EU WILL INCREASE ASSISTANCE TO CROATIAN ECONOMY

ZAGREB, July 26 (Hina) - The European Commission will refocus its assistance to Croatia in support of the revitalisation of economy and the development of small- and medium-sized enterprises, the European Commission's Delegation to Zagreb said in a statement on Wednesday. Representatives of the EC, EU member-countries and the Croatian government discussed in Brussels today Croatia's strategy on SME development. The EC considers Croatia's commitment to revitalise its economy as justified and believes this fits well with the EU's Stabilisation and Association process, and has therefore already started to refocus its assistance for that purpose, the statement said. "While continuing its support for refugee return, the Commission is developing new programmes to help Croatia build its capacity to integrate into European structures and to restructure its economy." The EC will for 2000 provide 18.5 million Euros for that purpose and intends to substantially increase the financial allocation for Croatia next year. The Commission supports Croatia's strategy to invest into SMEs. "This sector, with its flexibility and dynamism can have a big impact in terms of job creation and economic growth," the statement read. EU aid in 2000 includes specific measures to promote the development of small and medium sized enterprises, notably in the form of technical assistance and support schemes. The purpose of today's meeting was to help put Croatia's strategy of development of SMEs into a European framework and ensure coordination between EU and bilateral Member State assistance. The EC believes the development of SMEs is part of Croatia's wider strategy of developing market economy and attracting foreign investments, including those from EU member-countries. The Commission will provide technical support to Croatia to develop a strategy on foreign investment including the preparation of new and revised legislation which will be necessary, the statement read. (hina) mm rml