Unionists VS. Gov't

Unionists criticises Law on Fiscal Responsibility

27.08.2012 u 13:52

Bionic
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The Association of Croatian Trade Union (MHS) will most probably send a request to the Constitutional Court asking it to give its opinion about whether the Law on Fiscal Responsibility which obliges the government to cut public spending, was in accordance with the Constitution and why the education, health, science and other public services had to suffer the most, MHS president Vilim Ribic said on Monday.

The Law on Fiscal Responsibility is an anti-people law because citizens will suffer the consequences of the cuts made in public services, Ribic said criticising the austerity policy which in his opinion was leading Croatia and Europe in an even deeper recession.

The Croatian government, former and incumbent, accepted the austerity policy without any criticism, although such policy is not producing good results anywhere, Ribic said. He accused Prime Minister Zoran Milanovic, Economy Minister Radimir Cacic and Finance Minister Slavko Linic of trying to be "bigger Catholics than the pope" and that they were ignoring the World Bank's warning that it is not critical to reduce public spending, bit to increase its efficiency, Ribic said.

Under the guidelines provided by the financial circles, in the next three years Croatia should reduce the public spending from 42 percent of Gross Domestic Product to 37 percent of GDP, Ribic said adding that this policy was only in the interest of capital, which prefers reduction of taxes, while investments in the education and health sectors would be reduced.

According to the Eurostat, Croatia has one of the smallest public spending rates in Europe, Ribic said.