The Role of Mortgage Subsidies in the Croatian Economic Growth Strategy: a Political-Economy Approach to the SSK

Since 2017, Croatian housing policy has focused on promoting homeownership through the SSK programme – a form of mortgage subsidisation that covers proportion costs. Although this aimed to improve affordability and increase homeownership, recent economic evaluation shown in fact contributed rising house prices been ineffective at raising rate. While econometric research identified impact had price volatility affordability, underlying factors leading implementation subsidy, as well its broader societal impacts, remain under-researched. Through political-economy lens, paper analyses context led inception SSK, core targeting principles, market. We ask: How does subsidy position market within national strategy for growth social provision? argue policy’s markets is twofold. First, reinforces shift towards financialised increased asset prices. Second, shifts focus markets, thereby furthering privatisation welfare state favouring middle-income groups. This paper’s contribution resides critically discussing beyond stated goals contextualising it model dependent private finance. interviews with relevant stakeholders, descriptive data indicators, review documents, characterises small-scale financialisation relies aligning markets. Finally, we wider array finance-led policies suggest formulation comprehensive tailored segments society.