One of the fundamental reforms which the Finance Ministry must carry out is changing the government subsidies system, so as to reduce their share in Gross Domestic Product from 3.1 percent to 2.14 percent by 2007.
At today's presentation of implemented and planned reforms required by PALs, Finance Minister Ivan Suker said that the fundamental change of the government subsidies system will refer to the better allocation of funds and not their significant reduction.
The changes will be carried out based on the new bill on government subsidies, the drafting of which is in the final stage.
The sectors which have already received subsidies - shipbuilding and Croatian Railways -- will also have to carry out a number of reforms.
By the end of this year, the Economy Ministry is expected to move a plan for the financial reconstruction of the shipbuilding industry and in cooperation with the Croatian Privatisation fund, complete the reconstruction and privatisation of the entire shipbuilding industry by the end of 2007.
The state-run Croatian Railways company is expected by 2007 to privatise its ten companies, employing some 3,000 people and as early as this year, the number of employees in Croatian Railways should be reduced by some 600 people (the number was reduced by 388 by the end of July).
One of the significant reforms is to be conducted in the health sector which, according to Health Minister Neven Ljubicic, should undergo the process of financial consolidation by 2007.