CROATIA MUST ACCEPT EU VALUES AS ITS OWN - CONFERENCE

ZAGREB, Apr 27 (Hina) - Croatia cannot choose between Europe and the alternative, because there is no alternative to Europe, nor success for Croatia unless it builds the value system in force in present- day European Union (EU) into its own architecture, Europe House president Ljubomir Cucic said in Zagreb on Tuesday. Cucic addressed "Euro, Europe, and Croatia", a conference organised by the European Commission special envoy's Office to Croatia, the German Embassy in Zagreb, the Europe House, and the Zagreb Trade Fair to show Croatian businessmen they have no other choice but to conduct business according to European standards. Croatia's economy is "fatefully linked to the EU", Croatia's European Integration Minister Ljerka Mintas-Hodak told the conference. The exchange of commodities between Croatia and the EU accounts for more than 50 percent of Croatia's overall exchange, despite the fact that Croatian-EU relations have not been "institutionalised", she explained. German Ambassador Volker Haak said Croatia was, according to its cultural and historical characteristics, and the "people" in particular, "de facto" in Europe, but added Croatia must first meet all conditions to achieve formal membership. Cucic assessed the "state's role is still too accentuated" in Croatia, with "too many privileges with political background." Croatia is a highly protected market whose monetary policy is characterised by restriction, tax and budgetary expansiveness and the exchange rate overvaluation of the kuna, Cucic said, pointing out such characteristics were incompatible with Europe. He suggested that to come closer to the EU, Croatia comply with all EU demands regarding internal politics and be pragmatic in accepting EU's regional policy which he said was not reserved for Croatia, but was a principle according to which the EU operated. (hina) ha jn