Croatian Prime Minister Jadranka Kosor on Friday called on union representatives to return to the Economic and Social Council (GSV), urging additional measures to reduce budget spending and announcing an uncompromising fight against insolvency and consistent implementation of the government's economic recovery programme.
"I want us to tighten the belt this year as well when it comes to the budget. Everything we can do without at the moment should be given up," Kosor said in her address at the 14th national forum on economy and enterprise organised in Sibenik by the Economy Ministry.
The PM called on trade union federations, whose leadership yesterday said that they would no longer take part in GSV sessions, to return to the GSV so that together with the government and the national association of employers they could contribute to the country's economic recovery.
"When it comes to Croatia's economic recovery, nothing will and nothing can be achieved by taking to the streets. Everything can and will be solved through talks and with support for the economic recovery programme and its implementation," Kosor said.
She added that the government had started reducing non-tax levies paid by businesses in the form of monument annuity and that next week it would decide on further reducing similar levies.
The government is ready to come to grips with insolvency, Kosor said, adding that due liabilities of public companies now amounted to between 1.2 and 1.3 billion kuna, of which 90 percent were liabilities of the power supplier HEP, the railway operator HZ and the Hrvatske Sume forest management company.
"It is a fact that debts to HEP are much higher than what HEP owes and now there is a chance for those who owe HEP money to pay their debts and help stabilise the situation," said Kosor.
She added that the highway operator HAC had paid its debts.
The PM added that activities of the newly established Central Office for Public Procurement would help save around HRK 300 million a year.
"The government is working on the economic recovery programme 24 hours a day and that programme has been supported by all relevant international institutions. However, not everyone in Croatia is ready to assume responsibility for economic recovery," she said.
The economic recovery programme can be built on and amended, Kosor said in her lengthy address, repeating several times that the programme had to be implemented without any reservations.
"None of the measures in the economic recovery programme can be abandoned, starting from the downsizing of state administration by five percent to the reduction of pensions which were acquired under special regulations," she said, pointing also to the lack of entrepreneurial climate.
