Prime Minister Plenkovic presented economic policy guidelines in Opatija

PM Plenkovic has said that the realisation of growth and development objectives will be based on building a stimulative, simple and stable business environment in which the private sector will be the engine of economic development and the state will guarantee the implementation of the principle of social solidarity, partnership and social inclusion.

Speaking about Croatia's economic policy in 2017 in the northern Adriatic resort of Opatija on Wednesday, Prime Minister Andrej Plenkovic said certain optimism could be felt in Croatia again, which strongly motivated the government to carry out the changes that would step up favourable economic prospects.

The PM underscored his cabinet was determined to solve problems one step at a time, namely by securing a steady growth trajectory, a better standard of living, reducing the debt and fiscal difficulties and exiting the Excessive Deficit Procedure and macroeconomic imbalances.

"We will continue to work on maintaining a low deficit, a balanced budget, on lowering the share of the public debt in Gross Domestic Product and on restoring the country's credit rating to the investment rating zone," Plenkovic stressed.
The PM underscored that the next 12 months were critical for launching changes and for a development surge that was essential.

Plenkovic stressed that the government wanted to secure stable and permanent economic growth and that it would start presenting its measures by presenting the 2017 budget.

According to him, the budget will show that the government is continuing to work on reducing the budgetary deficit to 2% of GDP in 2017, thus lowering the debt-to-GDP ratio through balanced fiscal consolidation and stronger sustainability of public finances, while preserving solidarity.

"We are confident these measures will lead to stronger macroeconomic stability, lower interest costs and better competitiveness and rating," he said.

"Next year, and I believe our entire term in office, will be marked by the implementation of the comprehensive tax reform," Plenkovic said.

He stressed that absorption of EU funds was necessary for the development of investments and innovations and that the main purpose of EU funds was to reduce development differences between counties, adding that the development of SMEs would be one of the ways to reduce those differences.

PM Plenkovic also announced the activation of state property for tourism purposes. He said special attention would be attached to agriculture, regional rural development and the Slavonia region.
 
The government will proceed with the public procurement reform, Plekovic said, adding that the reform was important for the fight against corruption. He also announced a new bill on public procurement.
 
The PM announced the continuation of the process of restructuring state and public companies, notably those in charge of railway and road infrastructure. Plenkovic said his cabinet would continue to reform the education system so as to respond to the needs of society and the economy, announcing the reorganisation of the Employment Bureau and the fight against the black economy.

The PM underscored that one of the strategic challenges was the demographic renewal, adding that special attention would be directed at measures aimed at stopping emigration and creating a more favourable demographic structure.

Text and photo: Hina 

News | Plenkovic Andrej