The Croatian Employers' Association (HUP) believes that in the first year of its term the government has failed to improve business conditions in the country and to get the economy going again, despite its good intentions and some of its good moves.
"We believe that the government has good intentions. They have avoided a downgrade of the country's credit rating, certain progress has been made in consolidating and stabilising public finances, and the government has also shown good will in reducing the tax burden, which is among the highest in the world," the HUP said on Wednesday.
The HUP said that although partial moves made by the government were heading in the right direction, they had failed to improve the business environment and economic trends. What's more, the revision of the 2012 budget showed that the overall tax burden had increased this year despite announcements made by the government at the beginning of the year and numerous appeals made by employers.
Employers are seriously concerned about the fact that the 2013 budget plans an increase in tax revenues from the business sector. They consider this to be untenable.
They warn that the government has failed to launch reforms that would result in a reduction of private-sector business costs and has failed to improve the efficiency and accountability of state administration and the public sector.
HUP believes that Croatia needs a development strategy focusing on economic and industrial policies, the restructuring of the public and state sector, territorial reorganisation of the country and the redefining of local government units.
"We must dynamise the labour, capital and know-how markets and convert the anti-entrepreneurial climate into a strong entrepreneurial one," the HUP said.
