Prime Minister Zoran Milanovic has said that Croatia must revive its production sector and start creating added value to make sure that its debt is sustainable.
As agreed with the European Commission, Croatia has increased revenues and reduced the expenditure, thus re-establishing a balance to some extent, but much more must be done to achieve a full balance, Milanovic said on Tuesday at a special session in the northern town of Marija Bistrica, which marked Krapina-Zagorje County Day.
"The whole of Croatia must focus on production. We must start creating added value and revenues must rise on a permanent basis, that will make our debt sustainable," the premier said.
Croatia cannot continue on the path on which it has been for 20 years, as for years we have been spending more than we have been earning, Milanovic warned.
It is also necessary to make decisions and agree on urgent changes and reforms, Milanovic said, complaining that during the first two and a half years of his government's term, not one of the measures from his cabinet was supported, but was met with resistance every time.
It is easy to say "No" and be against everything, but decisions must be made, Milanovic said justifying the proposed changes as sensible.
"We can play with the Excessive Deficit Procedure, but those who do not have a positive economic growth and who do not create added value, and we have failed to do it for years for various reasons, they can no longer make new borrowing," the premier said.
"We 'killed' our production and industry in the 1990s. At that time, Croatia produced much and did it well, and now we do not produce a half of that amount," he added.
"The tourism sector alone is not sufficient, as our peak season is too short. Also, examples of small positive headway as seen in some parts of Croatia, including Zagorje, do not suffice" he added.
The premier and a few ministers from his cabinet toured the local Boxmark Leather company which employs about 1,000 workers in its plants in Zlatar Bistrica and Varazdin, north Croatia.
(Hina)
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Zoran Milanović
