SITUATION IN THE COALITION IS NOT GOOD - SAYS PM RACAN

ZAGREB, June 17 (Hina) - "The situation in the coalition is not good and we need to sit down and talk it out. Our differences need not be exaggerated but we need to see what differences in the coalition are unacceptable and threaten the reforms set out by the government", Prime Minister Ivica Racan stated on Monday. #L# He evaluated the situation in the ruling coalition prior to a meeting of the presidency of the Social Democratic Party (SDP). Racan expressed regret because of the conflict in the coalition that arose while he was in the US. He estimated that some differences in the coalition were exaggerated, while some, which should not exist in the coalition, were completely ignored. A pre-election atmosphere one and a half years prior to elections is not good, he said, and added that collecting points by any means amongst coalition partners could only increase the chances for an early election. The government would like to stick out to the end of its mandate but it may be hampered in this, Racan said. In reference to talks that coalition partners will conduct on Saturday, Racan announced that the coalition would not be able to avoid questions such as - whose government this is? Asked whether the SDP bench leader, Mato Arlovic, of his own initiative claimed that some coalition partners had formed an informal coalition in the parliament with the opposition's Croatian Democratic Union (HDZ), Racan responded that some people in the SDP were frustrated with the number of times similar situations as this had arisen. Even though he considers that the situation in the coalition is not good, Racan believes that the coalition should live with differences in opinion instead of partners collecting points from each other. He claimed that the tension in the political scene in Croatia was increasing and rushed reactions more frequent. He considered that behaviour like this was not mature and the coalition was obliged to complete its mandate. (hina) sp sb