Croatia, like other countries in Europe and the world, has experienced a serious economic crisis for several years. On a number of occasions, we have emphasized that the economic crisis actually began with a moral crisis that, in turn, caused the social one. A social crisis inevitably leads to political crises that can have unpredictable consequences. Therefore, if we really want to end a crisis, it is necessary to go to its causes and roots, to the crisis in morality and the destruction of vital practices, without which it is impossible to organize an economy and society successfully, based upon human dignity.

The Croatian society is continuously faced with extremes. From the one side, we have a situation of inflated rights in which rights are discussed as if there were no accountability, while on the other side we have the remnants of a totalitarian state that obliterates the civil and human rights of individuals. We thus come to the key problem, which some are attempting to conceal systematically: the importance of confronting our own totalitarian legacy, which, unfortunately, is increasingly becoming a taboo topic. Our fear and inability to confront our totalitarian past hinder and prevent development and overcoming of the crisis.

Therefore, we are faced with extremes associated with the state: on the one side, the state withdraws from the public eye when borders, sovereignty, identity and national interests are in question, and on the other side, the state is increasingly encroaching into spheres that are not its primary area of activity, for example, the family and upbringing of children. While on one side we have too much government, on the other side we have too little. Amidst the multitude of problems we have encountered recently, we should like to call attention to one issue that we believe is important and can be resolved. It would help citizens if the state took a moderate instead of an extreme position of complete absence or omnipresence.

Has the “debt collection industry” usurped production and development?!

With every passing day, we increasingly observe that industrial production in Croatia is ceasing or losing momentum. However, the debt collection industry is developing vigorously, particularly the foreclosure and eviction industries, which are well-known and well-established institutions in the western world. However, in the Croatian version this institution has several “innovations” that essentially derogate the European spirit of this institution. What does this mean?

In the Constitution of the Republic of Croatia, we read that Croatia is a welfare state (Article 1). However, the model for foreclosures and evictions has several problematic articles that derogate the spirit of the Constitution of the Republic of Croatia and several conventions, favoring various lobbies and big businesses to the detriment of Croatian citizens. That is why some rightly call this law on foreclosures “the law of the state against citizens.” Since there is no law that guarantees control over foreclosure orders, this law violates the Constitution of the Republic of Croatia (Article 19, Paragraph 2). Furthermore, the constitutional right to appeal is not provided (Article 18, Constitution of the Republic of Croatia) or the right to legal protection as stipulated in Article 13 of the Convention for the Protection of Human Rights and Fundamental Freedoms. Therefore, Croatian citizens do not have the right to appeal, unlike non-Croatian citizens who have retained this right. Therefore, the citizens of the Republic of Croatia have become second-class citizens in Croatia.

The idea of foreclosure actually exists in order to work in the best interests of the creditor and the debtor. Collection is not permitted to exceed the basic debt to the detriment of the debtor, and must not exceed one third of income. It is not permitted to confiscate the property of debtors, especially housing, if it is the sole residence.

A particular problem that should be noted is that lawyer and notary lobbies, with the help of an unjust law, can have disproportionately high earnings, which is contrary to the European spirit.

Therefore, we urge the state authorities to coordinate the law on foreclosures with European legal tradition and the Constitution of the Republic of Croatia immediately. We also urge the authorities to do everything to ensure that there will be no second-class citizens in Croatia. Croatian citizens do not need to have any privileges but they should not be denied their right to appeal that is afforded to other legal persons. It is especially important to immediately stop the inappropriate and forceful evictions of people in a situation where endemic unemployment prevails. The state must restrain the debt collection industry and initiate industrial production so that citizens can meet their debt obligations.

A state should not rob its citizens, alienate their property and punish them because they are collateral victims of a crisis that they did not cause, unlike many of those who now coldly profit from the poor, taking even the little that they have.

We urge the authorities in Croatia to protect the Croatian citizens who find themselves in a difficult situation. The legal provisions should be abolished that favor various interest lobbies. In this severe economic and social crisis, it is necessary to work on the recovery of the economy while not allowing the crisis to serve as a pretext for the even greater impoverishment of the Croatian people. We urge the entire society to seek a consensus on important issues, find ways out of the crisis and create a society with fundamental values that are accepted by all Croatian citizens. This Commission particularly urges the Government of the Republic of Croatia to protect the most vulnerable and poorest citizens, and thus demonstrate that the young Croatian state is doing everything to become and remain a society of social justice, peace and security.

In Zagreb, May 6, 2013

Msgr. Vlado Košić, Ph.D.
President of the Justice and Peace Commission