Martina Dalić Reveals How to Achieve Economic Growth

To begin with, I would like to emphasize that the effects of the tax reform should be viewed as a whole and in the context of our main goal – stimulating growth, reducing unemployment, encouraging investment, and improving the standard of living. This reform brings tax relief and as a whole has positive effects on our main goal. When discussing the individual reforms contained in this reform, it is necessary not to extract those measures one by one, but to consider the entirety of all measures that affect a larger number of citizens and entrepreneurs. This is a joint project of the entire Government, said Deputy Prime Minister and Minister of Economy Martina Dalić while guesting on the show Direkt RTL Television.

In response to the remark that a more radical reform should have been pursued, especially regarding corporate tax, where experts say that this would completely eliminate tax evasion and achieve equal or greater revenues, Dalić reminds that the Croatian economy is exposed to a high tax burden.

– In the second week of this government, we have tax relief. But I remind you of the situation we are in – we still have public debt exceeding 85 percent, and we still have over 200,000 unemployed. Therefore, in the circumstances we live in, this reform represents a measure that we estimate will provide the strongest impetus in this first part of the mandate regarding what we have identified as the main goal.

The Minister of Economy explained what the Government still intends to do specifically to stimulate economic growth and what the priority is in the department she heads.

– The main instrument will be the relief of the economy – relief from tax costs, administrative barriers, complicated legal provisions, and burdens and costs that have been produced by the uncoordinated activities of different departments. When I speak about my department, it means that its activities will continue in that trend. Specifically, in the coming weeks we will put into procedure the law on public procurement which has the potential to bring numerous savings, we will continue with activities to reduce administrative barriers, and simplify legislation.

When it comes to privatization, Martina Dalić says that there will be no privatization of strategic infrastructures and resources, but that privatization is a welcome instrument in increasing business efficiency and market shares. She recalled the stance of Prime Minister Andrej Plenković and her colleague Minister Goran Marić on privatization, noting that “what we agree on is that all these processes must be carried out transparently and in accordance with procedures.”

When asked if this government is ready to lose elections for a better tomorrow, she simply said, “let us work, to achieve the goals we have set, and the Croatian citizens will certainly have the opportunity to say everything they think about it.”