PM says refom package will bring better future to all citizens

Prime Minister Tihomir Oreskovic said on Friday that over the past three months, namely during the first 100 days in office, the government got organised, it adopted a realistic budget and a quality reform package which would bring a better future for all citizens.

"Great changes are ahead of us and we must keep our promise," the prime minister told Croatian Television.

He said the appointment of government members lasted a little longer than expected, but that they managed to define a realistic plan -- a 2% GDP growth, a deficit of less than 3%, and an employment growth.

The government wants to reduce debt by 100 million euros in a month, Oreskovic said, adding that 2016 would be the first year to record a reduction of the public debt.

"The announcement of a debt reduction is a message that rating agencies will see as a positive signal and a true indicator that the things are moving forward and that the country's credit rating could improve in six months," the PM said.

Given that the government planned to reduce the public debt by selling its share in some companies, Oreskovic was asked which state-owned companies the government planned to sell. He responded that the government had not yet defined which companies would be sold, adding that first his cabinet needed to see which companies were of strategic importance.

Asked about the introduction of property taxes, Oreskovic said property taxes would be introduced in two phases. In the first phase, municipal fees would be replaced by taxes and citizens will not feel the change, he said. In the second phase the value of property will be taken into account, as will the number of properties a person owns, Oreskovic stressed. He said the plan was to implement this reform in 2020.

Oreskovic also said Croatia had EUR 10.7 billion available from EU funds.

Asked if he was satisfied with cooperation between the Croatian Democratic Union (HDZ) and the Bridge party, Oreskovic said this was a new team and a coalition and that in the first three months they got to know each other a little better. He also said there were some differences in opinion, adding however that all of this was normal.

Commenting on his meeting with Turkish President Tayyip Erdogan who visited Croatia earlier this week, Oreskovic said Croatia and Turkey had good relations which would only grow stronger, adding that Turkish investors were interested in tourism, agriculture, infrastructure and marinas.

Last update: Tue, 28/06/2016 - 17:51

More from Croatia

Plenkovic: It's time to deal with the past

Prime Minister Andrej Plenkovic said on Thursday that, by attending in Slovenia earlier today the burial of victims...

Croatian PM going to Bosnia with messages of support

Croatian Prime Minister Andrej Plenkovic said on Thursday he would give two key messages during his visit to Bosnia...

FinMin says tax reform effect in 1st year up to HRK 2b

The effect of the draft tax reform in the first year will range from HRK 1.9 billion to 2 billion but the lower...

PM sees tax reform as one of most important in this gov't term

Prime Minister Andrej Plenkovic said at the government session on Thursday that tax reform was of the the most...

PM: Coming to terms with past important for democratisation

Croatia's Prime Minister Andrej Plenkovic has said that his cabinet deems that coming to terms with the legacy of...