The World Bank expects the Croatian government to secure macroeconomic stability of the country through fiscal consolidation, primarily when it comes to spending, the newly-appointed World Bank Country Director for Central Europe and the Baltic Countries, Mamta Murthi said.
Fiscal consolidation needs to be based on slashing public spending, said Murthi, expressing confidence the government would do this soon, regardless of Prime Minister Zoran Milanovic's statement that Croatia was done with cuts.
I am encouraged by Finance Minister Slavko Linic's announcement that fiscal consolidation would be carried out through a budget revision which will be unveiled in parliament in mid or late March, said Murthi who is on her first visit to Croatia since her appointment on 1 February.
Macroeconomic and fiscal stability will signal markets that the government means serious business, but efforts also need to be invested in increasing competitiveness of Croatia's economy, implementing structural reforms and making the most of the forthcoming EU membership. The World Bank will continue to assist the Government’s efforts along the path to economic recovery and help the authorities maximize the benefits of EU membership, Murthi said.
During her two-day visit to Croatia Murthi, who succeeded Peter Harrold as World Bank country director for central Europe and the Baltic countries, also held talks with President Ivo Josipovic, several ministers and Croatian National Bank Governor Boris Vujcic.
