Poor investment climate

Employers say Finance Minister stirring up anti-entrepreneurial climate

30.11.2012 u 21:38

Bionic
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The Croatian Employers' Association (HUP) is disappointed with the latest statements by Finance Minister Slavko Linic and his reactions to opinions given by employers concerning the business environment and forecasts for next year, and consider that his statements will stir up an anti-entrepreneurial climate. Employers do not see that the government will be able to successfully propel investments.

"No matter how difficult it may be for Minister Linic to hear this, it is a fact that despite the government's good intentions, it has not managed to improve employment opportunities which is the only way out of the deep crisis which we are faced with", HUP believes, adding that both domestic and foreign analysts confirmed this, as did the Croatian National Bank, rating agencies, unions, citizens and employers.

Employers do not see why Mr. Linic is attacking the HUP and real sector just because they expressed what everyone else can see.

In their comments on Linic's statements HUP says that the "finance minister should not be making such statements that only contribute to an anti-entrepreneurial atmosphere because without entrepreneurs there is no real sector and without a real sector the budget that finances the country cannot be filled".

The statement goes on to say that it is the lack of investments, both domestic and foreign, resulting from the poor investment climate, that experts are pointing out. The Minister's statements are further hampering investments and his job in fact should be to attract them.

"Passing the buck to businessmen and the real sector for the economic situation is a sign of his nervousness because of the criticism being thrown at him for his legislative and budget proposals", HUP says.

HUP pointed out that they criticised any poor move by any government if they did not go in favour of employers, entrepreneurs or general economic progress and will continue to do so and offer their opinion on how to resolve difficult problems.

The finance minister said earlier in the day that the negative growth of 1.9% in the third quarter of 2012 compared to Q3 2011 was dangerous and that the real sector was to be held responsible for this decline in the country's GDP because they lacked vision and did not have their own projects but sat in waiting for state-launched investments.

Linic believes the real sector missed its chance created by the government through the reduction of taxes and other levies as well as by making liquid funding from banks available to the real sector.