PANEL "EUROPE ON THRESHOLD OF THIRD MILLENNIUM" HELD IN ZAGREB

ZAGREB, June 20 (Hina) - Although tragic, the Kosovo crisis has prompted many developments, the most important being the Pact on Stability in South-East Europe, a representative of Germany's Social-Democratic Party, Christoph Zopel, said at a panel discussion held in Zagreb on Sunday. Zopel, who is also a member of the Administrative Board of the European Forum for Solidarity and Democracy, believes the stability of Europe's foreign policy can be achieved only through the permanent stabilisation of South-East Europe. Speaking about Croatia's admission to the European Union, Zopel said the structure of Croatia's economy matched the European level of development. The agricultural sector in Croatia is not oversupplied and the country has great potential in tourism, Zopel said. The SDP representative also believes that a single act of devaluation of the kuna could help tourism to develop as well as that the current VAT rate is not adjusted to the country's level of development. A major obstacle to foreign investments is the country's poor privatisation policy, Zopel said, adding foreign investors could be attracted only with more respect for the rule of law. The panel, organised by Croatia's Social-Democratic Party, was also addressed by Social Democrats from the Netherlands, Great Britain and the Czech Republic. (hina) rml