Contributed by Divjak, Topic, Bahtijarevic & Krka.

A massive government bond program, an exciting local start-up exit to Google, and several recent and upcoming legislative updates are high on Croatian lawyers' agendas, according to Vukmir & Associates Managing Partner Tomislav Pedisic.

Miskovic & Miskovic has advised joint agents Erste & Steiermaerkische Bank, OTP, Privredna Banka Zagreb, Raiffeisen Bank, and Zagrebacka Banka and co-arranger Hrvatska Postanska Banka on the Republic of Croatia’s EUR 1.85 billion retail bond issuance.

With numerous reports of energy-related business shutdowns, we reached out to local experts across CEE to understand what different markets have been dealing with, in terms of work and production stoppages, and look into the broader impact.

Savoric & Partners has advised Croatian private equity fund Feelsgood on its EUR 600,000 investment in Zagreb-based educational technology company Vidi-To.

As of 1 January 2023, Croatian employers should start with the implementation of new employment rules not only in employment agreements and internal documents but also in practice. After years of discussion between all involved parties, the amendments to the Labour Act were passed mid-December 2022 and entered into force on 1 January 2023 (apart from certain provisions which will enter into force on 1 January 2024).

Batarelo Dvojkovic Vuchetich has advised South Central Ventures on leading the seed investment round in digital marketing platform Recommend.

Baker McKenzie, Divjak Topic Bahtijarevic & Krka, and Marek Partners have advised the Migros Group and its start-up incubator Sparrow Ventures on their investment in Revendo. Baer & Karrer advised Revendo's founders.

Lovric Novokmet & Partners has advised the Koncar Group on the sale of Koncar-Elektricni Uredaji to Koncar-Aparati i Postrojenja.

The total consumption of medicines increased by 5% in 2021 compared to 2020. In financial terms, that is an increase of HRK 9.88 billion (or 17.4%) compared to 2020. Prescription-only medicines accounted for 92.9% of all consumption, while over-the-counter products accounted for 7.1%.

During the past decade, the Albanian energy sector has benefited from a wave of domestic and foreign investments in hydro-power generation. Photovoltaic and wind energy generation has lagged behind for a long time. Increasing environmental concerns over the excessive use of water resources and the continuous reduction in technology costs are now shifting the government’s focus toward photovoltaic and wind energy generation.

An in-depth look at Nina Radic Kuzik of Savoric & Partners covering her career path, education, and top projects as a lawyer as well as a few insights about her as a person outside the office.

So, what has the Croatian Personal Data Protection Agency (AZOP) been up to lately?

The start of the 21st century has seen the biggest changes and developments in employment law since its birth in the flames and smoke of the industrial revolution. The norm of the second half of the 20th century, comprising eight-hour shifts and nine-to-five office jobs, is now being dismantled. From remote working, flexible hours, compressed workdays and workweeks, all the way to platform work, the spectrum of employment law has never had so many colors. Even though Croatia represents a small jurisdiction, worldwide trends are certainly not bypassing it.

On June 1, 2022, Commission Regulation (EU) 2022/720 on the application of Article 101(3) of the Treaty on the Functioning of the European Union (TFEU) to categories of vertical agreements and concerted practices (EU VBER) entered into effect in all EU member states. The new EU-level rules were adopted, inter alia, to align the existing framework with the specifics of the online platform economy which plays an important role in the distribution of goods and services across the whole EU. Still, although the new VBER has significantly changed the rules on the application of Article 101(3) TFEU to vertical agreements, the existing Croatian Regulation on Block Exemption of Vertical Agreements between Undertakings (Croatian VBER) has not (yet) undergone a similar revision. 

On 1 January 2023, the Republic of Croatia will enter the eurozone and replace the Croatian kuna (HRK), the existing national currency, with the euro. Although the change has been welcomed by most stakeholders, it also leads to increased demands for regulatory compliance and additional expenses.

Nothing worse than something spoiling your party. Croatia had a perfect tourism season, with plenty of guests staying at hotels, resorts, camps, or yachts. Other industries are doing great as well. On top of everything – Croatia is admitted to the eurozone as of January 2023, and the National Bank reduced the required reserve ratio and abolished the minimum foreign currency liquidity, strongly increasing banks’ cash resources! Everything was ready for a 2023 party – plenty of funds within the banks, industry in its upward trend, the real estate sector developing, new unicorns ahead of us – it seemed like financing possibilities would be all around, with low interest rates and plenty of opportunities!

Legal markets, much like other markets, are susceptible to global tendencies and changes shaping the industry. CEELM sat down with Divjak Topic Bahtijarevic & Krka Partner Ema Mendjusic Skugor to discuss the Croatian legal market and its growing pains in keeping up with global trends.