Croatian Prime Minister Zoran Milanovic said on Wednesday that there was no growth-or-austerity dilemma, adding that it was necessary to provide for sustainable growth which did not push the country into a debt crisis and find a compromise between the two approaches.
"The Croatian government pushes for a model that ensures visible and sustainable growth, that doesn't push the country into a debt crisis. We have seen that many countries have stopped borrowing, but there has been no growth, and without growth there are no investments. At the same time, investors want financial stability, zero or minimum deficits, but then there's no growth and they aren't happy again. We have a closed circle that we have to open," Milanovic said in Brussels, where he arrived for a meeting of European leaders of socialist and social democratic parties.
Such meetings of European political groups are traditionally held ahead of every European Union summit. The informal summit begins tonight and will focus on economic growth and employment.
Asked by the press whether he was more inclined to the model of German Chancellor Angela Merkel, who insists on austerity, or the model of new French President Francois Hollande, who wants to ensure growth, Milanovic said he did not "put that on a personal level."
"We are only interested in sustainable growth with the money Europe has and the ideas we have. That's where we will fit in," he said.
"At this moment, Croatia is both saving and developing, and our growth doesn't satisfy us. I want more for Croatia. The entire Europe is stagnating, everybody is standing still. This is a common story in which we will pay attention to the ideas of the big states and then define our position."
Asked if he would insist on changes to collective agreements, Milanovic said he expected reasonable interlocutors on this issue.
"Croatia has kept nearly all the jobs in the public sector, the state administration and public companies, which haven't been restructured at all. Croatia has signed a series of collective agreements that are a burden to us. We want to keep jobs, nearly all if possible, to keep the wage level and... that's an awful lot already. Many European states went below that."
He said the entitlements that went above that, such as allowances and Christmas bonuses, were "memories of better times."
"What's important is to work and receive a salary. I believe in and expect reasonable interlocutors... I would be happiest if, as the prime minister, I could give everyone a salary of 2,000 euros, but that's impossible. In Greece, pensioners had higher pensions than in Austria and that created a problem, there's no more money," said Milanovic, who arrived in Brussels from Chicago, where he attended a NATO summit.
