Employers welcomed tax breaks and growth in employment and the economy

Attending the Entrepreneurs Day event in Zagreb on Tuesday, Prime Minister Andrej Plenkovic said that the national economy was growing on sound foundations and that the government's economic policy was based on the reduction of tax and non-tax levies.

Addressing the event, Prime Minister Andrej Plenkovic said that the national economy was growing on sound foundations and that the government's economic policy focused on measures designed to reduce tax and non-tax levies as well as removing administrative obstacles to doing business.

Commenting on Deranja's statements, Plenkovic said that Croatia did not have the same starting position as the other transition countries due to the war.

"The war cost us 160% of GDP, and for the sake of comparison, the tsunami in Japan cost the country 4% of its GDP," said Plenkovic, stressing that today's growth was based on sound foundations. He recalled that Croatia had exited the Excessive Deficit Procedure and that its GDP was growing, while public debt and the deficit were decreasing.

All of that will facilitate accession to the euro area, he said.

The PM also announced the reduction of the standard VAT rate.

As for emigration, Plenkovic said that the higher rates of emigration were as expected and due to the openness of borders for Croatian workers following the country's accession to the EU.

"That is crucial and it would have been the same had we joined the EU sooner," said Plenkovic.

Text: Hina

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