ZAGREB, December 29, 2019 – The European Commission has warned Croatia that it has not eradicated corruption and that it should reform the system of public salaries, stimulate a longer working life and bring order in healthcare, Jutarnji List daily reports on Sunday.
Fighting corruption, notably locally and in public companies, reforming the public pay system, reducing healthcare budget risks, stimulating a longer working life and improving the welfare system are the main reform measures totally lacking in Croatia, the Commission says in its annual review of progress made in public policy measures to correct macroeconomic imbalances, the daily reports.
The review was made at the end of November and covers the period until November 5.
Aside from those measures, the Commission demands Croatia intensify efforts in reforms which are at a standstill, stagnating or not being implemented energetically enough, such as strengthening fiscal responsibility, modernising public administration, improving the state assets management, privatising state assets, reforming regulated professions, reducing parafiscal levies and reducing case backlogs.
As for reforms that are being implemented at an adequate pace, the Commission mentions the education reform and the regulatory reform.
As a result of the reform shortcomings, the biggest problems of the Croatian economy, despite the measures undertaken on the labour market, are a low active population rate and low productivity growth.
In the 2015-17 period, Croatia grew above the potential growth and since then the economy has grown somewhat in line with its capacity, with GDP in 2019 reaching the level of 2008, Jutarnji says, adding that unless the necessary reforms are launched, the economy will grow below its potential as of 2021.
More news about corruption issues can be found in the Politics section.
