Excessive borrowing jeopardizes sustainable business operations and, consequently, the sustainable development of Croatia, is the message conveyed today by representatives of the Croatian Business Council for Sustainable Development.
The concept of sustainable development, according to Vladimir Ferdelji, Vice President, and Trpimir Renić, President of the Council’s Management Board, implies a balance between economic, environmental, and social components, with the economic component currently being the most threatened in Croatia.
– The crisis has lasted for three years, and we have lost about 100,000 jobs in the industry. We need readiness for an economic turnaround, meaning we must not spend more than we have. We also must not borrow to stimulate consumption; rather, if we do borrow, those loans must go towards profitable investments that will pay off the loans themselves – said Ferdelji, adding that the turnaround will cost us much more if we wait longer.
Among the investments mentioned are the renewal of the railway network, the construction of waterways, the improvement of drainage and water supply infrastructure, and greater engagement in the installation of renewable energy sources, such as solar panels for electricity generation. – In addition to loans for self-sustaining infrastructure projects, it is possible to find investors. On this occasion, we call on the Government to borrow for the continuation of infrastructure construction necessary for the country’s development instead of for general consumption – stated Trpimir Renić. Otherwise, the Croatian Business Council for Sustainable Development brings together 40 of the most successful domestic companies, and the entrepreneurs gathered in this council aim to contribute to positive changes in the economy, environment, and society through their actions, but they believe that comprehensive changes require a change in state policy that would enable such a turnaround. (S. M.)
