CROATIA HAS STABLE MACROECONOMIC FRAMEWORK - EUROPEAN COMMISSION

ZAGREB/BRUSSELS, Jan 23(Hina) - Croatia has achieved a stable macroeconomic framework in recent years, with low inflation and an improved fiscal policy, the European Commission evaluated in Friday's annual report on the Western Balkans in transition.#L# The report, which was drawn up by the Commission's Directorate-General for Economic and Financial Affairs, provides an overview of recent trends in the macroeconomic and structural development of the five countries covered by the Stabilisation and Association process -- Croatia, Bosnia-Herzegovina, Serbia-Montenegro, Macedonia, and Albania. Croatia is said to be clearly above the average of the other four countries. The Commission recommends that the policy of fiscal consolidation in Croatia be continued and structural reforms accelerated in light of challenges related to European Union rapprochement. The report also underlines the need of enhancing the role of the private sector in the economy and making Croatian products more competitive. The Commission recommends continuing with privatisation projects that help to utilise Croatia's economic potential, like in tourism. (Hina) ha