PM says gov't didn't promise to EC that it would introduce real estate tax

Prime Minister Zoran Milanovic said in an interview with Croatian Television on Friday that his government had not promised to the European Commission that a real estate tax would be introduced this year.

"There was no promise. I can give a promise to the Croatian public, the voters and citizens. As for the EC, we can give it a certain plan and then act in line with it to a lesser or greater extent," Milanovic said.

Commenting on the government's decision to give up its plan to monetise the debt of two state-owned motorway operators by leasing out motorways, after a sufficient number of signatures were collected in a campaign against that plan, Milanovic said that it was a plan to monetise public debt and that the government had not given up on it.

He said that members of the public had not been sufficiently informed about the government's model A for debt monetisation, namely its plan to reduce excessive public debt for public roads "so that we don't have to pay interest for the next 25 years".

The PM said the plan had been to pay the debt sooner so that the money could be redirected to railway and highway operators, but given that enough signatures for a referendum on motorway lease was collected, he did not see how the Constitutional Court could ban it.

He said that the country would not benefit from the latest developments, but that he had to respect citizens' will.

He admitted that the government was responsible for citizens not having been informed well enough about the government's plan.

Asked why there was no opportunity for a joint photograph of him and President Kolinda Grabar-Kitarovic at a session of the National Security Council (VNS) on Thursday, which they attended together, Milanovic said that he did not ban it and that he was sorry to learn what the media considered to be important at that event.

"Out of respect for the President, I find it ridiculous to discuss the matter. What we did there was a serious job," he said.

He added that he had not engaged in almost any debates with Grabar-Kitarovic either during the campaign for presidential elections or after it, but that he did not feel comfortable giving undue publicity to his every move and decision.

The PM noted that there was a reason why the media could not be present at sessions of the VNS.

Asked about Foreign Minister Vesna Pusic, he said that she would have his support for her possible candidacy for UN Secretary-General.

Asked if there would be a thematic session of the government as requested by the President, PM Milanovic said that the Prime Minister should be let decide how the government should work and that the government was not a chat room.

It is alright if someone, including the President, wants to attend a government session, however, it can't be for a discussion about the government's general scope of work but about concrete issues, he said.

Asked if President Grabar-Kitarovic would attend sessions of the European Council focusing on topics that have to do with her constitutional powers, which is what she has announced, Milanovic said that Grabar-Kitarovic should be asked to be more specific on the matter.

He added that he even saw a problem in the president representing Croatia at NATO summits because such meetings concerned the country's financial obligations which, he said, the president could not assume.

Milanovic would not give a definite answer when asked when parliamentary elections would be held, but he did not rule out the possibility that they would be held in February 2016.

We are doing our job with confidence and enthusiasm so that citizens can see how much progress has been achieved. Croatia is a more organised and better governed country than it was three years ago, the PM concluded.

(Hina) rml



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