The leaders of the Social Democratic Party (SDP) and the Croatian People's Party (HNS), Zoran Milanovic and Radimir Cacic respectively, on Friday appealed to the government to withdraw its decision on the sale of shares of the Adriatic oil pipeline operator Janaf and the insurance company Croatia Osiguranje (CO), the proceeds of which would be used for the payment of this year's instalment of debt to pensioners, adding that the move was ill-advised and damaging to the state budget.
"What the government plans to do is just one form of patching up the gaping budget hole, so that they could say that for the first time in ten years there was no budget revision. That's dishonest and wrong, but what is most important is that it is harmful for Croatia. This is an appeal to the government, if it makes sense any more, an appeal to the HDZ, its president, and also to the public and the media to put a stop to it," Milanovic said at a press conference at SDP headquarters.
Milanovic said that the intention of the government and the ruling Croatian Democratic Union (HDZ) was to pit the pensioners against the opposition coalition, knowing that the opposition would strongly oppose such a decision. He said that this year's budget made no provision for the repayment of the next-to-last instalment of the government's debt to pensioners.
Milanovic said that the government decided to sell "significant portions of two big and important companies without a public debate and without the knowledge of key people in the HDZ," noting that the move came just months before elections.
The SDP leader particularly highlighted the strategic importance of Janaf, saying that it should be "cherished dearly". He called on the government and the HDZ to withdraw their decision, because otherwise the government stake in that company would fall below 75%, which he said would affect the management rights.
"Janaf is not a golden goose, it's a tiger. It's out of the question to sell it this way. We know what happens when something is sold rashly, when buyers know that you need money up front, it is sold at a lower price, under unregulated terms. We do not know who will be the manager when we fall under 75 per cent," Milanovic said.
Both he and Cacic said that the future government, which they are confident will be formed by the four-party opposition coalition, would continue repaying the debt to the pensioners. "The obligation of the future government is unquestionable, there are no doubts about debt repayment," Cacic said.
When asked if he knew who would buy Janaf's shares, Cacic replied: "If I were (Hungarian oil company) MOL, I would be the buyer." He said that Janaf remained the key instrument of the government for maintaining the market balance "in this sensitive situation with MOL," adding that the SDP and the HNS had opposed the privatisation of the INA oil company as designed and implemented by the HDZ and signed by the present Prime Minister Jadranka Kosor, who at that time served as Deputy Prime Minister.
Cacic accused the government of undermining the foundation on which Croatia should be building its energy policy.
When asked which important energy projects would be called into question if the government's decision was nevertheless implemented before elections, Milanovic and Cacic said that it would call into question strategic control, the strength of the Croatian state, its negotiating positions and competitiveness in energy supply, which they said was the precondition for the country's future.
