PRIME MINISTER ADDRESSES BUSINESSMEN

ZAGREB, Jan 20 (Hina) - Croatia has to make a step forward in raising the competitiveness of its economy and bolstering exports, and the government is willing to put all of its resources in that function, Prime Minister Ivica Racan said on Monday. #L# He spoke at a conference which pooled CEOs and directors of some 30 successful domestic companies whose results and future projects mark them as potential "regional players". The event is aimed at seeing if and through which measures the government may help strengthen companies on the domestic market and deal with the challenges of their regional expansion. Among the measures the government intends to make, Racan mentioned further reforms, new steps towards the flexibility of the labour market and an active employment policy, reducing administrative hurdles, steps aimed at encouraging exports, and the regional expansion of Croatian companies. The government would like to contribute to merging among companies, Racan said. Instead of wasting energies in fierce battles on the domestic market, companies should join forces to penetrate foreign markets, he added. Racan announced further investing in science and education, steps aimed at encouraging development research in companies through tax relief, incentives for the import of state-of-the-art technology, additional export incentives through loans for export preparation or interest subsidies, and protecting export deals from political and financial risks. The businessmen supported the government's orientation, with particular support to reforms which they said must be faster and more effective. Attending the meeting, among others, were representatives of Agrokor, Atlantic Group, Croatia osiguranje, Ericsson Nikola Tesla, Franck, Gavrilovic, Ingra, Koncar, Kras, Lura, Plava Laguna, Pliva, Podravka, TDR, Uljanik, Varteks, and Vindija. (hina) ha sb