Croatia faces corrective action, says EC Vice-President

Croatia may be the first European Union member state to fall within the corrective measures as part of the mechanism defined to remedy excessive macroeconomic imbalances, given that Zagreb has made progress only in one out of six areas covered by the European Commission's recommendations, European Commission Vice-President for the Euro and Social Dialogue Valdis Dombrovskis said in Zagreb on Friday.

Addressing a news conference after his talks with Prime Minister Tihomir Oreskovic, Dombrovskis said that in 2015, macroeconomic imbalances had been established in Croatia and the Commission recommended reforms in the six areas, including the labour market, the pensions system, fiscal consumption and so on.

On Friday afternoon, the Commission is expected to publish a report on economic and social challenges in the EU member states, encompassing the findings of in-depth reviews in 18 countries, including Croatia.

Significant progress has been made by Croatia only in tackling the issue of insolvency of businesses, the visiting European Commissioner said in Zagreb, adding that Brussels would make a decision regarding this issue in the coming weeks.

Oreskovic told the news conference that the situation was serious and that Croatia had failed to use the last four years to implement necessary reforms.

That's why the government will focus on the areas so as to reach the targets for the reduction of the budget deficit and for halting public debt growth, said Oreskovic, whose cabinet took office in late January.

Last update: Fri, 26/02/2016 - 15:22

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