DEPUTY PM LINIC TALKS ABOUT CROATIA'S ECONOMIC FUTURE

RIJEKA, Oct 27 (Hina) - The chief measures the government intends to take over the next three years to help the economy focus on increasing the gross national product rate by between three and five percent and the employment rate by two percent, Deputy Prime Minister Slavko Linic said on Friday. There will be no need to change the monetary policy but focus on maintaining stable prices and a stable national currency rate, he said in a lecture at the Faculty of Economy in Rijeka. Special attention will be given the financial discipline, and fighting grey economy in particular, to which end a separate control and prevention institute will be established. The privatisation of formerly state-owned property also has to be completed in the next three years. Profit tax will be reduced and efforts will be taken to reduce other taxes in order to disburden the economy as much as possible, said Linic. He asserted this was especially important in terms of inciting foreign investments, announcing other ways would be used to accommodate foreign investors, especially big ones. The share of investment consumption in the gross national product structure has to be a minimum 25 percent, while at least 15 percent of investments has to come from abroad, said Linic. A reduction in the value added tax rate, currently 22 percent, cannot be expected any time soon as budgetary expenditure is difficult to reduce, he concluded. (hina) ha jn