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President says GDP decline serious issue, expects maximum efforts

ZAGREB, Aug 31 (Hina) - Because of the 2.1% GDP decline in the second quarter of 2012 and an increasingly tough economic situation, President Ivo Josipovic expects maximum efforts in attracting investments, saying in an interview with Media Servis on Friday that everything must be done to kickstart investments.

Although the government's predictions and ambitions decreased from a 0.8% economic growth through stagnation to the current result, Josipovic said it was useless to be pessimistic and that one should wait for the end of the year.

"Of course, we would all like it if there were investments and new jobs. The crisis is deep. It isn't only ours, it's European and partly global," he said, adding that one of the possible solutions was to make it easier for investors from the East to do business in Croatia.

Commenting on his recent conflict with Serb People's Council (SNV) president Milorad Pupovac, Josipovic said he was glad Pupovac "realised he can't receive money from reserves."

He said the goal had been achieved and that the argument was behind him because representatives of the SNV, the government and journalists had noticed the unjust system of financing national minorities. He expects the government to change it, "not right away, but very soon."

Speaking of a new division of Croatia into two instead of the current three statistical regions, Josipovic said fears that the region of Slavonia would receive less money because of Zagreb were groundless.

"That's an unjustified fear. As a state we won't even use all the money at our disposal," he said, adding that one should avoid politicising the new statistical organisation.

"Trust me, there's enough money, there's lots of it and it depends only on those preparing a programme whether the programme will be financed."

Asked about the chances of his meeting with Serbia's new President Tomislav Nikolic soon, Josipovic said "the time probably isn't right for that yet."

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