ZAGREB, March 21 (Hina) - The LEGSI index of stability for Croatia for March increased by one point in comparison to the previous month and is now 59 points. Its growth was influenced by positive effects of the calming of tensions
between ruling coalition's Social Democrats (SDP) and the Croatian Peasant Party (HSS), the continuation of the reform of the Armed Forces, negotiations on amendments to the Labour Act and the continuation of investments into large infrastructure projects, the Lehman Brothers consulting company was quoted by the Croatian Employers' Association (HUP) Friday.
ZAGREB, March 21 (Hina) - The LEGSI index of stability for Croatia
for March increased by one point in comparison to the previous month
and is now 59 points. Its growth was influenced by positive effects
of the calming of tensions between ruling coalition's Social
Democrats (SDP) and the Croatian Peasant Party (HSS), the
continuation of the reform of the Armed Forces, negotiations on
amendments to the Labour Act and the continuation of investments
into large infrastructure projects, the Lehman Brothers consulting
company was quoted by the Croatian Employers' Association (HUP)
Friday. #L#
Altercations between the main coalition partners, the SDP and HSS,
are calming down, to which contributed a number of meetings between
the parties' leaders, who managed to improve the coalition's
cohesion, the analysts assessed. But, they added, smaller
coalition parties were protesting for being excluded from
negotiations.
The Lehman Brothers analysts accentuated the positive progress of
reforms in the Croatian Armed Forces where the number of employees
is being cut.
They also assessed as positive the continuation of negotiations
among the government, HUP and unions about amendments to the Labour
Act, but warned that in case the negotiations failed, social unrest
could occur, although the analysts doubted unions were capable of
starting a general strike.
The analysis also tackled a decision by the Supreme Court according
to which there had been no irregularities in the privatisation of
the Slobodna Dalmacija daily. Independent newspapers published
evidence about illegal activities surrounding the privatisation by
people close to the late president Franjo Tudjman's government,
said the analysts.
Croatia's application for membership in the EU is a positive step,
but the success of this initiative is placed in the context of
cooperation with the U.N. war crimes tribunal which is seeking more
cooperation from Croatia. The analysts said that improved
cooperation meant new arrests, which could stir some politicians
and the general public to protest.
Croatia has progressed one step up the ladder to the tenth position
of the LEGSI index.
The index gauges the political stability of countries in transition
and other countries world-wide in relation to their potential and
resistance to internal crises.
(hina) lml