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PREMIER RACAN COMMENTS ON ECONOMIC ISSUES

ZAGREB, Oct 15 (Hina) - Croatian Prime Minister Ivica Racan on Monday reiterated that everything should be done in order to help increase the economic growth and that the Government would accept every suggestion on the stimulation of export, the creation of new jobs, but he stressed that his Cabinet was not prepared to play with the inflation and devaluation of the national currency - kuna. "The inflation is moving within sensible boundaries, and objectively it will help the kuna become more real in several years," Racan told Croatian Radio today. The Government is not going to lift a 'dam' on inflation expecting that somebody wise will thwart that 'stream of inflation' ... it is a disaster with which the Government must not flirt, Racan said figuratively answering a question about how the Government is going to stimulate production and export in the wake of different views on inflation and the Gross Domestic Product (GDP) rate b
ZAGREB, Oct 15 (Hina) - Croatian Prime Minister Ivica Racan on Monday reiterated that everything should be done in order to help increase the economic growth and that the Government would accept every suggestion on the stimulation of export, the creation of new jobs, but he stressed that his Cabinet was not prepared to play with the inflation and devaluation of the national currency - kuna. "The inflation is moving within sensible boundaries, and objectively it will help the kuna become more real in several years," Racan told Croatian Radio today. The Government is not going to lift a 'dam' on inflation expecting that somebody wise will thwart that 'stream of inflation' ... it is a disaster with which the Government must not flirt, Racan said figuratively answering a question about how the Government is going to stimulate production and export in the wake of different views on inflation and the Gross Domestic Product (GDP) rate by the Government and Croatian President Stjepan Mesic's advisors. The Croatian PM expressed hope that in the beginning of next year, he would be able to cite figures about a reversed trend in the jobless rate as well. The Government is considering additional simulative measures for the employment of trainees and young workers. In this context he mentioned an interesting proposal about working three shifts and six working hours per day. Commenting on proposals for tax on gains, he said some Government officials maintained profit should be taxed, while others believed profit should be used as stimulation for investments. Premier Racan told the radio that there were problems about the taxation of property and real estate which was not income-earning, and that he insisted personally on taxes on houses or villas worth three or four million German marks, whose owners so far have not been asked how they earned so much money and whether they paid tax. "The item of income on which tax is paid and the item of property must be equal," Racan stressed. He also announced the Government would soon consider a draft act on equalising the rights of civilians who became disabled persons in the Croatian Defence War and those of disabled war veterans. We shall try to equalise the right to cars as their aids but we shall make the control stricter, Premier said. (hina) ms

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