ZAGREB, Croatia — While Greece and Germany tussle over what debt forgiveness might mean, Croatia, the European Union’s newest member, is adopting its own approach, offering what it calls a “new beginning” to some 60,000 of its poorest citizens.
Starting Monday, the government of Croatia, which joined the European Union in July 2013, offered a debt write-off to Croats who have blocked bank accounts, owe less than the equivalent of about $5,000 and currently receive some sort of welfare benefits. They also should have no property or savings outside of a primary residence.
By Wednesday, about 20,000 citizens had applied for the assistance, announced last month by Prime Minister Zoran Milanovic, who touted it as a unique scheme to help the poor as strapped European nations look for imaginative ways to clean up their finances but prevent further impoverishment.
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Mr. Simunovic, a former welder who has not worked since he experienced a series of health-related setbacks in 2007, is not so sure about government compassion. After creditors take a percentage, he said, he has just 1,170 kunas, or $172, left from his monthly disability pension.
”Every time we get the electricity bill, we have to reconsider whether we buy bread,” he said.
Joseph Orovic reported from Zagreb, and Alison Smale from Budapest.
