SPLIT, Jan 2 (Hina) - Croatian Prime Minister Ivica Racan has said in an interview in Friday's issue of the "Slobodna Dalmacija" daily that the incumbent government averted an economic and social breakdown and discontinued the
country's isolation from its neighbourhood and the international community.
SPLIT, Jan 2 (Hina) - Croatian Prime Minister Ivica Racan has said
in an interview in Friday's issue of the "Slobodna Dalmacija" daily
that the incumbent government averted an economic and social
breakdown and discontinued the country's isolation from its
neighbourhood and the international community. #L#
"It has secured the country's macroeconomic and political
stability, the economy has been mostly stabilised, savings are
stable, foreign currency reserves have been doubled, interest
rates have been halved, salaries and pensions are regular and
inflation is low," Racan said.
The prime minister said the statistics proved the success of the
government's policy, however, visible results on the macroeconomic
front and better living standards could not be ensured in only two-
three years. "Had we continued spending what we did not earn instead
of reducing the general spending and deficit, we would have already
suffered a breakdown. For example, had we given several billion
kuna for spending and higher salaries instead of investing them
into the construction of the Split-Zagreb highway, the
government's rating would be better, but the situation in the
country would be worse," the PM said.
Racan stated that time would show the positive effects of the
government's policy.
He said that he understood the dissatisfaction of citizens, but the
country had managed to leave the times of crisis behind. "The
sacrifice of working people was necessary and we are now facing the
struggle for more work and better salaries," he said.
Commenting on relations with neighbouring countries, Racan said
that Croatia still had to discuss the sea border at Prevlaka. "Talks
on Prevlaka as well as other parts of the border, especially on the
Danube, should continue. That is possible on condition both sides
contribute to the process of normalisation".
"We have a temporary regime and peace in Piran Bay. Unlike critics,
I do not believe that this has been detrimental to Croatia, it is
important that there are no conflicts. In talks with Bosnia-
Herzegovina we must solve not only the issue of the Ploce port but
also the question of the corridor towards Dubrovnik," Racan said in
the interview.
(hina) rml