The government is trying to bring more order into and enlarge the space of freedom in the economy, by making some things more flexible on the one hand and on the other by introducing strict rules where it is necessary such as tax discipline, Prime Minister Zoran Milanovic said addressing the Entrepreneurs' Day, which was organised in Zagreb on Wednesday by the Croatian Employers' Association (HUP).
In response to business people's claims that an anti-entrepreneurial sentiment existed in Croatia, Milanovic said that his cabinet would not be merciless but it would be strict and principled when it came to tax obligations. He recalled that his government had already reduced some tax rates and levies so as to make it possible for entrepreneurs "to catch their breath".
"Some say that entrepreneurs are bearing the brunt of the crisis, some say that people working in the public sector are equally important. We will retain Croatia's social model, but everything must be earned and that goes for collective agreements and trade union rights as well. Therefore we will have to be prudent in conducting negotiations on collective bargaining in the public sector," the premier said.
He recalled that the most successful European countries such as Sweden, Norway or Finland had rich and generous social welfare systems but that the basis of those systems was a competitive, often merciless and innovative entrepreneurship.
With a population of 4.3 million, Croatia must be open, its market is not self-sufficient. We are joining the European Union which offers chances to those who know how to use them, Milanovic said.
In order to retain the current living standards, the Croatians will have to work more and better, and in order to avoid "the trap of a middle-income country", we will have to work not only much more, but more cleverly, he told the conference's participants.
HUP president Ivan Ergovic warned about "a dramatically anti-entrepreneurial climate" in which an impression had been created that most employers were irresponsible and ill-intended, although in the past five years the private sector had been carrying the burden of the crisis.
We cannot agree with anti-entrepreneurial rhetoric and repressive measures that will further deteriorate the already poor entrepreneurial and investment climate, Ergovic said.
President Ivo Josipovic said that the anti-entrepreneurial sentiment was on the rise in times of crisis, when people burdened by problems tried to blame the crisis on somebody.
According to Josipovic, in 15 developed European countries, some 29 percent of Gross Domestic Product was spent on the public sector, while Croatia set aside 20% for that purpose, which showed that Croatia did not invest too much in healthcare, education and other social activities.
