Economic recovery

PM: Mild economic growth expected next year

25.08.2012 u 11:08

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Prime Minister Zoran Milanovic on Friday evening said the government expected a mild economic growth next year, while this year, when some habits and systems needed to be changed, would be difficult.

The PM said it would be a success if there would be no decline in the economic growth, adding however that a mild decline should be expected.

In an interview with the Nova TV commercial television Milanovic said that the economic recovery in Europe and the world would last for years and that Croatia was in a position to be among the countries which could possibly pay a smaller price of the economic crisis.

According to him, the expected economic growth of 1.5 percent is insufficient, given the price under which Croatia and its neighbours were taking loans.

Commenting on a possible arrival of the International Monetary Fund (IMF) in Croatia should the country's credit rating be reduced this fall, Milanovic said the IMF arrives in a country when it is in a difficult fiscal crisis and then it offers cheap money, however on condition of absolute implementation of IMF "recipes", following the principle "cuts, cuts and more cuts", which are not equally efficient everywhere.

Milanovic is confident the IMF will not arrive in Croatia and that there is no room for panic. He added that although its arrival was expected last spring, the IMF did not come then because "our government was doing something, making decisions, it has a credibility, and after all they consider us to be people with best intentions to change something."

Commenting on the project of the Plomin thermal power plant, Milanovic recalled that everything has been thoroughly agreed, adding that the new plant would be in line with ecological standards. He said he understood worries of the local population, adding that he would personally hold talks with people living in the area.

Asked to comment on a dispute between President Ivo Josipovic and the president of the Serb People's Council and MP, Milorad Pupovac, Milanovic said it was awkward for him to arbitrate, adding that he did not wish to take part in the dispute. Milanovic said he would prefer if the conflict had never happened and that it worried him.

Milanovic stressed Josipovic was the president of all Croatian citizens and that he was nominated by the Social Democratic Party. He said they had quality and friendly relations.

Pupovac however, stayed in Zagreb in the 1990 and risked to be attacked by angry expelled Croats, Milanovic said.