Prime Minister Zoran Milanovic said on Sunday the downgrade of Croatia's credit rating was no reason for panic but a reason to think about decisions and that for now Croatia did not need the help of the International Monetary Fund.
Asked by reporters in Koprivnica if he was thinking about a government reshuffle in the wake of media reports that the ministers were inert, Milanovic said they were not and that he would not replace them.
"No euphoria, I said, but no panic either. If the minister of maritime affairs, transport and infrastructure is working on the restructuring of entire mega-systems, if the finance minister is indeed putting things in order, which nobody can deny and which is why he is stepping on many toes because they grew up in disorder... then replacing them is furthest from my mind. I will encourage them even more," said the PM.
"I believe in a recovery in 2013, I believe in some growth. Everything depends on us, not on rating agencies, not on the unions, not on Belgrade or Budapest, but on us. The government has the biggest responsibility. The Croatian National Bank can do something but its maneuvering space is very little."
As for the IMF, Milanovic said, "It can come only if we call it. At this moment we think it's not necessary and that we can manage alone. But perhaps this isn't bad as a warning to some in Croatia as to what the situation is really like. It is extremely difficult. It's not a state of panic or disaster but it is an emergency."
"We have to restore growth, as only growth guarantees work. A bigger problem than unemployment is low employment. We have 350,000 citizens on the dole, of which 250,000 are actually looking for a job, but neither is a crucial category. What's crucial is that less than 1.5 million people work," the PM said.
