ZAGREB, Mar 3 (Hina) - We cannot change Croatia into a normal European country overnight because it is too abnormal at the moment, Premier Ivica Racan told the leaders of the Association of Independent Workers' Unions of Croatia
(SSSH), who used the presence of government officials at their Friday session to urge the new authority to start resolving some burning economic and social problems, otherwise they would call on workers to take to the streets. Over the past five weeks, the new government has been swamped by too many problems, Racan told unionists who requested that the government immediately start resolving the problem of non-payment of salaries, initiate the revision of ownership transformation, financially restructure numerous companies which are facing bankruptcy, and help the destroyed agricultural sector. "This government has no choice and it has no right to opportunism - we have to immediately stop the kin
ZAGREB, Mar 3 (Hina) - We cannot change Croatia into a normal
European country overnight because it is too abnormal at the
moment, Premier Ivica Racan told the leaders of the Association of
Independent Workers' Unions of Croatia (SSSH), who used the
presence of government officials at their Friday session to urge
the new authority to start resolving some burning economic and
social problems, otherwise they would call on workers to take to the
streets.
Over the past five weeks, the new government has been swamped by too
many problems, Racan told unionists who requested that the
government immediately start resolving the problem of non-payment
of salaries, initiate the revision of ownership transformation,
financially restructure numerous companies which are facing
bankruptcy, and help the destroyed agricultural sector.
"This government has no choice and it has no right to opportunism -
we have to immediately stop the kind of behaviour which leads the
Croatian state and its people into a disaster," Racan said
announcing the cutting down of state expenses in all cases where it
is possible.
This year the state can gather 49 billion kuna from revenue and
privatisation, but the country's external and internal debts
exceed by far that amount, Racan said. The state alone has to pay a
debt of nine billion kuna this year, he said, adding those funds
would be included in the final draft of the budget, which the
government would adopt at its session on Saturday.
The Premier said he was not pessimistic despite the difficult
situation because great opportunities were opening up for Croatia
on the international scene. "In June we can start talks on
contractual relations with the European Union, which is a rate of
speed unprecedented in international relations," Racan said.
This creates an opportunity for foreign investments, however,
Croatia must solve problems in companies which are interesting to
foreign investors, such as the port of Rijeka. "Hungary's Premier
Viktor Orban announced the possibility of large investments into
the port of Rijeka, which would secure an employment explosion, and
we must not stall any longer solving problems in the port," Racan
said.
The new government cannot afford to save companies which cannot be
saved five-six times, the Premier said. Slavko Linic, a Vice-
Premier in charge of economy was even more direct. "There will be no
more financial rehabilitation but only a possibility of settlement
between the debtor and the creditor or bankruptcy," Linic said.
The owners and the state were those who benefited most from the
former model of financial rehabilitation and the cost was paid by
workers and citizens. From now on, all, including the owners,
creditors and the state will have to share the cost if they believe
that a debtor should continue operating, Linic said.
(hina) mm rml