Commenting on an analysis of last year's business results in 23 public companies which show that revenue is declining and losses are growing, Hajdas Doncic assessed that for years now there has been no investment into development but social peace was bought and jobs were kept artificially.

The main task for new management is to speed up the process of restructuring in cooperation with social partners and achieve competitive companies which will be profit makers and not losers.

Hajdas Doncic added that the government was obliged to respect European rules concerning subsidies and so restructuring processes would require approval from the European Commission.

He underscored that as far as EU funding was concerned, the major part of funding for Croatia was being offered for the railway infrastructure. HZ has a historical opportunity as of 1 July to become part of the Pan-European corridor Xa (Mediterranean corridor) and Vb (Baltic-Adriatic) to reconstruct its railway with EU grants for up to 85% of the investment value.

Paper work for the Rijeka - Hungary railway is being prepared for an investment estimated to be worth EUR 2.1 billion.

The Head of the Croatian Competition Agency (AZTN), Olgica Spevec, explained that all projects to be financed from EU funds have to adapt to rules for government subsidies so that Croatia would not have to, as some other countries did, return these funds. Croatia has to reform its subsidies programme as its structure is one of the worst in Europe, she said in which selective and sector support exists but due to inefficiency it is abandoned by everyone else, she said.