Following the publication of new economic indicators for the beginning of 2026, the Croatian Employers' Association (HUP) issued a public appeal to redefine certain directions of economic policy.

The main message from employers focuses on two key points, abolishing the administrative restriction on food prices and reconsidering the ban on Sunday work.

Given that inflationary pressures are noticeably easing, leading domestic employers believe that the measures introduced as crisis mechanisms have now become a burden on the further development of retail and distribution.

What does the current Trade Act bring?

To understand the current dispute, it is crucial to recall the rules that have been in force since 1 July 2023, when amendments to the Trade Act drastically changed shopping habits in Croatia. According to this solution, shops are generally closed on Sundays, with the exception of only sixteen working Sundays in the entire calendar year, which each retailer allocates according to its own business needs.

This measure was introduced with the aim of achieving a balance between the business and private lives of employees in retail, a sector in which the majority of the workforce are women. Although certain exceptions are предусмотрены, such as shops at stations, airports, and petrol stations, most retail chains and small neighborhood shops remain closed for most of the year. It is precisely this restriction that HUP now sees as an obstacle, emphasizing that purchasing power in a tourism-oriented country should not be constrained by a fixed number of working days.

Easing inflation as an argument for unfreezing prices

In addition to the issue of working hours, employers emphasize that the harmonized annual inflation rate slowed to 3.8 percent in December. This trend, accompanied by falling food and energy prices on global markets, clearly indicates, in the opinion of HUP experts, that cost pressures in the production chain have weakened. In such circumstances, the continued maintenance of so-called frozen prices for basic foodstuffs is considered economically irrational because it creates additional costs for business operations and disrupts the dynamics of free market competition.

HUP analysts particularly warn about the experiences of Hungary, where long-term price restrictions led to product shortages and increased dependence on imports. The employers' message is clear, administrative interference in prices does not solve the root causes of inflation, but merely delays the necessary market adjustment which, given the current figures, has become inevitable.

Slower retail growth compared with the Mediterranean

HUP emphasizes that real retail growth in Croatia in the second half of last year amounted to around 2.5 percent, which is noticeably below the results recorded by other Mediterranean countries of the European Union. It is believed that the restriction to only 16 working Sundays directly contributes to such results by limiting potential consumption. Instead of rigid legal bans, a model is suggested in which the focus would be on adequate, significantly higher compensation for workers for Sunday work, thereby enabling a balance between the economic needs of entrepreneurs and the social rights of employees.

Institutional restraint and the search for a stable solution

Despite the well-argued demands of the economic sector, the Government's official policy has so far not accepted these proposals toward urgent legislative amendments. The executive branch continues to give priority to maintaining the established model, which is communicated to the public as an important tool of social stability and protection of workers' dignity. The current position of the institutions suggests caution, although the importance of the economic trends indicated by HUP is acknowledged, changing a law that has also passed the test of constitutionality requires deeper analysis than the current monthly decline in inflation.

It can be concluded that the Government remains of the view that the current model of 16 working Sundays is a sustainable compromise. Although the door to dialogue remains open, there are no indications that the policy defining Sunday as a primarily non-working day for the retail sector will be abandoned.

Reference: Publication 'Focus of the Week', Croatian Employers' Association (HUP), January 2026; Act on Amendments to the Trade Act (NN 33/23).