PULA, June 21 (Hina) - During Friday's visit to Istria County, Prime Minister Ivica Racan attended a session of the economic council of the county chamber of commerce.
PULA, June 21 (Hina) - During Friday's visit to Istria County, Prime
Minister Ivica Racan attended a session of the economic council of
the county chamber of commerce. #L#
In the two and a half years of its mandate, the incumbent government
has focused on dealing with the "economic wreckage left behind by
the former government," Racan said in Pula.
Racan said Croatia did not lack funds for new development
programmes and projects but did lack such programmes and had to work
on correcting this. Croatia has good prospects as "the people
leading this state are aware of the fact that one cannot live on
loans," he said.
The government has recognised the value of investing in the
infrastructure, which is crucial for economic progress, said the
PM. "If we fall short of expectations a little and incur a budgetary
deficit, it will certainly be for the benefit of the country's long-
term development," he stated.
In talks with local businessmen, Racan pointed to the importance of
Istria's tourist ambitions.
Deputy PM Slavko Linic said the problem with Croatian tourism was
not a high Value Added Tax rate but insufficient accommodation and a
short season. The season should be extended to seven or eight
months, which requires having four- or five-star hotels, he said,
adding that only then could the reduction of VAT be addressed.
"We have turned over large hotel companies to strategic partners
and investors, and our task is to encourage small private
businesses and hotels," Linic said.
At today's session of the economic council of the Istria County
Chamber of Commerce, the county's most successful companies in 2001
were awarded gold plaques.
(hina) ha sb