that the growth rates of revenues from collected taxes "are not incredible but consistent", while the value of fiscalized accounts is higher compared to last year about 20 percent.
Source: Government / Hina / Photo. Government of the Republic of Croatia - Alex Perez , Unsplash / illustration: hrturism
