PM: Gov't focused on sustainable growth, employment, demographic revival

Prime Minister Andrej Plenkovic said on Wednesday that, aside from political stability, the pillars of the government's activity were economic growth, quality job creation, stopping emigration, demographic revival and social solidarity.

Speaking at the Croatian Employers Association's Entrepreneurs Day, he said very important steps forward had been made recently, including reductions of the debt and public deficit and the upgrade of the credit rating outlook from negative to stable.

Economic growth is stable, exports are growing, unemployment has been slashed and employment increased, and a more stimulating business environment has raised interest among foreign investors, Plenkovic said, adding that increasing production was one of the structural measures for ensuring sustainable long term growth.

He said that in April there were 26,000 more persons employed than at the same time last year and that, after many years, the number of the jobless had dropped under 200,000 and would drop by several more tens of thousands during the tourist season.

"The European Commission's decision on Croatia's exit from the excessive deficit procedure gave our policy additional impetus. That's especially important because we have shown over an extensive period of time that we can consolidate our finances," Plenkovic said, adding that the Commission's recommendations after a positive assessment of the National Reform Programme were identical to the government's priorities.

Speaking of change on the labour market, the theme of this year's Entrepreneurs Day, Plenkovic said the goal of every activity on that front was "to create conditions for an efficient, developed and functioning labour market which will provide for dignified work, but also acknowledge the special needs of persons who have been in an unfavourable position on the labour market for a long time" such as young people, the long term unemployed and disabled persons.

Plenkovic said the most important part of the employment policy was a nine-measure package for which HRK 1.5 billion is available, 300 million more than in the years before, mainly from European Union funds. He said those measures would cover about 50,000 people.

The government is aware there is a labour shortage in some industries, notably in tourism, construction, metal-working, shipbuilding and transport, he said, adding that this would be tackled with measures of additional training and good cooperation with business people.

Plenkovic underlined the link between the labour market and the pension system, saying many government measures were aimed at "ensuring the long term stability of the pension system in quite unfavourable demographic conditions."

He said the government would amend labour legislation to link the retirement age and life expectancy and discourage early retirement, among other things. He said the priority now was to make the pension system stable.

Text: Hina

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