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British-Croatian Business Network holds forum on Croatia's EU prospects

ZAGREB, May 18 (Hina) - A traditional forum on Croatia's Europeanprospects, organised by the British-Croatian Business Network,concluded in Zagreb on Wednesday that according to economic criteria,Croatia could already be a member of the European Union, however, inorder to achieve this goal it must satisfy the requirement of fullcooperation with the Hague-based UN war crimes tribunal.
ZAGREB, May 18 (Hina) - A traditional forum on Croatia's European prospects, organised by the British-Croatian Business Network, concluded in Zagreb on Wednesday that according to economic criteria, Croatia could already be a member of the European Union, however, in order to achieve this goal it must satisfy the requirement of full cooperation with the Hague-based UN war crimes tribunal.

Last year's expansion of the EU to the East abated fears inside the Union of the integration of countries in transition, which is an advantage for Croatia and other countries in south-east Europe that aspire to membership in the EU, Croatian President Stjepan Mesic said at the forum called 'Croatia: European Perspectives'.

These countries must not bring burdens from their past into the Union and they have to enforce all laws non-selectively. This also refers to Croatia's full cooperation with the Hague tribunal, namely to the case of General Ante Gotovina who, Mesic said, could not be amnestied, because of his merits in the Homeland Defence War, from his obligation to answer questions which the tribunal set about events in connection with the crimes he is charged with.

Commenting on the growing Euro-scepticism in Croatia, Mesic said that this could be ascribed to Croatia's fatigue from the transition period and also to anti-European propaganda which succeeded in a part of the population.

British Ambassador to Croatia Sir John Ramsden said that Croatia's status of candidate for EU membership had strongly stimulated the interest of British business people. Croatia, however, is not always a perfect place for business, primarily due to red tape obstacles, the British diplomat said.

Croatia must take steps so as to facilitate business deals and this will be a priority of Great Britain also at the European level when it takes over the rotating presidency of the Union this July, he said.

Asked whether it was true that the opening of Croatia's membership talks would not be greenlighted during the British presidency over the EU, Ramsden said the talks would start as soon as Croatia solved the issue of full cooperation with the tribunal.

Croatian National Bank (HNB) Deputy Governor Boris Vujcic told the forum that Croatia was among the most developed countries in transition regarding its economic situation, and from that point of view it could have already been an EU member.

To corroborate his statement, Vujcic said that Croatia's Gross Domestic Product was at the level of the average GDP of ten countries that entered the Union last year. In the category of transition countries, Croatia has had the lowest inflation rate for 13 years. The growth in its foreign debt has been decelerated, with exports rising faster than imports. Forecasts show that the current account deficit will be maintained below five percent, the HNB official said.

With regard to foreign investments, they are more and more directed into the manufacturing sector of small and medium-sized companies.

Vujcic agreed with other participants in the forum that it was necessary to enhance the performance of the public administration, reform the public health sector, and change the policy of granting subsidies to loss-making companies in the shipbuilding and metal industries.

Croatia should introduce the euro as soon as possible as the country is already 'euroised' to a great extent, Vujcic said, adding that 80 percent of deposits in commercial banks were now in euros.

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