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PM says Croatia has entered new development model

Author: itom
ZAGREB, May 25 (Hina) - Croatia has entered a period of a new development model which relies on competitiveness and productivity and no longer on huge public investments in infrastructure, Prime Minister Zoran Milanovic said at a government-sponsored conference called Invest HR, held in Zagreb on Monday.

"We have a new development model, we no longer need hundreds of kilometres of new motorways and thousands of new flats, but investments in quality," Milanovic said.

Croatia's economy at the end of the last and the beginning of this century was marked by a puberty principle, based on a strong influx of consumption capital and imports, the PM said.

However, this can be done by anyone and this cannot be an advantage, Milanovic said. Instead, now we have a visible industrial recovery based on productivity and exports, the PM underscored.

To survive, this new model needs stability and peace, a stable democratic organisation, fiscal responsibility and economic competence, Milanovic told the conference.

Speaking about the image of the country, Milanovic said Croatia was one of the most advanced European countries when it comes to the level of computerisation of the public administration system, Milanovic stressed. He said the image also effected the openness of a country, and in that context he cited the Irish referendum on same-sex marriage.

Along with celebrities, some of the biggest advocates of same-sex marriage in Ireland were corporations which saw an opportunity for the promotion of Ireland's image in that positive decision. He underscored Croatia ranked fourth or fifth in Europe according to the level of the protection of gay rights.

"We are a small country and we must be open, we cannot be buttoned up, rigid and bigoted, notably when it comes to tourism," Milanovic said.

Deputy Prime Minister and Regional Development and EU Funds Minister Branko Grcic said Croatia was definitely a more profitable investment destination today than several years ago. He said Croatia had a stable political system, was part of the European market and had quality labour, industrial tradition, a preserved nature and good infrastructure. According to Grcic, Croatia should increase its annual investment activities to at least 25% of GDP.

He underscored that a share of private investments needs to be increased in the future.

His message to investors was that Croatia had no more room for increasing taxes. "A new, unstoppable investment has been launched and it will be the instigator of economic recovery," Grcic said.

The government organised the conference to present Croatia's investment possibilities and potentials to the Croatian and the foreign business community, with an emphasis on investment projects in industry and tourism.

(Hina) its

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