AUSTRIA CONFERENCE: CROATIA INTERESTING MARKET FOR INVESTMENTS

VIENNA, March 8 (Hina) - A seminar on the economic prospects of the western Balkans was held at the Austrian Chamber of Commerce in Vienna on Friday, pooling around 150 Austrian businessmen, who said stable political relations were the most important condition for foreign investments. The coordinator of the Stability Pact for South Eastern Europe, Erhard Busek, pointed to the importance of building the infrastructure in the region's countries. He commended the strengthening of transborder cooperation among the countries, saying it was vital for the development of economy. The Austrian Embassy's trade adviser in Zagreb, Peter Hasslacher, said Croatia is not a Balkan but a central European and Mediterranean state with many possibilities for foreign investments. Croatia is an important market for foreign investments, he said, calling on the participants in the seminar to invest in the renovation of hotels, roads, railways, and ports. Speaking about problems encountered in investing, Hasslacher mentioned the real estate ownership issue. Austrian companies are the biggest investors in Croatia, he said, adding Austrian export to Croatia is expected to exceed one billion euros this year. Hasslacher said Croatia's macroeconomic trends were positive, with growth recorded in the construction industry and tourism. The Gross Domestic Product grows at a rate of four percent, he added. Hasslacher said the high unemployment rate was a big problem in Croatia. Economic development will depend on the further development of tourism, privatisation, and new foreign investments. (hina) ha