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PARTIES SLAM NEW ARRANGEMENT WITH IMF

ZAGREB, Oct 13 (Hina) - The new stand-by arrangement with theInternational Monetary Fund (IMF) is a direct blow to living standardsas announcements that the zero VAT rate will be revoked on bread,milk, textbooks, medicines, and medical aides will automaticallyincrease the prices of bread and milk by 20 percent, Social DemocraticParty (SDP) MP Marija Lugaric told the press on Wednesday.
ZAGREB, Oct 13 (Hina) - The new stand-by arrangement with the International Monetary Fund (IMF) is a direct blow to living standards as announcements that the zero VAT rate will be revoked on bread, milk, textbooks, medicines, and medical aides will automatically increase the prices of bread and milk by 20 percent, Social Democratic Party (SDP) MP Marija Lugaric told the press on Wednesday.

The chief of the SDP parliamentary club of deputies, Ivica Racan, said the arrangement and the Memorandum on the Economic and Financial Policies clearly indicated that the Government did not have a development strategy and did not offer citizens better living prospects.

Racan said the SDP deputies' club would seriously consider what to do about the marginalisation of Parliament's work by its leadership and the ruling Croatian Democratic Union.

He said Speaker Vladimir Seks was a big manipulator in favour of marginalising Parliament's work and preventing crucial issues from being discussed in Parliament.

The deputies' club of the Croatian People's Party (HNS) and the Primorje Gorski Kotar Alliance (PGS) criticised the new stand-by arrangement with the IMF at a separate news conference.

Radimir Cacic of the HNS said the Government stated its objective was a low fiscal deficit, which he added meant stopping economic development.

Vesna Pusic of the HNS said the national debt was a burden only if there were no development projects.

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