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Kosor calls for minimum unity necessary for implementation of structural changes

ZAGREB, Nov 22 (Hina) - Croatia needs "the minimum political unity" in order to be able to carry out radical cuts and structural changes with the aim of not only recovering from the recession but also opening up new prospects, Prime Minister Jadranka Kosor said opening a conference on new models of the Croatian economy in Zagreb on Monday.

Everybody is calling for changes and "painful cuts", but few would like to participate in making such changes, Kosor complained at the event organised by the Poslovni Dnevnik and Banka newspapers.

Kosor said that her cabinet's Economic Recovery Programme was being carried out.

"I am sorry for not having brought with me an extensive book that shows what he have done so far," the premier said, adding that her cabinet had to tackle problems accumulated from the previous years, ranging from shipyards to the Split-based steel mill.

The government has reduced para-fiscal levies between 20 and 25 percent, but this move has gone unnoticed by the public. Since last year, we have been intensively working on reducing consumption. The reduction of salaries and privileged pensions saved HRK 2.7 billion last year and HRK 3.5 billion this year, Kosor said.

The bill on fiscal responsibility, which is to be adopted, sets frameworks for the frugal behaviour of everybody, starting from the government to the local self-government, she said.

The premier recalled that the government had drawn up a programme for big public sector investments envisaging 30 projects in the amount of EUR 14 billion.

Every day we receive inquires and proposals from interested investors, Kosor said.

Croatian President Ivo Josipovic's economic advisor, Boris Cota, said that Croatia's economic growth could no longer be based on the influx of the debt capital due to the high level of the country's external debt and modified assessments of risks for creditors.

The growth should be based on attracting direct investments, primarily into the export-oriented sectors, Cota said.

U.S. Ambassador to Croatia James Foley believes that Croatia's top priority should be changing its business climate to remove bureaucratic obstacles to foreign investments, particularly at the local level.

He cited the example of a potential American investor that had planned to invest hundreds of millions of euros in Croatia's tourism but recently gave up the plan after waiting for five years for an answer from the government regarding problems with land lease.

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