CROATIAN GOVERNMENT ANALYSES EXECUTION OF PRIORITIES IN 2002

ZAGREB, Jan 9 (Hina) - The government last year sped up economic growth, secured a high degree of macroeconomic stability and low inflation and stopped the increase of unemployment. However, the mentality of civil servants did not change, and little was done to lessen administrative obstacles to investments, Croatian Vice- Premier Slavko Linic said at Thursday's government session commenting on the implementation of the government's priorities last year. #L# It was easy to change everything apart from the mentality of people, which will be the government's primary task for 2003, alongside a more responsible management of state property, Linic said. The problem of insolvency has been solved in 2002, the cost of living only rose by 1.9 percent, and investments, not only the state's, have increased, said the vice-premier. Finance Minister Mato Crkvenac agreed, saying that small, private investments were emerging. He recalled that a set of tax laws had been passed last year which benefit citizens, profits had increased and would continue to increase this year. Some 2.4 billion kuna were invested into small-scale businesses through credit lines last year, while 3.1 billion kuna have been allocated this year, Crafts, Small and Middle-Scale Entrepreneurship Minister Zeljko Pecek said. He expressed hope that about a billion euros would be invested into small-scale enterprises in four years. Since this government came into power, 35,000 new jobs have been created, and 50,000 are expected by the end of the year, Pecek said. The programme of highway construction was successfully executed and a number of projects concerning state highways have been completed, said Transport Minister Roland Zuvanic. The Zagreb-Split highway is being constructed within the set deadlines and the financial construction for all road projects has been completed, Public Works Minister Radimir Cacic asserted. The government plans to construct five times more flats than last year by the Socially Stimulated Housing project and reconstruct the homes of another 4,000 families affected by the war, he said. An increase in turnover from tourism was marked in 2002. During nine months, 3.3 billion dollars were made from tourism, and this amount is expected to reach USD3.9 billion for all the 12 months, said a representative of the Tourism Ministry. European Integration Minister Neven Mimica reported headway had been achieved in drawing closer to the EU and a foundation laid for Croatia to submit its application for membership in the Union. Last year Croatia was the safest country in transition and one of the safest in Europe, with the least number of committed and highest rate of solved crimes, said Interior Minister Sime Lucin. The reform of a large part of the judiciary has been completed, which is particularly evident in the appointment of the presidents of all courts, a 50 percent decrease in backlogs of the state prosecution, the filling of judges' seats and securing working conditions, Justice Minister Ingrid Anticevic Marinovic said. Reforms also continued in the labour and social welfare sector, a new pension insurance system was established, and 1.5 billion kuna was received for investing in the sector. However, labour and workers' claims protection legislature was not passed. Croatian Homeland War Veterans' Minister Ivica Pancic reported that legal predisposition for the introduction of order and more fairness among veterans had been created. More than 1,500 veterans have been employed and 150 flats allocated to the families of killed or disabled soldiers. Health Minister Andro Vlahusic said additional insurance had been introduced with 750,000 people using it in the first six month alone, and new working hours for health institutions had been set. The government will likely send a summarised version of the implementation of its priorities to the parliament within a week. (hina) lml sb