ZAGREB, July 30 (Hina) - The struggle against unemployment, the enhancement of the national economy's competitiveness and exports, a cut in the public debt, the acceleration of reforms and the creation of efficient state and public
administration are cited by the Croatian Prime Minister Designate, Ivica Racan, as the five challenges before his new cabinet.
ZAGREB, July 30 (Hina) - The struggle against unemployment, the
enhancement of the national economy's competitiveness and exports,
a cut in the public debt, the acceleration of reforms and the
creation of efficient state and public administration are cited by
the Croatian Prime Minister Designate, Ivica Racan, as the five
challenges before his new cabinet. #L#
On Tuesday morning Racan presented this programme in the
parliament, calling on MPs to vote for confidence in the new
government.
The PM designate announced the continuation of reforms which his
previous cabinet had launched after it had come into office in
January 2000.
Commenting on the past 30 months, Racan said that the government had
known it was on the right path, although it was not always
successful in its decisions.
He described the past period as the time of building the foundations
for the sound development. He added that in the past period they had
achieved dynamic economic growth, an increasingly better credit
rating of the country and the macro-economic stability.
Racan promised that during the rest of the term of office, i.e. in
the coming one year and a half, the government would create
conditions for faster growth of economy and for more new jobs.
Our aim is long-term economic growth with the average annual rate of
five (5) percent, Racan said.
There is not much time until the end of the term of office, but it
should be wisely spent, he added.
The PM designate pledged to undertake far-reaching changes, and
some of them would take even more time than one year and a half.
Racan announced that the economic policy would still be carried out
under conditions of a low inflation and stable currency rate,
further development of the capital market and the maintenance of
the stable banking system.
The new cabinet will aspire to have further cuts in the budgetary
deficit and public spending, and this will be able to achieve
through measures of slower rise in salaries for the public sector
workers than the rise in the Gross Domestic Product, as well as
through the reduction of state subsidies and the financial
consolidation of the pension and public health systems, he
explained.
As regards the tax system, the PM designate pointed to the fight
against grey economy and corruption, an increase in non-taxable
part of salaries, the introduction of a new system of tax facilities
and concessions and the strengthening of the fiscal policy.
He pledged to open more space for direct investments and better
export potential as well as to remove bureaucratic obstacles in
this segment, announcing the set-up of a special agency for the
stimulation of investment and exports.
Racan cited the struggle against all sorts of economic crime and
organised crime as one of his cabinet's tasks in the future period.
The government will continue the process of privatisation with the
clearly defined policy and time terms.
The government will put an emphasis on the flexibility of the labour
market and hold negotiations with social partners in this segment.
Racan pointed to the construction of the motorway between Zagreb
and Split, the construction of the modern networks of roads and
railway lines as well as improvements in the power supply system.
Some of the government's priorities are reforms in the judiciary,
state administration, science and education as well as the
continuation of the decentralisation.
As regards the foreign affairs, the new cabinet will continue the
current foreign policy, cooperating in an intensified manner with
all international political, financial and economic factors.
The PM designate asserted that since the changes with the January
2000 elections Croatia had accomplished many successes in the
foreign policy and was treated by the international community as a
progressive country in transition and as a respected partner and
active participant in the regional stability.
We shall persist in the country's adjustment to the European Union
so that we may be able to submit our official application for the
membership in the European block, he announced.
We have started a reform in the military and thus begun adjustments
to the world defence and security standards, Racan said adding this
clearly reflected the country's readiness to join NATO.
At its ongoing extra-ordinary session, the Croatian parliament
should vote on the new programme of the government and on newly-
appointed ministers.
The new proposed ministers are Ante Simonic (Croatian Peasant
Party's member) as a vice premier, Zeljka Antunovic (Social
Democrat) as the defence minister, and she will also remain in the
office of a vice premier, Roland Zuvanic (Independent Liberal) as
the transport minister and two non-partisan candidates - Ljubo
Jurcic and Gvozden Flego - as ministers of economy and science
respectively.
Racan asked the Sabor to approve the enlargement of his cabinet by
one more ministerial post so that Gordana Sobol (Social Democrat)
may enter the government as the minister without portfolio and as
the future head of Premier's Office.
(hina) ms