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PM RACAN OUTLINES KEY GOVERNMENT GOALS IN 2001 - EXTENDED

ZAGREB, Jan 18 (Hina) - The year we have entered will be crucial for reforms, development and employment, Prime Minister Ivica Racan said on Thursday outlining the government's four key goals in 2001.
ZAGREB, Jan 18 (Hina) - The year we have entered will be crucial for reforms, development and employment, Prime Minister Ivica Racan said on Thursday outlining the government's four key goals in 2001.#L# These are to increase production and export and cut the unemployment rate, decentralise the state and bring administration up-to-date, complete the privatisation of the state portfolio and wrap up preparations for a pension and health reform, and associated membership in the European Union. The success of the government programme calls for confidence and tolerance in society, partnership relations, and the active participation of all, Racan told a government session marking its first anniversary in office. Summing up what was achieved in 2000, the prime minister said Croatia had improved its political and financial standing in the world, coming out of international isolation, a fact he corroborated with data on admission into NATO's Partnership for Peace programme, the World Trade Organisation, and the holding of the Zagreb Summit in November. Commenting on the politically very delicate relations with UN's war crimes tribunal in The Hague, Racan was hopeful Monday's talks with chief prosecutor Carla del Ponte had managed to settle current contentious issues and that Croatia was entering a calmer period of cooperation with the tribunal. Presenting economic successes, Racan said the government had succeeded in halting a decreasing gross national product, settling old state debts, relieving the economy's tax burden, reducing labour costs, and stimulating small and medium-sized entrepreneurship. Speaking about welfare problems, the prime minister reiterated the government had not the lost social partners' trust and that it would continue investing joint efforts to ensure better living for all citizens. He believes the key goals for this year are reforms, development and employment, with new jobs first on the list of priorities, followed by the encouragement of foreign investments, the construction of the infrastructure, as well as efforts aimed at reducing grey economy and black labour. Wiping out and prosecuting organised and war crimes remains a top priority as well. Another important task is the privatisation of state-owned companies, the biggest share of the Croatian Privatisation Fund's portfolio, as well as the continuation of preparations for the privatisation of oil company INA and power company HEP, reforms in the agriculture, adopting an environmental protection strategy, and establishing a fund and agency in charge of the environment. Efforts will also be invested in decentralising state administration and re-organising and modernising the defence and the police. Speaking about the foreign policy, Racan said all forms of cooperation would be pursued. As regards rapprochement with NATO, there are realistic preconditions for the adoption of the Membership Action Plan. President Stipe Mesic, the guest of today's session, said that in 2000 Croatia achieved what it aspired to, partly or entirely. The objective observer has to say we have come to the turning point, which is the moment when the growing unemployment trend is halted, he said, adding Croatia did not stop it completely, but that it was not as it used to be. The president believes that the Croatian public will realise after the government issues a report on its performance that it must not be liable to cheap criticism and fault-finding on the part of those responsible for the problems the incumbent government has to deal with. He said the government's path was the right one. All members of the government spoke about last year's achievements and plans for this year. According to First Deputy Prime Minister Goran Granic, the biggest problem is a slowed-down society in which changes were both prepared and carried out slowly, and the opposition to changes was huge. This year, we will show if we are mature for key reforms, if we have enough strength and if we can motivate the Croatian public, Granic said. (hina) ha

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