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Panenić: Cuts must be made, and we will see to what extent

Minister of Economy Tomislav Panenić stated on Tuesday, after a meeting where Prime Minister Tihomir Orešković and Finance Minister Zdravko Marić presented the basic guidelines of the state budget for 2016 to the ministers, that cuts in the budget must be made and emphasized that the leaders of public companies will be selected through public tenders.

“It is certain that cuts must be made. We need to see item by item, and there are certain items for me that are coming due from the previous government. We must also consider that, and then we will see to what extent cuts must be made,” said Panenić after the meeting in the Government.

It is definite that cuts come from restructuring, he asserted, adding that it will be seen how “the connection or reduction of the number of unnecessary agencies or those who can perform their activities within some other organization or agency will be implemented.”

In response to a journalist’s question about how the leaders of public companies will be appointed, Minister Panenić stated that the law is in force that they are employed through public tenders and that the law will be respected.

The previous government adopted a Regulation in October 2015 on the criteria for conducting public tenders for the appointment of presidents and members of the management boards of trading companies and other legal entities of strategic and special interest for the Republic of Croatia.

According to that regulation, headhunting agencies will select candidates whose professional and other work abilities best meet the needs of employers and submit a list of several best candidates to the State Office for Management of State Property (DUDDI).

Specialized agencies will receive applications, contact potential candidates through their own reference lists, evaluate them, and propose the best. The work plans of candidates will be evaluated by the relevant ministries and opinions sent to the Government’s Commission for the Management of Strategic Trading Companies.

The Government then emphasized that such solutions are in line with the National Reform Program and the recommendations of the European Commission for increasing transparency and accountability in public sector companies, especially regarding managerial responsibilities and competencies.