ZAGREB, Sept 12 (Hina) - The government's fundamental orientation is to ensure economic development through internal reforms and cooperation with the world, Croatia's Prime Minister Ivica Racan told the Croatian Economy Forum in
Zagreb on Tuesday.
ZAGREB, Sept 12 (Hina) - The government's fundamental orientation
is to ensure economic development through internal reforms and
cooperation with the world, Croatia's Prime Minister Ivica Racan
told the Croatian Economy Forum in Zagreb on Tuesday.#L#
The forum has become a traditional meeting the prime minister and
members of the government hold with businessmen during the Zagreb
International Autumn Fair, under the organisation of the Croatian
Chamber of Commerce and the Zagreb Fair.
Speaking about internal reforms, the prime minister said they were
not easy and could not be carried out quickly, but that something
had already been done and that prospects were evident. The
government, businessmen, and all other factors have to work
together to solve problems, he added.
Racan evaluated some economic indicators evident in the first six
months of the new government's work as encouraging, such as a four-
percent growth in Gross National Product in this year's first half
against last year's, a 2.6 percent growth in industrial output, a
ten-percent increase in export, and this year's record tourist
season.
The state has cut by 6.3 billion kuna ($741 million) a debt which at
the beginning of the year amounted to 9.5 billion ($1.12 billion),
Racan said, adding the rest would be cleared by year's end.
Highlighting the issue of unemployment, he said the government
expected the number of employed people in Croatia to exceed 1.4
million by 2003, which is at least 60,000 as against this year.
Deputy Prime Minister Slavko Linic told the businessmen attending
the economy forum the government would focus on creating conditions
necessary to enhance production, macro-economic stability, and
legal security.
It is not the state's role to manage economy, and data indicate the
state is not a good manager of companies, he said, announcing faster
privatisation which should wrap up next year.
According to Linic, the government believes the shipbuilding
industry, agriculture, and the metal-working and aluminium
industry have a market in and outside Croatia. He urged the
businessmen and the banking sector to make an effort to find a
common model for the consolidation of said branches.
Linic singled out reducing the tax burden and tariffs as tasks the
government had to address to create conditions for production.
Economy Minister Goranko Fizulic briefed the economy forum about
steps aimed at stimulating export and attracting foreign
investment which should help in settling the basic issue, namely
unemployment. He said another goal was to have 80 percent of
Croatian products fall under the free trade regime by the end of
2001.
Presenting a draft version and results of study research, Finance
Minister Mato Crkvenac said the priority in a fiscal reform was to
maintain government expenditure at 50 billion ($5.9 billion) and
budget consolidation at 75 billion kuna ($8.82 billion) over the
next three-year period.
Speaking about changes in the tax system, the finance minister said
a general tax law would be drafted to give the government and tax
administration the right to examine the sources, both business and
personal, of every citizen's assets.
The minister also announced cutting profit tax from 35 to 25
percent. He concluded by saying that the interventions in the
fiscal policy, focused on relieving the economy, were huge, and
included defining conditions for the next three years.
(hina) ha jn