Prime Minister Jadranka Kosor said on Sunday that the government would do everything to absolutely prevent drastic gas price hikes which the media have been speculating about.
"Our talks will continue this week and I believe they will be successful," Kosor said briefly, commenting on media headlines according to which the price of gas for households could go up 30 percent and up to 100 percent in the long-run.
Commenting on the cancellation of a four per cent emergency tax as of Monday, Kosor said it would "enable Croatian citizens to live more easily".
About 344,500 workers and pensioners whose monthly income is over HRK 6,000 will receive higher salaries and pensions as of November 1 with the cancellation of a four per cent emergency tax, with the average increase to be about HRK 380.
The emergency tax on all incomes was introduced on 1 August 2009, with two rates - two per cent on incomes between HRK 3,000 and 6,000, which was cancelled on July 1 this year, and the said four per cent rate on incomes over HRK 6,000.
Asked to comment on Croatian National Bank governor Zeljko Rohatinski's warning that more drastic changes were necessary, Kosor said the International Monetary Fund and the World Bank had fully supported her government's economic recovery programme, adding that the programme was being implemented.
"The programme was also supported by governor Rohatinski and the Croatian National Bank," Kosor said.
