SDP and We Can: We are facing a crisis of poverty among future pensioners

Political parties SDP and Možemo have warned that Croatia faces a looming crisis of poverty among future retirees, driven by rising inflation and inadequate government response. The warning came during an event in Požega under the banner of "Plenković's Inflation," where officials highlighted how the impact of inflation extends beyond official statistics and disproportionately affects lower-income households, particularly retirees. According to Mirela Ahmetović, a representative of the SDP, the consequences of inflation cannot be reduced to official figures because citizens with average or below-average incomes, especially retirees, experience significantly higher increases in living costs than the officially reported inflation rate. She stated that the real inflation rate for households with lower incomes ranges between 20 and 40 percent, as the products and services they rely on most have seen the sharpest price hikes. Ahmetović accused the government of allowing large profits to be made by banks, retail chains, and telecom providers while failing to adjust pensions accordingly. She emphasized that banks can align their prices with inflation, but pensions are not adjusted similarly, leaving citizens to bear the heaviest burden. Marin Živković, a representative of Možemo!, raised concerns about the housing market, noting that property prices have reached levels that have led to a decline in the number of purchase agreements. He pointed out that Croatia is among the European Union countries with the highest growth in property and rental prices, stating that rents have increased by 22 percent compared to last year. Živković criticized the government for insufficient taxation of property resales and lack of protection for tenants, which has resulted in young people staying with their parents longer than anywhere else in the EU. Boris Lalovac, another SDP representative, warned that current workers will face significantly lower incomes upon retirement compared to their earnings during their working years. He asserted that the ratio of salary to pension in Croatia is the least favorable within the European Union. Citing documents from the European Commission, Lalovac noted that retail chains in Croatia generate larger-than-average extra profits compared to other EU countries. Additionally, he mentioned that commercial banks earned 1.4 billion euros in profit last year, amounting to approximately four billion euros over the past four years. Lalovac argued that the state has failed to tax these excess profits, leading to significant injustices against citizens during the period of high inflation. The representatives from both political parties emphasized the need for urgent action to address the growing economic disparities and protect vulnerable populations such as retirees and young people who struggle with housing affordability. They called for policies that would ensure fairer distribution of resources and more effective regulation of sectors contributing to inflationary pressures. The situation highlights broader economic challenges facing Croatia, including the need for structural reforms to stabilize the economy and ensure social equity. With inflation continuing to rise and living costs increasing sharply, there is growing pressure on policymakers to implement measures that can alleviate the financial strain on families and prevent a deepening crisis of poverty among future retirees. The warnings issued by SDP and Možemo underscore the urgency of addressing these issues before they lead to long-term societal and economic consequences. As the debate continues, the focus remains on finding solutions that balance economic stability with social welfare, ensuring that all citizens, particularly those most affected by inflation, are protected from falling into poverty. The coming months will likely see further discussions and potential policy proposals aimed at mitigating the effects of inflation and securing a more equitable future for retirees and younger generations alike.