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Competition Agency chief warns that Croatia still has market-unfriendly regulations

ZAGREB, Feb 18 (Hina) - Croatia still has market-unfriendly regulations which make it impossible for entrepreneurs to enter the market and consequently this may be one of the reasons for absence of investments, the chairwoman of the Council of the Croatian Competition Agency, Olgica Spevec, said in Zagreb on Friday.

Such regulations are still in force or are being adopted which is why entrepreneurs complain to the Competition Agency, but the agency has no powers to rescind them, Spevec said at a seminar on strengthening the market competition and state subsidies in Croatia within the Cro Compete project.

This two-year project was launched as part of the IPA pre-accession programme in December 2009.

Spevec warned that some regulations pushed entrepreneurs into unequal positions, all of which led to stagnation or under-investment of some sectors.

Commenting on state subsidies, she said that discipline in allocating state aid had been improved.

However, the problem lies with a too high number of those who can grant state subventions, which causes great costs, she said.

Spevec recommended a reduction of the number of those who can endorse the financial support and the concentration of funds for this purpose at one place.

She said that with Croatia's entry into the European Union, the supervision of the allocation of state aid would be assumed by the European Commission.

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