ZAGREB - EXTENDED ZAGREB, Sept 16 (Hina) - Croatian President Stjepan Mesic opened the 79th International Autumn Fair in Zagreb on Tuesday.
ZAGREB, Sept 16 (Hina) - Croatian President Stjepan Mesic opened
the 79th International Autumn Fair in Zagreb on Tuesday. #L#
On the premises of the Zagreb Fair (ZV), which are the venue for this
event, 1,700 exhibitors from 37 countries have put their products
and services on display. The partner-country at this year's fair,
which will last until 21 September, is Bulgaria, whose Prime
Minster Simeon Saxe Cobourg-Gotha attended the opening ceremony.
President Mesic said in his speech on the current economic
situation that Croatia needed a change in the development policy
model.
"I advocate two main goals of the Croatian development-oriented
policy. The first goal is to achieve an intensive economic growth,
and the second refers to the realisation of structural changes in
income distribution," the head of state said.
He went on to say that it would be appropriate for Croatia to have
the economic policy based on export as the chief component in
economic growth, together with plans for re-industrialisation.
Mesic also warned about cases of social inequality inherited from
the former model of transition, conducted in the period from 1990 to
2000, marked by business deals among 'silent' partners,
tycoonisation, non-transparent ownership transformation and
failed privatisation.
The Europeanisation of Croatia will mean the abandonment of such a
model of capitalism, Mesic said, advocating the European model of
socially sensitive market economy.
The president also warned about a deficit in the balance of payments
current accounts and a high foreign debt, adding that they were not
alarming but should be carefully monitored. He reiterated that the
key to the change lay in a continued and steady rise in exports.
According to the Croatian National Bank's (HNB) projections, the
foreign debt is likely to reach 21 billion dollars by the end of this
year. Mesic added that it would account for over 70 percent of Gross
Domestic Product, but other indicators of the indebtedness (such as
the ratio of the debt to exports and so on) would remain at an
acceptable level.
Mesic expects the Croatian government and the national bank to
draft concrete measures for export stimulation. In this context he
urged the central bank to be much more resolute and the government
to act as an interventionist so as to encourage exports and economic
growth.
He criticised the monetary authorities, namely the HNB, for
applying too late measures aimed at the halt of the rising foreign
debt and for yielding insufficient results in that regard.
On the other hand, Mesic commended the executive authorities,
namely the finance ministry, for carrying out a consistent fiscal
policy which had stabilising effects. He cited figures on the halt
in the rise in public debt, saying that in late June this year it
accounted for 50.8 percent of the GDP. In addition, a deficit in the
state budget is under control.
"It is evident that the public debt is within acceptable
proportions, but the foreign debt is turning to be a matter of
concern," Mesic said.
Prime Minister of Bulgaria Simeon Saxe Cobourg-Gotha said the
presentation of his country as the in this year's fair was important
for the development of Bulgarian-Croatian relations. According to
figures he revealed in his speech, the trade between the two
countries increased almost threefold in the past 12 months.
The Bulgarian official welcomed Croatia's speedy progress at the
first stage of negotiations on membership in the European Union and
NATO.
"You can count on Bulgaria's support in your bids to accomplish
those objectives," he added.
About 40 Bulgarian companies are taking part in the event.
(hina) ms