The increase of the foreign debt confirms that measures taken by the Croatian National Bank so far have not yielded the required results, the HUP said in a statement on Friday.
"This jump in the foreign debt and the constant rise of the internal debt only confirm the lack of a long-term economic policy which would keep spending, particularly public spending, under control and reduce it with efficient methods of the credit and monetary policy to bearable levels," the HUP said.
The HUP believes that it is necessary to inform the business community not only about the measures which have been taken but about existing and future risks in the situation of critical indebtedness and ways of managing them.
The HUP expects the creators of the economic policy to take radical measures to transform public administration and the entire public sector in order to reduce budgetary spending and relieve the tax burden.
The association believes that a fast and decisive improvement of business conditions in the private sector can increase production, strengthen new production investments and boost exports.
Only with increased production and a simultaneous reduction of spending and promotion of saving is it possible to avoid the breakdown of the economy and the state, the HUP said, calling for a general consensus on the matter.