HGK: The New Government’s Work Program Finally Acknowledges the Voice of the Economy

The Croatian Chamber of Economy (HGK) assessed on Wednesday that the new Government’s work program finally fully acknowledges the voice of the economy and contains precisely defined goals, noting that it is now crucial that implementation does not fall short. On Wednesday, the mandate holder Andrej Plenković presented the program and composition of the 14th Government, for which he sought the confidence of the Croatian Parliament.

– The presented program finally fully acknowledges the voice of the economy. Strategic goals are precisely defined, but now it is crucial that implementation does not fall short, which has been a scenario seen many times before, said the president of HGK Luka Burilović, commenting on the economic program of the new Government.

He also notes that Andrej Plenković, as Prime Minister, will have a unique opportunity to implement effective policies, given that he has support from opposing political positions. Burilović emphasized that “urgent tax system reforms are needed, primarily high taxes and contributions on wages, which are a burden on the economy and negatively affect the labor market, accelerating the emigration of the population.” This, as he warned, is a negative domino effect that leads to a shortage of labor on the domestic market, which in the long term leads to the collapse of the entire economy.

Burilović also believes that a state administration is needed that will be more of a help to entrepreneurs and less of a policeman, as Croatia must better utilize EU funds, and ensure more favorable and accessible financing conditions for entrepreneurs.

– Despite GDP growth, the state must behave as if it is still in a ‘crisis’ and redirect that growth towards the real sector, which ultimately produced it, emphasized Burilović.

He also stated that HGK will, as before, be a strategic partner in the preparation of the Government’s economic policies, but also a corrective if needed.

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In the program presented by mandate holder Andrej Plenković in Parliament, four fundamental goals of the Government by 2020 are stated: achieving stable and lasting economic growth, creating new and quality jobs, stopping emigration and demographic renewal, and social justice and solidarity.

It is also emphasized that the next 12 months are crucial for initiating changes and the developmental leap that Croatia needs, and five pillars on which the Government will particularly work towards the development of entrepreneurship are mentioned. These five pillars are comprehensive tax reform and easing business conditions for entrepreneurs and investors, specific measures through which the Government will invest in growth generators, including agriculture, tourism, and industry, primarily export-oriented; implementation of measures aimed at increasing the efficiency of institutions, which includes simplifying rules and speeding up the work of administration and courts, digitization of all processes, e-services, etc.; continuation of strengthening the sustainability of public finances and reform of the education system.