ECONOMIC FORUM: CROATIA NEEDS GROWTH RATE OF FIVE PERCENT

ZAGREB, Sept 17 (Hina) - Croatia needs a five-percent rate of economic growth, and the government should direct its efforts towards increasing exports, making domestic economy competitive, continuing initiated reforms, and decreasing tax pressures, Croatian Vice-Premier Slavko Linic said on Wednesday at the Croatian Economic Forum, the traditional meeting of government officials and business people at the Zagreb International Autumn Fair. #L# Linic also warned about negative trends in the balance of payments deficit and the high external debt. However, he stressed that the level of the external debt should not be increased nor decreased, as borrowing was necessary given that Croatia did not have enough accumulated capital to maintain the necessary growth rate. He told the attending business people that they should not be afraid of the transitional period following the upcoming elections. The government has prepared a set of documents to make it possible for the new government to continue the necessary reforms, Linic said. Finance Minister Mato Crkvenac, who also attended the event, said that export would be given priority, that the budget would continue to be development-oriented, and that the government would continue developing the financial market and combating the grey economy. Taxes will not be increased, he said, adding that the tax system was stable and would be further improved to support entrepreneurship, he said. Economy Minister Ljubo Jurcic said that the Agency for Export and Investment Stimulation was working on several strategies to relocate some manufacturing plants from the European Union to Croatia. There are 15 potential projects which could be implemented soon, he said. (hina) rml