Page 15 - SE Outlook Regions 2022

through 2021. Milanovic is from the main opposition party, the Social
Democratic Party (SDP), the long-term rival of the HDZ. The tensions
between Plenkovic and Milanovic have escalated multiple times, with
the president criticising the government’s handling of the coronacrisis
and a deal to buy Rafale fighter jets.

Croatia’s political life was dominated in 2021 by the coronavirus
pandemic and its effect on people’s lives. There are no immediate signs
of the situation calming as Croatia entered 2022 with record-high cases
as the Omicron variant spreads in the country, though there are hopes
of normalisation when the current wave subsides.

During the fourth wave of the pandemic, the government introduced
mandatory COVID-19 certificates, restricting access to most public
areas. Only people with the certificates can go to cultural events,
restaurants and other venues. This triggered numerous protests. The
opposition MOST party initiated a procedure to gather signatures for
calling a referendum on the certificates. If it succeeds, a referendum
could be expected in early 2022.

Meanwhile, Croatia, which became an EU member in 2013, has set as
its goal to join the Schengen area in 2022 and the Eurozone at the
beginning of 2023.

In December, EU member states said that Croatia has fulfilled the
criteria to join the Schengen travel area. However, although the country
has met all requirements, its accession to the Schengen area was in
question due to migration issues. There have been numerous reports of
police violence during pushbacks of migrants.

1.5 Politics - Kosovo

After left-wing, nationalist Vetevendosje led by Prime Minister Albin
Kurti came to power in March 2021, winning a landslide election victory,
the party suffered a huge loss in the local elections held in October
2021, which prompted the opposition to call for snap elections.

The loss suffered in the local elections weakens Kurti's position.
Vetevendosje won only four mayoral positions out of 38, of which ten
are reserved for ethnic Serbs in the country. Most mayors were elected
from the opposition Democratic League of Kosovo (LDK), the
Democratic Party of Kosovo (PDK) and the Alliance for the Future of
Kosovo (AAK). The Serb List won ten mayoral positions. Vetevendosje
candidate for Pristina mayor, Arben Vitia, failed to win the second round
of the election as voters opted for Perparim Rama from the opposition
LDK.

Nonetheless, following several years of political instability, Fitch rating
agency expects the political situation to improve in Kosovo in 2022, as

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