PM opposed to kuna devaluation

Prime Minister Zoran Milanovic said on Tuesday that he expected his political opponents to distance themselves from the idea of a possible devaluation of the domestic currency, the kuna, because it would bring many citizens with foreign currency-indexed loans to the brink of poverty.

"The Croatian National Bank is protecting the kuna/euro exchange rate with strong and firm foreign currency reserves and will continue to do so for as long as I am the prime minister," Milanovic said while responding to questions from the press during his visit to the northern island of Rab.

"The problem with devaluation is that it is claimed that it would make exports competitive, which is a delusion," the prime minister said, adding that competitiveness was to be achieved through investment in infrastructure, in hotels as is the case in Rab.

Speaking of the HDZ's economic programme, Milanovic said that, being "an intimate national matter", it should have been written by domestic, rather than foreign experts. "One can always consult with wise people from abroad, but I wouldn't have the cheek to admit that I let them write a Croatian economic programme," he said.

Commenting on criticisms of his government's performance made at an HDZ conference on Monday, Milanovic said that the results of his government's work "are beginning to show, but it's hard to build on a rotten foundation."

Asked to comment on growing public opposition to oil and gas exploration in the Adriatic and the construction of a coal-fired thermal power plant at Plomin, Milanovic called for a referendum on oil and gas exploration in the Adriatic.

"In Croatia there have been referendums on matters that were not of vital national importance, and now I say, let's go to a referendum and see whether we want exploitation of minerals and raw materials over which wars are fought round the world, and we may have them in the subsoil, or shall we ignore that because of a vocal minority who have the right to be vocal," Milanovic said.

"We have offers from highly renowned global prospectors who can find billions worth of oil. Shall we pass up this opportunity? I can't make this decision on my own," the PM said.

(Hina) vm

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