Milanovic: Cuts should not be at expense of growth

Prime Minister Zoran Milanovic said on Friday that talks were under way with the European Commission on measures to reduce the excessive deficit, reiterating that the measures would not be such as to kill any growth or investment possibility.
 

Milanovic was speaking to the press during his visit to the HS Produkt arms factory in Karlovac. Asked to comment on media reports that the European Commission was not pleased with the cuts in the revised budget and was demanding additional savings of 1.3 billion kuna, Milanovic said that talks with the Commission were under way and that such talks may last for years.

"Our initial adjustment measures were generous, nearly 1.8% of GDP, which is a large amount. In its recommendations, the Commission has requested 2.3%, but I am not sure whether we will be able to achieve that amount. We will continue a little further towards that amount, but I repeat, not in a way that would put Croatia in a situation like the one in Greece, killing all growth and investment possibility. It can't be done that way," he said.

Milanovic said that the talks were continuing and would last for a few more years. "I am optimistic. We have solutions, we'll see," he said.

The prime minister was accompanied by Interior Minister Ranko Ostojic and Defence Minister Ante Kotromanovic, who were asked whether there was any room in their departments for further cuts.

Ostojic said that he would strongly defend his budget, adding that the Ministry of the Interior needed more staff because of its commitments towards the Schengen border regime and that its budget could not be slashed further at the expense of efficiency. He said that the government was negotiating with the European Commission and that all government departments were implementing reforms.

Kotromanovic said that the Defence Ministry's budget was "thin" and that further cuts would bring into question the combat readiness.

(Hina)
 

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