PM SAYS CROATIAN ECONOMY MUST BE IMPROVED TO STAND COMPETITION

BUCHAREST, Nov 15 (Hina) - Croatia's economy must be rendered capable of reaching the markets opening to it and standing the competition, Prime Minister Ivica Racan said in Bucharest on Friday. Speaking about Croatia's joining the Central European Free Trade Agreement (CEFTA), expected in May or June next year, Racan told CEFTA's Bucharest summit the opening of new markets was a benefit for Croatia if it continued to increase the economy's competitiveness. According to Economy Minister Goranko Fizulic, also in Bucharest, "starting with this summit we are virtually participating as a full-right member, even though we have guest status." He reminded Croatia had signed free trade agreements, a condition to join the Agreement, with all CEFTA members except Bulgaria and Romania. The other two prerequisites, membership in the World Trade Organisation and a Stabilisation and Association Agreement with the European Union, have been met. A free trade agreement with Bulgaria is expected by year's end. Croatia currently has 26 such deals. In the past Croatia's access was limited to a market of four million inhabitants, whereas 500 million live under the free trade regime, said Fizulic. Next year free trade agreements should be signed with Romania, Yugoslavia, Turkey, Albania, and the Baltic states, he announced. (hina) ha sb