The government today proposed to social partners a one-year freeze on salaries in order to overcome the economic crisis that is increasingly affecting Croatia.
Prime Minister Ivo Sanader suggested at a meeting attended by 250 representatives of trade unions, employer associations, counties, cities, municipalities, and companies predominantly in state ownership, a postponement of salary increases across the country as well as the abolition of Christmas bonuses and cuts to representation costs. If the austerity measures yield results, discussions could take place next autumn about reaching a new agreement on salary increases for the next three years, Sanader told reporters. The Prime Minister also announced that the state budget deficit would be reduced to zero percent as early as next year, and the Croatian National Bank (HNB) would continue to ensure the macroeconomic stability of the country. Employers supported the proposal for a balanced state budget, while trade unions will respond to the proposal for a salary freeze at the beginning of next week, after discussing it at all levels, it was stated to reporters after the meeting. (H)
