Croatian gov't adopts national reform plan

Croatian government on Thursday adopted a wide range reform plan for the next 18 months aiming at boosting economy, creating employment and reducing public debt.

Prime Minister Tihomir Oreskovic called for citizens to support, saying "the reforms are fair but necessary."

The government planned to increase its gross domestic product (GDP) to 2 percent this year from 1.6 percent last year when its economy coming out of a six-year recession, Oreskovic said at a news conference after a governmental session discussing the plan.

The government would reduce public debt to 80 percent of GDP by the end of 2019 from the current 87 percent of GDP.

The government also tries to cut red tape and reduce non-tax fees on businesses, Oreskovic said, adding it would enhance public administration efficiency and transparency by reducing the number of government agencies.

The reforms of pension and health sections, improving the efficiency of state-run companies, simplifying tax system are also included in the plan.

The government proposed to raise age of retirement from 65 to 67 years, to privatize a portion of its non-strategic assets, as well as to start taxing property from 2018.

Croatian government will submit the reform plan to the European Commission (EC) by the end of April and it expects to receive recommendations from the EC in mid-May. Endit