• The Minister of Finance survived the motion of no confidence vote, which ended in a tie (75 – 75 votes with one abstention). The vote of no confidence was the first and key point for the survival of the Government, because if it had been passed, the dissolution of the Parliament would have been the most likely option. At the end the speaker of the Croatian Parliament and also the leader of MOST resigned. Now, the possibility of early elections declined slightly (to 40% from 50%) but still it is unclear whether the prime minister will manage to form a new cabinet. 4 Please note the risk notifi cations and explanations at the end of this document CEE Daily

• Although the PM expressed his confidence in having the sufficient majority in the Parliament, we think it will be very tight and fragile, and therefore, not surprisingly, he left an open door for snap elections. Therefore the focus in Croatia remains on politics.

Financial analyst: Z. Zivkovic Matijevic (+385 1 6174 338), Raiffeisenbank Austria d.d., Zagreb