Here is how public debt, unemployment will be reduced and public administration reformed

Prime Minister Tihomir Orešković, while presenting the Reform Action Program, stated that the key problem is public debt, which must begin to be addressed this month. During this period, a reduction of debt by 100 to 200 million euros is planned. In July, three rating agencies will provide a new assessment for Croatia…

While presenting the Reform Action Program, Prime Minister Tihomir Orešković conveyed to all citizens of Croatia that ‘we have a problem’. Without reforms, he said, we cannot move forward, and the Government of the Patriotic Coalition and Most has devised 60 reforms after nearly 100 days.

– A crucial moment for Croatia and a clear message for foreign investors, Croatia will implement these reforms, Prime Minister Orešković stated, responding that the Government is functioning well, and the proof is the reform program that all members have agreed upon.

– Our key problem is public debt, which must begin to be addressed this month. During this period, a reduction of debt by 100 to 200 million euros is planned. In July, three rating agencies will provide a new assessment for Croatia, and if the debt is reduced by 100 to 200 million euros, the agencies will change our negative outlook to positive, said Orešković, adding that this means cheaper loans and lower interest rates for Croatian citizens and entrepreneurs.

But all of them are waiting for results that will be their first positive signal, the Prime Minister is optimistic.

When asked which companies would be sold to reduce this debt, Prime Minister Orešković did not want to answer.
Public debt is planned to be reduced to 80 percent of GDP by 2019. Unemployment is planned to be reduced to 13 percent, especially thanks to new investments. In addition, he said, better management of state assets and all public companies is planned, particularly referring to HAC, whose debt of four billion euros has already begun to be refinanced.

Changes will also occur in the healthcare system, in addition to the announced ones, hospitals will be connected, thereby increasing efficiency. The pension system, he is categorical, is unsustainable and changes are necessary. But they are just happening because we must also think about those who will retire in 50 years. Social reform means only, said the Prime Minister, the introduction of a property census.

The reform of public administration represents the rationalization of operations; everyone working in public administration will know what they are doing and what their goal is, salaries will be fairer, according to competencies. The land registry and cadastre will be merged into one institution, and a new law on tax incentives for research and development will be introduced, which we have unjustly neglected.

Changes will also occur in the education sector, young people will be educated for the labor market, and funds for retraining the unemployed will be increased according to the needs of the labor market.

Orešković also announced a property tax starting in 2018 and other innovations that will crystallize in the future in the form of new laws.

– When the time comes, we will present everything and open a public discussion, said Orešković, expressing hope that the partners in the Government will agree on all the new proposals. 240 laws will be changed, added Orešković, concluding that the Government is facing ‘team building’ and responsibility for all these reforms.