ZAGREB, June 15 (Hina) - Croatia's Government on Thursday accepted a report on the execution of the 1999 state budget and a report on the implementation of the Sabor House of Representatives' conclusions on the survey of state
collateral given between 1996 and 1999 and Croatia's public debt. A debate, which ensued after the adoption of those papers, was about the current state of affairs in Croatia's economy and latest economic measures as well as about some statements of certain economic experts about the value of the national currency, kuna. The Government reiterated its commitment to maintaining the economic stability and the stable currency exchange. Tourism Minister Pave Zupan Ruskovic held that the latest economic measures were contrary to what was planning to get from tourism. Firm statements about appreciating the national currency can be also treated as the warning to foreign guests not to come i
ZAGREB, June 15 (Hina) - Croatia's Government on Thursday accepted
a report on the execution of the 1999 state budget and a report on
the implementation of the Sabor House of Representatives'
conclusions on the survey of state collateral given between 1996
and 1999 and Croatia's public debt.
A debate, which ensued after the adoption of those papers, was about
the current state of affairs in Croatia's economy and latest
economic measures as well as about some statements of certain
economic experts about the value of the national currency, kuna.
The Government reiterated its commitment to maintaining the
economic stability and the stable currency exchange.
Tourism Minister Pave Zupan Ruskovic held that the latest economic
measures were contrary to what was planning to get from tourism.
Firm statements about appreciating the national currency can be
also treated as the warning to foreign guests not to come into
Croatia, she said.
The extension from 10 to 30 days of the time term for the payment of
the Value Added Tax (VAT) means much to the economy and thus to
tourism, asserted Finance Minister Mato Crkvenac.
Tourism Minister explained that she was talking about how Croatia
was not competitive in the sector of tourism and that the interest
in spending holidays in Croatia would be slackened owing to the 22
percent of the VAT rate, an increase in drink and food prices and
fuel prices at the very beginning of the tourist season and
statements about the kuna appreciation.
"We should either expect not too much from tourism or adjust
economic measures so that we can eventually get more than we have
expected," Zupan Ruskovic said adding that foreigners know and are
following the situation in Croatia so that they can decide whether
to come or not.
Economy Minister Goranko Fizulic agreed that Croatia was an
expensive country in tourism. Public Works and Reconstruction
Minister Radimir Cacic maintained that an increase in fuel prices
due to the excise duties' rise would not cause damage to tourism but
in the long run it would be useful strategically.
Premier Ivica Racan, his first deputy Goran Granic and a deputy
prime minister, Slavko Linic, joined the discussion, and
criticised inappropriate, groundless and irresponsible
statements about the necessity to depreciate kuna.
The Government has nothing with such irresponsible and one-sided
solutions which are far from helping the normalisation of the
situation in the country. Others can play with statements but we
cannot, Racan said .
Minister Crkvenac said the Government made a clear stand on the
economic stability.
Minister Fizulic said that when he had yesterday addressed the
Croatian Employers' Association (HUP), he had to respond to
speculations and rumours about necessity to devalue kuna, as some
of these statements were given by persons who could be understood by
the public as somebody who spoke about the official policy.
(hina) mm ms