APRIL 19 2010 15:58h
The number of employees in the administration and the public enterprises will be reduced by five percent by the end of the year.
Prime Minister Jadranka Kosor presented the measures for the recovery of the economy at a news conference organized after the meeting with coalition partners.
Four percent crisis tax, which was added to a net salary that amounts to more than 6000 kuna, will be abolished November 1. Instead of the previous four income tax rates of 15, 25, 35 and 45 percent, the government is introducing three tax rates of 12, 25, and 40 percent.
The number of employees in the administration and the number of employees in state-owned companies will be reduced by five percent. A separation of ancillary activities such as catering and maintenance will also be made, as will reduction of agencies and institutes.
Prime Minister said that it is untenable that employees in some divisions have a higher salary than a minister or prime minister, but she did not disclose the names of specific offices. She also remarked that she would seek ministerial responsibility for the implementation of the program.
Starting from Jaqnuary 1 deadline for payments is reduced from 60 to 45 days, and HUP is recommended to regularly publish a list of businesses with the largest debts accrued.
Darinko Kosor announced cuts of the privileged pensions
After meeting with other members of the ruling coalition the leader of the HSLS party Darinko Kosor said that the government will start cutting privileged pensions.
- The government has accepted more than 80 percent of what we proposed and privileged pensions are a part of it. Prime Minister will say more about it - said Kosor after leaving the meeting, adding that these measures were very liberal.
HSS president Josip Friscic said that the final decision on the government's package will be made after he consults his party.
This was the first meeting of the government coalition in more than two months.
The coalition partners did not talk about Josipovic’s speech
The last time the Prime Minister met the leaders of coalition partners was on February 11 when they discussed measures that would help economic and constitutional reforms.
Rumors on topics discussed by the coalition partners included the publication of the Register of Croatian Veterans and the speech that the President Josipovic made before the parliament of Bosnia and Herzegovina. However, Darinko Kosor says that coalition partners did not mention President Josipovic or his speech.