Dissatisfied with the government’s anti-recession measures, three experts propose alternative steps against the recession with concrete data and measures, published today by Novi list in its supplement Pogled.
‘Late and unclear,’ could summarize the opposition’s reaction to the government’s package of ten anti-recession measures. The main opposition criticism refers to the fact that the government is reacting at least four months too late and that it has not yet said anything about the key measure for establishing economic and financial stability – the budget rebalancing – except that it will propose it soon. There is still no answer to the question of how much the budget will be cut and whose shoulders the most painful cuts will fall on, although it is quite clear, from unofficial announcements by high officials, that this time the salaries of civil servants will definitely be targeted, as published in today’s Novi List, signed by Nataša Božić.
– What the government proposed is not a list of measures, but a list of intentions in whose implementation, taught by experience with this government, I sincerely doubt! The proposed package contains not a single concrete measure, not a single concrete data point, nor a deadline in which something will be done, so I think this is just a government media spin, not a serious anti-recession move – assesses HNS leader Radimir Čačić.
– What the government proposed is not a list of measures, but a list of intentions in whose implementation I sincerely doubt! – assesses HNS leader Radimir Čačić.
The journalist of Novi list thus asked the head of the Peasant Party to specify the ten steps he would take if he were currently in the hot seat of Sanader. The same list of ten alternative measures for exiting the crisis was also received from the main SDP economic expert Ljubo Jurčić, and from the head of the Croatian Chamber of Commerce Nadan Vidošević, who, although a member of HDZ, is often perceived as opposition to the economic policy of the current government.
The measures proposed by the opposition and the head of the Chamber are essentially identical to the government’s, focusing on urgently balancing budget expenditures with a significant drop in revenues that are plummeting due to the crisis, and on assisting the most vulnerable sectors of the economy – tourism and the real estate market. The only difference is that Jurčić and Čačić, in their relatively comfortable opposition position, are allowed to be significantly more open when it comes to the budget cuts that need to be made, since they are not the ones holding the axe that will cut salaries and privileges, as well as promised investments, writes Božić.
Jurčić openly states that all major capital projects should be completely cut, including not only the construction of the Pelješac Bridge but also the further construction of highways and tunnels, while Čačić also openly states that salaries in the public sector should be frozen, and even reduced if necessary.
Thus, Jurčić openly states that all major capital projects should be completely cut, including not only the construction of the Pelješac Bridge but also the further construction of highways and tunnels, while Čačić also openly states that salaries in the public sector should be frozen, and even reduced if necessary. According to opposition estimates, the rebalancing should cut between 7 and 12 billion kuna on the expenditure side of the budget and direct all available resources to preserve liquidity, as well as targeted investments in tourism and production.
The state must take its share of responsibility for the growing illiquidity and repair the damage as quickly as possible. In this sense, the government’s measure to shorten payment deadlines to 60 days is absolutely welcome, but where are the guarantees that public companies and the state will adhere to that deadline, Čačić wonders. He therefore proposes that an obligation be introduced to issue promissory notes for all goods and services that the state and public enterprises procure in amounts greater than one hundred thousand kuna. This would give creditors the right to collect what the state owes them in the business bank with which the state operates after the expiration of that deadline.
Protection of domestic producers from imports is proposed by all three interlocutors of Novi list and they believe that the government should come out as soon as possible not only with a slogan but also with clear technical measures to prevent imports, primarily of low-quality foreign food.
– That is at least simple, it should be prescribed that frozen meat older than one month or tomatoes older than one week cannot enter Croatia – explains Čačić.
– That is at least simple, it should be prescribed that frozen meat older than one month or tomatoes older than one week cannot enter Croatia – explains Čačić, while Jurčić emphasizes that it is necessary to foresee ‘a precise percentage and deadline for reducing imports’, Božić notes.
– By 2010, we must reduce imports by at least 10 percent and replace them with higher quality and cheaper domestic products, believes Jurčić.
