ZAGREB, Oct 20 (Hina) - Croatia is on a good path toward reaching resolutions of its problems, and the Government is clearly carrying out its programme based on three objectives: the admission into the European Union, a rise in
employment and enhancement of economy and general stability, Croatian Finance Minister Mato Crkvenac said on Friday attending a round table entitled "Croatia on the way out of crisis and on the path to the achievement of the economic growth," organised by Croatian Employers' Association. Employers believe the measures the Government has so far taken are insufficiently deep and comprehensive, and wonder why the Government has not yet adopted a series of laws which both employers and unions have proposed such as an act on the conflict of interest, measures against corruption, measures for solution of the economic illiquidity, more flexible labour
ZAGREB, Oct 20 (Hina) - Croatia is on a good path toward reaching
resolutions of its problems, and the Government is clearly carrying
out its programme based on three objectives: the admission into the
European Union, a rise in employment and enhancement of economy and
general stability, Croatian Finance Minister Mato Crkvenac said on
Friday attending a round table entitled "Croatia on the way out of
crisis and on the path to the achievement of the economic growth,"
organised by Croatian Employers' Association.
Employers believe the measures the Government has so far taken are
insufficiently deep and comprehensive, and wonder why the
Government has not yet adopted a series of laws which both employers
and unions have proposed such as an act on the conflict of interest,
measures against corruption, measures for solution of the economic
illiquidity, more flexible labour legislation and steps which will
expedite privatisation.
Small and medium-sized businessmen are still coping with much
difficulty in their efforts to obtain capital, although there are
claims about available means from banks.
A unionist told the table that it would be good to analyse the
structure of employers' costs, as, according to the Payment
Operation Office (ZAP), only 5.3 percent of those costs went to 5.3
net salaries.
Minister Crkvenac said the economic policy was no longer under the
leadership of one lobby or the result of arbitrary decisions.
Indicators for the first three quarters in 2000 showed positive
trends, the Minister added.
The Government returned 8.7 billion kuna out of 9.5 billion-worth
debt to the economy and stopped the growth in the public spending.
Accepting the assertion that the exchange rate of the kuna was not
real, the Finance Minister stressed that it was also not real to
expect radical moves which would make a cut in the rate. In the long
run, along with the strengthening of the economy, the exchange rate
of the kuna will be more and more real, Crkvenac predicted.
We are pursuing a new policy in the support to the export and export-
bound production, which will incorporate the subsidising interest
rates for the purposes of export, he explained.
The minister commented on a drastic cut in corruption: according to
the latest report on a list of countries affected by corruption,
Croatia jumped over 24 places in the positive direction.
Quoting the Racan Cabinet's long-term measures, Crkvenac
reiterated that the country's economy should be improved and its
competitiveness enhanced, the financial system should remain
stable along with stable roles of banks and capital markets, the
restructuring and privatisation of companies should be expedited
and foreign investments increased.
In order to have a stable macroeconomic environment, we should have
a 'social pact' with trade unions and employers, he added.
(hina) jn ms