PM Sanader: We Will Not Touch Salaries or Pensions

A budget rebalance has been arranged, the final decision will be after the first quarter. Who wants to can change pension funds.

ZAGREB, CROATIA - After a meeting between the Cabinet and Economic Committee, they voiced their conclusions at a press conference. The agreed on some proposals which will be considered during the next 14 days, after which the cabinet will bring a final plan of actions.

Everyone agreed that a rebalance of the budget will take place, but that will not occur immediately, but the final decision will be brought after the exact economic signs and statistical data from the first quarter.

“The only thing that we did not agree on is the timeframe for the budget rebalance, but dates are not important at this point. The final decision will be made after statistical data in the first quarter” said the Croatian premier Ivo Sanader.

The vice-president of the Croatian Cabinet, Damir Polancec, announced the possibility of returning from the second pension fund scheme into the first, for those people that want to, and in accordance to that proposal changes will be made to the law. As the vice-president of the cabinet said, it is not a return to the old state, but only changing parts of the reform, which after analysis proved to be a failure.

The cabinet called public companies and ministries for additional savings and cost cutting, regardless of when the budget rebalance will occur, and advised savings to bodies of the local government. The premier called upon the citizens for disciplined behaviour and savings, and said that he will not touch salaries, pensions or social payments, and the ministry of the economy Damir Polancec said that the state still must take loans from abroad to cover the budget deficit.

The packet of measures encompasses support to small and medium businesses, considering that they are the most resistant parts of the Croatian economy, which should include local governments, and a key role in the subventions should be done by the Croatian bank for renewal and development (HBOR). He also stressed that import products should be controlled more intensively to promote the use of local products.

Premier Sanader did not forget to mention that Croatia’s entry into NATO will significantly contribute to economic growth as a result of its rating in the world.

Media speculations that the Economic Committee and the Cabinet do not agree was denied by both sides, evaluating their cooperation as constructive discussions and decisions. However, said Sandra Svaljek, the vice-president of the Economic Council, it is normal that differences in opinion occur.

“We bring forward our stances and in principle we try and change the point of view, which is very important in this situation. The cabinet either accepts or does not accept our advice, and it is normal that there are discussions in order to bring the final decision” says Svaljek.