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Significance
The government has capitulated to demands by trade unions to lower the retirement age despite a growing demographic imbalance and public finances under strain. In the process, the government has demonstrated its weakness and unpopularity.
Impacts
Surrender to the unions will encourage discontented public sector workers to seek pay rises, with teachers threatening strike action.
Popular discontent with fiscal cutbacks will pose a risk to plans for Croatia to adopt the euro early next decade.
Divisions at home will limit Croatia’s ability to push its political priorities when it assumes the EU Council presidency in January 2020.
Keywords:
Croatia,
EUR,
Bosnia-Hercegovina,
EU,
Serbia,
Slovenia,
economy,
industry,
politics,
social,
election,
government,
growth,
party,
pensions,
debt,
education,
exchange rate,
fiscal,
health,
immigration,
legislation,
nationality,
public sector,
referendum,
tourism,
unions
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2019
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