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Mesic and Croatian employers discuss economic situation

ZAGREB, April 18 (Hina) - Croatian employers should refrain fromspending on luxury goods and should re-invest more funds into theircompanies so as to enhance their competitiveness, the president of theCroatian Employers' Association (HUP), Emil Tedeschi, said at aworking dinner which the association held with Croatian PresidentStjepan Mesic in Zagreb on Monday,
ZAGREB, April 18 (Hina) - Croatian employers should refrain from spending on luxury goods and should re-invest more funds into their companies so as to enhance their competitiveness, the president of the Croatian Employers' Association (HUP), Emil Tedeschi, said at a working dinner which the association held with Croatian President Stjepan Mesic in Zagreb on Monday,

Tedeschi called on private entrepreneurs to consider giving up the payment of dividends over a five-year period and reinvest those funds in the technological and market development of their companies.

The HUP head believes that such a move would give the right to employers to ask trade unions to jettison their demands for higher salaries and the government to step up reforms.

President Mesic said the biggest economic problem was a high unemployment rate.

In this context he proposed that big and small companies should cooperate better so as to create more jobs. He also suggested some tax relief for new companies during certain time terms.

Tedeschi called on employers to counter the gray market and suggested that HUP members should expel from HUP members who employed workers illegally or were engaged in other murky dealings.

Commenting on the current government's stimulating measures for the development of the entrepreneurial sector, Mesic said that he was informed that those measures were complicated and not adjusted to entrepreneurs.

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