Economic recovery programme

PM expects first signs of economic recovery 'by year's end'

07.07.2010 u 12:54

Bionic
Reading

Prime Minister Jadranka Kosor has said that her cabinet was determined to implement the Economic Recovery Programme, complete the accession negotiations with the European Union and wage an uncompromising campaign against corruption.

In her interview during the national broadcaster (HTV) prime time news programme on Tuesday evening on the occasion of the first anniversary of her coming into office, PM Kosor said that first signs of the economic recovery could be expected in the second half of this year.

She said that the exports had increased eight percent with the imports on the decline, and reiterated her expectations of this tourist season.

Commenting on the bailout plan and needed sacrifices, Kosor said the implementation of each measure was met with resistance and she called on everybody to assume their part of the burden of the crisis.

Kosor warned that "deep changes" were necessary in the pension schemes system given that only 12 percent of pension recipients have went into retirement after the full length of service.

"(Pension) contributions ensure HRK 20 billion, and approximately HRK 16 billion will have to be additionally collected and we must start solving this problem," Kosor said.

In response to the anchorman's comment that in the first half of 2010, more than 70 percent of budget funds for this year had been spent, Kosor said that the situation was not dramatic, describing the state of affairs in the budget revenues as good.

"Everything is under control. Croatia continues to be attractive to investors," the premier said.

Commenting on a referendum which trade unions may call due to their dissatisfaction with the government-sponsored amendments to the labour legislation, Kosor said that "neither the government nor the trade unions" have any interest to see to it that budget funds be spent on this purpose and expressed conviction that her cabinet and union federations would agree on the matter.

She also said the "last 500-metre lap" in the marathon of Croatia's integration with the European Union would not be easy but Croatia would do everything on time.

Kosor said that everything which must be done to overhaul shipyards would be delicate and painful but she said that dialogue with workers and trade unions as well as with management of those shipyards was proceeding well.