Croatian Airlines

Finance Minister: CA will no longer live off the budget

17.05.2013 u 17:26

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Finance Minister Slavko Linic said on Friday that Croatian Airlines (CA) would no longer live at the expense of tax payers and that the government would not allow budget funds to be spent by those who have no right to be paid from the budget. He added that taxes on citizens would not be raised.

CA has to start living from its own work. It will either start working and making a profit or we won't have a national airline, Linic said at a Social Democratic Party public panel discussion on the state of the economy.

Croatia has opted for a capitalist model with a market economy and a salary has to be earned and it is unacceptable that railway workers, pilots and flight attendants live off the budget along with education workers and doctors and then we are astonished at why we have a foreign debt of HRK 180 billion, he said. Funds need to be directed toward investments and only in that way can we save jobs, assuring citizens that everyone will have to pay their tax dues.

"The till has been robbed. There are too many people who are trying to cover up their crimes, their irresponsibility and are willing to preach and speak falsely", he underscored.

This government is solely interested in responsibility, order, work and discipline. Changes will be visible already this year because we are making great effort and are fighting for the public sector, he said.

Responding to questions from the audience, Linic said that the government was working closely with the International Monetary Fund (IMF) because "any country that owes EUR 44 billion has to be on good terms with the IMF".

Even after four days of striking, the unions representing CA pilots and flight attendants have not come to agreement with the airline's management and are to continue their strike over the weekend, which is costing the national flag carrier millions of kuna.

Negotiations broke down during the day because the unions refused to accept a proposal by management for negotiations to continue on the condition that the strike ended, which the unions took as yet another ultimatum and a sign that the management in fact did not want to negotiate.