Economy Minister Radimir Cacic has compared the state of the Croatian economy to an organism affected by gangrene, diabetes or cancer, saying this condition and the need for "painful cuts" can no longer be ignored.
He was asked by the press on Tuesday to comment on a newly-discovered debt of the Brodosplit shipyard in the amount of HRK 370 million (approx. 49.3 million euros).
Asked if this debt would significantly affect state finances, Cacic said the impact would be felt but not significantly given its relatively small share in the budget, which he said was more than 300 times higher.
He said the debt was incurred in the past two years, when all processes in the dock had been stopped, adding that the incumbent government and Economy Ministry had re-launched the processes in the shortest time possible and that the government was about to adopt a decision on the signing of a contract for Brodosplit.
Cacic said the damage in Brodosplit was much higher than HRK 370 million and that it would be paid by Croatian citizens.
Asked to comment on the five per cent year-on-year rise in inflation in September, the highest increase since 2008, he said this was more or less predictable and that the reason was the rise in energy and food prices.
Cacic said he expected inflation to slowly slow down in the period ahead, falling within the government's predictions and not exceeding the negative record of 2008.
The government does not forecast further price hikes, except in heating, which will affect 120,000 families in Croatia, he said, adding that he expected inflation to stagnate in the coming months in energy and food as well.
