Responding to questions from the press in Split, he said that given the government's very ambitious plan to increase investments 11.5 per cent this year, a one or two billion kuna cut to capital investments would not significantly undermine the key intention to maintain demand through investment in order to somewhat contribute to economic recovery, notably of the construction sector.
Asked to comment on critics advocating the formation of a national rescue government, Grcic said this was "pretentious at this time."
He said this government had been in office only one year and voiced confidence that it would restore order in all state segments, stabilise public finances and create prospects for growth and employment.
Grcic said the government had great expectations of Croatia's European Union accession because of a greater influx of capital through EU funds and better terms for foreign direct investment in Croatia.
Asked to comment on the Moody's agency's downgrade of Croatia's rating to the speculative level last week and if the government's actions had contributed to that, Grcic said one should take into account that the incumbent government encountered a public debt that had grown nearly HRK 40 billion in three years and HRK 3 billion in interest. He said this cost had reduced room for slashing the deficit this year.
Asked to comment on Orco Group's announcement that it would sue the state for not honouring its contract with the group, the majority owner of the Suncani Hvar hotel company, Grcic said this was another example of how a bad approach to privatisation, project management and honouring of contracts could result in a dispute undermining the future of a very valuable company.
Grcic would neither confirm nor deny that the government intended to set up a new state-owned oil company instead of INA.
Citing unofficial sources, some media reported today that with its bill on hydrocarbons the government intends to set up "a new state-owned oil company" which should be the key representative of the state's interest in the management of national oil and gas supplies.
Asked by Hina about such announcements, the Economy Ministry said it was preparing a bill on the research and exploitation of hydrocarbons and that it would be put up for public discussion.