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GOVTS UNDER HDZ HAVE ACHIEVED ECONOMIC STABILITY - SAYS PREMIER

ZAGREB, Dec 7 (Hina) - All "HDZ (Croatian Democratic Union) +governments" have succeeded in achieving economic stability in +Croatia, despite problems inherited from the past system and +despite the international surroundings, Croatian Premier Zlatko +Matesa assessed at Monday's session of the ruling party's National +Committee.+ Matesa spoke about Croatia's economic ad social situation.+ In the last five years, Croatian economy registered an almost 40 +percent increase in the gross national product, with doubled +salaries and pensions, and a continual growth in industrial +production at a rate higher than six percent, said the Premier.+ He also pointed out that deficit had decreased, while the inflation +rate was constantly low.+ In the next period, Matesa announced special attention would be +given to resolving the unemployment issue, mutual non-payments, +and the
ZAGREB, Dec 7 (Hina) - All "HDZ (Croatian Democratic Union) governments" have succeeded in achieving economic stability in Croatia, despite problems inherited from the past system and despite the international surroundings, Croatian Premier Zlatko Matesa assessed at Monday's session of the ruling party's National Committee. Matesa spoke about Croatia's economic ad social situation. In the last five years, Croatian economy registered an almost 40 percent increase in the gross national product, with doubled salaries and pensions, and a continual growth in industrial production at a rate higher than six percent, said the Premier. He also pointed out that deficit had decreased, while the inflation rate was constantly low. In the next period, Matesa announced special attention would be given to resolving the unemployment issue, mutual non-payments, and the slow restructuring of economy. "The world crisis has knocked on our door too, but has and will not have a serious influence on Croatian economy, because Croatia relies on its own foundations, and doesn't enter short-term debts," said the Premier. He described the draft bill for 1999 as balanced, and refuted evaluations that the government had made an irresponsible draft of a budget aimed at the pre-electoral campaign. Matesa announced reforms in the pension and health systems, and the rehabilitation of the banking system. According to Foreign Minister Mate Granic, economically weak countries were more exposed to political pressure. For this reason Croatia set its strategic goals in a fast economic development, social and political stability, and integration with Euro-Atlantic systems. Croatia must have firmly structured economic, judicial, and banking systems if we indeed want to be part of Europe, not just politically and historically, said Granic. "We don't live in vacuum," he added. Croatia used the past year to reintegrate its eastern Danube River region with the rest of the country, and to create preconditions for a successful completion of the United Nations peace mission on its territory, said the Foreign Minister. He added Croatia continued to make considerable effort to settle open issues with its neighbours, Slovenia, Bosnia-Herzegovina, and the Federal Republic of Yugoslavia (FRY) in particular. For Croatia, its southernmost tip of Prevlaka, on which FRY has territorial aspirations, was an exclusively security issue, said Granic. For Piran Bay, in the northern Adriatic, where Slovenia wants changes to the sea border, Croatia was willing to agree to international arbitration, he added. Pope John Paul II's visit to Croatia in October, and the signing of a special relations agreement with one of Bosnia's two entities, the Croat-Muslim Federation, were the most important political events in Croatia in 1998, Granic concluded. (hina) ha jn

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