Ivan Šipić:   “Croats outside their homeland will no longer be foreigners in Croatia”

INTERVIEW: MINISTER OF DEMOGRAPHY AND IMMIGRATION

Ivan Šipić, a theologian by profession with many years of experience in Croatian political life, has been appointed to head the newly created Ministry of Demography and Immigration. Born in Sinj in 1974, he is a father of two sons and, he says, has been happily married to his wife Marijana for 17 years. He graduated from the Catholic Faculty of Theology and in a political career spanning more than 20 years, he has been Mayor of Trilj for 13 years, Vice-Mayor for three years and Councillor for four years. During his term of office, Trilj was awarded the title of EU Champion of Funds for its excellent absorption of EU funding for a number of infrastructure and other projects. At the time, the city was drawing down 10 times more money from EU funds than the municipal budget. Ivan Šipić was a Member of the Croatian Parliament from 2015 to 2020, serving in the ninth convocation of the Croatian Parliament and as a member of four parliamentary committees. The Minister is also a football fanatic and recreationally plays small-sided football, which is also his favourite activity with his two sons.

What are the fundamental determinants of the newly created Ministry of Demography and Immigration?

—First of all, I would say that the establishment of the Ministry of Demography and Immigration is a clear message from the government that the demographic revitalisation of Croatia is a national issue that must be treated seriously and honestly. There is a lot of controversy about whether we needed a special ministry or not. I respond to such controversies with a counter-question—which issue is more important than this? When we talk about the fundamental determinants of the work, the ministry has three objectives: promoting birth rates, staying in Croatia and encouraging the return of our people to Croatia. All the projects, programmes and measures for demographic recovery will be built on these three pillars. These three pillars are interlinked, and progress in one area means progress in another. It is indivisible. Without children, there is no future, and without an enabling environment for families, there is no strong society and economy. That is why the Ministry of Demography and Immigration has three administrations, all with one objective—to reverse negative demographic trends. I realise that this is a very thankless position, because the results will not be visible immediately. It is certain that the Ministry of Demography and Immigration will focus all its resources on changing consciousness and promoting positive demographic change.

You recently paid an official visit to the Croatian Heritage Foundation. How would you assess this meeting and how do you see the future cooperation between the Ministry and the Croatian Heritage Foundation?

—I am extremely pleased with the visit to the Croatian Heritage Foundation, as I discussed with Director Marić a number of issues of interest to Croatian emigrants and Croatian communities around the world. The cooperation between the Croatian Heritage Foundation and the Ministry of Demography and Immigration is extremely important. CHF’s wealth of experience and 75 years of active involvement in Croatian communities around the world, and this link with Croats who have chosen to return, is of immeasurable added value to us in the Ministry, which has only just begun its work. The Head of State spoke about the programmes of the Croatian Heritage Foundation which has brought together hundreds of young Croats, expatriates and descendants of Croatian expatriates. I believe that these programmes can be complementary to what we are working on in the framework of the Administration for the Implementation of Public Policies on Immigration. We certainly see cooperation as strengthening the relationship of our emigrants with their homeland and creating an environment to which they will want to return. Personally, it is important to me that our people recognise our fair approach, that I and my team really care about this. Croats abroad will no longer be foreigners in Croatia. I want to make that clear—they are not and will not be foreigners.

– Working meeting at the Croatian Heritage Foundation: Jelena Badovinac Dimitrijević, Ivan Tepeš, PhD, Ivana Dvorneković, Mijo Marić, Ivan Šipić, Mirjana Vatavuk, Lana Šaš and Marijana Žeželj

You have repeatedly stressed during this conversation that you want your service in the expatriate community to be recognised as a service of hope. What did you mean by that?

—When the Ministry of Demography and Immigration was created, it was no coincidence that the field of immigration was added to the former Central Office. The demographic revitalisation of Croatia is a question of the future, and in order to build the future, in order to develop, we must have hope. Many have invited our emigrants to return, but in reality, little has been done to really encourage them to return. That is what we want to change—for expatriates to see the changes that are happening and will happen when it comes to the expatriate population. We want our people to see that the ministry was created for them and with the intention of giving them new opportunities and perspectives, that is, the chance of a new life. And what is that if not hope?

Outside Croatia lives another Croatia. Many of our people have sought their future abroad, in Ireland, Germany … The logical question is, how would you, as a minister, and with what concrete measures, encourage our people to return to their homeland, for example, from an organised country such as Germany?

—With changes. I think that the key measure is to show people who have emigrated from Croatia that things are changing for the better in Croatia, and not just in economic terms. To be perfectly honest, good wages and working conditions are important for everyone—we are all working to make a good life for ourselves and our families. The fact is that the labour market in Croatia has developed, that wages are rising, that our GDP is growing. By the end of the year, Croatia is expected to reach 78%, when we are talking about the average level of development of the European Union. These are figures that are worth highlighting because behind them are new opportunities and opportunities for all those who want to return. And that is why we cannot talk about one or two measures, but about a change in policy in which all the departments must be involved. The aim of the Ministry is to coordinate all activities related to demography and immigration. One of the key things we will be working on is an umbrella law on demography which will oblige everyone to think about demography when adopting new policies. It cannot be the case that we send a message to people, they come back, and then we put administrative barriers in their way, and it does not matter whether it is at national or local level. This law, if nothing else, will be our legacy for all other governments to come. We want to leave a foundation that will bind everyone, because everyone has to respect the law. These days, the government’s new housing policy has been presented, tax changes are under way, the government is about to adopt a new budget. When we look at the whole picture, we see positive steps forward and incentives to bring people back. But the key measure is to show people that Croatia is a better place to live as a family. We will soon present measures that directly support families. There is no simple formula, because if there was, the situation would have changed long ago, so it is important that we all recognise this moment as one in which we must act.

You say that the budget will soon show what you are going to do, can you elaborate on these measures? At least give us a key direction. It is important for our readers to see in which direction you intend to reverse these negative trends.

—In the first nine months, 23,823 children were born in Croatia, 322 fewer than at the same time last year. And the last year was, as hard it is to admit, a demographic crash, as never fewer children born than then. We can stop the conversation there. For me, there is no doubt that this is an issue of all issues. What kind of security policy are we talking about if the future is slipping away from us? That is why the Ministry of Demography and Immigration has included a number of really important measures in the new budget to support our families. We are the ones who must give security to families who have decided to have children, so that they can pay their credit normally, so that they can give their children the opportunity to go to sports, to play the piano, so that parents have a good business environment that allows them to spend time with their children. One of the measures is that we will double the allowance for a newborn child from EUR 306 to EUR 618. We will also extend paternity leave to 20 days for one child and 30 days for twins and more. I would say that the most important measure that we have planned is that we will give parents, that is to say, mothers, full pay for parental leave up to the first year of the child’s life. Although, I have to be honest, steps have been taken so far, but this will be crucial—a major innovation. We now have a situation where mothers can receive a maximum of EUR 995, regardless of what their salary was before the birth of the child. This does not give them any security. That is why we are going to change the law and raise the limits to EUR 2 700. In addition, we will increase other maternity leave benefits for the unemployed, farmers, craftspeople, etc. I believe that this measure, along with all the other programmes for families that we have provided for in the budget, will have the best effect. I believe that this measure will encourage those families who want to have children to have them, because their incomes will not fall.

You are preparing to travel to visit expatriate communities, especially in South America. In the campaign, and also during your mandate, you have stressed that there is a desirable pool of potential labour among Croatian expatriates. On what data is this thesis based, or do you perhaps have data from the diplomatic missions and consulates which suggest that there is a greater interest in returning?

—The first visit will take place in Germany at the beginning of this month. Our aim is to encourage everyone to return. The magnitude of this issue is best illustrated by the fact that there are around 3.4 million Croats, i.e. Croatian emigrants, descendants of Croatian emigrants and their families, living outside Croatia. Croatian emigration is a huge potential for immigration policies and it is wrong to look at it only from a labour perspective. It is our potential for demographic revitalisation because we want them to move here, to go back to their roots and build a life in Croatia. The geopolitical opportunities, including in Latin America, of which we are all aware, are an opportunity to take a step forward and to encourage their return more significantly. However, it is really difficult to assess concrete figures, because it is a matter of individual decisions and approaches. There are some estimates, but it is very ungrateful to present them in the public arena. I can point to the many enquiries that are sent to us, because many returnees and immigrants want to be informed about their mode of arrival and the living conditions in Croatia, and in this work I can point to the good cooperation of our Ministry with diplomatic missions/consular representations, which will continue to provide us with timely information about the Croatian community in the world. From our point of view, anyone who wishes to return is welcome, and the Ministry of Demography and Immigration will do its utmost to ensure that the return is realised, and I believe that our visit to the immigrant communities will be an incentive to return. Everyone is important to us and I would like our people to feel that—an entrepreneur who wants to invest in Croatia, a young scientist who wants to do research in Croatia, or a worker who is looking for a better future for himself and his family.

In this respect, recently published data from the Ministry of the Interior show that between the beginning of 2020 and 31 August 2024, 11,054 citizens of South American countries, 436 of them children, have been granted Croatian citizenship. However, only 342 people have declared their residence in Croatia, although the majority have obtained citizenship as descendants of Croats. How do you comment on this and what is your plan for expatriates in South American countries?

—I would say that it speaks volumes that the largest number of emigrants from our Croatian community have been admitted to Croatian citizenship from South American countries. If we look at the fact that the number of Croatian emigrants and their descendants who have acquired citizenship has increased by more than 10 times compared to 2014, it shows that our emigrants are very interested in getting to know their roots, in acquiring citizenship, and in all the rights and opportunities that come with it. All these 11,054 citizens who have received citizenship are people who can potentially return. I do not think that the fact that only a few of them have declared their residence in Croatia should be a cause for despondency, on the contrary. The decision to return is not an easy one, people have their own lives, children are at school … but that is precisely why our ministry is here; so that when they decide to return, they have someone to support them: from employment, enrolling their children in pre-school and school educational institutions, obtaining health insurance, claiming social rights, further education, study and all the other areas they need to create a new life in Croatia. Speaking of the plan, I would already like to highlight two key things: the first is the scholarships for the study of the Croatian language, for which the ministry allocates around EUR 1 million per year. The Ministry of Demography and Immigration will award 500 scholarships every year for the study of the Croatian language at the Faculties of Humanities and Social Sciences in Croatia. This year, 300 applicants from 24 countries, mostly from Latin America, were interested in learning Croatian. This shows that there is interest, and learning the language, culture and roots is a prerequisite for any meaningful return. Another key issue, which is actually very little talked about in the public sphere, is the amendments to the Aliens Act, which introduce a new purpose of residence—’for the purpose of immigration of Croatian emigrants for Croatian emigrants, their descendants and their family members’. This is an extremely important change for our emigrants, because they are finally not being treated as foreigners. On the basis of a certificate issued by the MDU, they will be able to arrange their residence, they will have the possibility of applying for citizenship immediately. What is also important is that it will be possible to get a job, self-employment, studies, professional training, etc., without any additional permits. This is something that we have already done. As for future plans, I can say that we have provided more than EUR 23 million in the new budget for immigration programmes, one of which is to support small, small and medium-sized entrepreneurs who want to return and start a business, by cofinancing loans. We will continue with the grants for learning the Croatian language, which we intend to raise to €400. This may not seem important at first sight, but I believe that this is the beginning of a comeback. Any of our expatriates who wants to learn the Croatian language will learn it in Croatia, will get to know life there, and it is up to us to create an incentive for them to stay. We will improve the information system. We are in the final stages of drawing up an agreement with HGK, HUP, the Ministry of Labour, and we are thinking of involving some other institutions. The agreement would be a kind of framework to attract potential workers on site. Therefore, the aim is to go directly to the people, to inform them, to connect them with employers, to get all the information about job opportunities, to actually, in a way, enable them to make a plan to return to Croatia.

The Dean of the Faculty of Medicine at the University of Rijeka, Prof. Goran Hauser, and his team recently visited Brazil, Argentina and Uruguay, with the organisational support of the Croatian Heritage Foundation, to present the work of the professors at the local universities in order to motivate the arrival of new students. This year, after the first round, there were 12,000 vacancies in Croatia. What measures will you take to encourage the children of Croatian expatriates to come to study in Croatia?

—Attracting the young population, the descendants of Croatian emigrants to their ancestral homeland, is of paramount importance to the Ministry and we can announce that we will take important steps towards it in cooperation with the Ministry of Science, Education and Youth, which is responsible for this. From our point of view, I can announce that the Ministry will have a project called Experiential Programmes, which will finance the participation of young people, descendants of Croatian emigrants, in a number of cultural, scientific and research projects. In these programmes, it is important that we refer young people to CISOK – the Career Information Counselling Centre. Anyone who wishes to do so will be able to obtain information from the Croatian Employment Service about job vacancies, how much their competences are in demand, what training opportunities there are, etc. And in this sense, we see the possibility of cooperating with the Croatian Heritage Foundation, which has experience of implementing similar projects. Learning the Croatian language, that is, receiving scholarships to learn the Croatian language, is certainly an opportunity to open up new opportunities for young people and to adapt our education system to them. With these measures that I have already mentioned, I think that we are well on the way to reversing the trends. Initiatives such as this one by Dean Hauser are certainly to be welcomed, because I would say that this is the right and only way to position ourselves among young expatriates.

It is undeniable that Croatia is facing a labour shortage, but in addition to low- and medium-skilled people with mainly vocational qualifications, thousands of highly educated young people have left Croatia, many of whom have not returned after studying abroad. These latter are Croatia’s brains who are making their mark in the world and creating new achievements in science. How to bring them back to their homeland?

—I would say that migration policy and migration trends must first be approached rationally. Croatia, like any other country, needs to think about its national interests and priorities. The labour shortage is the result of various changes in the labour market, and everyone is responsible, whether they want to admit it or not. It is therefore important to think about this issue in the long term, to take into account who is coming to us and how this will affect our society in the long term. We hardly deal with integration, and when we talk about the need to sort out the issue of migration, when we talk about the need for everyone who comes to accept our culture, to learn our language, we are accused of being nationalists, of not respecting the different. That is what is said by those who only think about the present, who do not care about the future. At the Ministry of Demography, we are most concerned about the future, which is why, in the new budget period, in addition to everything I have already said about the changes, we have planned measures to encourage people to stay in Croatia and to return to Croatia.

How does the proposal relate to the five-year income tax exemption for future returnees, those who have stayed abroad for two years, if they return to Croatia?

—The laws are in the parliamentary process and will be adopted by 15 December, so that all tax changes will take effect from the start of the year. I have to say that I am glad that we have also raised this subject, because there have been all sorts of discussions on it. First of all, I would like to say that this measure does not discriminate against anyone. When I am asked to comment, I like to say: “What do we have now from these people? What have we done to attract them back?” The tax reform is so wide-ranging that it brings a number of changes that will give all our families a higher income. This is the part that does not discriminate, but encourages. If this measure encourages even one of our expatriates to return, we have already taken a step forward. Anyone who returns is an asset to us as a nation. This measure should also be seen as such.

Discounts also apply to Croatian citizens who are descendants of overseas and European emigrants. Do you have any feedback on how much interest there would be in this tax refund initiative?

—Correct, the proposed provision applies and, once adopted, will also apply to the descendants of expatriates from overseas and European countries. I can confirm that the Ministry regularly informs our citizens about the above-mentioned change in tax policy, and we have the highest number of enquiries from EU countries where our citizens work, namely from people working in the fields of transport, health (medical technicians, nurses, doctors), electrical engineering; they wanted to receive more information about the proposed provision, that is to say, about the exemption from the five-year personal income tax. As I said, we hope that this, together with all the other programmes, will be an incentive for our expatriates who want to start a new life in Croatia from scratch.

Croatia does not have a temporary migrant register, as many modern migrants to Germany and Ireland have not even checked out of Croatia yet. Without this important document, is it possible to apply the announced measure within the announced timeframe, at the beginning of 2025?

—As you know, the Ministry of Finance or the Tax Administration is working on the establishment of a population register and, as regards the measure, the current proposal will provide for this measure of exemption from five years’ income tax, based on data from the Mistry of the Interior’s database on residence and domicile. The right would be exercised by those who have had a registered residence or registered temporary departure for at least two years continuously, or those who have never had a registered residence, this applies to our second, third generation emigrants, etc. As you can see, in this way it will be possible, among other things, to determine how many people have actually emigrated from Croatia. What I think is important to point out, because it remains somewhat aside, is that this right will be exercised ex officio. It is the tax administration that will decide without any additional administration. Of course, all those who believe that they are entitled to this exemption will be able to make a request, if the law so provides.

From day one of your mandate, you have stressed that you cannot achieve results alone, but that this requires political will and institutional cooperation. Do you have the support of the Prime Minister and have you established cooperation with the relevant state authorities?

—The creation of the Ministry is, I would say, a clear political message from the Government on how it intends to deal with demography as a national issue. I always stress that this is not a ministry for me, for the patriotic movement. It is not about two or three party letters. The Ministry of Demography and Immigration is part of the Government of the Republic of Croatia and I can say that I am satisfied with the cooperation that we have with all the ministries. I think that we have become more mature as a society and that everyone recognises demography as an important topic—from the army, the health service, the police to science and education. I would also like to highlight the excellent cooperation between the Ministry and the scientific community. A few days ago, we signed a cooperation agreement with the Institute for Migration Research, and even earlier we signed an agreement with the Ivo Pilar Institute and the Croatian Catholic University. We intend to continue in this direction, because I am convinced that science must lead and politics must decide.

The Ministry will have a project called Experiential Programmes, which will fund the participation of young people, descendants of Croatian emigrants, in a wide range of cultural, scientific and research projects. Here we see an opportunity for cooperation with the Croatian Heritage Foundation, given the experience that this institution has.

Among others, you have taken as advisors and close collaborators the well-known demographers, Assistant Professor Stjepan Šterc and Professor Tado Jurić. Could you tell us about the principles you are basing your future demographic policy on, and what the backbone of the strategic document that is to become the key to demographic renewal looks like?

—All four advisors were chosen carefully and for good reason. The fact that I took as colleagues three excellent demographers, Prof. Šterc, Prof. Jurić, and Živić, PhD, along with Mr Štrigu, who has lived in Germany for decades, showcases that we have thought of everything. These are people who have dedicated their working lives to the topics we are dealing with. They have dealt with demography and immigration, while for others, this issue has been of secondary importance. Their contribution will therefore be crucial in what follows. The drafting of a specific law is, on top of everything else, a major undertaking, because it will be left behind for all of us. This law will not only regulate the principles, but will also establish a system for monitoring, designing and coordinating demographic measures, whether at national or local level. This law will be a tool for monitoring what is happening in the demographic field. Of course, it is too early to talk about the details at this point, but it is crucial that this law will also cover demographic development and immigration. It will not be a strategic document of one minister, one government, but a lex specialis that will bind all the authorities and those who will come in the years to come.

Finally, what would you say has been your success in office? An increase in the number of children born? A more significant return of Croatian emigrants?

It is a very thankless topic to talk about. When I accepted the post of Minister, I knew that I would be dealing with a problem for which there are no easy solutions and no quick results. It is impossible to reverse trends that we have had for years with one or two measures, no matter how well thought out and effective. It will take a long time to rebuild and restore hope for a return, to open our families to a new life and to make our institutions more focused on the needs of citizens. It is a process that has its own course. What is important to me, and what I will consider my success, is to give this long-term process a sound (good) foundation and to stop the negative trends, that is to say, to bring about change. I will go back to hope, because I think that without hope, everything is in vain. We will be successful in demography when we give people back hope that change is possible, that they can have and raise children in a healthy and safe environment, that they have someone to look after them in their old age …

MATICA magazine