Employers and Business Leaders Expect Urgent Reforms from New Government

Total Croatia News

They claim that reforms will enable stronger and longer-term economic growth.

Croatian Employers Association (HUP) congratulated the new government and announced that it expected the ministers to promptly move to implement reforms that will enable a stronger and longer-term economic growth, reports tportal.hr on October 19, 2016.

HUP said that they had already highlighted the priorities whose implementation should begin immediately in the first year of the term. These are fiscal consolidation, reform of the public administration system and the judiciary, elimination of administrative barriers and other burdens on the economy, increasing the efficiency of state-owned companies, and modernization of the education system.

Current economic growth is positive, but weak and largely dependent on external circumstances, according to HUP. They add that the reforms are easier to implement in a situation like this when the economy and optimism are growing. “After the private sector for the most part completed restructuring during the crisis, which has resulted in companies managing to maintain and improve their competitiveness and exploit the opportunities that were brought by the recovery of exports and the domestic market, now the turn is on the public sector. Without reforms of the public sector, which include the reform of the education, health and justice system, the government will not be able to meet its economic targets. In the present circumstances and without necessary changes, growth cannot be higher or longer-term. In the interest of all Croatian citizens, not just the employers, the government should create favourable business conditions and improve the investment climate”, said CEO of the Croatian Employers Association Davor Majetić.

The Croatian Employers Association also called on Andrej Plenković and members of his government to improve social dialogue which has been significantly weakened during the last two governments.

“The proposed government programme contains defined strategic goals, but now it is important not to fall behind in implementation. Andrej Plenković as the Prime Minister has a unique opportunity to implement effective policies since he has the support of a wide range of political parties”, said Luka Burilović, president of the Croatian Chamber of Economy (HGK).

He added that it was necessary to urgently implement reforms of the tax system. It is also needed to create a public administration system that will help and not punish entrepreneurs. In addition, Croatia needs to make better use of EU funds, and entrepreneurs need to have better financing conditions. “Despite GDP growth, the government has to act as if it were still in ‘crisis’ and redirect the growth towards the real sector. The Croatian Chamber of Economy will be a strategic partner to the government”, said Burilović.


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