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HIGH OFFICIALS ADDRESS HDZ MAIN COMMITTEE SESSION

ZAGREB, June 26 (Hina) - Senior state and party officials spoke at Saturday's session of the ruling Croatian Democratic Union (HDZ) party Main Committee and other party bodies about the party policy programme components. Prime Minister Zlatko matesa stressed a successful economic policy enabled other sections of state politics to contribute to the establishment of the independent and sovereign state of Croatia. The main reference points of the economic policy are maintaining stability, economic growth, decreasing unemployment, decreasing internal and foreign debts, a rise in life standard, stabilising the financial system and establishing special relations with the Federation of Bosnia-Herzegovina, Matesa siad. He described as necessary the implementation of the reform of the pension system and a change of the economic structure, and as priorities he underlined economic growth and reconstruction, the return of displaced
ZAGREB, June 26 (Hina) - Senior state and party officials spoke at Saturday's session of the ruling Croatian Democratic Union (HDZ) party Main Committee and other party bodies about the party policy programme components. Prime Minister Zlatko matesa stressed a successful economic policy enabled other sections of state politics to contribute to the establishment of the independent and sovereign state of Croatia. The main reference points of the economic policy are maintaining stability, economic growth, decreasing unemployment, decreasing internal and foreign debts, a rise in life standard, stabilising the financial system and establishing special relations with the Federation of Bosnia-Herzegovina, Matesa siad. He described as necessary the implementation of the reform of the pension system and a change of the economic structure, and as priorities he underlined economic growth and reconstruction, the return of displaced persons and protection of the most vulnerable strata of the Croatian society. Matesa expressed satisfaction with the increase in salaries and life standard, stressing the average monthly salary amounted to US$476, and the average pension to US$186. Speaking about international circumstances, Matesa said pressures on Croatia were still present, as was the lack of will to assist Croatia. Conditions are being set for providing assistance, and there are attempts to influence the political situation in Croatia, he stressed. NATO activities in Yugoslavia caused direct and indirect damage to Croatia, amounting to about US$2 billion, Matesa said. He added a slow economic growth had been recorded in the past several months. Since the introduction of the stabilisation programme, the rate of inflation has been reduced to under four per cent, he said. Speaking about the economic development strategy, the President's adviser for economy, Pero Jurkovic, said the most important goals were an increase in life stadard, maintaining state and national security, opening Croatia to the world and strengthening of the legal and social state. The model of economic policy must be changed if we are to achieve economic growth and development, he said. According to Jurkovic, Croatia's entrance into the European Union has no alternative, as it makes possible access to financial courses. He announced Croatia would soon access the World Trade Organisation, the PHARE Programme, a continuation of talks with the Central European Free Trade Agreement (CEFTA) and the beginning of negotiations with the European Union. We are about to face a struggle for social justice and against illegal enrichment, as well as a decrease in unemployment by seven to eight per cent, with an active employment policy, Jurkovic said. Deputy Premier Jure Radic spoke about the results of reconstruction and the return of Croatian emigrants. He stressed 90 per cent of displaced persons have already returned to their homes, and the remaining ten per cent will do so by the end of next year at the latest. The state of Croatia has reconstructed about 90,000 homes, investing about US$2 billion, of which only two per cent came from foreign aid. Since the establishment of Croatia's independence, 206km of motorways have been constructed, 90 kilometres are under construction and another 350km are planned to be constructed, Radic said. He announced the beginning of construction of the Split - Zagreb motorway in Dugopolje for this September. Currently there are 4.2 million residents in Croatia, and conditions for the return of emigrants must continue to be created, Radic stressed. Finance Minister Borislav Skegro said from 1994 to 1998, the government budget had been balanced, and even a surplus created. We need a tax system which stimulates savings, not expenses, so we could invest into production, economic growth and development, he stressed. Agriculture and Forestry Minister Ivan Djurkic spoke about the problems of villages and peasants in Croatia. He said "agriculture is in difficulties, but is not in a catastrophic state as some claim". He warned of the necessity to harmonise Croatia's agricultural policy with that of the European Union. Commenting on Saturday's protest organised by the Croatian Peasants' Alliance, djurkic said those who wish to politicise problems in agriculture were wrong because, as he said, the problems cannot be solved in the streets, but with a discussion with valid arguments and agreement. (hina) lml jn

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