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Croatian Prime Minister says the deficit will be dealt with, but not at any cost

By   /   31/01/2014  /   Comments Off on Croatian Prime Minister says the deficit will be dealt with, but not at any cost


Review Hari Stefanatos

The Prime Minister of Croatia, Zoran Milanovic, on an interview on NOVA TV on Thursday said that Croatia will try to cut on the expenditures, but not at any cost.

“The European Commission recommended, after Croatia entered the excessive deficit procedure, reducing the deficit by 2.3% of GDP, which is nearly HRK 7.5 billion, which is a lot, and we will try to reduce it also on the expenditures side, but not by clubbing ourselves to death like Greece,” Milanovic said, to add that we must not kill all consumption despite the fact that Croatia has been spending excessively for years.

According to the Prime Minister, such measures have been implicated to the state budget for this year and the next even before the recommendation by the European Commission was made, “but the European Commission saw it differently, so we will adapt to that position but also negotiate.”

These are just recommendations and cannot be forced upon Croatia, however financial markets take into consideration the Commission’s opinion, which impacts the price of money and rating agencies look on that very superficially, which is why “the Commission’s word is important for states like Croatia, but not the gospel”, Milanovic added.

To the question whether a fifthe budget revision in 2 years was an admission of the government’s failure to control the finances of the state, Milanovic said that “we will do ten more revisions if need be, as the situation is very difficult because the state was borrowing in the years when (there was no crisis), in late 2008 and in 2009”.

“If there is one thing we shouldn’t be accused of… it’s that we are doing nothing, in which we are very different from our predecessors who did nothing for three years and waited to lose the election”, he said.

(Source dalje)

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