The persistent deficit and rising public debt is an unsustainable model of economic development, stated U.S. Ambassador James B. Foley at a working lunch of the American Chamber of Commerce.
In his address to the gathered business leaders, the U.S. Ambassador once again emphasized that the poor investment climate is the result of a number of factors such as the closed attitude towards foreign investors, the burden on entrepreneurs from taxes, a slow and inefficient legal system, excessive and often complicated regulations, corruption, and the lack of transparency in public procurement. He took the opportunity to praise the recent steps taken by Prime Minister Jadranka Kosor and State Attorney Mladen Bajić, referring to the dismissals and indictments in recent months.
Speaking about the relations between Croatia and the U.S., he asserted that they have never been better, adding that he is personally very happy to be in Croatia at this moment. ‘America is the strongest advocate for Croatia’s entry into the EU,’ he said, explaining that the well-being and security of Croatia are very much in the interest of the U.S. He expressed confidence that eventual rulings in the mentioned cases will serve as an example and a sign that corrupt practices will no longer be tolerated. Despite the fact that Croatia is on the verge of joining the European Union, the ambassador warned against the mistaken and dangerous belief that entry into the Union will solve all of Croatia’s problems and that it is enough to just endure until the recession passes. Reflecting on the clearly burning issue of the unfavorable business environment in Croatia, Foley also expressed some understanding due to the legacy of the past system, but stated that deep structural reforms are necessary for sustainable economic development.
