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PRIME MINISTER HOLDS TALKS WITH BUSINESS PEOPLE

ZAGREB, Jan 20 (Hina) - Croatia should persist with reforms, invest into education to raise the competition of the economy and strengthen its economic diplomacy. These were the essential focuses of Monday's talks of Prime Minister Ivica Racan with some forty leading Croatian business people.
ZAGREB, Jan 20 (Hina) - Croatia should persist with reforms, invest into education to raise the competition of the economy and strengthen its economic diplomacy. These were the essential focuses of Monday's talks of Prime Minister Ivica Racan with some forty leading Croatian business people. #L# Racan held talks with the officials of Pliva, Podravka, Agrokor, Vindija, Franck, Lura, Koncar and other "regional player" companies about the possibilities of new developmental headway with the aim of strengthening Croatia's economy on the domestic and regional market. Progress is necessary in raising the competitiveness of Croatia's economy and strengthening exports. The government is prepared to place al its ministries and resources in this function, Racan said. He announced a battle against the bureaucratic mentality. Racan announced measures for additional stimulation of exports, decreasing administrative obstacles, for the encouragement of the import of modern technologies, lesser levies for the additional stimulation of development and research, and Project Croatia -- Export-Oriented Country which is being prepared by the government in cooperation with the Croatian competition council. The prime minister especially pointed to the government's perseverance in reforms. He recalled that the government's strategic orientation was to make Croatia capable of entering the EU in 2007. The business people also agreed with the necessity of implementing reforms and expect them to help upgrade the economy's competitiveness. They expressed particular interest in lessening the tax basis for investments in research, development and education. Related to a larger step on to the regional market, the business people warned that the Croatian diplomacy should become more active, and that the arrival at that market should be founded on a partnership basis and the principle of parity, that is, that the Croatian market be open for products of the countries in the region. (hina) lml sb

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