In order to make progress in the development of economic freedoms, Croatia has to open up more space for the development of entrepreneurial initiatives for as many people as possible and the road to it leads through confidence in the rule of law, market strength and a different tax system than there is today, said Marc Miles, director of the Centre for International Trade and Economics at the Heritage Foundation in Washington, DC.
Over the last ten years Croatia has failed to make any significant progress in those areas, so it has also stagnated in creating conditions for the development of economic freedoms, Miles said.
The forum strongly advocated the introduction of a flat tax rate system in Croatia, arguing that it would increase tax revenue and encourage investors, particularly foreign ones, which in turn would increase employment and include Croatia among countries reporting high growth rates.