Government adopts Croatia's Economic Programme

The government on Thursday adopted Croatia's Economic Programme, which will be the government's regular obligation upon the country's accession to the European Union on 1 July.

Regional Development and EU Funds Minister Branko Grcic said that by producing its Economic Programme, Croatia was joining the European Semester, an instrument that coordinates economic policies of the EU member-states and the Union's economic policy aimed at accomplishing goals under the Europe 2020 strategy.

Economic Programmes consist of converging programmes together with macroeconomic and fiscal frameworks and national programmes for short-term and long-term reforms.

The Croatian programme projects the country's GDP growth at 0.7% in 2013, and its acceleration to 2.4% in 2014, and to 3.5% both in 2015 and 2016, Grcic said.

Employment will continue to shrink in 2013, but this negative trend is to be reversed in 2014 when the government expects a rise in employment.

The document projects an inflation rate at 3.2% in 2013 to decelerate to 2.3% in 2014 and to 2% both in 2015 and 2016.

The general government deficit is planned to decline from 3.6% of GDP in 2013, to 3.4% in 2014 and to 3.1% in 2015, and further to 2.6% in 2016.

One of the key objectives is to curb the public debt so as to prevent it from exceeding 60% of GDP. Accordingly, the upper limit for the public debt, which is currently 56.2% of GDP, is put at 57.5% both in 2014 and 2015, to be reduced to 57% in 2016.

Grcic said that for example, the current employment rate in Croatia was only 57 % and the goal under the Europe 2020 document is 75%.

Prime Minister Zoran Milanovic said the Economic Programme ensured communication with the European Commission so as to avoid extreme budget deficits.

The European Commission is very rigorous on that matter, the Croatian PM added.

(Hina)



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