GOVT. CONSIDERS REPORT ON IMPLEMENTATION OF SAA COMMITMENTS

ZAGREB, Nov 14 (Hina) - In the first year after signing a Stabilisation and Association Agreement (SAA) with the European Union, the Croatian government has fulfilled half the conditions it is expected to meet by 2006, European Integration Minister Neven Mimica told Thursday's government session. #L# The government today considered the implementation of assumed obligations and conclusions from an SAA implementation plan. Two tasks in the political area that have yet to be carried out are the adoption of a constitutional law on the rights of national minorities and the drawing up of a media freedom concept, said Mimica. Deputy Prime Minister Goran Granic said the government might formulate a final constitutional bill on minorities' rights next week, with a compromise solution for the election of minorities' MPs. Two other political issues, refugee returns and a judiciary reform, have been resolved, said Mimica. As regards economy-related obligations, Croatia has to adopt laws on foreign currency transactions, food, consumer protection, and state subsidies. The government has recently forwarded a bill on state subsidies into parliamentary procedure. Mimica said this bill severed the direct connection between companies and the state budget in view of protecting market competition. The bill envisages a four-year transitional period during which direct subsidies will be retained. To that effect, a state subsidies agency will be established. It has been estimated that the institution of the agency and a system of state subsidies will require an annual six million kuna from the state budget. The moved bill does not refer to support in the agriculture. The government has forwarded into parliamentary procedure also a bill of amendments to the Civil Procedure Law, with the aim to prevent abuse of court authority, step up and simplify civil procedure trials. (hina) ha sb