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MESIC: GOVT. RESULTS NOT SPECTACULAR DUE TO STARTING POSITION

ZAGREB, Jan 18 (Hina) - President Stipe Mesic said on Thursday the results of the government's first year in office were not spectacular, but that the starting foundation had not been either.
ZAGREB, Jan 18 (Hina) - President Stipe Mesic said on Thursday the results of the government's first year in office were not spectacular, but that the starting foundation had not been either.#L# Addressing a session marking the incumbent government's first anniversary, Mesic said the government had chosen the right path, reminding that the policy the government encountered a year ago had brought Croatia into isolation. The former authority led and financed an unnecessary war in neighbouring Bosnia, took a wrong approach in implementing privatisation, on the principle of suitability rather than that of entrepreneurial effectiveness, and solved the unemployment issue by sending people into early retirement, said Mesic. The institutions of the system have to start functioning, which will facilitate the solving of other issues, for instance relations with UN's international war crimes tribunal in The Hague, he asserted, also pointing to the need of passing a strategy for all directions of social activity. Mesic singled out halting the growth of unemployment as a watershed for Croatia's development, saying it called for intensifying efforts which will incite and accelerate economic growth. The president believes it is necessary to liberalise the visa system, focus on old and seek new markets. As successful examples, he singled out the opening of food- processing industry Podravka's plant in Poland and the development of tourism, which he said should also increase export. Mesic stressed the production of healthy food and potable water were big export potentials. Speaking about plans, he stressed the need of decentralising powers and finances from the state to lower levels, and simplifying procedure for obtaining work permits in view of encouraging entrepreneurship. (hina) ha

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