‘Three billion kuna deficit must be reduced’

Published on 11 December 2013 at 12:22

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The European Commission is proposing, pending approval by the European Council, to initiate an excessive deficit procedure against Croatia, and has ordered the government in Zagreb to present an austerity programme on April 30, 2014, to rein in spending by €390m.

Croatia’s economic situation is the subject of multiple worries in Brussels: the public spending deficit has reached 6 per cent of GDP (twice the 3 per cent limit stipulated by Eurozone criteria) and the national debt is touching on 60 per cent of GDP. Exports and investment are in decline, while unemployment is increasing, points out Večernji list.
For the daily —

… the government must immediately restore order in public finances and implement reforms that it has put off for too long, which this time should be under supervision from the EU. [To this end], the Commission has apparently suggested cutting wages, welfare benefits and subsidies, along with tighter tax controls.

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