Grčić: The Government Knows Where It Stands, We Hope for Economic Growth in 2014

Deputy Prime Minister and Minister of Regional Development and European Union Funds Branko Grčić stated today that he hopes that after five years of recession, a turnaround towards economic growth will occur in 2014.

Commenting on the forecast released yesterday by the International Monetary Fund (IMF) that the Croatian economy will record a decline of 0.6 percent this year, instead of the previously expected 0.2 percent, Grčić said that the Government knows where it stands and that we have a difficult situation.

We have had five years of recession and in the sixth year we want to reverse that trend. I hope that in 2014 a turnaround towards growth will be made, said Grčić, emphasizing that the goal for this year was to “bring the economy to zero or somewhere around there.”

In response to questions from journalists after today’s meeting with representatives of the Iraqi delegation, Grčić also confirmed the announcement by the Minister of Finance that Croatia will no longer borrow on the foreign market this year.

The state’s financing needs this year are more or less covered, but in 2014, a huge amount will come due for payment and refinancing, and we will again need to seek money abroad, Grčić said.

Journalists were also interested in a comment on yesterday’s statement by the president of the HDZ, Tomislav Karamarko, that ministers “are constantly traveling somewhere, yet they have not managed to bring a single quality investment” and the assessment that they are a “flying circus of Monty Python.”

Government representatives will participate, namely, on October 24 in London at the first British-Croatian Trade and Investment Forum, and Grčić said that this is part of the Government’s activities in the area of investments that the previous Government did not carry out.

The Government wants to present Croatia to the investment community with all the new components of the concept of attracting foreign investments, such as new laws on strategic investment projects and on encouraging investments or developing economic diplomacy, as Croatia’s image has not been great for foreign investors and it needs to be changed.

He emphasized that it is sad that a recent similar visit to Vienna, as well as a number of destinations already visited by the Agency for Investments and Competitiveness, remained out of the media’s reach.
The meeting in London is a result of the expressed interest of international financial institutions to hold a gathering at that higher level, and it will take place, Grčić said.

When asked whether it is true that the HNS is against part of the reform measures related to the abolition of incentives for purchasing the first property and whether this means that there are conflicts within the ruling coalition, Grčić said that there are no conflicts in the coalition and that all presented reform measures are subject to discussion.

Preparations for all announced reform measures are currently underway, and the Minister of Economy Ivan Vrdoljak, who is a member of the HNS, is also a member of the government team for these reforms, and I see no basis for things to worsen, Grčić stated.