Prime Minister Ivo Sanader, in the Croatian Radio show How the Government Governs, spoke about Slovenia’s blockade of Croatia’s negotiations with the European Union, the economic crisis, and Sunny Hvar. Regarding the crisis, Sanader stated that the Government holds several anchors that guarantee macroeconomic security.
He emphasized that Croatia independently conducts fiscal and monetary policy, pays its debts on time, and is not threatened by bankruptcy. He stated that the rebalance of this year’s state budget should range between one and three billion kuna, dismissing criticisms that the Government’s anti-recession measures, including the one to adopt the rebalance by the end of March, are too general or not concrete. The rebalance of the state budget is indeed a concrete Government measure, as are the other nine, he said.
Sanader marked the strengthening of HBOR’s financial position as a strong and concrete measure, with an additional 400 million kuna allocated for direct assistance to small and medium-sized enterprises and tourism. He pointed out that negotiations have already begun with international financial institutions that need to approve the 400 million kuna borrowing. When asked whether the Government was late with measures and whether it had long concealed from the public that Croatia is in crisis and recession, the Prime Minister replied that the budget for this year was prepared four months ago, when, he noted, economic growth was projected to be between one and two percent. The construction of the Pelješac Bridge is not in question as it means pulling parts of Croatia out of isolation, but it may be delayed due to the crisis. Additionally, the construction of the A1 Osojnik-Doli section will begin. A concession or public-private partnership will be agreed upon for that.
The concession or PPP will also be discussed regarding the construction of roads in the Podravina-Bilogora direction and towards Zagreb Airport. Sanader also stated that an agreement has been reached with banks that increasing interest rates is not currently on the agenda until summer. After summer, they will sit down again and reassess the situation. He again called on all business entities that had previously earned well, such as banks and HT, to forgo part of their profits for the benefit of consumers, i.e., citizens, and to help them in these difficult circumstances. The decision on the second pension pillar has not yet been made. It remains to be seen what the revenues in the second pillar are, and the Economic Council is working on that, Sanader said.
