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Kosor says SDP nervous as her cabinet hasn't cut salaries and pensions

ZAGREB, Oct 27 (Hina) - Croatian Prime Minister Jadranka Kosor repudiated claims by the opposition Social Democratic Party (SDP) about her cabinet's social insensitivity, countering that the Opposition became nervous after the government turned down their proposals for a cut in salaries and pensions.

During a parliamentary debate in which the Opposition was seeking a no-confidence vote in PM Kosor, she also dismissed criticism about the government being late in restructuring state-owned shipyards.

She said the plans for the shipyards' modernisation had been forwarded to the European Commission and that she expected Brussels to approve them, which would pave the way for the yards to ink new business deals.

Kosor said that there were indicators of positive developments in the country, which she said the Opposition fell short of mentioning.

According to Kosor, Croatia's exports this year have grown, while imports have fallen. Industrial production has gone up by 3.1 percent.

This government has mustered the strength to reduce para-fiscal levies, she said, adding that Croatia can expect an economic growth of at least 1.5 percent in 2011.

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