PM RACAN ANNOUNCES GOVT. SESSION IN SPLIT TO ADDRESS ROADS

SPLIT, July 27 (Hina) - After visiting the southern Adriatic city of Split on Friday, Prime Minister Ivica Racan told reporters the government would hold a session in Split in the next two months to address road connections between Split and Zagreb. Racan assessed today's talks with local businessmen as very good, saying they were part of the preparations for the government's Split session. The PM said the issue of road connections between Zagreb and the south must be settled as soon as possible. Responding to questions from the press, Racan said the government's task was to save Croatia from economic collapse and that the government was determined not to give up on this. The government strengthens entrepreneurship, which is already giving results, he added. According to the PM, the biggest economic challenges are behind us but the rest of reforms will not be easy. The way out is not for companies to just file for bankruptcy, but bankruptcy with reorganisation, he said. Speaking about ties within the ruling coalition's five parties, particularly between the Social Democrats (SDP) and the Social Liberals (HSLS), Racan voiced hope the coalition would make it to the end of its four-year mandate. Asked about the increasingly loud right-wing, the PM described it as "lively occurrences" which did not make Croatia different than other countries where he said the right-wing made frequent, even drastic statements. The paramount thing is to reach an agreement on everything of national interest, Racan said. Deputy PM Slavko Linic described today's talks with local trade unions as satisfactory. The fear of bankruptcies has finally abated, he said. In two weeks Linic will meet local unionists again to consider the latest reorganisation of companies facing bankruptcy. He agreed many companies were managed by incompetent people who would most probably be replaced. (hina) ha