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Maletić: Structural reforms need to be implemented urgently and at the cost of temporary ‘decline and impoverishment’

Croatian MEP Ivana Maletić reflected on the European Commission’s Report on the economic and social situation in EU member states on Thursday, which assesses that structural reforms in Croatia have not progressed and called for their urgent implementation, even at the cost of temporary ‘decline and impoverishment’ in order to ultimately achieve more lasting positive results for the state and its citizens.

Maletić emphasizes that without the implementation of reforms over time, society becomes impoverished and supports the continuous regression of the economy, and the use of EU funds, without reforms, only postpones the inevitable decline and impoverishment.

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With the implementation of reforms, there is initially a decline in development and wealth; however, after a few years, a turnaround follows, and the state emerges from difficulties and begins to grow, bringing significant social prosperity and a leap in the wealth of the people, notes Maletić in her analysis.

The Commission assessed that Croatia has made limited progress in implementing the recommendations from 2017, but that structural reforms have not progressed, notes Maletić and warns of the reforms that need to be implemented.

Maletić states that the European Commission, since Croatia’s entry into the monitoring process through the European Semester in 2014, has noted that recommendations are not being implemented and that the realization of reforms established in the National Program is lacking. It is essential to immediately start with the reform of public administration, which means defining business procedures and processes, reorganizing by eliminating overlaps, quality distribution of work, and establishing clear divisions of rights and responsibilities. Only on these foundations can an objective and motivating system of rewarding officials be introduced.

Restructuring public enterprises and managing state property is another reform that cannot wait. In addition, introducing criteria for monitoring the performance and comparison of local units in work and advancement are key elements for increasing efficiency and accelerating the work of local levels.

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Judicial reform, speeding up and resolving unresolved issues, digital connectivity, ensuring uniform practice, education of judges and judicial officials, and rationalizing the court network are crucial not only for creating a favorable business environment but also for combating corruption and advancing society as a whole.

Without modernizing the education, science, research, and development system, survival is impossible in the medium term. A complete adjustment to the needs of employers is necessary, along with the simultaneous development of technologically advanced industries, innovative small and medium-sized enterprises, and the digitalization of business so that the jobs for which young people are educated are of high quality and well-paid, states Maletić in a statement.

Putting uncultivated land into use, irrigation, and strong administrative and financial support for the development of agriculture through family farms is one of the most important tasks because there is no developed economy without every part of the land being cultivated.

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Alongside all this, the organization and reorganization of the health system, pension system, social benefits, and building a flexible labor market in which quick job finding is ensured remain significant challenges that need urgent responses.

Croatia has a lot of work ahead. Reforms are not simple, but we must bravely and decisively pass through the ‘valley of political death,’ which, thanks to EU funds and quality investments, can be significantly reduced, and the process of generating strong growth that will be felt in improving the quality of life for all people in Croatia can be accelerated.

Without the implementation of reforms over time, society becomes impoverished and supports the continuous regression of the economy. The use of EU funds, if reforms are not implemented, only postpones or slows down the inevitable decline and impoverishment.

With the implementation of reforms, there is initially a decline in development and wealth; however, after a few years, a turnaround follows, and the state emerges from difficulties and begins to grow, bringing significant social prosperity and a leap in the wealth of the people.

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Thanks to the use of EU funds and the implementation of quality investments, the time of decline and impoverishment, referred to as the ‘Valley of Political Death,’ is shortened, and reforms quickly begin to yield results visible in the daily lives of citizens.

“We must change, modernize, follow trends, fully simplify administration, remove all obstacles for entrepreneurs, prioritize producers, innovators, exporters, and thus, together, reverse the trend of continuous lagging behind in rapidly catching up with and surpassing other countries. Only this is the way to ensure our people stay in Croatia and attract talent from other countries,” concludes Maletić (HDZ/EPP) in a statement regarding the European Commission’s report.