This government's priorities are investment and economic growth, Finance Minister Slavko Linic said in a comment on the decision of the US-based credit rating agency Standard & Poor's to retain Croatia's long- and short-term foreign and local currency sovereign credit ratings at 'BBB-/A-3', with the outlook remaining negative.
It is evident that S&P has analysed the government's state budget and programme and that they believe that this government can cut spending, control the fiscal deficit, ensure compliance with the Fiscal Responsibility Act, and it can, through its own investments, step up the economic activity with the aim of reducing imports, Linic told reporters in Zagreb.
He regarded the confirmation of the negative outlook as S&P's assessment that the Croatian economy was in a tough situation.
Asked what the government had to do to deter a downgrade of the country's credit ratings in the future, the finance minister said that the government should ensure economic growth and launch an investment cycle.
In this context he cited the electricity sector, water management, railways and renewables as areas for new investment, adding that there would be no more investments in road construction.
As for the rating agency's warning of Croatia's labour market rigidities, Linic said that the Labour and Pension System Ministry was preparing two very important laws: on the representativeness of trade unions and on collective bargaining, which are likely to be included on parliament's agenda this month or the next.
