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LOWER HOUSE CRITICAL OF ECONOMIC SITUATION

ZAGREB, June 16 (Hina) - Members of Opposition benches in the Croatian National Sabor's House of Representatives on Wednesday harshly criticised a Government report on the economic and social situation. The economy is in crisis, the number of unemployed and those who are not receiving regular salaries or are not receiving them at all is growing, and the report does not offer any solutions to the serious situation, Opposition MPs estimated. The Croatian Democratic Union (HDZ) bench believes also that problems are numerous. However, adjustments are necessary and the stimulation of development requires a bigger market and fair market competition, as well as a new investment cycle, which would be oriented more towards the creation of new jobs and export stimulation. Assessing that the current economic model has been used up and is in crisis, Radimir Cacic of the Croatian People's Party/Istrian Democratic Forum (HNS/I
ZAGREB, June 16 (Hina) - Members of Opposition benches in the Croatian National Sabor's House of Representatives on Wednesday harshly criticised a Government report on the economic and social situation. The economy is in crisis, the number of unemployed and those who are not receiving regular salaries or are not receiving them at all is growing, and the report does not offer any solutions to the serious situation, Opposition MPs estimated. The Croatian Democratic Union (HDZ) bench believes also that problems are numerous. However, adjustments are necessary and the stimulation of development requires a bigger market and fair market competition, as well as a new investment cycle, which would be oriented more towards the creation of new jobs and export stimulation. Assessing that the current economic model has been used up and is in crisis, Radimir Cacic of the Croatian People's Party/Istrian Democratic Forum (HNS/IDF) said the Government was expected to state the causes of the crisis and methods of overcoming it. Instead of that, the report contains more of less familiar data, indicating, nevertheless, that the unemployment rate and indebtedness are growing, as well as that pensions are lagging behind salaries. Speaking about expert forecasts about a negative economic growth rate, Mato Arlovic of the Social Democratic Party (SDP) asked whether one could allow the growth of public spending and if this year's budget should be returned to the last year's level. Damir Kajin of the Istrian Democratic Assembly (IDS) said no changes were possible with the current policy. The key problem, as Kajin believes, is the loss of 600,000 jobs in the production in the past eight years, and the fact that of the present 1.4 million jobs only 900,000 are productive. "The state receives 93 per cent of the fiscal revenue and it should bear at least as much responsibility", Kajin said. Djuro Njavro (HDZ) believes it was good that the report was being discussed prior to a discussion on the budget revision. The policies of all HDZ governments were aimed at building Croatia as a modern European state of social justice, and large transfers to the pension and health funds bear witness to that fact, Njavro added. (hina) rml, .

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