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