At the beginning of the Government session, Prime Minister Andrej Plenković once again wished all Croatians at home and abroad a happy Christmas holiday and all the best in 2026.
“Let us once again wish all Croatians, our fellow citizens, a happy Christmas holiday and all the best in 2026, both at home and abroad,” said Plenković.
He also commented on the celebration of Christmas in Zagreb, emphasizing that this year’s holiday was special because it was the first after the great earthquake in which he and some members of the Government had the opportunity to participate in the Christmas Holy Mass in the Zagreb Cathedral, as well as in the midnight mass.
“I am glad that this Christmas, the first after the great earthquake in Zagreb, we had the opportunity to attend the Christmas Holy Mass in the cathedral,” he said.
“The fact that the cathedral is being structurally renovated, that restoration work remains on the interior and a number of other decoration details, is a great message that this is one of the largest post-earthquake reconstruction projects and has reached the stage where the cathedral can be used for worship,” he emphasized, adding that this is part of the large reconstruction process after the earthquake, about which the Government will have a special report.
Speaking about the post-earthquake reconstruction, Plenković stated that the Minister of Physical Planning, Construction and State Property Branko Bačić will present a report on the topic at the Government session.
He recalled that last week, members of the Government visited Banovina, and at the beginning of this week again in Sisak-Moslavina County, on the occasion of the fifth anniversary of the Petrinja earthquake.
“Once again, we had the opportunity to see what the consequences were, both material and human. Unfortunately, seven of our fellow citizens died in that earthquake,” the Prime Minister said, once again expressing his sympathy to their families for what he called an immeasurable loss.
The scale of investment in reconstruction
He also highlighted the scale of investment in reconstruction, stating that 1.77 billion euros have been invested in the Banovina region alone so far.
According to the data he presented, 10,000 reconstruction procedures have been completed so far, 9,300 family houses, 392 apartment buildings and 450 replacement family houses have been reconstructed.
The plan is to build all planned replacement family houses by mid-2027
“Our plan, which we have been talking about these days, is to build all planned replacement family houses by mid-2027, to have them occupied, and to complete the entire reconstruction process by 2030,” the Prime Minister said.
He emphasized that the reconstruction process was also used for the overall revitalization of Sisak-Moslavina County, emphasizing that this level of investment had not previously been present in the area.
“I think that, with both transport connections and the huge funds invested in infrastructure, in public facilities, in cultural and sacral heritage, as well as in new facilities such as the Knowledge Center and Planetarium in Sisak’s Munjara, we have made huge strides,” he said.
Significant investments have also been made in the education system
He added that significant investments were also made in the education system, from kindergartens, primary and secondary schools, gymnasiums and higher education institutions, to the healthcare system.
Reflecting on the overall achievements in 2025, Plenković assessed that this was a year of new strides for citizens, the economy and the state, despite the still uncertain circumstances.
“The circumstances in which we worked were still uncertain, primarily security and economic, but Croatia remained a stable, safe and economically resilient state that protects its interests as a responsible member of the European Union and NATO and shares common democratic values,” he said.
He added that political stability was also confirmed by the local elections held in May and June this year, emphasizing that they showed the results of the policy of balanced regional development.
He stated that as many as 83 percent of local and regional self-government units retained the same political colors, with the renewal of mandates, although not necessarily always with the same candidates.
According to him, this result testifies to continuous investments in fiscal and functional decentralization and dialogue with municipalities, cities and counties, as well as the implementation of numerous projects.
He cited the state of the labor market as one of the key indicators, emphasizing that one million and 740 thousand people work in Croatia today, which is almost 300 thousand more than in 2016, and, as he said, the country is at an employment level that has never been recorded before.
He also reminded of the growth in wages, stating that the average net salary reached 1,470 euros, which is 96 percent more than at the beginning of the first term of the Government.
The median salary is 1,281 euros, or 103 percent more than at the beginning of the term, while the minimum gross salary will increase to 1,050 euros from January 1, which represents an increase of 150 percent compared to 2016.
Speaking about pensions, Plenković stated that the average total pension, together with the annual supplement, reached 700 euros, with an improved adjustment formula and the introduction of a permanent annual supplement – which is particularly important, he emphasized.
He also referred to demographic measures, assessing that the most generous measures in history were adopted this year, with an increase in parental benefits and improvements to social rights.
He particularly highlighted the introduction of the inclusive supplement, which combines four rights into one, and is currently used by around 200 thousand people.
“We were particularly pleased with the information about the return of as many as 13 thousand Croatian citizens”
“We were particularly pleased with the information about the return of as many as 13 thousand Croatian citizens this year,” he said.
“The economy has been growing for 19 consecutive quarters,” said Plenković at the last government session of the year, and GDP per capita has reached 78 percent of the EU average, with a jump of 16 percentage points over the past nine years.
The goal, he added, is for Croatia to exceed 80 percent of the EU average.
He also recalled that the three leading credit agencies confirmed Croatia’s investment credit rating at level A and assessed that this was a message of confidence in stability and responsible management of public finances, as well as political stability.
He particularly emphasized the strengthening of the capital market and recalled the 18 issues of government securities in the past few years, in which citizens invested 4.6 billion euros and hold about nine percent of the public debt.
Inflation hits the most vulnerable the most
As for inflation, he said that he is aware that it has hit the most vulnerable the most, which is why the government has continued with a package of aid measures this year.
So far, there have been nine such packages worth a total of 8.5 billion euros, with energy subsidies and capped prices for 170 products.
“In addition,” he added, “value-added tax rates have been reduced, price transparency measures have been established, and 11 one-time grants have been paid to pensioners.”
Stating that inflation, according to the Ministry of Finance’s projections, should be around 2.8 percent in 2026, he said that he expects responsibility and a significantly greater contribution from all market actors, whom, as he emphasized, “the state has greatly helped in crises.”
“We are entering 2026 with positive trends, optimism and a dose of caution regarding the economic slowdown in Europe and the world,” said Plenković.
“In this sense,” he added, “the state budget for 2026 has been adopted, which is focused on continuing the growth of wages, pensions and social benefits.”
According to him, one of the main economic goals is joining the Organization for European Cooperation and Development (OECD).
He announced the adoption of the National Development Strategy until 2030, the new law on trades and industrial strategies, and the acceleration of energy and climate transition and the development of agriculture in the direction of producing safe and healthy food.
New payment from NRRP
Plenković also reported that the payment of the seventh installment of one billion and 70 million euros from the National Recovery and Resilience Plan is expected today.
“This is the largest single payment from the European budget to Croatia since joining the EU over 12 years ago.”
“With it, the total amount paid since the beginning of the NRRP implementation reaches 6.4 billion euros, which further confirmed our position among the most successful EU member states in the implementation of the Recovery and Resilience Plan,” Plenković said.
He announced that the funds paid for the NRRP will be directed towards the construction, equipping and modernization of kindergartens and primary schools throughout Croatia, the construction of gas infrastructure, the reconstruction of buildings from earthquakes in Zagreb and Sisak and the surrounding area, and energy efficiency, the purchase of 30 new trams for public transport in Zagreb and Osijek, the purchase of alternative-powered buses for public city and suburban line transport, etc.
“Based on positive trends, we enter 2026 with optimism, but also with a dose of caution given the economic slowdown in Europe and the world,” he said.
Three key areas
“There are three key areas,” said Plenković – “the quality of life of citizens, a more orderly and resilient state, and a stronger economy and Croatia’s international position.”
When it comes to the quality of life of citizens, he emphasized that at the beginning of the year, disability pensions will increase by 10 percent, the penalty for early retirement will be abolished for everyone over 70, and the possibility of simultaneously using a pension and working longer than half of the full working time will be introduced, with a pension payment of 50 percent.
“At the same time, the preconditions are being created for the complete abolition of the pension tax in 2026, with the aim of these changes coming into force on January 1, 2027,” he said, adding that a package of free banking services will be introduced at the beginning of 2026 for citizens who receive a salary, pension or other regular income.
“This ensures access to basic financial services at no additional cost,” he emphasized, with special protection for pensioners and vulnerable groups.
Affordable housing is a key topic
He named affordable housing as the key topic, and the ultimate goal, he said, is to strengthen affordable rent, encourage housing construction, regulate the real estate market, and enable young people and families to plan their lives more securely in Croatia.
“We will also consider new demographic measures and strengthen the family and all its members, in accordance with the strategic goal of demographic revitalization,” he announced, as well as ensuring that the prerequisites for the introduction of a single report and expert assessment for people with disabilities will be ensured.
In terms of a more organized and resilient state, the Prime Minister emphasized that a Population Registry will be established next year, which will ensure “higher quality, more precise, and fairer planning of public policies,” meaning that the Government will, he said, “be able to take targeted measures towards and for those who need support.”
He also reminded that he is moving forward with basic military training and that starting in 2026, Croatia will independently take over the control and protection of its own airspace, which will be carried out 24 hours a day with multi-role Rafale fighter jets.
He added that the digitalization of public administration will continue, the implementation of fiscalization 2.0 and the modernization of the tax system will continue.
Regarding a stronger economy and Croatia’s international position, as the third goal in 2026, the Prime Minister emphasized that Croatia’s international position will be rounded off by Croatia’s entry into the OECD, and he added that Croatia will chair the Three Seas and MED9 initiatives and continue to care for Croatians in Bosnia and Herzegovina.
Revision of the National Development Strategy
In 2026, the National Development Strategy will also be revised, a new law on crafts will be adopted, as well as a new industrial strategy, the energy and climate transition will be further accelerated, and agriculture will be developed to produce safe and healthy food, he announced, among other things.
He also announced continued investment in the Croatian education system, saying about the funds invested so far that “perhaps such investments in the Croatian education system have not been seen since Mažuranić”.
He also highlighted continued investment in road construction and said that it was particularly important that by the end of this government’s mandate “the issue of traffic jams related to Split, the second largest city, is resolved”.
He also announced that work on the Dugi rat-Omiš section would begin in early January.
“We will try to make positive strides for important social issues such as the fight against violence and addiction, strengthening mental health care, especially for young people, and responsible monitoring and application of artificial intelligence,” he added.
At the beginning of a ten-year term of government, with experience in managing numerous crises, Plenković concluded, he will focus on what is most important for his fellow citizens – a stable, safe and developed Croatia, which takes care of all its citizens and responsibly prepares for the challenges of the future.
Regulation on amendments to the Personal Assistance Act
At its session on Tuesday, the Government adopted a regulation on amendments to the Personal Assistance Act in order to implement the decision of the Constitutional Court, which repealed certain provisions of the Act, which, among other things, will also give children under 18 the right to personal assistance services.
The Prime Minister pointed out that the regulation is being passed with the force of law because Croatian Parliament is not currently in session, so the Government, based on a special law and authority, is compensating for this fact, and this regulation will regulate only those provisions that were repealed by the decision of the Constitutional Court and that ceased to be valid on December 19.
He stressed that the regulation is not an instrument for resolving all issues related to personal assistance and that all other related issues will be resolved in the regular legislative procedure and in accordance with democratic procedures that include public consultation, working groups and two readings in the Croatian Parliament.
By adopting the regulation, children under 18 will have the right to personal assistance service, and the personal assistance service will also be available to users of the home help service, people with disabilities whose parents or other family members exercise the right to the status of a parent caregiver or caregiver, as well as all users whose family members have the status of caregiver based on other regulations, such as Croatian war veterans, and users of the teaching assistant service.
The hours of service are no longer limited, i.e. the maximum number of hours of use of the service has been increased to 24 hours a day.
The Constitutional Court’s decision opens up financial issues and the availability of assistants
Plenković also pointed out that the Constitutional Court’s decision also opens up financial issues, given that the field of application of these rights is expanding to a larger number of users.
“At this point, we cannot estimate with 100% certainty how much this will cost the state budget, but it will be significant funds,” he said.
The question of the real availability of personal assistants is also being raised, which will need to be much more; given that the service has now been expanded to 24 hours and that there will be a number of new solutions.
The Prime Minister also announced that 1.5 billion euros have been earmarked for social rights for people with disabilities for 2026, and based on this decision, that amount will have to be increased.
Source: HRT