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, they believe. Assessing that the current economic model has been used up and is in crisis, Radimir Cacic of the Croatian People's Party/Istria
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, they believe.
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 or less familiar data,
indicating, nevertheless, that the unemployment rate and
indebtedness are growing, as well as that pensions are lagging
behind salaries, Cacic said.
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,
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.
In the continuation of today's debate, the MPs concluded that the
most difficult problems plaguing Croatia's economy were
illiquidity, difficulties in the banking system, a high
unemployment rate and high public spending.
The MPs said the Government report was not balanced and lacked
measures for overcoming the economic crisis.
"The report looks as if it had been written by two doctors of whom
one is trying in all possible ways to hide from the patient that he
has a serious disease, while the other one openly tells him that he
has cancer. Neither one offers any concrete treatment", said Josko
Kontic of the Croatian Social-Liberal Party (HSLS).
Illiquidity and problems in the banking sector are the most serious
problems plaguing the economy. The internal debt is estimated at
almost US$3.05 billion, however, illiquidity is very discreetly
mentioned in the report, Kontic objected.
Dragica Zgrebec (Social Democratic Party, SDP) believes the
problem is not illiquidity but rather insolvency, a situation when
obligations cannot be paid at all. Zgrebec believes the Government
bears a huge portion of responsibility for that.
The MPs also warned about the high interest rates which are
preventing the granting of favourable development loans. Kontic
warned that one year after the Dubrovacka Banka scandal the
governor of the central bank was openly demanding from banks to
reduce risky loans to the economy and re-direct them into safe state
bonds. This strategy may harbour the greatest danger for the
economy, and to accept it could cause loan collapse, Kontic
believes.
The huge state spending, as envisaged by the budget, is not
sustainable, and the economic system could face collapse this year,
warned Ante Tukic of the Liberal Party (LS). Tukic presented an
estimate by the Croatian Union of Employers saying the state owed
about US$1.38 billion to the economy.
Nikola Ivanis of the Primorje-Gorski Kotar Alliance (PGS) said the
stubborn refusal to let Croatian citizens access St Mark's Square
(where the Sabor building is located) and stage protests there was
one proof of the difficult economic and social situation.
There is no reason for the Croatian police to protect the Croatian
Government and the Sabor from citizens who wish to stage not a
political, but a social protest, he said.
Zarko Domljan of the Croatian Democratic Union (HDZ) agreed with
Ivanis, asking at whose request the Interior Ministry was defending
the Sabor from their own people. The only reason to prevent
protesters from reaching St Mark's Square would be if they
disturbed the Sabor's work, but the Sabor never requested such a
thing and the police are doing it independently, said Domljan.
Slavko Vuksic of the Party of the Croatian Plains (SHR) marked the
end of the debate by presenting Economy Minister Nenad Porges with a
meat bat, so that he "could strike on the table and solve the
situation in the economy".
(hina) rml