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GOVT OFFICIALS, ENTREPRENEURS DISCUSS GOVT ECONOMIC PROGRAMME

ZAGREB, Mar 7 (Hina) - Consolidating the state finances, restructuring the economy, revising the privatisation process and gradually reducing the current deficit in trade with other countries are the preconditions for Croatia's leaving the difficult situation it is in, Croatian President Stipe Mesic said opening a meeting of business people and government officials in Zagreb on Tuesday. The event, held under the title 'A Day of Entrepreneurs', gathered several hundred participants who discussed the government's economic programme. The event was organised by the Croatian Entrepreneurs' Association. The President, First Deputy Prime Minister Goran Granic and Deputy Prime Minister Slavko Linic warned that the electoral winners encountered a very difficult situation. "Croatia was going in a wrong direction and following a wrong model... Croatia was also wrong because instead of opening up to Europe it isolated
ZAGREB, Mar 7 (Hina) - Consolidating the state finances, restructuring the economy, revising the privatisation process and gradually reducing the current deficit in trade with other countries are the preconditions for Croatia's leaving the difficult situation it is in, Croatian President Stipe Mesic said opening a meeting of business people and government officials in Zagreb on Tuesday. The event, held under the title 'A Day of Entrepreneurs', gathered several hundred participants who discussed the government's economic programme. The event was organised by the Croatian Entrepreneurs' Association. The President, First Deputy Prime Minister Goran Granic and Deputy Prime Minister Slavko Linic warned that the electoral winners encountered a very difficult situation. "Croatia was going in a wrong direction and following a wrong model... Croatia was also wrong because instead of opening up to Europe it isolated itself from it," said Mesic. The results of such a policy are a high unemployment rate, the collapse of some branches of economy, illiquidity, tripled foreign debts and the like. Granic warned that there could be no changes in the economy without changes in foreign policy. Linic said it would not be easy to recognise the government's economic programme in this year's draft budget. This will be possible only during the drawing up of a draft budget for the next year, he added. This year's draft budget, amounting to 48.3 billion kuna (some six billion US dollars) is only one percent lower than the 1999 budget. Linic said this year's budget attempted to solve at least partially some problems inherited form the old government. This includes the payment of 3.6 billion kuna (US$450 million) of a total of nine billion kuna (just above one billion US dollars) of unpaid state obligations, primarily in economy, Linic said. He also pointed to the problem of state guarantees amounting to some 15 billion kuna (US$1.875 billion) issued in the past three years, assessing that some 10 billion kuna (US$1.25 billion) would have to be covered from the budget. Linic announced tax benefits for this year, however not including the reduction of Value Added Tax. The president of the Croatian Employers' Association, Branko Roglic, said the success of the project of overcoming the crisis also depended on social partners. (hina) jn rml

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