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British Conservative MEP urges Croatia to strengthen rule of law and market economy

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ZAGREB, May 15 (Hina) - Widespread corruption, problems in the justice system, limited media freedoms, complex legal regulations, high taxes and the government's excessive role in the economy are the problems that need to be addressed by the Croatian government if it wants Croatia to be a progressive, free and successful country, British Conservative Party member of the European Parliament Roger Helmer said in Zagreb on Tuesday.
ZAGREB, May 15 (Hina) - Widespread corruption, problems in the justice system, limited media freedoms, complex legal regulations, high taxes and the government's excessive role in the economy are the problems that need to be addressed by the Croatian government if it wants Croatia to be a progressive, free and successful country, British Conservative Party member of the European Parliament Roger Helmer said in Zagreb on Tuesday.

Croatia's independence and stability are amazing and highly valuable achievements, Helmer said at a press conference organised by the Adriatic Institute for Public Order, the Rijeka-based independent think-tank promoting economic freedoms and market reforms in Croatia and Southeast Europe.

Helmer, who was on his first visit to Croatia, stressed the need for strengthening the rule of law and the market economy if Croatia was to successfully join European and global economic trends.

Helmer concluded from his talks with Croatian business people at the Chamber of Economy and ambassadors of EU member states that corruption and complex legal regulations posed a major obstacle to doing business successfully in Croatia.

This was also shown by this year's Index of Economic Freedom of the Washington-based Heritage Foundation, which put Croatia in 109th place in the world and in 37th place in Europe. Last year Croatia ranked 55th in the world in terms of economic freedoms.

Helmer also cited as serious problems the government's excessive role in the economy, large government expenditure, which accounts for 52 per cent of GDP, and restricted media freedoms.

This is a post-communist effect. The government thinks it has the right and duty to get involved and control all areas of the economy, he said, warning that the economy and democracy cannot develop properly in such conditions.

Croatia needs to solve the problem of corruption and the judiciary, reduce the government and its role in the economy, and lower taxes, Helmer said, stressing that reforms should be implemented primarily for the benefit of Croatian citizens and not just for the sake of the country's EU entry.

Helmer, who was to join the EU-Croatia parliamentary committee, believes that Croatia might become an EU member within the next few years even if the EU fails to reach an agreement on a new institutional framework. Technical issues relating to Croatia's EU entry can be solved without a new European constitution, by applying the provisions of an Accession Agreement, he added.

As a convinced Euro-sceptic, Holmer recommended that Croatia should rather agree a favourable free trade regime with the EU.

(Hina) vm

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