CROATIAN PM SAYS TIMES OF 'BELT-TIGHTENING' ARE OVER

ZAGREB, Jan 6 (Hina) - Speaking about what Croatian citizens could expect this year, Prime Minister Ivica Racan told state television on Sunday the times of "belt-tightening" and privation were definitively over and that the standard would grow concurrently with the economy. #L# Croatia is on a good path and there is no cause for pessimism, Racan said in a prime-time interview. He announced wages this year would be slightly higher, the standard as well, although not as high as citizens would like. Racan said one had to be realistic and that every decision had to be well-considered. Any decision exceeding possibilities brings the country on the verge of an abyss, he said. The premier voiced hope the next parliamentary election would be held in due time. Taking into account the problems and tasks that have yet to be dealt with, Racan hoped 2003 would be used for this purpose and recalled that the polls must be held by spring 2004. As for the decision to apply for full membership in the European Union in mid-February, Racan said it was not premature. The government has estimated that it will be the right time, he said. Racan reiterated that only an active stance would keep Croatia from being tied to the other countries in the region in terms of association to the EU and the danger of a regional approach. The PM also spoke about the disputed privatisation of Suncani Hvar, saying this hotel chain was where the Croatian privatisation model went to pieces. He recalled the international bid invitation was over, that the Croatian Privatisation Fund had suggested selling to Slovenia's Catez Spas but that the government had not yet approved the decision. Racan announced the issue would be thoroughly analysed once again before being included on the government's agenda. (hina) ha