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Peter Harrold: Croatia Must Relieve the Budget

Three key areas where additional efforts are needed from the Croatian government are the rationalization of the social system, the relief of certain public enterprises, and the reform of public administration and the judiciary, said the new World Bank Director for Central Europe and the Baltic States, Peter Harrold, introducing Croatian media to the results of his first visit to Croatia.

In addition to the mentioned issues, Harrold explained that the pressure on the budget, and in that context taxes, is one of the most important issues to be addressed in Croatia. During his tour of the country, which has been under his care since January of this year, he spoke with a number of Croatian officials, from President Ivo Josipović, Prime Minister Jadranka Kosor, to Finance Minister Ivan Šuker and Governor Željko Rohatinski, as well as with people from the private sector and social partners.

As he explained, discussions mainly revolved around the impact of the global crisis on Croatia, with Harrold stating that the World Bank has done as much as it can, recalling the additional 300 million euros it has invested in various projects, while also expressing satisfaction with what Croatia has achieved, the country’s accession to the European Union, and the assistance needed to expedite that process, as well as the need to accelerate reforms for the two aforementioned reasons.

Harrold expressed hope that perhaps the next press conference will be precisely due to the World Bank’s engagement in the reform of the judiciary. During his five-day visit, in addition to Zagreb, he visited Rijeka, where the World Bank is engaged in the modernization project of the Rijeka port and the northeast of the country, specifically areas of special state concern. Calling the meetings very useful, Harrold said that despite the severity of the crisis, it should also be viewed as an ‘opportunity to accelerate the structural reforms necessary as a prerequisite for sustainable economic recovery and reducing the income gap compared to EU member states.’  (Vanja Figenwald)