EMPLOYERS DISSATISFIED WITH GOVT'S ECONOMY POLICY

ZAGREB, Oct 20 (Hina) - The Croatian Employers' Association (HUP) has requested an urgent meeting with the Croatian Prime Minister focusing of economic problems. If expected progress and success in the contacts with representatives of the government fail, the HUP will undertake certain measures, such as the withdrawal of its representatives from the Economy Council (which comprises government representatives, employers and unions), the staging of protests and making the problems internationally known. These measures, HUP's president, Zeljko Ivancevic, said, are only the final means, because the HUP's goal is constructive talks which would bring about positive progress in the overall economy. Short-term changes in the tax and customs systems and more accentuated development elements in the state budget for next year could spur domestic production and spending, Ivancevic said. The current economic situation in Croatia has worsened, primarily because of the negative influence of the Value Added Tax on insolvency, which amounts to US$11 billion he said. The HUP also warned that the rate of unemployment has sped up, and the number of unemployed has risen to close to 300,000. (hina) lml jn