At its first working meeting on Tuesday, the new Croatian government completed preparations for the first government session to be held most likely on Thursday. Finance Minister Slavko Linic said the government had agreed on an outline of next year's budget envisaging cuts in public spending.
"Spending will be reduced, and whether it will be reduced by five or nine billion kuna remains to be seen," Linic told reporters after the meeting, confirming that changes would be made to the VAT system. He would not comment on reports that the VAT rate would be increased from 23 to 25 percent.
Deputy Prime Minister and Economy Minister Radimir Cacic told reporters before the government meeting that the budget and reforms could not wait, underlining the importance of projects which the government must implement in order to stop what he called "free fall".
Veterans Minister Predrag Matic said the national war veterans register would be made public. "That is certain, but preparations will be thorough. Real veterans have nothing to be afraid of," said Matic.
