Deranja: We expect the state to restructure and to lift the burden off our backs

The President of the Croatian Employers’ Association (HUP), Gordana Deranja, is not satisfied with the latest European Commission (EC) estimates of Croatian economic growth, warning that such low rates indicate long-term stagnation and calling for efforts to push that growth “towards 3 percent.”

The European Commission on Thursday raised its estimate of Croatian economic growth for this year to 1.1 percent compared to the forecasts from May when it expected growth of 0.3 percent, but called for the implementation of structural reforms to stop the rise in public debt. According to the Commission’s estimates, next year, the growth of gross domestic product (GDP) should accelerate to 1.4 percent, and in 2017 to 1.7 percent. Commenting on the latest EC estimates, Deranja stated after a roundtable on strategic industries from the document “HUP’s 16 questions” directed at political parties, that she is not satisfied with the projected growth rates.

– Naturally, I am not satisfied with 1.2 and 1.7 percent, which is why we point out economic problems and why we pose these 16 questions. This is growth that means long-term stagnation, as there is no employment or better competitiveness accompanying it. We all must make every effort to ensure that this growth is as high as possible, to move towards three percent, Deranja emphasized.

The Commission also estimated that the budget deficit should decrease from last year’s 5.6 percent of GDP to 4.9 percent this year, and to 4.7 percent next year, and to 4.1 percent in 2017. Public debt, according to the EC’s estimates, is expected to rise to 89.2 percent of GDP by the end of this year, could reach 91.7 percent next year, and 92.9 percent of GDP in 2017. In response to journalists’ questions about these estimates, Deranja highlighted that they posed questions to the parties regarding the deficit and fiscal policy.

– We expected the parties to say how they plan to address this problem. Structural reforms are needed for that, which will not be resolved in the first year of the mandate, but let’s see if we will finally change the direction we have been heading for 20 years or if we will continue to stagnate, Deranja said.

She emphasized that HUP wanted to see what the future government finally intends to do to change the legacy.

– We expected concrete answers and political positions, and you saw what happened. It all comes down to them using the space to conduct their campaign, Deranja stated after the roundtable.

She also said that one percent growth is stagnation and reminded that the real sector has already restructured, that it is investing to remain competitive, and that industrial production is growing.

– What the real sector has done, we now expect the same from the state – to restructure, to lift the burden off our backs so that we can breathe easier with reduced levies and contributions, concluded Deranja.