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Institucije su danas zatvorene. Prema tome, ne možemo raditi.

Institucije su danas zatvorene. Prema tome, ne možemo raditi.
The institutions are closed today. Accordingly, we cannot work.
From Lesson 366:Accordingly (prema tome)·Croatian

Questions & Answers about Institucije su danas zatvorene. Prema tome, ne možemo raditi.

What is the literal meaning of prema tome in this sentence?
The preposition prema means "towards" or "according to", and it requires the dative or locative case. Tome is the dative/locative form of the pronoun to (that). Literally, it translates to "according to that," which naturally gives us the meaning "accordingly" or "therefore."
Why does zatvorene end in -e?
Zatvorene is a passive participle functioning as an adjective, so it must agree with the noun it describes. Institucije (institutions) is a feminine plural noun. For feminine plural nouns in the nominative case, adjectives and participles take the -e ending.
Could we use zato instead of prema tome here?
Yes, you could say Zato ne možemo raditi (Therefore we cannot work). Prema tome (accordingly) carries the same meaning but sounds slightly more formal and logical, which perfectly matches a sentence discussing official institutions.
Can prema tome be placed somewhere else in the second sentence?
Like "accordingly" or "therefore" in English, it usually sits at the very beginning of the concluding sentence. You could technically put it later (e.g., Ne možemo, prema tome, raditi), but starting the sentence with it is the most natural way to signal that a logical conclusion is coming.

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