Plenković was confirmed as the 12th prime minister of Croatia along with his cabinet of 20 ministers by a vote of 91 in for, 45 against and 3 abstentions among 151 members of Parliament on 19 October 2016. His government received the support of MPs belonging to the HDZ-HSLS-HDS coalition, Bridge of Independent Lists, Bandić Milan 365, HSS, HDSSB, SDSS and 5 representatives of other national minorities. Plenković presented his cabinet as "the government that knows how to bring about changes", and stressed out social dialogue, economic growth stimulation, and a tax reform as the government's priorities.[24][25]
Government crisis and cabinet reshuffleOn 27 April 2017, Plenković dismissed three of his government ministers representing the Bridge of Independent Lists, the junior partner in the governing coalition, over their reluctance to support a vote of confidence in finance minister Zdrko Marić, whom Most accuses of withholding certain information relating to an ongoing crisis involving one of Croatia's largest firms, Agrokor, where Marić had worked a few years previously.[citation needed] Namely, Most consider that Marić had knowledge of irregularities occurring in the way Agrokor paid its suppliers and had chosen to not reveal that information to protect the firm he formerly worked for.[citation needed] On 28 April, the last remaining government minister from Most, public administration minister Ivan Kovačić, resigned his post and Most announced its withdrawal from the ruling coalition.[citation needed] HDZ started to gather signatures from members of Parliament to push through a vote of no confidence in the speaker of Parliament Božo Petrov, who was also the president of Most at the time. At the same time, HDZ announced that it would seek to form a new governing majority in Parliament, bypassing Most. With Most deciding to withdraw its parliamentary support for the Plenković cabinet, Božo Petrov resigned as speaker on 5 May and was succeeded by Gordan Jandroković of the HDZ.[citation needed] Now without the support of Most, the HDZ-dominated cabinet was left without a clear parliamentary majority and the possibility of yet another early parliamentary election, the third in 18 months, taking place was extremely heightened.[citation needed] However, the government crisis was ultimately resolved on 9 June 2017 when 5 out of 9 members of Parliament representing the Croatian People's Party (HNS) agreed to enter a coalition with the HDZ, while the other four MPs (among them Vesna Pusić and Anka Mrak Taritaš) decided to lee HNS and form a new political party called the Civic Liberal Alliance (GLAS). The Plenković cabinet underwent a reshuffle, with HNS being given the portfolios of Science and Education and Construction and Spatial Planning.[citation needed]
Since May 2017, Plenković has been constantly named the most negative politician in Croatia by monthly polls conducted by the Promocija Plus and IPSOS PULS agencies.[26] However, by December 2017, he was also named the third most popular politician, while his party enjoyed considerable rating advantage over all other political parties in Croatia.[27]
Domestic policy Plenković and British prime minister Boris Johnson at 10 Downing Street in London, 24 February 2020Following a deal with the HNS, the government introduced an education reform starting with a pilot program in the 2018/2019 school year.[28] The renewable energy tariff was raised in August 2017 to stimulate the production of renewable energy, which is the source of 28% of the country's energy demand. The move also resulted in increased electricity bills.[29] The Croatian Parliament ratified the convention on preventing and combating violence against women and domestic violence, known as the Istanbul Convention, in April 2018. Though there was a split within the HDZ over ratifying the convention, the Plenković cabinet unanimously supported it.[30][31] In October 2018, the government introduced a pension reform bill that would penalise early retirement and set the retirement age to 67 starting from 2033, instead of 2038 as defined by a 2014 law.[32] The move sparked large protests from trade unions. They launched a referendum initiative against the law and collected more than 700,000 signatures. Instead of calling a referendum, the government backed down and lowered the retirement age back to 65.[33]
A nationwide strike of teachers in primary and secondary schools started on 10 October 2019, following the government's refusal to increase their wages by 6%. The strike halted all classes in schools.[34] The strike lasted until 2 December, when teachers’ unions and the government agreed to a gradual increase in wages of 6% by 2021.[35]
Economy Plenković arriving to an EPP summit in, Vienna, 24 June 2021The new government introduced a tax reform starting from January 2017 and set the reduction of the budget deficit as the main goal of the 2017 budget.[36] The initial tax reform proposal from Zdrko Marić, the finance minister who retained his position from the previous cabinet, caused some disagreements between the two member parties of the ruling coalition, the HDZ and the Most. The modified proposal included a reduction in corporate income tax from 20% to 18% for large companies and 12% for small and mid-level companies. Personal income tax rates were changed from 12%, 25% and 40% into tax rates of 24% and 36%. Discontent over the tax reform was voiced by trade unions, as well as the tourism sector because the VAT for their services was raised from 13% to 25%.[37][38]
On 30 October 2017, Plenković declared that Croatia plans to join the Eurozone within seven to eight years.[39] In December 2017, the government increased the minimum wage by 5% for 2018 and adopted several new laws, including the allocation of the income tax revenue entirely to local administrative units and lower payments to the state when purchasing used cars. The introduction of a property tax, which received a negative public reaction, was postponed indefinitely.[40]
Croatia's general government recorded a surplus of €424.5 million in 2017 or 0.9% of GDP, attributed to an increase in income from taxes related to manufacturing and imports, and a reduction in interest payments. The debt-to-GDP ratio decreased by 2.7 percentage points from 2016, to 77.5%, and GDP growth was 2.9%.[41] Negative migration and population trends continued in 2017, with a record high number of emigrants since joining the EU.[42] The Croatian Employers' Association said that reforms stalled following the income tax cuts in early 2017, causing a slower economic growth.[43] A March 2018 report by the European Commission also stressed out the lack of structural reforms, particularly in fiscal policy, the social benefits system, and the pension system.[44]
A pension reform was adopted in 2018. Highly contested by workers' unions, it raises the legal retirement age to 67 for all employees, instead of 65 for men and 62 for women previously.[45]
Corruption allegationsHis government has been affected by numerous corruption scandals. Between 2016 and 2023, some 30 ministers involved in scandals were excluded from the government. In most cases, it was the media that revealed the corruption of government members.[46]
In 2023, he passed a controversial law against whistle-blowers, making the work of journalists more difficult. Under this new law, the disclosure by journalists of information from police investigations is now a criminal offence punishable by several years in prison.[citation needed] Several thousand journalists he signed a petition against this law. Many opposition politicians and media outlets felt that the aim of the law was to cover up political corruption.[citation needed]
Added to this was the controversial appointment of Prosecutor General Ivan Turudić, suspected of colluding with suspects and defendants in criminal cases, and criticized by the opposition for his closeness to the HDZ.[47]
Plenković and Prosecutor General Ivan Turudić he also attempted to block the European Public Prosecutor's Office (EPPO), which is responsible for investigating cases of corruption and fraud involving EU funds, claiming that it is not competent to deal with the numerous investigations it has launched against Croatian politicians and civil servants.[48][49][50]
Foreign policy Plenković alongside Spanish prime minister Pedro Sánchez, 6 October 2021After attending his first European Council summit on 20 October 2016, in an address to the Croatian Parliament, Plenković said that "there is no need for Croatia to build border fences".[51] Plenković's first official foreign visit was to Sarajevo, Bosnia and Herzegovina on 28 October 2016. Plenković said that his government will support Bosnia and Herzegovina on its path towards membership in the European Union. Discussions were held regarding the political rights of Bosnian Croats, mostly in terms of bringing their political rights to the level enjoyed by Bosniaks and Bosnian Serbs.[51][52] In November, he visited Ukraine where he met with Prime Minister Volodymyr Groysman. Plenković expressed support for a peaceful reintegration of the areas of Ukraine under the control of pro-Russian rebels. The two governments established a working group to share Croatia's experience with the reintegration of eastern Slonia in 1998.[53] The Russian Ministry of Foreign Affairs commented that the visit "raised serious concerns in Russia".[54]
On 29 June 2017, the Arbitral Tribunal on the border dispute between Slovenia and Croatia ruled in four of Slovenia regarding its access to international waters. The decision was welcomed by the Slovenian Government, and dismissed by the Croatian Government as not legally binding. Croatia withdrew from the arbitration process in 2015, during the premiership of Zoran Milanović, after a leaked tape showed the Slovenian judge in the case exchanging confidential information with Slovenian officials.[55] Plenković called for bilateral talks to resolve the issue,[56] while Slovenia insists on the implementation of the arbitral decision.[57] The European Commission announced that it will remain neutral in the border dispute.[58]
Plenković greeting Ukrainian president Volodymyr Zelensky, 8 May 2022After the final verdict in the war crimes trial against former high-ranking officials of Herzeg-Bosnia, followed by the suicide of Slobodan Praljak, Plenković stated that Praljak's suicide illustrated the "deep moral injustice towards the six Croats from Bosnia and Herzegovina and the Croatian people".[59] The ICTY prosecutors and its president criticized the statements from Croatian officials and called on them to accept the court's findings.[60][61] Plenković later said that his country accepted the verdict and expressed "regrets and condolences very clearly for all the victims of the crimes mentioned in this verdict".[62]
Plenković endorsed the incumbent Dragan Čović in the 2018 election for the Croat member of the Presidency of Bosnia and Herzegovina. Following the election of Željko Komšić as the Croat member of the presidency, largely due to votes in majority Bosniak areas, Plenković criticized Komšić's victory: "We are again in a situation where members of one constituent people ... are electing a representative of another, the Croat people".[63] Komšić responded that the Croatian Government is undermining Bosnia and Herzegovina and its sovereignty.[64] Komšić also announced that Bosnia and Herzegovina might sue Croatia over the construction of the Pelješac Bridge.[65] The construction of the bridge, paid largery with EU funding, began on 30 July 2018 to connect Croatia's territory and was supported by Komšić's main election opponent Dragan Čović.[66]
Plenković affirmed the government's support for the Global Compact for Migration. Interior Minister Dor Božinović represented Croatia at the adoption of the agreement, after President Kolinda Grabar-Kitarović announced she would not participate at the conference.[67]
Along with Latvian prime minister Arturs Krišjānis Kariņš, Plenković represented the governments ruled by the centre-right European People's Party (EPP) in the negotiations on new appointments to top posts in the European Union following the 2019 European elections, including the European Council, European Commission and the European Central Bank.[68]