Plenković: ”Economic Data is Encouraging, Government will Continue with Reforms”

Lauren Simmonds

Updated on:

The PM is happy with the current economic trend and deems the figures to be encouraging.

As Poslovni Dnevnik writes on the 4th of January, 2018, Andrej Plenković has stated that the consolidated general government budget for 2017 ended in a surplus, saying it was better than the estimates given on budget revisions just a few weeks ago.

At the beginning of Thursday’s session of the government, Plenković reviewed macroeconomic data, considering it to be encouraging and confirming the fact that the government is set to continue this year with reform processes.

When referring to last year’s consolidated general government budget ending in a surplus, Plenkovic pointed out that this was a very good message for both the government and for the state, thanks to more favourable overall economic circumstances, the positive effects of tax reform, an excellent tourist season, a rational approach to public finances and smart fiscal consolidation.

In appreciation of this positive news, Plenković made sure to add that he was in favour of continuing Croatia’s ambitions when it comes to fulfilling the criteria for entering the Eurozone and introducing the euro as the country’s official currency.

He stated that if things continue on this way, then it can be estimated that public debt in GDP will now be at about 78 percent, which means that the government could meet its targets by the end of the decade, more specifically before the end of this government’s mandate.

He stated that, according to data from the Ministry of Finance, almost 9 billion kuna in interest came from within the general government budget.

“Imagine if we didn’t have these interest rates, what would the surplus be, we’d solve all our debts in healthcare and so much so that we wouldn’t even feel it. This is very good data, which is stimulating and owing to these indicators, we must continue on with our activities,” he stated.

Along with other positive things such as an increase in wages, Plenković stated that with tax reforms, entrepreneurs and other citizens were relieved of an approximate 2.5 billion kuna burden.

Reflecting on the 13.5 billion kuna in spending during the festive season, he noted that this is a clear indication that people are getting higher salaries, “and when you have higher salaries, there is higher spending”.

“Of course it’s good that our employment rate is growing – we’re now at 61 percent, we need to reach our target of 68 percent employment from our program,” he said. He also reported a low unemployment rate of 11.6 percent, saying that this was all very encouraging data and expressing the conviction that active employment measures would lead to additional positive results.

“These results encourage us to continue on with reform processes,” concluded the PM.


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