PM OUTLINES GOVERNMENT'S PRIORITIES

ZAGREB, Nov 5 (Hina)- In the forthcoming year the Government will focus on the realisation of the National Employment programme, whose past implementation it finds only partly satisfactory, as well as on a more efficient functioning of the state administration, decentralisation of administrative competencies and the problem of domestic insolvency, Prime Minister Zlatko Matesa said at his Government's gala session on Thursday. The session, marking the third anniversary of the cabinet, was attended by Croatian President Franjo Tudjman. Matesa announced an imminent presentation of Croatia's long term development strategy, dubbed "Croatia in the Third Millennium". The Government is firmly committed to a stable kuna because of its importance for the economy and the financial system, said the PM. The PM is satisfied with the process of rehabilitation of the banks but only partly so with rehabilitation of companies. The Government is ready for a selective and partial privatisation of public companies, with full respect of basic national interests and will use the proceedings for restructuring of the retirement system, Matesa said. For reasons not entirely under its control this Government has not fully met its goals, including signing of agreements with the EU, integration of Croatia into the Central European Free Trade Agreement and the World Trade Organisation, the PM said. Due to a number of different reasons the EU is not ready to complete its negotiations with Croatia, Matesa mentioned. The Government has made major efforts to integrate Croatia into the CEFTA, which has resulted in agreements with some of its members. However, there are indications that others are not ready to complete the process. (Hina) mr mm